Scotland eyes East Africa O&G Opportunities

With some of the largest offshore gas fields in the world, no local supply chain and an immediate and significant demand for skilled workers, East Africa creates significant opportunities for Scotland’s oil and gas sector.

Twelve Scottish organisations – from business and academia – with an interest in the oil and gas sector, are heading to Mozambique and Tanzania on March 18, to break into this exciting new pioneering market.

Organised by Scottish Development International (SDI), the international arm of Scottish Enterprise, and supported by UK Trade and Investment (UKTI) and Aberdeen City Council, the mission responds to a visit two years ago to Aberdeen by the then President of Mozambique, Guebuza, asking for Scotland’s support.

Leading the mission, SDI’s regional manager in Africa, Gary Soper said: “It’s a real endorsement of Scotland’s global reputation for skills, experience and training when the President of Mozambique asks for our support to help grow their oil and gas industry.

“East Africa is a pioneering market, and with 150 trillion cubic feet of gas discovered off the East Africa Coast in deepwater, Scotland’s unrivalled deepwater subsea delivery and offshore experience makes us the perfect partner to help bring it into production.”

"Look Abroad", Kemp advises Britain's North Sea Oil and Gas Firms

The North Sea has already produced 42 billion barrels of oil and gas, but could have as much as 24 billion barrels left, according to FT columnist Nick Butler (“Don’t abandon the North Sea” Feb 22).

For North Sea operators and their supporters, the remaining reserves provide a compelling economic reason to keep producing to avoid leaving value locked in the ground.

The reserves represent tens of billions of dollars in profits, wages and tax revenues that would be lost if the North Sea fields are abandoned prematurely.

North Sea reserves have a strong political dimension because most operators and service companies are based in Scotland, where separatist sentiment remains strong despite the rejection of independence in last year’s referendum.

The economic reality is more complicated. The notional value of the oil and gas that would remain locked in the ground is not a convincing reason why it should be developed. In a market-based economy, resources are developed only if they can be extracted profitably.

And there are many instances where resources have been left in the ground or abandoned because it was no longer possible to exploit them profitably.