Africa .. great oil wealth and huge challenges

Nigeria has long been known for its oil wealth, and although Angola has enjoyed the same advantage, decades of endemic corruption have chased foreign investors.

Currently, Namibia joined the African oil conversation as one of the continent's most oil-friendly systems.

Emerging markets are the place to find important oil wealth, although exploiting it is a challenge.

Nigeria .. How to expel investors?
In a report published by the American website "Oil Price", author Meredith Taylor said that Nigeria occupied its position in the world of hydrocarbons as the largest oil producer in Africa, but investors believe that this leadership is about to end.

Nigeria has about 37 billion barrels of oil reserves. Although there are about 32 active oil platforms there, only 81 wells were drilled during the past year, compared to about 141 wells in 2014.

Since oil prices began to decline in 2014, the government has taken over more oil companies, with new taxes and legislation being imposed.

Currently, the government wants to pay big companies - like Chevron, Shell and Total - about $ 62 billion.

The author indicated that Chevron is seeking to sell many Nigerian oil fields, and Exxon and Shell are also working to reduce their presence in the country.

Currently, Nigeria is proposing new legislation that will increase taxes on the oil industry, as the bill will add from 3% to 10% of the concession rate for oil prices ranging between $ 50 and $ 80 a barrel.

The current system gives Nigeria between 60% and 70% of all deepwater revenues, including taxes and concession fees, along with Nigeria's state oil company’s share of production.

Angola .. reforms that may not be enough
The author stated that although Angola is Africa's second largest oil producer, it is mired in decades of enduring corruption.

Despite a new system of power and reforms, investors are not convinced of this idea. Indeed, Angola hopes to sell stakes from state oil company Sonangol and a series of other energy companies, as it depends on major economic reforms to attract investors and money.

The author stated that the goal is to offer an initial public offering to Sonangol in 2022. In addition, the government hopes to attract investors to buy stakes in Puma Energy and the Ivory Coast refinery, Sir.

In contrast, only two years have passed since the change in the Angola regime, and investors do not seem to be completely convinced.

According to the author, in 2017, Joao Lawrenco took power, ending his four-decade-long march of Jos Eduardo dos Santos, along with his daughter's mismanagement of Sonangol.

In addition, the government made it easier for investors to return funds through commercial banks, as it became possible to invest in the sector without a local partner. There was also a 50% reduction in taxes on some oil fields, and the creation of an independent authority to manage oil and gas concessions. On the other hand, some of the greatest potential has emerged on the continent.

Namibia .. starting from scratch
The author pointed out that Namibia - the country that has never produced a barrel of oil - is the latest addition in the investment world, because it contains the potential for new discoveries at a time when it is increasingly difficult to reach, and better yet, it has a supportive system for investors.

For this reason, Exxon recently acquired an additional seven million acres of government, compared to a mass extending from the shore to about 135 miles offshore, and in waters up to 13,000 feet deep.

It should be noted that what Exxon is betting on is the Namibian participation in the same geology found in the pre-salt basins in Brazil, Santos and Campus, which have already proven to be rich in resources, according to Deloitte.

The writer added that Kavanjo is a 6.3 million-acre basin, possibly an underdeveloped stone.

The entire basin is owned by a small company called "Ronconsence Energy Africa" ​​which recently received 90% interest in the Cavanjo oil drilling permit, and the remaining 10% is owned by the Namibian State Oil Company.

When Roxonnes Energy Africa transferred magnetic meteorological data from the basin to Geophysical Translator Bill Cathy, he said the data showed there were as many as 30,000 sedimentary basins.

And the author explained that the exploration permit includes 25 thousand square kilometers, and many companies usually have rights in this large area, while one company owns Cavanjo - "Rocconsence Energy Africa" ​​- because it has a similar geology for the shells of Shell in South Africa.

In addition, Recon targets the same throwing rocks at the bottom of the Caro Collection.

And when it comes to prospecting, Africa is one of the final frontiers for oil investors. And if it is the beginner explorer who is discovering a valuable rock field, this will be a strength for investors.

The author indicated that there were many new companies in Namibia, but none of them had a large pool. In fact, not only does Rocconsence Energy Africa own the entire basin, but they also have a four-year exploration license, which leads to a 25-year production license if there is a commercial production discovery.

Resource assessment company Sprawl has estimated that Cavanjo has 12 billion barrels of oil and 119 trillion cubic feet of natural gas.

It is planned to dig the first well in Cavanjo in the second quarter of 2020, where this junior explorer (Recon) hopes to achieve good results.

Other companies are looking for the next oil border
The author stated that Halliburton is one of the largest oilfield services companies in the world, and in order to stay ahead, the company was familiar with the most important technological developments.

Schlumberger also posted strong financial statements for the second quarter of this year, as revenue and profits exceeded expectations.

The writer mentioned that the oil and gas company "Haski Energy" seeks to achieve success, as it strengthened its presence in the most famous oil regions on the planet.

As for Sancor Energy, it is one of the biggest names in the energy field that has relied on a number of high-tech solutions to find, pump, store and deliver its resources.