Uganda and nine other countries in Africa will spend US$194b on developing oil and gas fields between 2018 and 2025, according to projections by GlobalData, a major data and analytics company.
According to the report, Uganda Tanzania, Kenya, Senegal, Egypt, Algeria and Mauritania will share 29.2 percent of the total projected expenditure over the seven-year period.
Uganda has proven crude oil reserves of 6.5 billion barrels, about 2.2 billion of which is recoverable and preparations are underway to have the first crude oil produced by 2020.
Projections indicate that investment in the sector will approximately be US$8b (Shs27trillion) for the activities, including the drilling of about 500 wells and construction of associated infrastructure such as oil refinery and oil pipeline before the country can see first commercial production two years from now.
However on the African scene, the report says the US$194b, capital expenditure into conventional, unconventional and heavy oil projects would form US$88.9b, US$3b and US$1.9b tranches of the region’s capital spend respectively over the eight-year period.
“Conventional gas projects will require USD99.1b, while the investments into unconventional gas and coal bed methane (CBM) projects would total USD0.7b in upstream capital expenditure by 2025,” the company says.
Nigeria, Africa’s top oil exporter accounts for USD48.04b or over 24.8 percent of total capital expenditure into upcoming projects in Africa. The country has 24 announced and planned fields.
GlobalData expects 23.8 percent of capital expenditure in Africa to be spent in Mozambique over the next eight years.
Angola is expected to contribute about 11.3 percent to the total capital spending in Africa; the country has 8 planned and announced fields.