A New Mindset is Required to Ensure the Competitiveness of Africa’s Oil Sector
With its extremely abundant natural resources, African can quickly reposition itself as an attractive and competitive destination for exploration investment if it is willing to implement quick policy gains
As exploration dollars become scarce and global competition increase to attract capital and technology into exploration, the committee came up to the bitter conclusion that Africa needs to do a better job at attracting investment.
While Africa’s geology and highly-promising sedimentary basins offer relatively low risks for explorers, the above-the-ground risks linked to red tape and the sanctity of contracts remain major obstacles to increasing investments into exploration. Unfortunately, other global frontiers continue to perform better in offering attractive PSC terms and jurisdictions for explorers and investors, especially in South America. In comparison, several African markets remain seen as risky and promoting legislations that deter investments.
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