OIL & GAS EMERGING EAST AFRICAN POWERHOUSE MOZAMBIQUE LEADS THE WAY Report by Lionel Williams In short: Crude and gas fields are being discovered in an increasing number of African countries, and a lengthening list of newcomers – among them Mozambique, Uganda, Kenya and Tanzania – are on the brink of production. In the process, East Africa – which has hitherto not figured on the global energy map other than as a cash-strapped importer of oil – could soon rival West Africa as a world-class producer of oil and gas. S ub-Saharan Africa’s oil and gas map will need to be redrawn over the coming decade as the region’s current heavyweight crude producer nations, Nigeria and Angola, are being joined by a lengthening list of African nations where crude and gas fields have recently been discovered and are on the brink of production. East Africa, which has hitherto not figured on the global energy map other than as a cash-strapped importer of oil, could soon come to rival West Africa as a world class producer of oil and gas. Uganda, Kenya and Tanzania, as well as Ghana and Nigeria, are among those that could see new fields producing over 100,000 bpd of oil by the end of the decade. The Mbawa-1 exploration well has encountered gas in the Apache-operated L8 licence area, offshore Kenya, But it is world-class gas finds over the past three years off the northern coast of Mozambique and South Africa that are garnering the most interest. Mozambique in particular has arrived on the world energy map and will be a major player in the liquefied natural gas (LNG) markets going forward. It seems destined to be catapulted from being one of the poorest countries in the region – and the world – into a rapidly industrialising economy. Along with new or existing fields in Tanzania, Kenya and Uganda, mounting interest is likely to generate a significant net increase in output as top global oil & gas companies, along with international banks, crowd into this new market searching for first- mover status. Besides Mozambique’s huge discoveries, two European companies (BG and Statoil) have each found smaller deposits in their off-shore exploration areas in Tanzania, and they and others are still exploring for more. In Uganda, large oil resources have been found south of Lake Albert, and the field is divided between three companies (Tullow, Total, and CNOOC). In Kenya, there is exploration for oil underway and the initial signs are promising. Then on the fringe of the region is South Sudan, which suspended oil production after independence because of disputes with Sudan, but could restart and may have significant additional, untapped potential. Nalubaale power station – often known by its old name, Owen Falls Dam – is a hydro-electric power station across the White Nile, near to its source at Lake Victoria in Uganda. 48 MINING REVIEW AFRICA ISSUE 11 2013 Each of these countries has emerged from centrally controlled economies producing tea, coffee, cashews, and