In recent years, East Africa has also emerged as an exciting prospect for international oil companies. The sharp drop in international oil prices since mid-2014 will have varying effects on African economies: a group of about nine countries will be severely negatively affected; many others will however benefit from the drop in oil prices, as it will provide a boost to consumers’ purchasing power and will reduce fuel subsidy costs for those governments that still provide subsidies.
This is especially a concern for East Africa, since billions of dollars’ worth of investment will be needed over the next decade to commercialise the region’s hydrocarbon resources. As onshore oil production costs in West Africa are generally low, oil companies are expected to continue to invest significantly in the region. This report examines Africa's oil and gas industry in greater detail.