Major scramble for African fields

CAPE TOWN – Oil majors face intense competition to grab hold of new fields in Africa from emboldened state oil firms and from Asian companies.

US and European companies – the region’s traditional big players – will have to offer additional incentives to African countries to gain new reserves, analysts and oil men say. “I would not be complacent about the competition in Africa…I think that Africa is going to be extremely competitive in the next 12 to 24 months,” said Jeff Waterous, chairman of Canadian investment bank Scotia Waterous.”The factors in the Middle East are so volatile and other countries like Venezuela so radical towards Western interests while the aggressiveness of these Asian companies is such that you’re going find real intense competition at all levels.”Although Africa only accounts for 9,4 per cent of world oil reserves, it is home to more than half of the opportunities for private companies to expand in coming years, he told the African Upstream oil conference in Cape Town.Dominating African production currently are majors such as ExxonMobil, Royal Dutch Shell, Chevron and Total.China is a big player in the push to secure oil reserves and production in Africa, but other major players include Malaysian state firm Petronas, as well as Indian, Korean and Japanese firms.”There is a new competitive landscape throughout the world and in particular on the African continent,” said Duncan Clarke, chief executive of consultants Global Pacific and Partners.”The Asians…are doing all the usual things, buying assets, moving into frontiers, opening up participations and coming in with a set of opportunities.”He said Petronas – with 24 ventures in 15 countries, including Egypt, Chad and Sudan in Africa – epitomises the drive for state oil firms to expand globally.Three state-owned or linked Chinese firms – China National Petroleum Corp (CNPC), PetroChina and Sinopec – are extending feelers into Africa, but coordinating to avoid conflict between them.”They all have, it seems, different targets and a degree of coordination in Beijing between the three,” Clarke said.China National Offshore Oil Corp (CNOOC), which lost out on a bid to take over US Unocal, has moved into Africa and is expected to dig into its unspent funds to continue expansion.-Nampa-Reuters”I would not be complacent about the competition in Africa…I think that Africa is going to be extremely competitive in the next 12 to 24 months,” said Jeff Waterous, chairman of Canadian investment bank Scotia Waterous.”The factors in the Middle East are so volatile and other countries like Venezuela so radical towards Western interests while the aggressiveness of these Asian companies is such that you’re going find real intense competition at all levels.”Although Africa only accounts for 9,4 per cent of world oil reserves, it is home to more than half of the opportunities for private companies to expand in coming years, he told the African Upstream oil conference in Cape Town.Dominating African production currently are majors such as ExxonMobil, Royal Dutch Shell, Chevron and Total.China is a big player in the push to secure oil reserves and production in Africa, but other major players include Malaysian state firm Petronas, as well as Indian, Korean and Japanese firms.”There is a new competitive landscape throughout the world and in particular on the African continent,” said Duncan Clarke, chief executive of consultants Global Pacific and Partners.”The Asians…are doing all the usual things, buying assets, moving into frontiers, opening up participations and coming in with a set of opportunities.”He said Petronas – with 24 ventures in 15 countries, including Egypt, Chad and Sudan in Africa – epitomises the drive for state oil firms to expand globally.Three state-owned or linked Chinese firms – China National Petroleum Corp (CNPC), PetroChina and Sinopec – are extending feelers into Africa, but coordinating to avoid conflict between them.”They all have, it seems, different targets and a degree of coordination in Beijing between the three,” Clarke said.China National Offshore Oil Corp (CNOOC), which lost out on a bid to take over US Unocal, has moved into Africa and is expected to dig into its unspent funds to continue expansion.-Nampa-Reuters