African oil states offer new deals to lure more selective investors
SEE ALSO :RUGBY:Round of 16 starts on February 8Ghana’s Adam was not alone in announcing plans to revise oil and gas licensing laws in an effort to spur output. Ministers from Angola, Cameroon and Gabon also stressed changes to legal and fiscal terms to boost their own production. “We are aware that oil companies have to spend a lot of money. That is why we are careful in the way we design our (terms) to have it as a win-win,” Gabon’s petroleum minister Noel Mboumba said at the event. As renewables and efforts to cut fossil fuel consumption gain ground, there are also growing concerns that the world will not need all of Africa’s oil. “We don’t know how much new supply we’re going to need. So obviously everybody is going to have to be competitive for that,” Andrew Latham, vice president of global exploration at Wood Mackenzie, said.
SEE ALSO :Crude oil pipeline to employ 7,000Nigeria, the continent’s largest producer, last week increased the amount oil companies pay the government for offshore production, while an overhaul of its oil and gas terms has languished for more than a decade. Senate president Ahmad Lawan said the revisions would raise revenue while allowing companies to make money - and the government has promised to pass the broader bill next year. Companies and analysts said reforms are needed. “The continent has to compete for capital with other areas,” said Mike Sangster, head of Nigeria for French oil major Total. “It’s important that the regulators understand that.”
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