UK supports growth and development of East African oil and gas sector - African Business Magazine
Close
UK supports growth and development of East African oil and gas sector

UK supports growth and development of East African oil and gas sector

The discovery of oil and gas can be a defining moment for nations. Managed well, it can have a transformative impact; boosting economies and fuelling inclusive growth across the board.

But without the right systems in place, a sudden boom in the extractives sector can have debilitating effects – including distorting economies and fostering conflict and insecurity.

East Africa has now secured its position as a big player for hydrocarbon exploration on the world stage. Major gas reserves in Tanzania and Mozambique. Substantial deposits of crude oil in Uganda and Kenya. The opportunities are huge. Now is the time to look to the hard lessons learned elsewhere and ensure the benefits are widely felt.

The UK is well placed to help. Over 50 years of experience in North Sea Oil and Gas has given the UK a global competence in all aspects of exploration and production. The Oil and Gas industry supports over 375,000 jobs in the UK. The top 2 UK firms listed by market capitalisation are in the extractives industry (Royal Dutch Shell and BP), and there is a wealth of UK companies leading the way in designing, financing and implementing oil and gas construction projects across the world.

The marine and subsea market alone is worth roughly $25 billion worldwide, with the UK accounting for almost half of that. British companies are also leading on wider oil-related infrastructure. 70% of current subsea infrastructure design is engineered in Scotland. And our firms are leading in consultancy and finance as well as construction.

British companies are working in this region to bring the investment, skills and knowledge which will help to drive the sector’s growth. Tullow Oil of course is a major player here in Kenya, and also very active in Uganda where they are one of 3 main operators.

Other companies such as BG Group and Ophir Energy are leaders in offshore gas exploration and have a presence in the region. These companies are committed to adding value into the East African economy, building local expertise and creating jobs.

Education and developing local content are also emerging as key areas for partnership. The University of Aberdeen last year teamed up with the University of Dar es Salaam on a $2m grant to help develop Tanzania’s oil and gas sector by developing local human resource capabilities. The 2 universities are working together to develop a curriculum across a range of energy-related disciplines including engineering, geosciences, social science, business and law.

UK companies are investing in education through scholarship programmes. The Tullow Group Scholarship Scheme has helped bridge the skills gaps in the oil and gas sector within the countries in which Tullow operates. 76 Kenyans have been awarded scholarships to UK universities and received postgraduate qualifications in the energy sector. BG Group runs a similar programme in Tanzania, with 34 scholarships having been awarded since 2012. The beneficiaries have all since returned to Tanzania, and have been recruited by locally-based oil and gas companies.

On a government level, the UK – with support from Germany – has designed the Skills for Oil and Gas Africa programme to maximise local employment in the regional oil and gas sector. The programme focuses on Kenya, Uganda, Tanzania and Mozambique, working closely with the private sector and government to equip local populations with the skills needed to seize job opportunities in the sector. The 5-year project is expected to help around 32,000 local people find sustainable jobs, with a contribution of £25m from UK Aid.

With the new discoveries of oil and gas across the region, we must get the business environment right for the exploitation of extractives in a sustainable and equitable way. We need to encourage investment whilst ensuring local populations benefit from revenues.

Critical issues remain around how revenues are shared between local communities, at county and national level. This is important to balance the benefits to countries as a whole and to ensure that the security and enabling environment in the oil producing areas is right.

The UK has long championed greater transparency in the oil, gas and mining sectors. We were instrumental in establishing the Extractive Industries Transparency Initiative (EITI), which sets a global standard for all extractives companies to report what they pay to governments, and for governments to report what they receive. The EITI has now been implemented by 51 countries (including the UK), and has so far seen disclosure of more than $2 trillion in revenues.

We have committed $30m towards the development of local content, technical advice towards developing legislation and regulation, research, and engagement with the industry and civil society.

And this year we started supporting the integrated planning for the LAPSSET Corridor. Substantial infrastructure investment is required in roads, railways, ports, power lines – all under the ‘LAPSSET’ banner which will enhance national and local revenues.

Ladies and gentlemen, the Industry in this region is not without challenges, but the future looks bright. And that’s been down to the willingness of East African Governments to come together – working with each other, with the UK, and with other partners – to resolve some of the biggest issues facing the region. This is a time of historic opportunity, and the UK – with its world-renowned expertise and skills – remains the ideal partner to help you realise this potential.

Distributed by APO on behalf of United Kingdom Foreign and Commonwealth Office.

Media files
United Kingdom Foreign and Commonwealth Office
Download logo

Rate this article

Author Thumbnail
Written by African Business Magazine

African Business and its award-winning team is widely respected for its editorial excellence. We provide the all important tools enabling you to maintain a critical edge in a continent that is changing the world. Our special reports profile a wide range of sectors and industries including Energy, Oil and Gas, Aviation, Agriculture to name but a few.

Related Posts

  • StateCraft works on third successful presidential campaign, congratulates President-elect Akufo-Addo

    StateCraft Inc. (http://StateCraftinc.com), a communication agency on the Nana Addo Akufo-Addo presidential campaign, would like to congratulate New Patriotic Party’s (NPP) candidate Nana Addo Dankwa Akufo-Addo on his successful bid for president of the Republic of Ghana.

    “It has been an enormously invigorating voting process for the Ghanaian people. These elections were about the Ghanaian people and choosing a leader for the future, and they chose Nana Addo Akufo-Addo as the man who will lead their country in a positive direction. We send our heartfelt congratulations to Mr Akufo-Addo on his victory and we celebrate with the people of Ghana on their successful election process,” said Adebola Williams, who is chief executive of the firm.

    The Africa-focused governance communication firm consulted with the presidential campaign on communication, developing and executing strategy that delivered content that cut across social media, television and print. StateCraft was also the official communication agency for the successful Muhammadu Buhari presidential campaign in 2015, delivering a rebranding strategy and delivering victory.

    Distributed by APO on behalf of StateCraft.

    Media contact:
    remi@statecraftinc.com 
    +233202354309

    About StateCraft

    StateCraft (http://StateCraftinc.com) is Africa’s leading governance communication firm, with a mission to galvanise a generation to make informed choices. It is a subsidiary of Red Media Africa, an innovative media group focused on exciting and empowering an evolving generation of Africans through the media’s limitless possibilities.

  • The European Union Stands Up For Prisoners

    As the world celebrates International Human Rights Day, the European Union Delegation to Liberia has announced support for two new projects to improve conditions in prisons in Liberia funded through the European Instrument for Democracy and Human Rights (EIDHR).

    Speaking about the decision to fund these projects, European Union Ambassador Tiina Intelmann said “Human rights apply to everyone, including prisoners. For the European Union, standing up for someone’s rights means not just speaking out, but taking action to change things. Permanent solutions to the challenges facing Liberia’s criminal justice system will take time, but the European Union believes there are practical steps that can be taken now to improve conditions for prisoners.”

    The projects, which will start in January, will cover six counties. One project will be implemented by FinnChurchAid, the Association of Female Lawyers of Liberia (AFELL) and the Rural Human Rights Activists Programme (RHRAP) in Lofa, Bong and Nimba. The other will be implemented by the International Federation of Christians against Torture, and their local partner Association of Christians Against Torture (ACAT), and will be implemented in Bomi, Montserrado and Margibi. European Union funding will be EURO 500 000 (approx. USD 530 000) and EURO 426 500 (approx. USD 453 000) respectively.

    Distributed by APO on behalf of Delegation of the European Union to Liberia.

    Media files
    Delegation of the European Union to Liberia
    Download logo

  • The AU concludes the consultative meeting on clearance of Anti-Personnel Mines, Cluster Munitions, and Explosive Remnants of war in Addis Ababa

    The African Union (AU), concluded, yesterday, the consultative meeting on enhancing assistance and coordination in the implementation of article 5 of the Anti-Personnel Mine Ban Convention (APMBC) and article 4 of the Convention on Cluster Munitions (CCM). The meeting was held, from 6 to 7 December 2016, within the framework of the AU Mine Action and Explosive Remnants of War (ERW) Strategic Framework.

    The meeting brought together the AU member States Party to the APMBC and the CCM which have completed, or are yet to complete, their clearance obligations, as well as the key international partners and humanitarian demining agencies that are active on the continent. It provided the participants with the opportunity to review the progress made over the past years in completing clearance of mines, cluster munitions and explosive remnants of war on the continent, as well as discuss and agree on concrete action points required to address the remaining bottlenecks towards achieving the goal of eliminating the threat of landmines by the year 2025, as aspired to in the declaration adopted by the 3rd Review Conference of the APMBC, held in June 2014 in Maputo.

    The meeting concluded with a set of action points, including modalities to enhance national and international funding for mine action programs, fostering inter-African cooperation, building sustainable national capacities for mine clearance, as well as advancing clearance in border areas within the framework of the AU Border Program through enabling inter-state collaboration and coordination.

    Distributed by APO on behalf of African Union Peace and Security Department.

    Media files
    African Union Peace and Security Department
    Download logo

  • The Federal Council extends the freezing of assets of several individuals from Tunisia, Egypt and Ukraine

    At its session on 9 December 2016 the Federal Council decided to extend by one year the freezing of all the assets in Switzerland of ousted presidents Ben Ali (Tunisia), Mubarak (Egypt) and Yanukovych (Ukraine) as well as of politically exposed members of their entourages and other persons closely associated with them. The aim of this decision is to give more time for the criminal investigations under way and to support judicial cooperation with the countries concerned. It also takes into account the political changes taking place in these countries.

    In the cases of Tunisia and Egypt, at the beginning of 2011 the Federal Council ordered the preventive freezing for a period of three years of all the assets in Switzerland of ousted presidents Ben Ali and Mubarak as well as of politically exposed persons in their entourages and other persons closely associated with them. It subsequently extended this measure by three years, as a result of which the freeze on the Tunisian assets expires in January 2017 and that on the assets from Egypt in February 2017. In the case of Tunisia, assets amounting to approximately CHF 60 million have been frozen. In the case of Egypt, assets amounting to some CHF 570 million are involved.

    The Federal Act on the Freezing and the Restitution of Illicit Assets held by Foreign Politically Exposed Persons came into force on 1 July 2016 and governs the duration of freezes and extensions to them. It is possible to extend an asset freeze by one year if the state of origin expresses its willingness to cooperate within the framework of mutual legal assistance. A freeze can be extended on this basis for a maximum of ten years.

    Almost six years after the entry into force of freezes on assets from Tunisia and Egypt, a considerable number of proceedings have been initiated against the main protagonists, and the authorities of these countries have expressed their wish to cooperate with Switzerland in the context of mutual legal assistance. However, establishing the illicit origin of frozen assets requires either confiscatory jugdments or settlement agreements sanctioned by the judicial authorities of the countries concerned. The Federal Council’s decision to extend the freezing of assets is warranted because the objective has not yet been fully met. This one-year extension is expected to yield tangible progress in pending proceedings and make it clearer whether the assets in question are likely to be returned.

    In the case of Ukraine the situation is different because the initial freeze took place more recently. It was ordered by the Federal Council in 2014 for a period of three years, which means that it expires for the first time in February 2017. Assets amounting to approximately CHF 70 million are involved. Criminal investigations have also been initiated against a large number of individuals targeted by this measure and several requests for mutual legal assistance have been addressed to Switzerland. Although these requests have resulted in significant interim findings, more time is needed to enable the ongoing criminal proceedings to be concluded. The freeze imposed by the Federal Council therefore fulfils its purpose in every sense, which suggests that it will be prolonged for a further year.

    Shortly before the three freezes expire at the beginning of 2018, the Federal Council will re-evaluate the situation in each of the three countries concerned. It will then decide whether the freezes on these assets will be prolonged on the basis of the progress made in the respective legal proceedings.

    Distributed by APO on behalf of Federal Department of Foreign Affairs Switzerland.

    Media files
    Federal Department of Foreign Affairs Switzerland
    Download logo

  • Concerns of the Poultry Industry

    The dti has noted the concerns raised by the poultry industry in South Africa especially in relations to the increase in imports of poultry products. The Government through the dti and the Department of Agriculture, Forestry and Fisheries (DAFF) has been working with the domestic industry to address the challenges in the industry. 

    Over the last 3 years, upon application by the industry through the International Trade and Administration Commission (ITAC), a number of actions were taken by the Government to address the challenges in the industry.  The actions vary from increase in tariffs covering a number of poultry products in line with South Africa’s international commitments, imposing trade remedies where evidence indicates dumping of poultry in the South Africa market or where there is a surge in imports.  

    In 2013, the import duty on a number of poultry products was increased significantly. Therefore, the current import duties for chicken imports from countries like Brazil and the United States are as follows:

    • whole bird: 82%
    • carcasses: 31%
    • boneless cuts: 12%
    • offal: 30%
    • bone-in” portions: 37%

    The above import duties are not applicable to imports from the European Union (EU) since South Africa has a preferential trade agreement with the EU. However, in 2015 anti-dumping measures ranging from 3,86% to 73,33% were imposed on frozen bone-in chicken pieces from Germany, the Netherlands and the United Kingdom. The International Trade Administration Commission of South Africa has also initiated a safeguard investigation in regard to the surge of imports of frozen bone-in chicken pieces from the EU and this investigation is far advanced. 

    The dti and DAFF are further continuously working on opening new markets for our poultry exports. Recently new markets in the Middle East have been opened and present a further opportunity for export to the domestic poultry industry in South Africa. Furthermore, the dti is in the process of considering the designation of domestic poultry products for purposes of public procurement.

    Furthermore, a national committee has been established by the dti that includes DAFF and the industry that will consider all the challenges experienced by the domestic poultry industry and develop a comprehensive strategy to address these challenges in a holistic and sustainable manner.

    The industry is welcomed to approach ITAC through the normal processes should further support be required and on the basis of information presented by the industry, appropriate action can be taken by Government.

    A number of countries are currently experiencing Highly Pathogenic Avian Influenza outbreaks and consequently, in line with the guidelines of the World Organisation for Animal Health, South Africa has placed a ban on imports of poultry from Denmark, France, Germany, Hungary, Israel, the Netherlands and Poland. DAFF is closely monitoring the developments in regard to these outbreaks and will take the appropriate actions to address any health and safety concerns.

    Distributed by APO on behalf of The Department of Trade and Industry, South Africa.

    Media files
    The Department of Trade and Industry, South Africa
    Download logo

  • Expert to discuss Illegal Wildlife Trade and Cheetah Trafficking with Journalists

    Please join us on Wednesday, December 14, 2016 at 02:45 PM a media briefing with Patricia Tricorache, Assistant Director, Strategic Communications and Illegal Wildlife Trade Cheetah Conservation Fund, who will provide an introduction to the Cheetah Conservation Fund and an overview of cheetah trafficking. She will explain why combatting illegal wildlife trafficking matters and how media can help to stop it. She will also share recent developments concerning cheetahs from the Convention on International Trade in Endangered Species of Fauna and Flora (CITES) COP17 meeting held in Johannesburg, South Africa and discuss multilateral collaboration in the region.

    You are invited to attend this briefing:

    Date: December 14, 2016, 02:45pm
    Venue: American Center (NALA) (Womezekir)
    Please RSVP to Zelalem Befekadu (091-150-9522) or Rahel Zewdu (096-128-4012).

    Patricia Tricorache, Assistant Director, Strategic Communications and Illegal Wildlife Trade

    Cheetah Conservation Fund (CCF)

    Patricia joined CCF in 2001, bringing with her a unique and diversified expertise resulting from +30 years in the private and public sectors at national and international levels. Her experience includes 15 years of public affairs and marketing for a Fortune 5 consumer goods corporation, as well as six years of public relations and international trade at a Mexican semi-private industrial development bank.

    When Patricia began tackling the issue of illegal cheetah trafficking in November of 2005, little was known about the magnitude of this illegal trade. It was then that, together with CCF’s Executive Director, Dr Laurie Marker, Patricia organized the confiscation of two cheetah cubs held illegally at a restaurant in a remote area of Ethiopia. The confiscation took place with the support of the Ethiopian authorities and the United States Embassy and military personnel, which attracted unexpected media attention. As a result, reports regarding cheetahs being sold or held as pets throughout the Horn of Africa and the Arabian Peninsula began pouring in. It was then that she began collecting data on illegal cheetah trafficking. She also initiated a support network in relevant areas, organized confiscations whenever possible, and conducted research on numbers, routes, and drivers for demand and supply. 

    CCF’s illegal cheetah trafficking database became the most extensive in the world and was key to support the inclusion of this issue in the CITES 16th Conference of the Parties, following a proposal by Party countries Kenya, Ethiopia and Uganda.

    As CCF’s representative before CITES, she participated in an inter-sessional working group which culminated in a workshop in Kuwait, held in November 2015, where a group of 11 Parties and eight NGOs drafted recommendations that were adopted at the CITES 17th Conference of the Parties held in Johannesburg in September 2016. She has brought attention to the magnitude of cheetah pet trade on social media, and works with governments and other NGOs such as the International Fund for Animal Welfare (IFAW), the Rangewide Conservation Program for Cheetahs and African Wild Dog (RWCP), and the Born Free Foundation, among others, to put the CITES recommendations into action. 

    Distributed by APO on behalf of U.S. Embassy Addis Ababa, Ethiopia.

    Media files
    U.S. Embassy Addis Ababa, Ethiopia
    Download logo

Join our mailing list

If you would like Independent, Informative and Invaluable news analysis on the African continent, delivered straight to your inbox, join our mailing list.

Help us deliver better content