Cape Town - Despite tough challenges and the need to "keep a laser focus on costs", Africa continues to offer opportunities for the oil industry, according to Dave Wilkin, ExxonMobil's new opportunity exploration manager for Africa.
The key to long term pathways to profit on the continent now lies in partnerships, he emphasised at the 22nd Africa Oil Week taking place in Cape Town.
"Countries in Africa with good fiscal regimes will attract investors. Governments must offer transparent, long term relationships and an environment of long term stability," explained Wilkin.
"Yet, many laws are currently being made which actually scare away investors. This while every investment of $1 in the oil industry adds $4 to the gross domestic product of a country and creates two jobs."
Eleven of the top 20 oil and gas discoveries since 2014 have been drilled in Africa and this will likely be surpassed in 2015.
Wilkin offered five critical elements to be profitable in Africa's oil industry.
These are appropriate geology for commercial exploration, a commercial framework in place from the start, use of the latest technologies, skill and discipline to explore safely and efficiently and shared partnerships over at least 20 years.
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For him the commercial framework must have a good balance between the awareness of the risk involved and the reward that could be gained.
It is also important not to forget the socio-economic development aspects of the relationship between a company and the host nation where it is exploring.
A representative of Oando Energy Resources, a leading independent oil explorer and producer in Nigeria, said the company expects the oil price not to go higher than $60 a barrel for the next 12 to 18 months.
The company does not see the price going as low as $20 a barrel and neither up to $80 a barrel over this period.
"The low oil price has benefited the industry in that it has created synergies and a search for new ways to optimise costs," said the representative, who stood in for Oando chair Jubril Tinubu at short notice.
"There will be consolidations between those who have cash and those who don't."
In his view the continued increase in oil consumption in Africa will in itself be a big factor in finding a market for the oil explorations that will be done on the continent.
"We see an Africa that will continue to play a significant role in the world and we see opportunities for the increased participation for independent oil explorers and producers," he said.
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