A Review of the Nigerian Energy Industry

N/Africa: Operators worry over effect of oil price fall on investments

11 December 2014, Algiers — Operators in hydrocarbons expressed Tuesday, in Algiers at the end of the North Africa Oil and Gas Summit, their concern about the impact of the fall in oil prices on their investments in the region in the medium and long terms.

Presenting their conclusions on this meeting (December 7-9), the operators said that the current prices which have reached their lowest level over the past 5 years, represent a “great challenge,” regarding the major projects which will be executed in the forthcoming years.

oil-rigFor them, the continued fall in oil prices will lead to a decrease in the companies’ profit margin, which will affect their investments.

On this occasion, these companies underlined the importance of strengthening the institutional stability and security in the region, particularly in Libya and Tunisia which plan to exploit shale gas and develop manufacturing industry.

Concerning the prospects of production, the operators underlined that shale gas is one of the future energy challenges, given the lack of advanced techniques for its exploitation.

They also warned against the impact of the competition of some western Mediterranean countries, particularly Cyprus, on the traditional gas and oil exporters in North Africa.

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