Showing posts with label Africa. Show all posts
Showing posts with label Africa. Show all posts

Wednesday, July 29, 2009

IFC to Drill More $$$ into African Oil

The IFC plans to increase investment in sub-Saharan African oil and gas; it sees "'significant' opportunity in Ghana, Uganda and Tanzania."

"Africa is a focus region for us,” Kamal Dorabawila, the IFC head of oil and gas in Africa, said in an interview from Cape Town today.

The lending arm has invested in $400 million to Africa, about 19 percent of its global oil and gas total, he said.

Ghana expects to pump 500,000 barrels of oil a day by 2014 as it seeks to boost supplies to the domestic market and become Africa’s newest crude exporter. Tullow Oil Plc. has drilled 25 wells in the Lake Albert Rift Basin in Uganda since January 2006, of which 24 found oil and gas.

IFC, Standard Chartered Bank Plc, BNP Paribas SA, Societe Generale SA, Absa Group Ltd. and Calyon are among financial institutions that helped Kosmos Energy LLC get a $750 million loan to fund Ghana’s Jubilee Field phase one development.

Jubilee “is a world class oil discovery” and Ghana’s offshore is a highly prospective area, Dorabawila said.


- Brewskie

Tuesday, June 30, 2009

Surprise Fact: Africa Alone Can Feed the World?

(Hat tip: the always amusing Peak Energy)

Africa's lost history always leaves me vexing: what could have been had the Europeans not embarked on their infectious colonialism of Mother Earth's tragic continent? Well, it appears Africa's enigmic nature leaves us perplexed in the present, too (link):

DOOM-MONGERS have got it wrong - there is enough space in the world to produce the extra food needed to feed a growing population. And contrary to expectation, most of it can be grown in Africa, say two international reports published this week.

The first, projecting 10 years into the future from last year's food crisis, which saw the price of food soar, says that there is plenty of unused, fertile land available to grow more crops.

"Some 1.6 billion hectares could be added to the current 1.4 billion hectares of crop land [in the world], and over half of the additionally available land is found in Africa and Latin America," concludes the report, compiled by the Organization for Economic Cooperation and Development and the UN Food and Agriculture Organization
(FAO).

If further evidence were needed, it comes in a second report, launched jointly by the FAO and the World Bank. It concludes that 400 million hectares, straddling 25 African countries, are suitable for farming.

Models for producing new crop land already exist in Thailand, where land originally deemed agriculturally unpromising, due to irrigation problems and infertile soil, has been transformed into a cornucopia by smallholder farmers.

As in Thailand, future success will come by using agriculture to lift Africa's smallholder farmers out of poverty, aided by strong government measures
to guarantee their rights to land, say both reports.


Here's a recent article about Russia's vast, unrealized agricultural potential:


Russian President Dmitry Medvedev this weekend proudly hosted a world grain
forum in his home city of Saint Petersburg, promoting Russia as a major player
in agriculture and warning that hunger remains a global problem.

“In the next 10-15 years we are planning to bring the volume of Russian
grain exports to 40-50 million tons, increasing our share of the global market
to 20 percent,” said Agriculture Minister Yelena Skrynnik.

“Russia is not only about gas, oil and metals. We also have great grain
resources,” she said. Last year, Russia exported 20 million tons out of a total
of 108.4 million tonnes of grain harvested.

[...]

Russia has tens of millions of hectares (acres) of chernozem (black earth), a dream soil because of its richness in humus, which is formed by the decomposition of plant matter by micro-organisms. The high humus content gives the soil an ability to retain moisture that makes it perfect for farming. The famous Black Earth region in the southwest of Russia covers an area approximately half the size of Germany.

But the fall of the Soviet Union led to vast tracts of arable land going fallow. Ex-Soviet states have lost 24 million hectares (59.3 million acres) of arable land — three quarters of it in Russia — since 1993, said Dmitry Rylko, head of the Russian Institute for Agricultural Market Studies. He added that by contrast 31 million hectares of arable land had been gained elsewhere in the world. “The Soviet authorities exploited a large part of the arable land but in a completely unproductive way,” he said, adding that the fall of the USSR led to a dramatic decline in demand and support in the sector.

Medvedev said that Russia would now be preparing cultivation of 20 million hectares of farmland that have fallen fallow since the Soviet collapse.

Thanks, Karl Marx, you've certainly helped the world progress nicely. Dmitry Orlov must have a bust of you on his mantle.

- Brewskie

Wednesday, June 10, 2009

The "New Gold" Rush in Africa

Europeans rapaciously plundered the continent of Africa for gold and other resources; now the thirst for oil has brought attention to Africa, and its untapped petroleum resources...

West Africa now offers "unparalleled opportunities" for major and independent oil and gas companies, writes Patrick Morris, CEO of Vancouver-based Gold Star Resources Corp. (OTCBulletinBoard: GXXFF) in the June 10th issue of
AFROIL, Africa Oil & Gas Monitor, an online publication of Newsbase Ltd.,
Edinburgh, Scotland read by subscribers in 25 countries (www.newsbase.com; Week 23; page 5 Guest Column). Morris, author of a news column published in AFROIL entitled "West African Oil Rush, Challenges", reported that changing geopolitics, reduced security and political risks, the recent 1.8 billion barrel discovery in West
Africa's largest oilfield, the Jubilee in Ghana, and a new African foreign policy by recently elected U.S. President Barack Obama have all helped in making West Africa a "desirable destination for oil and gas exploration and production."

According to Morris, "For a long time West Africa has been off the radar of the international community because of messy politics and brutal civil wars. Also, apart from Nigeria and Gabon, there had been the disappointing size of oil discoveries made at times of low oil prices. All this is now changing. Expectations by countries and oil & gas companies to discover new reserves in the region are high. Exploration and seismic research activities are underway in all countries of West Africa bar Burkina Faso and Cape Verde. Governments are also actively involved. For example, in Liberia, the National Oil Company of Liberia (NOCAL) is promoting oil and gas exploration and development of its hydrocarbon resources along its continental shelf and slope. The sub-region is also gaining global attention as calm has been restored to countries such as Liberia, Sierra Leone and Cote d' Ivoire, reducing security risks."


Among other things in Africa, it's been recently announced that Uganda's oil reserves may rival Suadi's (even if there's just a quarter of truth here, that's still magnificent), and Brazil, an offshore drilling superstar, has been expressing interest in Angola's sub-salt formations which are reportedly "very similar to Brazil's."

- Brewskie