Middle East tensions and volatile oil prices took centre stage at African Energy Week in Cape Town, where ministers, executives and investors weighed the risks – and potential opportunities – for the continent’s energy sector.
Mohamed Mahmoud Sidi Betam, Director for Africa and the Middle East at Holt Energy Advisers, said companies looking to spread their exposure could increasingly turn to African producers.
“Of course, what’s happening now in Middle East is affecting the industry everywhere, but we see that as an advantage for Africa because the companies right now are looking to diversify their portfolio. And Africa is in a very good position to be a part of this new supply,” he said.
Silvia Carmen, Deputy Director General of VidaSeguros EG, SA, said attracting investment remained crucial despite higher energy prices.
“We are talking about African companies to invest. So we need all those companies that they have interest and that they have opportunities in African countries to come to see that there are opportunities also in our country,” she said.
For companies already operating in oil and gas, price swings are also shaping spending decisions.
“As we specialise in well control, where the oil price has an impact is on the margin of the operators that will tend to cut down spendings that they look at, not necessarily it does has an impact on our engineering side, but oil, whether it’s at $10 a barrel or $150 a barrel, it burns the same way,” said Yana Merabaam of CUDD.
Organisers expected more than 10,000 delegates at the five-day conference, with discussions spanning new projects, financing and Africa’s role in diversifying global energy supplies.
The gathering comes as disruption around the Strait of Hormuz continues to constrain oil and LNG flows, keeping energy markets exposed to further shocks from the Middle East conflict.
Source: Viory
