The Well Delivery Manager of Tullow Oil Ghana, Elike Mawuli, has stated that the future success of Africa’s onshore and offshore oil activities largely depends on stakeholders’ collaboration through a transparent and accountable process to propel a growth agenda.
He said governments; regulators, companies and service providers have huge roles, which hinge on the actions they take in respecting the sanctity of contracts and consistency of taxation.
Transparency & stability of regulation
Speaking at a panel session at the just ended West Africa International Petroleum Conference and Exhibition (WAIPEC 2019) in Lagos on the topic “how the impact of the oil sector in Sub Saharan Africa plays out over the next five years,” he said there is also the need for transparency, good governance, stability of regulation and speed of decision-making.
The Well Delivery Manager said international oil companies (IOCs), therefore need to operate efficiently and effectively, reduce costs and create stakeholder value through operational excellence supported by innovation and technology
The continent, he said has quality exploration potential, evidenced by the existing developments awaiting approval, significant existing production and a highly skilled workforce.
“This makes onshore and offshore production activity very competitive and Africa has taken steps to grow and strengthen structures in its oil and gas sector which makes it more attractive,” he said.
In the areas of current developments and challenges facing the industry, Mr Mawuli said among these encounters is the price of oil, which remains a challenge in an uncertain oil price environment.
“Under these conditions we need to make sure our projects are economically robust and harness positive conditions for a sustainable business and a basis for future growth,” he said.
On global competition, he said the United States shale has and will continue to be a major competitor for funds, saying, “They are the key competitors for conventional oil. And there is major competition between conventional oil provinces where actions by governments … can be the key differentiator.”