Business
Eastern Africa: Scene of latest scramble for Africa’s oil
East African Rift Valley – Source: Tullow Oil
Africa’s new scramble for oil is heading east, where the potential could be huge but the risks are far higher than in the well-established sector on the continent’s west coast.
Waters off East Africa have yet to produce a commercially viable oil source but gas discoveries off Mozambique and Tanzania have prompted lots of interest.
On shore, Uganda discovered commercial quantities of hydrocarbons in the Lake Albert rift basin along its western border with Democratic Republic of Congo, and exploration firms including Tullow Oil estimate reserves of up to 2.5 billion barrels with production expected to start in 2012.
The potential for a new African oil region to the east could have profound implications for global supplies.