January
2016
Oilfield Technology
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13
presence on the continent. The players that emerge when
the oil price rebounds are going to be agile and ready to take
on the market. Players have started, but need to continue to
revisit and understand their core capabilities and evaluate
their business models continually to endure that they support
the long-term growth promise while remaining agile enough
to meet future challenges. Companies that have measured the
level of exposure to the low commodity price and introduced
appropriate measures such as cost reduction, portfolio
optimisation, strategy review and re-alignment, access to capital
and people management will prosper. The need for governments
in these harsh economic conditions to become more transparent,
reduce regulatory uncertainty with clear policies will in the long
run have lasting benefits to the African oil and gas industry.
The African oil and gas industry was chasing discoveries,
now it is chasing production, cash flow and operational
efficiency. The opportunities to reconfigure organisations, reset
relationships with suppliers, build healthier companies and have
operation synergies will make the companies more competitive
and agile with a lower cost base.
Figure 1.
Overviewof African oil andgas industry potential.
