Oil and Gas Exploration in the South Western Indian Ocean region

The recent findings of oil and gas in the South Western Indian Ocean (SWIO) region are resulting in a new and unexpected economic dynamic in this part of the Africa continent. Although not a totally new feature, sporadic exploration having taken place for several decades, the recent developments have been made possible by advances in drilling technology and made more urgent by rising oil prices and problems of accessing traditional sources of supply due to current conflicts in the Middle East.

Geographically the region is well placed to become one of the world’s major new suppliers of oil and liquefied natural gas (LNG) to energy importing countries. If approached in an environmentally responsible manner the recent oil and gas discoveries therefore represent a significant opportunity to escalate development and attainment of the Millennium Development Goals as well as a bridge to more sustainable energy sources in the longer term.

Significant reserves of off-shore natural gas have recently been found off the coasts of Mozambique and Tanzania (which may eventually include Madagascar). Furthermore, there are indications that the existing oil fields in Uganda and South Sudan extend into the Turkana and Marsabit regions of Kenya and southern Ethiopia and commercially viable off-shore oil prospects have improved with some recent oil exploration results. So far, most of the natural gas discoveries are off northern Mozambique and southern Tanzania in the blocks roughly due east of the Rovuma-Rufiji region, but further exploration for both oil and gas is also under way off the coasts of Kenya and Madagascar.