West Africa is a promising area for oil and gas exploration, as there have been many significant discoveries there, but because of its vast size, it remains largely unexplored. This is exciting to many oil and gas companies looking to extract natural resources to support the world’s need for energy. There are three main reasons why oil and gas exploration in Africa is a hot topic.
“The variety of crude found in Gulf of Guinea is known in industry parlance as ‘light’ and ‘sweet’, meaning it is viscous and low in sulfur, and therefore easier and cheaper to refine than, say, Middle Eastern crude, which tends to be lacking in lower hydrocarbons and is therefore very "’sticky.’" This allows companies to adhere to strict environmental policies that are in place.
“Then there is the geographic accident of Africa's being almost entirely surrounded by water, which significantly cuts transport-related costs and risks. The Gulf of Guinea, in particular, is well positioned to allow speedy transport to the major trading ports of Europe and North America.”
“Africa offers a tremendously favorable contractual environment. Unlike in, say, Saudi Arabia, where the state owned oil company Saudi Aramco has a monopoly on the exploration, production, and distribution of the country's crude oil, most sub-Saharan African countries operate on the basis of so-called production-sharing agreements, or PSAs.”
$XOP: Canadian Overseas Petroleum Limited (COPL) is a junior oil and gas company focused in developing oil and gas reservoirs is Sub-Saharan Africa. The company is headquartered in Calgary, Canada and is partnered with one of the world’s largest international oil and gas companies, Exxon Mobil.
Want to get to know COPL and their people? Get connected to $XOP on 8020 Connect and stay informed. http://www.saoga.org.za/commercial-industrial-base/strategic-geographic-position
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