East Africa now straddles across a huge landmass divided into two oceans- the Atlantic and Indian oceans- after the admission of the Democratic Republic of Congo (DRC). But there is more to this story. Experts project the region is set to become Africa’s petroleum province and a shining frontier in the oil and gas scene. Most, if not all countries in the region are the latest entrants into the ranks of oil and gas producing nations on a global scale. South Sudan, Kenya and Uganda hold the region’s 10.8 billion barrels, with more barrels expected during exploration of new blocks, according to a report from Institute of Economic Affairs in Kenya. Uganda is currently at close watch from global and regional financiers but of course taking keen observation at the wider region. By the end of 2021, over $3.8billion had been invested in Uganda’s oil sector, and about $15 billion is expected to be invested in the next five years.
In 2022, an initial investment of $3b (Shs10 trillion) is expected, as the country plans to achieve her first oil expected at the beginning of 2025, according to the Petroleum Authority of Uganda. Kenya and Ethiopia are still at an early stage of exploration, as well as Burundi and Rwanda. The Great Lakes region’s oil and gas interests extend to the Ruvuma basin on the border between Mozambique and Tanzania with gas discoveries since 2010. UK’s natural gas company BG and Statoil managed to discover 57 trillion cubic feet of gas in Tanzania while more than 100 trillion cubic feet of gas in Mozambique was discovered. Tanzania and Mozambique are a major world-class gas province in a position to supply Asia and Africa’s gas needs. Thanks to Chinese, Indian and Malaysian investors, South Sudan’s oil production currently stands at 156,000 barrels per day amid negative impacts of Covid-19 pandemic and heavy flooding since 2020. The significant catalyst in the oil mix is the infrastructure investments made and cross sector linkages that the oil sector will create.