Why Investors in Oil and Gas Are Moving Capital Out of East Africa
By Kennedy Senelwa
Companies interested in East Africa's hydrocarbons have started putting their capital into countries with proven resources and decent fiscal terms.
The region still offers significant opportunities for investors taking future strategic positions, but it is not attracting attention as a hotspot of oil and gas exploration investment due to declining crude prices.
Data from Oslo-based consulting Rystad Energy shows that capital spending in East Africa by exploration companies was $4.6 billion in 2012, $4.7 billion in 2013, then dropped to $4.3 billion in 2014 and $2.5 billion in 2015 as crude prices declined.