Introduction

With more than 300 tcf of potential reserves, Sub-Saharan Africa offers one of the world’s most beguiling gas-monetization opportunities.  The reserves reside in 26 countries, some of which offer favorable climates to foreign investors while others are in a complete mess.  Complexity is the one common trait across the region, as some investors like Kosmos Energy and Tullow Oil strike riches beyond their dreams while others, like Devon Energy divest entirely of their interests to focus elsewhere. When compared to Russia, Iran or Venezuela, though, Sub-Saharan Africa offers far greater opportunities for those willing to take the time to find them.
 
For the past nine months, analysts at Zeus Development Corp have been surveying and examining gas-development plays in this region of 24.3 million square kilometers, which is roughly three times the size of the continental United States.  Of the thousands of oil and gas fields and lease blocks known to exist, some 260 fields and 333 lease blocks have been identified and profiled as potential development opportunities.  This report offers management from both large and small companies the opportunity to learn of gas-development prospects and projects.

This 175-page summary report presents the findings of Zeus research.  Top gas prospects, leading developers and business friendly governments are profiled and ranked.  The objective is to highlight observations and conclusions derived during the survey.

Download Table of Contents, Table of Figures, and Table of Tables>

Download Full Prospectus>

Nine Key Conclusions from the Survey

1. Figure 2: The above chart illustrates the lowest, highest, and average interest withheld by 13 governments directly or through their national oil companies. The reader will note that, of the 111 reported fields, Nigeria withheld the greatest percentage ownership (>50%) while Gabon withheld the least ownership (<10%).

   Gas monetization opportunities in Sub-Saharan Africa are wide open to both large and small developers. 
   
   
2. Independent companies play a major role in Sub-Saharan exploration and production. Of the top 38 companies involved in Sub-Saharan gas fields, 15 are independent E&P companies, nine are major integrated companies and 13 are national oil companies or governments.  
    See table.
   
   
3. African-owned and operated independents are a relatively new and growing force.  Alliances are being struck between international developers, such as Gasol and Flex LNG, and African-based companies, such as Afren and Peak Petroleum. 
   
   
4. Major opportunities await those firms that can offer technologies to monetize gas associated with oil production.  Approximately two-thirds of the 260 gas fields profiled in this survey are associated with oil production.  Another 10% is gas with large quantities of condensate.
   
   
5. Violence, threats of civil war, and overly stringent fiscal regimes in Nigeria have broadened horizons for gas-project investment into other Sub-Saharan countries.  As a result, Africa is one of the fastest growth markets for seismic surveying.  Between 2003 and 2007, revenue from African surveys doubled for two prominent seismic companies, CGG Veritas and PGS, from approximately $270 million to nearly $600 million.  Leasing activity is vibrant in many Sub Saharan states from Senegal to South Africa to Tanzania.
   
   
6. Coastal states newer to oil and gas exploration and production tend to have less onerous fiscal regimes for international investment than Nigeria. The figure above illustrates the percentage ownership in some 111 gas fields withheld by the government.
   
   
7. As a result, Sub-Saharan countries other than Nigeria are advancing gas-development plans. 
   
   
8. Independents may concentrate their investments in one country. 
   
   
9. For those investors willing to accept exploration risk, gas monetization opportunities are much broader.