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Thursday, December 02, 2010 1:29:53 PM
costs over the next year?
All our respondents expected acreage/ license acquisition costs to increase
over the next year. Over 60% felt the costs would increase over the next
year of which 20% thought they would increase significantly. At least half of
the respondents from Nigeria, Gabon and Uganda expected acreage costs
to increase significantly.
The competition for acreage will increase as more independents and
companies from particularly China and India, expand their footprint
in Africa. The race to secure sufficient supply for domestic markets is
expected to fuel very competitive bidding for the next round of licenses in
African markets.
Mozambique and Gabon have or will issue licences in 2010 and others such
as Kenya, Algeria, Equatorial Guinea and Uganda are expected to do so in
the coming years.
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