Oil & Gas
The development of unconventional oil and gas reserves is changing the face of the African energy industry. The recent oil and gas discovers have created significant demand for energy products, services and infrastructure. Over the next decade, there will be tremendous opportunities in exploring, extracting, processing, transporting, and storing oil and gas.
Africa has over 130 billion barrels of oil, and over 500 trillion cubic feet (Tcf) of natural gas reserves. Over the past decade, the most exciting new discovers have come from Africa. In addition to traditional markets such as Libya, Angola, Nigeria, and Gabon, East Africa is emerging as a significant oil and gas province as a result of the large gas finds in Mozambique and Tanzania, and oil potential in Uganda and Kenya.
There is a huge pent-up demand for power in Africa. The World Bank estimates that Africa requires over $300 billion in power infrastructure investment by 2030. In July 2013, President Obama announced the White House's Power Africa initiative, committing $7 billion dollars from the U.S. government, along with soliciting $9 billion in private sector support.
Africa has the highest electricity cost in the world - with an average tariff of $0.13 per kilowatt-hour, versus $0.04 to $0.08 per kilowatt-hour in most developing countries. This high cost, coupled with an abundance of renewable energy sources - solar, wind, and hydro, and a rich supply of traditional fossil fuels (oil, natural gas, and coal), is creating opportunities for power developers and investors. In addition, several countries have implemented privatizations programs which are creating opportunities for private investors.
Picasso provides a variety of services and equipment to oil & gas, and power companies. We work with a number of international technical partners and EPCs to design solutions across the entire energy value chain. In select circumstances, Picasso will act as a co-developer and will provide structured finance solutions to energy developers with compelling business cases.