The oil patch is surely the most exciting prospects in the global market, possessing great attributes to increase revenues, create employment opportunities and stellar economies. According to the Organization of the Petroleum Exporting Countries (OPEC), 30% of United Arab Emirates’ (UAE) GDP is contributed by its oil industry. Though its output declined to 2.85 million barrels in January according to Bloomberg, crude oil production has steered the country’s economic development.
Shell and BP Plc are the latest oil firms to have set their sights in the oil and gas industry in Rwanda. The two companies share some similarities in terms of their origins and are powerhouses in their fields of play. Both are looking to have a pie of pie in the petroleum sector to boost their revenues and increase the foreign investments in Rwanda. The Government of Rwanda could see an opportunity to partner with top-notch firms, and bolster the country’s performance in the oil and gas sector.
Currently, Rwanda has 20 active players in the oil sector. The entrance of the new investors in the market could break or make their influence in the field, though stiff competition is expected. Shell and BP Plc hope to acquire leading petroleum leaders in Rwanda and set up their policy to run the business. President Paul Kagame will be pleased with the move of having the foreign investors in the country as they would open up more business opportunities and will encourage other potential investors and key market players to venture in the East African market.
Uganda has seen a number of French oil companies invest in the nation. Other non-oil businesses have also soared in the Ugandan economy courtesy of a number of factors such as strategic location to reach a wider market in East Africa. Oil exploration has attracted similar firms in the African market in the hope of being a part of the sought-after natural resource. Lokichar Basin in Kenya has also got the attention of oil experts who believe the resource could offer mutual benefits to the Government and their businesses.
Rwanda offers mouthwatering deals in the petroleum industry. The country imports and re-exports petroleum products to Burundi to increase its trade revenue. Its export growth has been a factor in the increasing levels of foreign direct investments. In the fourth quarter of 2015, Rwanda’s re-exports had shot up by 5% that scaled higher to 8.40% in the first quarter of 2016.
Shell’s recorded a $305.1 billion in revenue in 2017 while BP Plc recorded $240.2 billion in revenue same year. The latter also recorded a net income of $3.389 billion in 2017 and is regarded as one of the world’s leading integrated oil and gas companies. Royal Dutch Shell and BP Plc are the world’s seventh and eighth largest companies by revenue respectively.