African opportunities could provide an important boost to Scotland’s fragile oil and gas sector

Africa’s oil and gas sector has the potential to be a source of much needed revenue for Scottish firms, according to a leading business and financial advisor.

As politicians and businesses meet in Aberdeen today for the first ever Scotland Africa Oil & Gas Forum, global accountancy firm Grant Thornton called on the industry to take advantage of the opportunities available.

Today’s event, at the Aberdeen Exhibition & Conference Centre, will bring together senior African and Scottish government representatives and the private sector to explore avenues for future investment and partnership.

The continuing fluctuation in oil and gas prices, combined with growing international political and economic instability, has caused concerns about the long term future viability of one of Scotland’s most economically important industries. The current climate means being able to take advantage of opportunities internationally is now more important than ever before for Scottish businesses.

Ian Knott, advisory Director at Grant Thornton in Aberdeen, said: “The Scotland Africa Oil & Gas Forum comes at an important time, when many companies are looking for new markets. Greater international collaboration could unlock new sources of revenue and provide much needed growth at a time when many businesses are suffering from a lack of demand and significant pressure on costs in their existing markets.”

Amaechi Nsofor, partner and head of Grant Thornton’s Africa Advisory Desk, added: “Africa’s oil and gas sector offers a wealth of opportunities for businesses that can provide the right skillsets and innovative technologies. Many potential entrants are dissuaded from doing business in Africa by perceived risks or difficulties that are often over exaggerated or can be mitigated by appropriate structuring and due diligence.”

Meanwhile, according to the Office for Budget Responsibility, revenue from oil and gas tax is expected to rise over the next four years.