(Ecofin Agency) - One of the key problems faced by organizations in the oil and gas industry is the issue of undetermined regulatory frameworks, according to PricewaterhouseCoopers (PwC).

According to the international advisory company, African governments need to restructure their oil and gas industries in order to attract investors as the continent still offers significant opportunities in the oil and gas industry even in the face of plunging oil prices in the global market.PwC added that despite the desolate landscape of the industry, there are still chances for the sector to attract investors’ confidence.

“It is an opportune time for local governments that want to attract oil and gas investors to reform their regulatory, fiscal and licensing systems,” Chris Bredenhann, PwC Africa Oil & Gas advisory leader, said in a report.

Studies carried out in South Africa shows that since 2015, there have been promises to address concerns and separate regulations for oil and gas from the mining industry by the government but till date South Africa’s Minerals and Petroleum Resources Development Act (MPRDA) has not yet been reformed and approved to mirror such adjustments.In Tanzania, the study revealed that the regulatory environment in the country is still indeterminate in spite of the declaration of a Petroleum Act in 2015 while in Nigeria, the government has been unsuccessful in the passing of the Petroleum Industry Bill (PIB) into law.

The study also discovered that as the end of 2015, Africa had a proven natural gas base of 496.7 Tcf, with 90 % of natural gas production still coming from Nigeria, Libya, Algeria and Egypt, the Nation reports.PwC recommends that this is the perfect time for the industry to think about organizing training programmes to boost skill levels and company standards.

“The oil and gas industry is faced with a higher entry barrier because technology and jobs tend to be more complex, highly specialized and costly. Furthermore, players must look at the state of the industry as an opportunity to reinvent themselves. Given the state of the industry, we think that stakeholders must also consider making changes to their business models. Change is the way to survive in the ‘new energy future.’ We need to see new business models, new products, new energy sources and new strategies to meet the new reality,” Bredenhann added.

Anita Fatunji