Frost & Sullivan: Stimulated Economic Growth Spurs the Demand for Oil and Gas in Southern Africa

CAPE TOWN, South Africa, July 26, 2010 - The revival of the global economy, following the economic crisis in 2008
and 2009, has led to a rebound in the demand for minerals and natural
resources from Southern Africa. This has stepped-up the demand for oil
products within the region, driving growth in the Southern African downstream
oil and gas market. Furthermore, the recovery of crude oil prices has
resulted in intensified exploration initiatives in the region, particularly
in Angola.

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New analysis from Frost & Sullivan (www.energy.frost.com), The
Southern African Oil and Gas Market, finds that the countries with the
greatest consumption of refined petroleum products are South Africa, Angola,
Namibia and Tanzania. The applications covered in this study are: upstream;
refining and manufacturing; supply, transmission and trading; and downstream.

If you are interested in more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"Growth in the upstream oil and gas market of the region is expected to
be driven by exploration initiatives within Angola," says Frost & Sullivan
Research Analyst Ross Bruton. "Growth in the downstream market of Southern
Africa, however, will continue to be primarily driven by the growth in demand
for oil products in South Africa."

Zambia, Angola and South Africa all have refining capacity, with South
Africa representing over 80 per cent of the total refining capacity of the
region.

Inadequate infrastructure and inefficient regulatory processes are major
restraints for the efficient and economical transportation of refined
products to the market. Underdeveloped and neglected road, rail and pipeline
infrastructure leads to an unreliable supply of product to the market,
increasing the retail cost of fuel and resulting in fuel shortages across
countries.

"Old and damaged infrastructure have restrained the ability to operate
effective business practices within Southern African countries," explains
Bruton. "Underdeveloped and neglected road networks increase the logistical
costs of fuel transport, thereby increasing retail costs."

International oil companies entering the Southern African region need to
establish a secure and reliable product supply chain with sufficient storage
capacity in proximity to the market. Furthermore, a clear understanding of
government policy and regulations regarding import of oil products along with
a strong relationship with governmental regulatory institutions is essential
to ensure an uninterrupted supply of products to retail outlets.

The Southern African Oil and Gas Market is part of the Energy & Power
Growth Partnership Services programme, which also includes research in the
following markets: East African Genset Market, West African Transformer
Market, Renewable Energy Market, among others. All research services included
in subscriptions provide detailed market opportunities and industry trends
that have been evaluated following extensive interviews with market
participants.

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    The Southern African Oil and Gas Market
    M571

    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

www.frost.com

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com