New projects and peace to determine oil output in Africa

Exploration companies Anadarko and Tullow, meanwhile, have also tapped potentially massive reservoirs further West in the Gulf of Guinea off Sierra Leone and Liberia that analysts say could open up a new productive frontier.

In East Africa, the industry has found large reserves under the Ugandan side of Lake Albert that the government hopes will produce commercial quantities of oil beginning in 2010 or 2011— though output will be limited until pipeline or refining infrastructure is built.

Italian major ENI this week bought into the Ugandan find with a $1.5 billion purchase of Heritage Oil’s interests, while China is reportedly in talks with the government on a refinery deal.

Many other mature oil producers in Africa, including Gabon and Equatorial Guinea, are adding new fields more slowly but still fending off significant declines.

The prospect of additional petrodollars in Africa has raised hopes for increased development in some of the world’s most impoverished nations, deeply in need of revenues to fund infrastructure and education.

But it has also raised fears of deeper political unrest if the wealth is not distributed.

“The great tragedy of this is how little any of the oil has so far helped Africa’s people,” said Ghazvinian.