WSJ: African Nations Seek Sway Over Oil, Gas Development

Ahead of drives to start or expand oil and gas production, several African governments are crafting laws that give them more sway over the energy sector, part of a tide of resource nationalism on the continent.

South Africa, Mozambique, Kenya and Tanzania and other countries are due to either bring new legislation before government for approval this year or start the drafting process. Laws they are considering could raise tax rates, give state-backed oil companies automatic equity stakes in new projects and require companies to meet job-creation targets.

The stakes for all involved are huge. The accountancy company PricewaterhouseCoopers LLP estimates that Africa receives $30 billion a year in foreign direct investment as a result of oil and gas exploration and production. Africa currently accounts for 7% of global gas reserves and 8% of oil reserves.

More than ever, African governments are under public pressure to safeguard that wealth.

In South Africa and elsewhere, calls for nationalizing the country's mines have grown louder, reflecting frustration among the young and poor that foreign investment in the sector doesn't spread far beyond politically connected elites. MORE