Africa’s Oil and Gas Sector Poised for Investment Surge
Industry analysts across Africa predict robust investment flows into the continent’s oil and gas sector as independent and national oil companies rapidly expand their portfolios, breathing new life into mature fields while global energy majors reduce their funding focus to high-return projects.
During a Welligence Energy Analytics webinar, experts attributed these investment trends to reduced global spending for oil and gas projects, restructured portfolios, and improved operating climates across the continent. The shift represents a fundamental change in how Africa’s energy resources are being developed and monetized.
Temitope Malomo, Senior Analyst for sub-Saharan Africa at Welligence Energy Analytics, noted that major oil companies are divesting mature assets while independents step in to sustain and often increase production. However, he emphasized that long-term investments will continue being driven by majors through projects like Eni’s Baleine project in Ivory Coast and TotalEnergies’ Venus project in Namibia.
NJ Ayuk, Executive Chairman of the African Energy Chamber, highlighted the role of regulatory reform in attracting foreign capital, noting that African governments have realized they’re competing globally, not just among themselves. Countries like Nigeria have implemented their Petroleum Industry Act, Angola has improved fiscals and licensing procedures, and Republic of Congo is developing a Gas Master Plan and new Gas Code.
“When you open up the market, investors gain confidence. They move in and you see a lot of activity. If you reform, change and do it right, money will flow,” Ayuk emphasized, advocating against nationalization approaches that hinder development.
Looking ahead, the continent expects numerous final investment decisions in coming years as companies work to unlock new hydrocarbon plays in both established and emerging markets, with deepwater and LNG projects dominating the pipeline.
Source: orientalnewsng.com