Africa’s oil and gas sector is expected to see strong investment growth, according to analysts at a Welligence Energy Analytics webinar. Independent and national oil companies are expanding operations and revitalizing mature fields, while global majors shift focus to high-return projects and strategic assets. This trend is driven by reduced global oil and gas spending, portfolio restructuring, and better operating environments. Majors are also moving from onshore and shallow water to deepwater basins, with independents taking over to maintain or boost production.
Analysts at a Welligence webinar highlighted that while independents are driving recent M&A activity by acquiring mature assets from major oil companies, long-term investments in Africa’s oil and gas sector will still largely come from the majors, citing key projects like Eni’s Baleine in Ivory Coast and TotalEnergies’ Venus in Namibia.The event, titled Upstream Investment – The New Wave of Capital Heading to Sub-Saharan Africa, emphasized improved regulatory frameworks as a major draw for foreign investment.
NJ Ayuk of the African Energy Chamber noted that African governments have streamlined approval processes, fiscal terms, and licensing, citing reforms in Nigeria, Angola, and the Republic of Congo.Ayuk stressed that open markets and regulatory reform attract international capital, boost job creation, and increase tax revenues. Looking ahead, Africa is expected to see a wave of final investment decisions (FIDs) as companies pursue new oil and gas opportunities across the continent.Independents have raised budgets, but majors cut theirs by 5% year-on-year. Only top projects will move forward, mainly in deepwater and LNG. Several sub-Saharan African projects are expected to advance soon, said Obo Odornigie of Welligence.
