- Global upstream oil and gas investment will rise to $570 billion in 2024, with 33% directed towards frontier fields, boosting opportunities in Africa.
- Africa needs $40-$70 billion annually to address its energy crisis but currently receives only $35 billion, highlighting a significant investment gap.
- London-based firms like BP, Shell, and Perenco lead major African projects, including LNG facilities in Senegal, Mauritania, and Gabon and new developments in Namibia.
Global upstream oil and gas investment will hit $570 billion in 2024, reflecting a 7% rise from 2023. Investors will allocate 33% of this to frontier fields, creating significant opportunities for Africa’s undeveloped markets.
Despite vast resources, Africa faces an energy crisis. Six hundred million people lack electricity, and 900 million lack clean cooking solutions. According to the African Development Bank, Africa needs $40-$70 billion annually to address this crisis.
However, the continent receives only an average of $35 billion for fossil fuels and clean energy projects, highlighting a clear investment gap and a strategic opportunity for European funders.
Africa holds over 125 billion barrels of proven crude oil and 620 trillion cubic feet of natural gas. The continent’s greenfield upstream spending will reach $37 billion by 2025 and $50 billion by 2050.
London-based firms lead in African project development. BP advances Senegal and Mauritania’s first LNG project, the Greater Tortue Ahmeyim (GTA) facility, set to start production in 2024. BP also delivered the first gas from Mozambique’s Coral Sul FLNG project in 2022.
Shell explores Namibia’s Orange Basin, with its Graff-1 discovery in 2022 and five more discoveries since, investing 25% of its deepwater exploration budget there this year. Independent producer Perenco opened the $50 million Batanga LPG plant in 2023 and developed the $1 billion Cap Lopez LNG terminal in Gabon.
Perenco invests in shallow-water assets, acquiring Eni’s core assets in the Congo for $300 million in June 2023. Tullow Oil plans to start commercial oil production in Kenya by 2028.
Chariot Oil and Gas signed a gas commercialisation deal with Vivo Energy in Morocco. These projects show the crucial role of London-based companies in African energy development.