- Liberia is emerging as a key player in Africa’s growing deepwater energy sector, with increasing exploration interest in its offshore resources.
- Rystad Energy projects a significant rise in deepwater production across Africa by 2035, with Liberia poised to benefit from this growth.
- The country can potentially leverage offshore gas for gas-to-power projects, boosting domestic and regional electricity access.
Liberia is becoming a significant player in Africa’s growing deepwater energy sector. Companies are increasing interest in exploring the country’s offshore resources. According to Rystad Energy, deepwater production has long played a crucial role in Africa’s oil and gas output, contributing 20% to 25% over the last decade. By 2035, Rystad expects that share to rise from 35% to 40%, with Liberia set to benefit from the growth.
Rystad estimates deepwater projects in Africa could add 3.5 million barrels of oil equivalent per day (boepd) by 2035. Recent successes in Namibia and Côte d’Ivoire have spurred new interest in West Africa’s deepwater resources. As a result, Liberia, Sierra Leone, and São Tomé and Príncipe have become key exploration areas.
The deepwater sector in Africa slowed after the COVID-19 pandemic. The average annual sanctioning of deepwater resources fell from 1.89 billion barrels of oil equivalent (boe) between 2015 and 2019 to around 330 million boe in recent years. However, the sector has begun to recover. Countries like Namibia, Côte d’Ivoire, and Mozambique have seen successes that have renewed investor confidence in the region.
Rystad predicts that deepwater sanctioning in Africa could surpass 2 billion boe annually from 2025 to 2029. The number could exceed 3 billion billion if key projects stay on track. This potential growth presents a significant opportunity for Liberia to increase its offshore energy output.
The deepwater sector can bring substantial economic benefits to Liberia. The country’s offshore resources hold great promise for Africa’s energy future. However, Liberia must offer strategic fiscal incentives to unlock this potential. The government must also improve the security of offshore facilities to attract investment.
Liberia could leverage its offshore gas resources for gas-to-power projects. These projects could help improve electricity access within Liberia and across the region. Gas-to-power development presents a valuable opportunity to meet growing energy needs in West Africa.
As Africa’s deepwater sector expands, Liberia’s role in shaping the continent’s energy future grows. The country can align its exploration efforts with broader regional trends, strengthening its position in the global energy market. If Liberia capitalises on these opportunities, it could emerge as a key player in Africa’s hydrocarbon future.
Rystad Energy’s analysis of Africa’s energy landscape supports Liberia’s growing importance. As deepwater production expands, Liberia’s offshore resources can play a central role in Africa’s energy transformation. With proper investment, Liberia can emerge as a leader in the continent’s hydrocarbon sector, contributing to local and regional economic growth.