Africa Nations Invest Billions in Oil/Gas Production, Infrastructure, for Energy Security

Written by Paul Wiseman for IIR News Intelligence (Sugar Land, Texas)

Summary

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) expects to see the start of 22 major offshore oil and gas projects between now and 2030, with investment potential of US$30-50 billion.

Africa Expands

Reflecting a continent-wide trend, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently stated it expects 22 major offshore oil and gas projects to begin between now and 2030, with investment potential of US$30-50 billion.

Industrial Info Resources is tracking more than 800 active capital oil and gas production, pipeline and terminal projects in Africa, with a total investment value of more than US$221 billion.

The Nigeria announcement from NUPRC Chief Executive Officer Oritsemeyiwa Eyesan, was made at the Society of Petroleum Engineers' annual conference in Lagos on August 5.

"Since 2024, the NUPRC has approved over US$57 billion in field development plan(s) (FDPs), some of which have translated to final investment decisions," Eyesan added.

Gordon Gorrie, Industrial Info Resources' senior vice president of research - Oil & Gas, observed the expansion is far from unique in the continent. African nations, jolted by shortages stemming from Strait of Hormuz blockades, are investing not only in production, but midstream and other infrastructure.

More Oil and Gas Out of Africa

While the Nigeria announcements did not mention international energy markets, the continent as a whole is using those markets as a wake-up call, increasing its energy investments across the board, Gorrie said.

The next 12-18 months will be a critical era for large-scale oil and gas projects in Africa. Several sanctioned but long-delayed upstream and liquefied natural gas (LNG) developments will move toward first production. Most of that capital, as in Nigeria, is concentrated in offshore oil development, with some going to a new wave of LNG liquefaction capacity.

Not all the push for this is for on-continent interest, said Gorrie--some is global. "The current global risk crisis has pushed international buyer interest in African LNG, away from Middle Eastern uncertainties."

Key Investments

TotalEnergies has restarted construction on its 12.9 million-tonne-per-annum (MTPA) Mozambique LNG project, which is slated for completion in 2030. Restarts for both were verified on February 10, 18 days before the closing of the Strait of Hormuz due to the U.S./Israel-vs.-Iran conflict. The Industrial Info Resources Global Market Intelligence (GMI) Oil & Gas Production Project Database offers a detailed project report on this development.

Also, Exxon Mobil Corporation continues to target a final investment decision on the 18-MTPA Rovuma LNG project during 2026. Also to be located in Mozambique, the initiation was in late 2017, but was delayed due to COVID 19, according to Industrial Info Resources data. A restart was announced in late June.

Nigeria Leads the League

As a continent, this year's outlook is for oil and gas investment of US$41 billion, with production reaching 11.4 barrels per day (bpd), Gorrie said. On a per-nation basis Nigeria leads the continent, seeing its crude production rise to 1.71 million bpd from April 2025 to April 2026.

Plus, the management of the state-owned Nigerian National Petroleum Company (NNPC) has said the country could add 100,000 bpd between now and the end of 2026 to replace some production lost from the Strait of Hormuz.

The key deepwater development is Shell plc's Bonga/Southwest/Aparo complex, which regained some steam through fiscal incentives and support from the nation's president, Bola Tinubu. It is expected to produce 150,000 bpd of crude oil upon completion.

By the Numbers

• US$221 billion: Investment in active oil and gas projects in Africa, from Industrial Info Resources data
• US$30-50 billion: Amount Nigeria expects to be invested in offshore projects 2026-2030
• ~10%: Amount of world's LNG exports that come from Africa

Key Takeaway

• Geopolitical turmoil and a desire for energy security are among the factors pushing African nations to invest billions in developing oil production and infrastructure.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).