The African Energy Chamber’s State of African Energy 2025 Outlook Report has projected capital expenditure of $43 on oil and gas projects in Africa in the current year.
This highlights strong investment trends, with West and North Africa leading the charge and onshore natural gas projects set to dominate, setting the stage for discussions at African Energy Week later this year.
According to the outlook report, investment remains strong in 2025, with total CapEx (capital expenditure) estimated at $43 billion, while long-term projections indicate an increase to $54 billion by 2030 – reinforcing Africa’s position as a critical player in the global energy market.
The report indicated that West and North Africa continue to lead CapEx spending, with West Africa contributing over 50% of the continent’s total expenditure from 2023 through the decade.
The report added that established oil producers such as Nigeria and Angola remain dominant, while emerging players like Mauritania and Senegal are attracting increasing investment.
The continent’s rich liquid hydrocarbon resources continue to draw the majority of capital, accounting for over 60% of total hydrocarbon investment through 2030.
However, natural gas is gaining momentum, with its share of CapEx rising to over 40% by the end of the decade, the report added.
It was also projected that onshore projects are expected to attract the majority of investment, accounting for 56% of total CapEx by 2030, driven by lower unit costs and increasing interest in onshore natural gas monetisation.
This trend is reflected in drilling activity, with onshore drilling remaining dominant – comprising 80% of the 1,060 wells drilled in 2024 – while offshore rig demand continues to rise, reaching an estimated 46 rig years in 2025.
The report added, “Exploration is also on the upswing, with over 150 wells completed in 2024 and heightened activity in southern Africa, particularly in Namibia’s Orange Basin. Africa is emerging as a leader in global high-impact drilling, with exploration spending surpassing $6 billion in 2024, largely driven by major discoveries in Namibia and continued investment in North and West Africa.
“This momentum is expected to continue as multiple licensing rounds are planned across the continent, with Nigeria, Angola, the Republic of Congo, Libya, Algeria, Tanzania and Liberia among the countries opening new blocks for development.”
It would be recalled that in December 2024, the federal government through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) completed the 2022/23 mini bid and Nigeria 2024 Licensing Round Commercial Bid Conference where 25 oil blocks were awarded to successful bidders.
The Commission Chief Executive of NUPRC, Gbenga Komolafe, would spur investment in the oil and gas sector.
However, the report indicated that Africa’s mergers and acquisitions (M&A) landscape remains dynamic, following a significant rebound in 2024 and driven by global energy majors rationalizing their portfolios.
It added that regional players and national oil companies (NOCs) “Are taking on a more prominent role, acquiring assets from majors and expanding their footprint in key markets like Angola and Nigeria. West Africa continues to dominate M&A activity in terms of deal value, followed closely by North Africa.”
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