Africa’s Oil And Gas Projects To Gulp $194Bn By 2025 …Nigeria Accounts For $48.04Bn

Yemisi Izuora 

A new report says that  close to $194 billion will be spent between 2018 and 2025 on 93 upcoming oil and gas fields in Africa. 

It said Capital Expenditure (capex) into conventional, unconventional, and heavy oil projects would form $88.9 billion; $3 billion and $1.9 billion of the region’s capital spend respectively over the eight-year period, according to GlobalData, a leading data and analytics company.

Conventional gas projects will require $99.1 billion, while the investments into unconventional gas and coal bed methane (CBM) projects would total $0.7 billion in upstream capital expenditure by 2025, GlobalData said. 

Nigeria accounts for $48.04 billion or over 24.8 per cent of total capex into upcoming projects in Africa over 2018 to 2025. The country has 24 announced and planned fields.

 The ultra deepwater Zabazaba-Etan with $11 billion, deepwater Bonga North with $8.9 billion and deepwater Bonga Southwest/Aparo with $3.9 billion will require the highest capex over the eight-year period. All three are conventional oil projects.

GlobalData expects 23.8 per cent  of capital expenditure in Africa to be spent in Mozambique over the next eight years. Africa has seven planned and announced fields. Deepwater Golfinho-Atum Complex, ultra-deepwater Mamba Complex, and ultra-deepwater Coral South, all conventional gas projects, will have the highest capex requirements over the next eight years, with expenditures estimated at $10.9 billion, $10.2 billion and $9.5 billion, respectively.

Angola is expected to contribute about 11.3% to the total capex spending in Africa between 2018 and 2025. The country has 8 planned and announced fields. Kaombo Complex, ultra-deepwater conventional oil field with capex of $5.1 billion, Orca, conventional oil ultra-deepwater with a capex of $3.7 billion, and Lucapa, conventional oil deepwater field with a capex of $3.2 billion, will have the highest level of capital spending by 2025 among Mozambique’s upcoming projects.

Tanzania, Senegal, Mauritania, Uganda, Egypt, Algeria, and Kenya, together have a capex $56.6 billion, or about 29.2% of the total capex spending on upcoming projects over the next eight years in Africa.

In Africa, 93 upcoming oil and gas projects will call for $413 billion in capex to produce over 13,416 MMbbl of crude and 184 trillion cubic feet, Tcf of gas. Upcoming ultra-deepwater projects will have the highest lifetime capex at $233 billion. Deepwater projects will require $86 billion over the lifetime, while onshore and shallow water projects carry a total capex of $64 billion and $30 billion, respectively