$194 billion will be spent on upcoming oil, gas projects in Africa to 2025

Close to $194 billion will be spent between 2018 and 2025 on 93 upcoming oil and gas fields in Africa. 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.

Nigeria accounts for $48.04 billion or over 24.8% 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% 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 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.