ByTsvetana Paraskova– Mar 13, 2025, 6:30 AM CDT
Operators and developers are expected to spend a total of $43 billion on oil and gas projects in Africa this year, as established producers and newcomers see growing investments, the African Energy Chamber said in a new report.
Longer term projections point to capital expenditure (capex) hitting a decade-high of $54 billion in 2030, thanks to fresh final investment decisions (FIDs), the chamber said in its State of African Energy 2025 Outlook Report.
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This year’s capex is slightly lower compared to the $47 billion investments in 2024, which saw a 23% jump in capex on oil and gas projects compared to the previous year.
Going forward, West and North Africa are expected to lead the spending spree through 2030. West Africa alone is poised to drive over half of the continent’s capex to 2030, fueled by established oil giants like Nigeria and Angola. In the latter half of the decade, emerging players like Mauritania, Senegal, Ghana, and Côte d’Ivoire are also set to make significant contributions to capex.
North Africa, with key players such as Libya, Algeria, and Egypt, is expected to account for roughly 35% of the expenditure, according to the report.
Despite the growing emphasis on natural gas with international majors exploring and putting online gas projects and LNG export facilities around Africa, projections indicate that liquid hydrocarbons will still hold the lion’s share of capex, attracting 60% of the total investment through 2030. But natural gas is gradually gaining ground and its share of annual expenditure is set to increase from around 30% in 2023 to more than 40% by the end of the decade, the African Energy Chamber’s report says.
In recent years, international majors have focused on new gas and LNG projects in West Africa and the exploration hotspot Namibia further south, where massive oil reserves have been found.
By Tsvetana Paraskova for Oilprice.com
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