Investments in oil and gas exploration and production in Africa are expected to reach $41 billion by 2026, driven by Angola, Mozambique, and Nigeria, according to the African Energy Chamber.
“Global spending on exploration and production investments is set to reach $504 billion by 2026, with Africa contributing about $41 billion, mainly due to offshore exploration spending in Mozambique, Angola, and Nigeria,” reads the presentation of a report to be released at the African Energy Week (AEW), which begins Monday in Cape Town.
The report, prepared by the African Energy Chamber (AEC) in partnership with Standard & Poor’s Global Commodity Insights, is titled “Outlook on the State of Energy in Africa in 2026”, and offers a strategic view of trends, opportunities, and challenges in Africa’s energy sector.
In the report’s introduction, the authors note that “African energy demand is expected to quadruple, and investments in the energy sector will reach $54 billion by 2030.”
Oil production on the continent is projected to reach 11.4 million barrels per day (bpd) by 2026, led by Nigeria.
Beyond exploration data, the report also analyzes the consumer side, forecasting that “African demand for refined products will rise from around 4 million bpd in 2024 to more than 6 million bpd by 2050, a 50% increase.”
Lamenting the fact that African countries export crude oil only to then buy back or import refined products, the AEC stresses that “there are considerable opportunities to improve the efficiency of these activities and increase their value for Africa.”
The organization highlights that “more than $20 billion in downstream infrastructure investments will be needed by 2050 to meet the growing demand for refined product imports and distribution.”
On gas production, seen as a transition energy toward renewables, the report states that “Africa’s gas potential is significant, supported by a series of exploration successes in existing production hubs and frontier regions, with Africa producing more than 300 billion cubic meters of natural gas and accounting for **8.5% of global liquefied natural gas (LNG) supply, or 34.7 million tons, in 2024,” at a time when natural gas is expected to account for 45% of total electricity generation by 2050.
Regarding electricity and renewables, the document points out that this year “electricity demand on the continent is expected to rise from about 1,028 TWh to 2,291 TWh by 2050,” demonstrating Africa’s commitment to the energy transition.
The continent is undergoing “a major shift to renewable energy sources, with about 25 Gigawatts (GW) of capacity secured by governments in 2024, plus around 11 GW obtained through private purchase agreements,” the report adds.
Source: Lusa
