As speculation mounts over Shell’s potential acquisition of BP, the implications stretch far beyond Europe. For Africa—where both companies have operated for decades—the proposed merger would signal a major reshuffling of energy influence across the continent.
BP, despite a strong Q1 2025 turnaround with a $700 million profit, continues to face long-term reputational and strategic uncertainty. In contrast, Shell, though reporting a 28% drop in quarterly earnings, remains in a stronger financial and market position. With Shell’s valuation at nearly $196.4 billion compared to BP’s $73 billion, the market momentum clearly favours the former.
If the merger goes through, Shell would inherit BP’s expansive African footprint—spanning upstream, midstream, and downstream operations in key countries like Nigeria, Angola, Egypt, and Mozambique. BP’s 40% stake in Seplat Energy, significant deepwater assets in the Niger Delta, and LNG offtake agreements from Nigeria LNG form part of a strategic portfolio with regional and global significance.
In Angola, BP is deeply embedded through Azule Energy (a joint venture with Eni) and holds interests in critical offshore blocks and Angola LNG. In Egypt, BP’s offshore gas discoveries and production from the West Nile Delta would complement Shell’s Mediterranean holdings. Notably, BP’s Greater Tortue Ahmeyim LNG project between Senegal and Mauritania and its involvement in Mozambique’s Coral Sul FLNG showcase its gas leadership in emerging markets.
Shell, in turn, has recently divested its Nigerian onshore operations but remains dominant in offshore oil and gas. It also made breakthrough discoveries in Namibia’s Orange Basin and continues expanding its deepwater and LNG operations across Africa.
A merger would not only consolidate technical capacity and asset strength—it would also invite regulatory scrutiny and reshape competition across African energy markets. For host countries, the challenge will be ensuring that such consolidation aligns with national priorities, boosts local value chains, and preserves energy security.
As both companies refine their portfolios in line with net-zero ambitions and shifting market dynamics, this potential deal could redefine Africa’s role in the global energy transition.
Source: Further Africa
