Africa Upstream: 2024 Investment Trends

I am proud to introduce our latest Industry Report -?Africa Upstream: 2024 Investment Trends, brought to you in conjunction with our Africa Energies Summit? | Africa’s Premier Global Upstream Conference | 13th - 15th May 2025 Knowledge Partner, Wood Mackenzie. Access your copy here.

It is a must read for those active in the industry, providing valuable insight into investments in the African energy sector in a post-pandemic world.

Authored by Principal Analyst (Upstream North Africa and Eastern Mediterranean), Martijn Murphy, this report continues the conversations had during this year's Africa Energies Summit, and sets the scene for the 2025 edition held in London, next May.

The Africa Upstream: 2024 Investment Trends Report explores the emerging trends in the global oil & gas sector with a special focus on Africa in 2024 and beyond, focussing on how these trends are shaping the future upstream landscape, driving innovation, and influencing the competitive dynamics for acreage and opportunities.

The investment trends at play present certain challenges and opportunities for IOC's, NOC's, regulators and independents working to unlock Africa's promising resources.

A comment from IOC on receiving the Report this morning sums it up perfectly;

"I find the format particularly insightful and useful for thinking about Africa today and in the near term. So much potential, yet you are spot on … competing for capital in a capital disciplined environment."

Key Takeaways;

?? Africa today offers the industry huge potential in E&P.

?? Upstream investment in Africa is recovering from the pandemic.

?? Shifting from West to East, ME NOC's = biggest growth amongst foreign NOCs in Africa.

?? "Foreign" NOC investors Capex '24 - 2033: CNPC, QatarEnergy, Sinopec, PETRONAS, CNOOC, ONGC and PTT.

?? To be more competitive globally Africa needs to drive for lower-costs and shorter-cycles.

?? Africa is competing for capital in a challenging environment.

?? Deepwater hotspots exciting, but...50% investment still onshore and shallow water.

???? Namibia ???? Mozambique ???? C?te d'Ivoire becoming new investment hotspots.

?? Gas and LNG investment is king, +50% future investment on pre-sanctioned projects.

?? Fiscal and regulatory reform is key for legacy producers to continue to attract players.

?? Transparency, ease of doing business, positive fiscal terms key for new producers.

Concluding Thoughts;

As Africa's regulators and NOC's tweak and hone strategies to attract investors through various means, it is important to keep a close eye on these investment trends and the global picture driving movement of capital for upstream.

"In my view, in addition to the obvious elements of transparency, ease of doing business and positive fiscal and regulatory frameworks; regional collaboration is key and countries working together to attract E&P investment in Africa would serve to accelerate interest and investment."

It is also important that investors and partners be mindful that countries are looking for responsible industry partners that can work with them to unlock their natural resources, but it should not end here.

"African countries need partners that are willing to cooperate to create opportunities locally and stimulate growth in associated industries."

The caveat to this is of course, as I was reminded at a conference in Houston recently, "that energy companies are not governments and should not be expected to deliver solutions to all local issues". I would have to agree with this sentiment but I believe that they can certainly be part of the solution to stimulate growth and development on the Continent.

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