Close to $194bn will be spent between 2018 and 2025 on 93 upcoming oil and gas fields in Africa, according to Peter Heath, GlobalData’s oil and gas analyst covering the African continent. Capital expenditure (capex) into conventional, unconventional, and heavy oil projects would form $88.9bn, $3bn and $1.9bn of the region’s capital spend respectively over the eight-year period. Conventional gas projects will require $99.1bn, while the investments into unconventional gas and coal bed methane (CBM) projects would total $0.7bn in upstream capital expenditure by 2025.
Nigeria accounts for $48.0bn 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 $11bn, deepwater Bonga North with $8.9bn and deepwater Bonga Southwest/Aparo with $3.9bn will require the highest capex over the eight year period. All three are conventional oil projects.
Angola is expected to contribute about 11.3% to the total capex spending in Africa between 2018 and 2025. The country has eight planned and announced fields. Kaombo Complex, ultra-deepwater conventional oil field with capex of $5.1bn, Orca, conventional oil ultra-deepwater with a capex of $3.7bn, and Lucapa, conventional oil deepwater field with a capex of $3.2bn will have the highest level of capital spending by 2025 among Mozambique’s upcoming projects
Tanzania, Uganda, Algeria, Egypt, Kenya, Senegal and Cameroon, together have a capex $44bn, or about 28% of the total capex spending on upcoming projects over the next eight years in Africa.
Lifetime capital expenditure into upcoming projects in Africa
|Source: Upstream Analytics © GlobalData|
GlobalData expects that over their lifetime, the 93 upcoming oil and gas projects in Africa will call for $414bn in capex to produce over 13,416 million barrels of crude and 184 trillion cubic feet of gas. Upcoming ultra-deepwater projects will have the highest lifetime capex at $233bn. Deepwater projects will require $86bn over the lifetime, while onshore and shallow water projects carry a total capex of $64bn and $30bn respectively.