Africa’s Promising Upstream Ventures in 2023

As we enter 2024, Africa is solidifying its position as a significant player in the global petroleum industry. The continent boasts approximately 125 billion barrels of crude oil reserves and 620 trillion cubic feet (tcf) of natural gas reserves, with a focus on economic diversification, job creation, and energy security through the development and commercialization of these resources in the oil and gas sector.

Namibia experienced a series of substantial discoveries in the offshore Orange Basin in 2023, including the Venus-1X, Graff-1X, and La Rona-1X discoveries. Notably, Shell, through a consortium, successfully drilled the Jonker-1X exploration project last March, followed by the Lesedi-1X exploration well two months later, confirming the presence of hydrocarbons.

TotalEnergies is currently conducting a multi-well appraisal and exploration drilling program in Block 2913B within Namibia’s Orange Basin. Furthermore, ReconAfrica reported an updated prospective resource estimate of 22.5 tcf of natural gas in Namibia’s onshore PEL 73 in the Kavango Basin last June. Additionally, the Ministry of Mines and Energy has approved a second renewal exploration period for ReconAfrica’s license from January 2024 to January 2026. As a result, Namibia’s government has engaged multinational firms to compete for multi-billion-dollar projects within the country.

TotalEnergies is also involved in ventures in South Africa after receiving authorization to explore the country’s offshore Orange Basin. In October of last year, the Ministry of Forestry, Fisheries, and the Environment of South Africa granted the company permission to drill for oil and gas in Block 5/6/7 off the Cape coast.

In Gabon, a significant oil discovery was announced in the Hibiscus South exploration prospect in November by BW Energy, estimating six to seven million barrels of recoverable resources and approximately 16 million barrels of oil in place. BW Energy aims to convert the well into a production well in early 2024. Trident Energy also initiated its second drilling program in Equatorial Guinea in November 2023 following the arrival of a semi-submersible drilling rig in Luba.

After a period of inactivity, Algeria’s national oil company Sonatrach resumed oil exploration in Libya last November. Similarly, the National Oil Corporation of Libya formalized reestablishing Sonatrach’s contractual commitments in Blocks 065 and 96/95 in the Ghadames Basin. In Egypt, the government approved three oil and gas contracts worth $319 million between the Egyptian General Petroleum Company and ExxonMobil for exploration and production programs, sanctioning the drilling of up to 13 wells in the Mediterranean Sea and Gulf of Suez.

In Nigeria, the Nigerian National Petroleum Corporation announced a positive outcome from its Ebenyi-A exploration well last March, increasing estimated hydrocarbon reserves from 37 billion barrels to 50 billion barrels in the license. TotalEnergies also commenced the drilling of the first of three wells on the Akpo West field, with production from the short-cycle project expected to commence by the end of 2023. Similarly, TotalEnergies and its partners plan to drill 31 oil wells in the Kingfisher Field Development Area in Uganda, with first oil production aimed for 2024.

Finally, in October of last year, Eni announced the search for a rig to conduct drilling and well testing operations in the Coral Norte project offshore Mozambique. Located in Area 4 of the Rovuma Basin, the first production from the four wells drilled in the third quarter of 2023 is earmarked for the second half of 2027.