In an opinion piece for The Guardian Fiona Harvey and Matthew Taylor wrote that it was time for gas exploration in Africa to stop.
Image: Africa Oil Corp.
“Africa must embrace renewable energy and forgo exploration of its potentially lucrative gas deposits to stave off climate disaster and bring access to clean energy to the hundreds of millions who lack it, leading experts on the continent have said,” they wrote.
Africa’s oil and gas downstream market, currently valued at USD 80.5 billion, is projected to reach USD 120.8 billion by 2032, positioning the continent as the world’s next frontier for downstream growth. Demand across Africa is expected to rise by 2.2 million barrels per day (MMB/D) between 2019 and 2035, representing a 2.3 percent annual growth rate.
Galp last year undertook an exploration campaign in Namibia, where discoveries by oil majors such as Shell Plc and TotalEnergies SE have drawn international attention. The company also holds licenses in São Tomé and Príncipe, an island nation off Africa’s west coast where it recently teamed up with Shell and Petrobras.
According to Emmanuelle Garinet, VP of Exploration Africa at TotalEnergies, Africa’s frontier basins hold significant volumes. She pointed to Namibia as an example of how seismic and subsurface data can de-risk projects: “When we decided to drill the Venus well, it was frontier, but we had a probability of success of more than 50% because of the seismic data and direct hydrocarbon indicators.”
TotalEnergies’ Venus project in Namibia’s Orange Basin is the kind of discovery that makes oil executives’ eyes light up and governments dream of windfalls. The discovery – made in February 2022 – was immediately recognized as one of the African continent’s largest in decades, with an estimated 1.5 billion barrels of light crude at 45 degrees API and 4.8 Tcf of natural gas. Expectations are high: peak output is projected at around 150,000 barrels a day and the field could remain productive for 30-40 years.
Africa’s oil and gas production is projected to reach 11.4 million barrels per day by 2026 on the back of rising offshore investments and intensified exploration, according to the State of African Energy 2026 Outlook set to be launched on 30 September.
Africa’s upstream oil and gas sector is showing strong momentum as regulatory reforms in key markets improve investor confidence and unlock new capital. Industry leaders emphasize that stable and transparent frameworks are proving critical to sustaining exploration and production growth across the continent.
STR operates globally with technology and service facilities in Aberdeen, Great Yarmouth, Houston, Perth, Singapore and invested £5m in a new Norway facility earlier this year which Christie will oversee. The company has doubled headcount in the last three years and now has 120 people with further growth to be delivered through strategic acquisitions, market expansion and a diversified technology and solutions offering, with plans to have a dedicated Middle East facility next year.
The contract will remain effective until September 30, 2025. Its value is between EUR 250 million and EUR 500 million.
Earlier this year, a senior company executive told Reuters Petrobras was looking to buy interest in African oil fields to boost its reserves and was in talks with potential sellers, including Exxon, Shell, and TotalEnergies. Petrobras’s proven oil and gas reserves increased by 500 million barrels last year, from 10.9 billion barrels to 11.4 billion barrels.