Welligence Webinar Highlights Strong Investment Forecast for African Oil & Gas Sector
These investment trends are attributed to a variety of factors, including reduced global spending for oil and gas projects, restructured portfolios and improved operating climates across the continent. According to Temitope Malomo, Senior Analyst, sub-Saharan Africa, Welligence Energy Analytics, the continent is also witnessing a shift by the majors from onshore and shallow water acreage to deepwater and ultra-deepwater basins, with independents stepping in to sustain – and sometimes increase – production.
'The majors have been very active divesting their mature assets. Independents have been responsible for picking up these reserves. However, even with this momentum in M&A activity driven by independents, it's important to note that long-term investments will continue to be driven by the majors. Examples include the Eni-operated Baleine project in Ivory Coast and TotalEnergies-operated Venus project in Namibia,' he stated.
Titled Upstream Investment – The new wave of capital heading to sub-Saharan Africa, the webinar drew attention to the driving factors behind Africa's anticipated surge in upstream financing. NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC), engaged in a conversation with Ross Lubetkin, CEO of Welligence Energy Analytics, on this topic, highlighting the role regulatory reform has played in attracting foreign capital.
'There is a change when you look at global investments coming into Africa and part of that has been the change in the U.S. administration. But African governments have also done a lot. They have realized that they are not competing among themselves; they are competing with Guyana, America and other international countries. They have improved approval timelines, fiscals and even the licensing process has been streamlined in many countries. But there is still a lot of work to be done,' Ayuk said.
Ayuk shared insight into the regulatory advancements seen across the continent. These include Nigeria, which implemented its Petroleum Industry Act to entice investment; Angola, which has significantly improved its fiscals and licensing procedures; and the Republic of Congo, which is working towards a Gas Master Plan and new Gas Code. By strengthening their respective business environments, countries across the continent are making a strong case for foreign investment.
'When you open up the market, investors gain confidence. They move in and you see a lot of activity. If you reform, change and do it right, money will flow. This nationalization approach doesn't work. It keeps us behind. International companies invest, they create jobs, they bring taxes. Whose benefit is that? It's ours,' Ayuk added.
Looking ahead, the continent is expected to witness a series of final investment decisions (FID) in the coming years, as companies work to unlock new hydrocarbon plays in both established and emerging markets.
'We have seen upward budget revisions for some independents, but for the majors, budgets are down about 5% year-on-year. This does not mean that companies will not progress new projects; but only the best projects will advance. Companies will be looking closely at their respective pre-FID portfolios. We see deepwater and LNG projects dominating that picture. There is a decent pipeline of projects in sub-Saharan Africa that we expect to progress in the coming months,' stated Obo Odornigie, SVP: Energy Trends&Analytics, Welligence Energy Analytics.
Distributed by APO Group on behalf of African Energy Chamber.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Business
an hour ago
- Arabian Business
ADNOC Group posts $4.7bn H1 2025 profit as AI boosts operations across six listed companies
ADNOC Group's six publicly listed companies delivered a combined H1 2025 net profit of AED17.3bn ($4.7bn), supported by a sweeping integration of advanced Artificial Intelligence (AI) technologies across their operations. At the centre of this transformation is MEERAi, ADNOC's proprietary AI platform, which provides real-time, data-driven insights to improve decision-making. Across ADNOC Gas, ADNOC Distribution, ADNOC Drilling, ADNOC Logistics & Services, Fertiglobe, and Borouge, AI is optimising processes, reducing emissions, and enhancing customer experiences. ADNOC Gas Q2 2025 net income: AED5.1bn ($1.385bn), up 16 per cent YoY EBITDA: AED8.3bn ($2.256bn), up 8 per cent Interim dividend: AED6.6bn ($1.792bn), up 5 per cent, payable in September Capital expenditure rose 49 per cent with progress on the $5bn (AED18.36bn) Rich Gas Development Phase 1 Set to join FTSE Index in September following MSCI inclusion ADNOC Distribution EBITDA: AED2.08bn ($566m), up 10 per cent YoY Net profit: AED1.32bn ($358m), up 12.2 per cent YoY Added 47 new service stations in H1; raising full-year target to 60–70 Expanded Voyager lubricant exports to over 47 countries H1 2025 dividend: 10.285 fils per share, payable October ADNOC Drilling Revenue: AED8.71bn ($2.37bn), up 30 per cent YoY EBITDA: AED3.97bn ($1.08bn), up 19 per cent YoY Net profit: AED2.54bn ($692m), up 21 per cent YoY New contract awards worth AED17.63bn ($4.8bn) Upgraded full-year guidance: revenue $4.65–4.80bn, net profit $1.375–1.45bn ADNOC Logistics & Services Fertiglobe Revenue: up 14 per cent in Q2 and 20 per cent in H1 YoY Adjusted EBITDA: up 26 per cent in Q2 and 36 per cent in H1 At least $100m (AED367m) in H1 dividends proposed $31m (AED113.7m) share buybacks in Q2; total shareholder return $131m (AED480.5m) Investing in low-carbon ammonia and expanding downstream capabilities Borouge Q2 net profit: $193m (AED709m) Adjusted EBITDA: $440m (AED1.616bn) in Q2; $1bn (AED3.673bn) in H1 Plans to increase 2025 dividend to 16.2 fils per share; interim 8.1 fils in September Delivered $307m (AED1.13bn) in value through AI, digitalisation and technology programmes The strong half-year performance across all six listed companies reinforces ADNOC's strategy to combine technological innovation with disciplined growth, positioning it as a progressive global energy leader committed to long-term value creation.
Zawya
3 hours ago
- Zawya
United Nations Economic Commission for Africa (ECA)'s iconic Africa Hall wins international architecture award
The iconic Africa Hall has won its first 2025 International Architecture Award, given by The Chicago Athenaeum - Museum of Architecture and Design; and The European Centre for Architecture Art, Design and Urban Studies - in the restoration/renovation category. Originally designed by Arturo Mezzèdimi, the United Nations Economic Commission for Africa officially opened in 1961, but over 50 years later, the building required significant intervention that would ultimately lead to a decade-long investment to restore the building. "The modernist masterpiece was tasked with the aspirational goal of bringing unity to Africa – on behalf of our heritage team, it was a privilege to restore this cultural landmark. Thank you to the jury for recognising the project, and congratulations to all involved in the awards program,' Architectus Conrad Gargett, representatives say on the company's LinkedIn page. The company also acknowledged Rory Gardiner, a specialised visual artist and a photographer of architecture, interiors and landscape, often commissioned to capture prestigious architectural sites around the world. His specialised approach to taking the images of Africa Hall has been key to Africa Hall's global appeal among architects, historians and visual artists. ECA congratulates Architectus Conrad Gargett for submitting the renovation project for an award and recognises the important role of the Africa Hall Project Team Lead, Antonio Baio, for upholding the vision of retaining Africa Hall's authenticity in the course of the renovation works over 5 years. 'I'm delighted to share with all this recognition we got for a great achievement. I had the honor to lead the team that made it possible, and the pleasure to share nine years with such a great group of colleagues and partners. Sincerely proud of us, a wonderful example of teamwork. My best wishes to ECA colleagues who are now taking it over and making it serve the African People, to whom this marvellous piece of architecture and art was dedicated,' says Antonio Baio. The restoration of this monument to Africa's History would not have been possible without the steering role played by the ECA leadership and the former Deputy Executive Secretary Antonio Pedro, the Africa Hall Advisory Board members, contracted personnel, the Government of Ethiopia and staff across the entire ECA and the UN system, who played their part in many unique and unsung ways. This iconic building also holds significant historical restored artworks, such as those by # AfeworkTekle and # NenneSanguinetiPoggi. Now in its 20th year, The International Architectural Awards are the oldest and most prestigious distinguished global building awards program that honors new and cutting-edge design worldwide. This annual programme also promotes international architecture and design to a worldwide public audience and is supported by the online magazine Global Design News. According to Ioannis Karalias, Architect and Museum Vice President at the Chicago Athenaeum, this year, the Museum received a record number of projects for new buildings, landscape architecture, and urban planning projects from the most important international firms practising globally. An international jury composed of several distinguished designers worked remotely and selected over 250 Awards and Honorable Mentions from a shortlist of over 1,200 submitted projects. A full list of winning projects for 2025 can also be viewed soon at the Museum's websites at and or at Distributed by APO Group on behalf of United Nations Economic Commission for Africa (ECA).
Zawya
3 hours ago
- Zawya
Absence of Synergy on Diplomatic Messaging May Harm South Africa's Potential, International Relations (IR) Committee Chair
The Chairperson of the Portfolio Committee on International Relations and Cooperation, Mr Supra Mahumapelo, has called on all government departments and officials to let the President give guidance on matters related to diplomacy and the US. Mr Mahumapelo said diplomatic relations is a complex terrain and needs to be monitored by people who are authorised at all times. It appears, he said, that everyone has an opinion on how the government and South Africa should relate with the world, owing to the much-publicised diplomatic challenges in South Africa's relationship with the US and the steep 30% US tariff increases imposed on South Africa, along with a host of other countries. Mr Mahumapelo said the committee believes that the government must be given space to consider how it will rebuild lasting relationships with the US that will be beneficial to South Africans and Americans alike. He added that it would be preferable if South Africa's special-envoy designate to the US leads in South Africa's response to any new trade packages. 'This will also enable for diplomatic negotiations between Pretoria and Washington, which is in the interest of all our citizens. We believe that South Africa remains the gateway to the markets in sub-Saharan Africa. It therefore is a diplomatic and trade channel that the US cannot contemplate to lose.' Mr Mahumapelo also noted what he called the unfortunate utterances attributed to the General of the South African National Defence Force relating to South Africa's relations with Iran. 'We believe our ambassador in the Middle East needed to have given guidance and approval on what had been widely reported, but the country requires no permission or endorsement on who it deals with at diplomatic level,' said Mr Mahumapelo. He said the absence of synergy in diplomacy may ruin South Africa's potential in an era of unstable geo-political relations. Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
