NJ Ayuk JD, MBA.NJ Ayuk JD, MBA, Executive Chairman at African Energy Chamber

Besides attracting further investment, creating new jobs, and strengthening local economies, successful exploration and sizeable discoveries also support production operations already underway. To secure and maintain a robust oil and gas sector, as well as a thriving economic future for Africa, we must monitor and encourage exploratory activities both on and offshore and in every corner of the continent.

Following the successful Shell and TotalEnergies discoveries in the Orange Basin offshore southern Namibia in 2022 and early 2023, national and regional exploration immediately increased.

The other positive we see is the number of planned drilling sites remaining relatively constant for 2024 and 2025. While the well count for 2023 is 132, we expect to see 120 new wells drilled in Africa in 2024 and 123 new wells in 2025.

Onshore drilling accounts for the bulk of this activity, as national oil companies (NOCs) and majors have selected inland sites for nearly two-thirds of the total planned wells. Algeria and Egypt will share a similar percentage of these operations as these two countries will host roughly two-thirds of all onshore drilling planned for this timeframe.

More than one-fifth of the total planned drilling will take place at other deepwater wells with a majority of these off the coasts of Namibia, Nigeria, and Egypt.

We encourage African countries to implement every tool at their disposal – including digital solutions like informative data rooms – when conducting upcoming licensing rounds to ensure that prospective developers have a thorough understanding of the territories available.

While we are well aware that detailed geological surveys and digital enhancements ahead of licensing rounds call for significant upfront investments, we stand by the notion that the potential rewards for such preparations outweigh the initial costs.

As advocates for a flourishing African oil and gas industry, which will deliver extensive socioeconomic benefits to nations throughout the continent, the AEC recommends that all stakeholders with influence implement the best practices when seeking to attract investment and promote continued exploration.

While our evaluations of the African oil and gas trade have seemingly shifted into a slightly more positive light, we must remember to continue slashing away at any remaining red tape and strike while the iron is hot. Although we have found several reasons to look toward the next few years with a reinvigorated sense of hope, they only reaffirm our stance that now is most certainly not the time to become complacent.

To read the 2024 outlook report, click here.

KeyFacts Energy Industry Directory: African Energy Chamber   l   African Energy Week 4 -8 November 2024