Africa’s Oil and Gas Opportunity Is No Longer Just About Finding More Oil

Africa's oil and gas industry is shifting from simply discovering new reserves to maximizing the value of existing and newly developed resources. Upstream investment is projected to reach $41 billion in 2026, with production stabilizing at 11.4 million barrels of oil equivalent per day. Deepwater developments in countries like Namibia, Angola and Nigeria are expected to boost future supply.

However, the focus should not only be on production, but on converting these resources into energy security, industrial capacity and long-term economic value. African governments are increasingly exploring domestic utilization of natural gas, which can be used for fertiliser production, power generation, petrochemicals and industrial manufacturing.

Countries like Mauritania are advancing gas-to-power projects to establish gas pipeline networks and increase domestic usage. Nigeria is also pursuing greater gas monetisation alongside LNG expansion and domestic utilisation. The key is to ensure that hydrocarbons support industries beyond extraction, rather than just generating export revenue.

This requires building infrastructure, strengthening domestic energy systems, developing technical skills and establishing industries that can thrive beyond the commodity cycle. African countries must use the remaining period of strong hydrocarbon investment to create a self-sustaining industrial ecosystem. The success of this next oil and gas boom will be measured by whether it helps African economies produce more electricity, manufacture more goods, develop stronger supply chains and create productive employment.