Oil and Gas Consolidation Reshapes African Market: New Players and Opportunities Emerging

Africa’s upstream oil and gas sector is shifting as majors reduce their exposure to mature assets, making room for regional independents and national oil companies to take over. Angola and Nigeria are at the forefront of this consolidation wave, with new players like Azule Energy and Seplat Energy stepping in to create value and focus on tapping into contingent resources to extend field life.

Nigeria has seen the exit of Shell, Eni, and TotalEnergies, leading to indigenous companies like Seplat Energy and Renaissance Energy expanding their footprints. These companies are investing in portfolios to unlock contingent resources and help Nigeria reach its production goals of over 2 million barrels per day in the short term and 3 million barrels per day in the long term.

Indigenous companies in Nigeria are taking on the operatorship of key producing blocks, potentially leading to significant production growth and boosting confidence in new entrants. Meanwhile, traders and non-African NOCs like ADNOC, Petrobras, and Petronas are also expanding their presence in Africa through joint ventures and acquisitions, indicating a broader interest in the region’s oil and gas sector.

The exchange of assets from majors to regional players in Africa comes at a critical time as countries like Nigeria and Angola work to attract investment through regulatory and fiscal reforms. The successful execution of investment plans and clear development roadmaps will be essential to drive a new cycle of production growth in Africa’s upstream sector. The future of the industry now rests on the decisive actions of its newest custodians.

Read more at Yahoo Finance: Oil and Gas Consolidation Reshapes African Market