The African continent has long been recognized for its vast oil reserves, and recent discoveries have solidified its position as a leading player in the global oil industry.
According to a report by S&P Global, Africa accounted for 35% of newly discovered oil reserves in 2024, a significant increase from just 7% in 2023. This surge in oil discoveries has positioned Africa as a key player in the global energy landscape.
The report, titled “High Impact Wells 2025,” highlighted several key findings, including:
– Africa accounted for 35% of global discovered volumes in 2024, up from 7% in 2023.
– The Cote D’Ivoire Basin and the Orange Sub-basin accounted for 2.9 billion barrels of oil equivalent (Bboe) discovered in 2024.
– The Orange Sub-basin continued to be an exploration hotspot, with discoveries by Galp, TotalEnergies, and Shell.
– The top 10 newly discovered oil reserves accounted for approximately 60% of the total new finds.
The report noted that deepwater exploration is becoming increasingly important, with drillers reaching water depths of approximately 1,680 meters at the Mopane well. The Murene 1X well in Côte d’Ivoire was drilled to a depth of 2,200 meters. This trend is expected to continue, with several high-impact wells planned for 2025.
The report projected that the Southwest African Coastal Basin, Central Arabian Province, and Guyana Basin will remain significant players in the exploration landscape in 2025. High-impact wells will drive discovery and remain a key indicator of future trade flows. The report also noted that the industry’s focus on high-quality acreage and frontier basins highlights a commitment to uncovering new resources.
Notably, Nigeria was absent from the recent findings, despite having oil reserves of 37.5 billion barrels. However, Shell’s planned $5 billion investment in the Bonga North Field and Chevron’s discovery of a new oil field in the Meji NW-1 well suggest that Nigeria may re-emerge as a key player in the oil industry in the coming years.
The Secretary-General of the Organisation of the Petroleum Exporting Countries, Haitham Al-Ghais, recently urged Africa to unlock its proven oil reserves of over 120 billion barrels. As the continent continues to play a increasingly important role in the global oil industry, it remains to be seen whether Africa can sustain this momentum and emerge as a dominant player in the years to come.
Despite the opportunities presented by Africa’s oil boom, there are also challenges to be addressed. The continent’s oil industry faces significant infrastructure and logistical challenges, including limited pipeline capacity, inadequate storage facilities, and security concerns.
Additionally, the industry must also navigate the complexities of the global energy transition, as the world shifts towards cleaner, more sustainable energy sources.
Africa’s oil boom presents a significant opportunity for the continent to emerge as a dominant player in the global energy landscape. With its vast oil reserves, Africa has the potential to meet the world’s growing energy demands, while also driving economic growth and development across the continent.
However, the industry must also address the challenges it faces, including infrastructure and logistical constraints, security concerns, and the need to navigate the complexities of the global energy transition.