Up to $125 billion in final investment decisions (FIDs) will be announced across the upstream oil and gas sector globally in 2024, according to research firm Wood Mackenzie. Market intelligence firm GlobalData states that Africa will account for the largest share of greenfield upstream projects targeting FID in 2024, as global investors seek to unlock the continent’s untapped potential.
Ubeta Gas Field – Nigeria
In June 2024, TotalEnergies and the Nigerian National Petroleum Corporation (NNPC) announced FID for the Ubeta Gas Field Development. The two will invest $550 million to develop six wells and an 11-km pipeline to transport gas for processing at existing facilities in Obite. Additionally, a 5 MW solar facility and an electrified rig are being installed to reduce project costs and carbon intensity. The project will produce 350,000 cubic feet of gas and 10,000 barrels of associated liquids once operational in 2027.
Moho Nord Field – Republic of Congo
In May 2024, TotalEnergies announced a $ 600 million investment to enhance exploration, production, and infrastructure at the Moho Nord field offshore the Republic of Congo. The investment aims to boost production by 40,000 barrels per day (bpd), increasing the field’s output to 180,000 bpd. With Moho Nord accounting for 50% of Congo’s total oil output, the FID will contribute to the country’s efforts to increase hydrocarbon production to 500,000 bpd. TotalEnergies holds a 63.5% stake in the project, while oil and gas independent Trident Energy holds 21.5% and the National Petroleum Company of the Congo holds 15%.
Kaminho Deepwater Project – Angola
TotalEnergies, in collaboration with Malaysian national oil company (NOC) Petronas and Angolan NOC Sonangol, announced FID for the Kaminho deepwater project in May 2024. The project, located in the Cameia and Golfinho fields in the Kwanza Basin offshore Angola, is estimated to cost $6 billion. The investment will involve converting a Very Large Crude Carrier into a Floating Production Storage and Offloading (FPSO) unit connected to a subsea production network. Once operational in 2028, the project is expected to produce 70,000 bpd. The Kaminho FPSO will be TotalEnergies’ seventh in Angola and first in the Kwanza Basin.
Iseni Gas Field – Nigeria
In February 2024, Shell and its partners NNPC, TotalEnergies, and Eni’s Nigerian Agip Oil Company reached FID for the Iseni gas field project. Located in the Okpokunou Cluster within Oil Mining Lease 35 in Bayelsa State, the project will supply 100 million standard cubic feet of gas per day to the Dangote Refinery in Lagos for processing and power generation over the next ten years. The project aligns with Nigeria’s gas market expansion strategy, which seeks to enhance energy security access through gas exploration and exploitation.
These FIDs highlight the significant investments flowing into Africa’s oil and gas sector. They also emphasize the continent’s potential to boost its energy production and economic growth. The commitment from major international oil companies and national oil corporations showcases confidence in Africa’s resources and strategic importance.
Africa’s upstream oil and gas sector is witnessing a resurgence, driven by these substantial investments. The development of new projects in Nigeria, Congo, and Angola underscores the continent’s potential to play a pivotal role in the global energy market. The strategic initiatives aim to enhance production capacity, improve energy security, and contribute to sustainable development.
2024 is set to be a transformative year for Africa’s upstream oil and gas industry. With significant FIDs secured, the continent is poised to unlock its vast energy potential. These projects will not only boost production but also drive economic growth and development across the region.
Source: Energy Capital & Power
