Africa’s Oil & Gas M&A Poised for 2026 Surge

Africa’s oil and gas industry is on the verge of a major surge in mergers and acquisitions (M&A) set for 2026. This trend is driven by international companies realigning their portfolios and new licensing rounds opening up fresh exploration opportunities.

Here are the key takeaways from the "State of African Energy 2026 Outlook":

• Consolidation is Key: The African oil and gas sector is expected to see "significant consolidation" in 2026, particularly among midsize and independent African companies.

  
  

• IOCs Divest, Locals Acquire: International Oil Companies (IOCs) are strategically divesting from legacy onshore assets. This is creating opportunities for indigenous African operators to expand.

  
  

  • Nigeria: This trend is most prominent in Nigeria, where local operators like Seplat, Oando, and the Renaissance consortium have acquired major onshore assets from international players including ExxonMobil, Eni, and Shell.

    
    

• Shifting Focus: While local companies take over onshore assets, IOCs are shifting their focus to high-return offshore and deepwater projects, such as Shell's final investment decision on the Bonga North deepwater project.

  
  

• New Licensing Rounds: New investor-friendly licensing rounds are fueling exploration interest:

  • Algeria awarded 5 of 6 blocks in its first bid round in 10 years.

  • Libya reopened its upstream sector with its first licensing round in 17 years, offering 22 blocks.

    
    

  • Angola, Sierra Leone, Congo, and Tanzania are expected to advance their own bid rounds in 2026.

    
    

By the Numbers:

• $51 Billion: Total global upstream M&A in the first half of 2025 (a figure Africa is bucking as its own activity rises).

• $1.65 Billion: Vitol's acquisition of Eni assets in Ivory Coast and the Republic of Congo.

• $510 Million: Shell's purchase of TotalEnergies' 12.5% stake in Nigeria’s Bonga field

Legal Disclaimer:

The information provided in this blog post is for general informational purposes only and does not constitute financial, investment, legal, or other professional advice. While we strive to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog post or the information, products, services, or related graphics contained on the blog post for any purpose. Any reliance you place on such information is therefore strictly at your own risk. Readers are encouraged to conduct their own due diligence and consult with appropriate professionals before making any decisions based on this information. The views and opinions expressed in this post are those of the author(s) and do not necessarily reflect the official policy or position of any other agency, organization, employer, or company.