African Energy 2026 Outlook: $41 Billion Investment to Drive 14 Key Projects

Market Overview Africa’s energy sector is positioned for major expansion, with upstream oil and gas investment forecast to reach $41 billion in 2026. Production is expected to hit 11.4 million barrels per day (bpd), driven by growth in Nigeria, Angola, Mozambique, and frontier basins.

Key Project Developments

1. Major Oil & Deepwater Expansions

• Angola (Agogo Phase 3): Operated by Azule Energy, this deepwater hub targets peak production of 175,000 bpd. Full operations are expected by January 2026, featuring combined-cycle power and carbon capture technology.

• Uganda (Tilenga Project): TotalEnergies and CNOOC are advancing this Lake Albert development, with first oil expected in June 2026. Peak production is projected at 190,000 bpd, transported via the East African Crude Oil Pipeline (EACOP).

• Ivory Coast (Baleine Phase 3): Eni aims to raise output to 150,000 bpd and 200 million cubic feet of gas per day by January 2029, utilizing Africa's first net-zero Scope 1 and 2 emissions plan.

• Libya (Block NC98): Waha Oil Company is targeting 80,000 bpd of condensate and oil, with production slated for July 2028.

2. Strategic Gas & LNG Growth

• Republic of Congo (Congo LNG): Eni’s Nguya FLNG unit is expected to be online by mid-2026, raising total capacity to 3 mtpa alongside the operational Tango FLNG.

• Nigeria (ANOH Gas Project): This Seplat/NNPC joint venture began commercial operations in May 2025, processing 300 million cubic feet of gas per day to support the "Decade of Gas" strategy.

• Mauritania/Senegal (GTA Phase 2): bp is planning a 2.5–3 mtpa capacity expansion for the Greater Tortue Ahmeyim project, with construction expected to begin in January 2028 following a $3–5 billion investment.

• South Africa (Virginia Phase 2): Renergen plans to drill 350–450 new onshore wells to produce 34,000 GJ/day of LNG and liquid helium by January 2028.

3. Regional & Frontier Developments

• Egypt: The Tennin Gas Field (Eni/BP) holds 1 trillion cubic feet of reserves, with supply to the Damietta LNG plant scheduled to start in January 2029.

• Morocco: The Tendrara Phase 2 pipeline project (Sound Energy) will supply 42 million cubic feet of gas per day to the power sector by early 2028.

• Cameroon/Equatorial Guinea: The YoYo Gas Project (Chevron) targets commercial operations by January 2028, feeding into the Gas Mega Hub.

• Algeria: Sonatrach’s Bourarhet Nord project aims to reach full operations by January 2030.

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