Increasing exploration activities in 2022 and onwards is a top priority for African hydrocarbon producers as they seek to expand production and establish the continent as an energy hub. According to the African Energy Chamber (AEC) Q1 2022 Outlook, “The State of African Energy,” supply from legacy oil and gas fields across Africa is diminishing, resulting in a decline in production by African hydrocarbon producing countries, and creating a dire need for the increase in exploration activities. Enhancing exploration will be critical for Africa to address energy poverty and establish itself as a global energy hub. The report highlights that 2020 saw the second lowest discovered volumes in the past decade, with 2021 revealing even lower volumes. In addition to under-investment in exploration, the impact of the COVID-19 pandemic further crippled the sector from 2020. The COVID-19 pandemic led to delays in the approval of exploration projects and the impact was to such an extent that it led to the offshore rigs being left idle in Angola – something that even years of civil war did not do. Discoveries made in Angola, South Africa, Ghana, Gabon and Egypt improved Africa’s oil and gas portfolio in 2019 whilst the Luiperd gas-condensate discovery offshore South Africa supported the 2020 portfolio of discoveries made. In 2021, Africa recorded a further 30% drop in discovered reserves volume, a state which could have been made worse without the Baleine discovery in Cote d’Ivoire. Meanwhile, the report notes that 2022 will be a much more encouraging…
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The post Oil & Gas Exploration In Africa: On The Rise? appeared first on Nomad Africa Magazine | Celebrating the world’s richest continent.
Source: Nomad Africa Magazine