Capital expenditure (capex) into conventional, unconventional and heavy oil projects would form US$88.9bn, US$3bn and US$1.9bn of Africa’s capital spend respectively over the eight-year period, according to GlobalData, a leading data and analytics company
Close to US$194bn will be spent between 2018 and 2025 on 93 upcoming oil and gas fields in Africa.
Conventional gas projects will require US$99.1bn, while the investments into unconventional gas and coal bed methane (CBM) projects would total US$700mn in upstream capital expenditure by 2025.
Nigeria accounts for US$48.04bn or more than 24.8 per cent of total capex into upcoming projects in Africa over 2018 to 2025. The country has 24 announced and planned fields. The ultra-deepwater Zabazaba-Etan with US$11bn, deepwater Bonga North with US$8.9bn and deepwater Bonga Southwest/Aparo with US$3.9bn will require the highest capex over the eight-year period.
GlobalData expects 23.8 per cent of capital expenditure in Africa to be spent in Mozambique over the next eight years. Africa has seven planned and announced fields. Deepwater Golfinho-Atum Complex, ultra-deepwater Mamba Complex and ultra-deepwater Coral South, all conventional gas projects, will have the highest capex requirements over the next eight years, with expenditures estimated at US$10.9bn, US$10.2bn and US$9.5bn respectively.
Angola is expected to contribute about 11.3 per cent to the total capex spending in Africa between 2018 and 2025. The country has eight planned and announced fields. Kaombo Complex, ultra-deepwater conventional oil field with capex of US$5.1bn, Orca, conventional oil ultra-deepwater with a capex of US$3.7bn and Lucapa, conventional oil deepwater field with a capex of US$3.2bn, will have the highest level of capital spending by 2025 among Mozambique’s upcoming projects.
Tanzania, Senegal, Mauritania, Uganda, Egypt, Algeria and Kenya, together have a capex US$56.6bn or about 29.2 per cent of the total capex spending on upcoming projects over the next eight years in Africa.
In Africa, 93 upcoming oil and gas projects will call for US$413bn in capex to produce more than 13,416 mmbbl of crude and 184 trillion cu f of gas. Upcoming ultra-deepwater projects will have the highest lifetime capex at $233bn. Deepwater projects will require US$86bn over the lifetime, while onshore and shallow water projects carry a total capex of US$64bn and US$30bn respectively.
