In a significant shift in the global oil landscape, a new report by S&P Global reveals that African countries producing oil have dramatically increased their production quotas for crude oil. As of 2024, Africa is now responsible for 35 percent of newly discovered oil reserves, a remarkable jump from a mere seven percent in 2023. This surge indicates that African nations are stepping into the spotlight in terms of oil exploration and discovery, even as Western countries pursue a transition to renewable energy sources.
Interestingly, Nigeria, a country often recognized for its rich oil reserves totaling around 37.5 billion barrels, was surprisingly absent from the list of new discoveries noted in the report. This highlights a concerning trend where Nigeria seems to lag behind other African nations in tapping into its oil potential amidst growing global energy demands. The report, titled “High Impact Wells 2025,” notes that while there were approximately 8.8 billion barrels of oil equivalent uncovered this year, the numbers reflect the lowest net volume of newly discovered oil since the 1950s.
Key areas identified for oil exploration in Africa include the Southwest African Coastal Basin, particularly the Orange Sub-basin, and the Cote d’Ivoire Basin, which collectively contributed nearly 2.9 billion barrels of newly discovered oil. The report emphasizes that about 60 percent of new oil discoveries came from offshore Africa’s less explored or immature basins. This suggests that many promising oil fields remain untapped, indicating a future filled with exploration opportunities.
Notably, the Orange Sub-basin has emerged as a hotbed of activity for oil discoveries. Major companies such as Galp, TotalEnergies, and Shell have made significant finds in this area. For instance, Galp’s Mopane 1X discovery has been flagged as the largest global discovery of the year, benefiting from its shallower water depth, which is around 1,400 meters shallower than previous discoveries. Further explorations are already lined up for 2025, which could lead to even more significant finds.
The Cote d’Ivoire Basin has also contributed to these discoveries, with Eni reporting a successful find through the Murene 1X well. This well has fueled discussions around the basin’s potential for further productive discoveries, alleviating previous doubts about its capabilities. Since the Baleine discovery in 2021, the Cote d’Ivoire Basin has been a frontrunner in African oil production.
According to the report, the most significant new oil reserves discovered this year were concentrated among the top ten findings, which accounted for about 60 percent of total newfound volumes. The report underscores the importance of deep-water explorations, noting that major drilling activities have been taking place at impressive depths—like the Mopane well, drilled nearly 1,680 meters underwater, and the Murene 1X well, reaching 2,200 meters.
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Looking toward the future, the focus on deep-water exploration is likely to continue, as these high-risk ventures often yield substantial rewards. S&P Global outlined that the Southwest African Coastal Basin, Central Arabian Province, and Guyana Basin will remain prominent in the exploration scene in 2025. The report emphasizes that high-impact wells are likely to keep driving oil discoveries and influence global trade flows in the coming years.
Despite these optimistic projections, Nigeria faces challenges in catching up due to a lack of investment and funding in its oil sector. However, there might be a shift soon, as Shell has announced it will invest $5 billion in the Bonga North Field. Additionally, Chevron recently discovered a new oil field that could yield up to 17,000 barrels of oil per day. As the Secretary-General of the Organisation of the Petroleum Exporting Countries suggested, it is crucial for African countries to leverage their proven oil reserves, which exceed 120 billion barrels, to unlock potential growth and energy stability.
In summary, Africa’s growing role in the global oil market presents both opportunities and challenges. The absence of Nigeria from recent discoveries raises questions, but with upcoming investments and ongoing explorations, the oil dynamics in Africa may be on the brink of significant change. The findings from S&P Global reflect the continent’s newfound potential to shape the energy landscape as it balances the road to renewable energy with the ongoing demand for fossil fuels.
