Nigeria and Mozambique dominate capex outlook in sub-Saharan Africa to 2025: GlobalData
Leading data and analytics company sees tens of billions of dollars of capex routed to the region.
In sub-Saharan Africa, Nigeria is set to lead the way with 10 planned oil and gas projects expected to start operations between 2018 and 2025, followed by Mozambique with two projects. In terms of announced projects, Nigeria once again leads with 13 projects, followed by Angola with five announced projects, says GlobalData, the data and analytics company.
The firm’s latest report: ‘H1 2018 Production and Capital Expenditure Outlook for Key Planned Upstream Projects in sub-Saharan Africa’ indicates that a total of 64 planned and announced crude and natural gas projects are expected to commence operations in sub-Saharan Africa between 2018 and 2025.
Among these, 20 represent the number of planned projects with identified development plans and 44 represent the number of early-stage announced projects that are undergoing conceptual studies and that are expected to get approved for development.
Joseph Gatdula, oil and gas analyst at GlobalData, comments: "The total crude and condensate production from announced and planned projects in sub-Saharan Africa is expected to be around 2mn barrels per day in 2025 and the total natural gas production in 2025 is about 8.1bn cubic feet per day.”
Proposed capital expenditure (capex) of $40.7bn is expected to be spent on development of planned projects in sub-Saharan Africa, and $117.1bn is expected to be spent on key announced projects.
Among countries, the top three in terms of highest planned capex spending are Nigeria, Mozambique and Angola with around $17.3bn, $7.7bn and $5.1bn, respectively, during 2018–2025.