Faith Nyasuguta
Africa is emerging as a major player in the global oil market, with 2024 marking a pivotal year in the continent’s hydrocarbon exploration. A recent S&P Global report, High Impact Wells 2025, highlights that Africa accounted for 35% of all new oil discoveries in 2024, an impressive jump from just 7% in 2023.
This surge underscores the continent’s growing significance in the global energy landscape and sets the stage for increased investment in its oil sector.
Unexplored Basins
One of the most striking aspects of Africa’s recent oil boom is the high level of exploratory drilling in frontier and underdeveloped basins. In 2024, 60% of the New Field Wildcats (NFWs) drilled in Africa targeted these relatively uncharted areas, revealing the continent’s immense untapped potential.
Two of the most prominent emerging exploration hotspots are the Southwest African Coastal Basin, particularly the Orange Sub-basin, and the Cote d’Ivoire Basin. These regions have yielded significant discoveries, making them attractive to global investors seeking new opportunities beyond traditional oil-producing nations.
The S&P Global report states, “Among the 70+ basins where discoveries were made in 2024, three basins accounted for half of the total found resources: the Orange Sub-basin of the wider Southwest African Coastal Basin, the Central Arabian Province, and the Guyana Basin.”
This data highlights Africa’s growing influence in global oil exploration, with over 2.9 billion barrels of oil equivalent (Bboe) discovered in 2024 alone.
2025 Set for Even Greater Discoveries
Looking ahead, the report projects that 2025 could be an even more significant year for oil exploration, with more favorable conditions expected. The 2024 discoveries, totaling 8.8 Bboe, fell short of the decade’s annual average of 15.4 Bboe. However, with over 35 High Impact Wells (HIW) planned globally for 2025, experts anticipate stronger results.
Africa is poised to remain a key exploration hub, alongside Latin America, with crucial wells expected in the Guyana Basin and Orange Sub-basin. The increasing number of wells planned suggests that investment in African oil fields will likely accelerate, making the continent an attractive destination for major energy firms.
Economic & Strategic Benefits of Africa’s Oil Expansion
The surge in oil discoveries across Africa is expected to bring significant economic advantages. As more global investment flows into the region, African nations with large oil deposits stand to benefit from:
Energy Security: Increased domestic production could reduce dependence on imports and stabilize fuel prices.
Infrastructure Development: New oil projects will require the construction of pipelines, refineries, and export facilities, leading to broader economic development.
Job Creation: The expansion of the oil sector will generate employment opportunities across various fields, from engineering to logistics and services.
Africa’s growing role in the energy sector is also reshaping global oil geopolitics. As traditional oil-producing regions face production declines or policy shifts toward renewables, Africa’s reserves offer a vital alternative for meeting global energy demand.
With exploration efforts intensifying and major discoveries already recorded, Africa is on track to become one of the most attractive oil investment destinations in the coming years.
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