Expected increase in upstream spending in African frontier basins in 2026

ile some have been acquiring projects from international operators looking to divest holdings.
The African Energy Chamber’s State of African Energy 2026 Outlook paints a positive picture of the continent’s energy production increase. International energy companies are realigning their project portfolios to focus more on Africa. While North America has slowed down in terms of new deals, the African market is experiencing a surge in opportunities, indicating a promising future for energy production on the continent in the upstream sector.
According to NJ Ayuk, the Executive Chairman of the African Energy Chamber, significant consolidation is expected in the African oil and gas sector in 2026, especially among midsize and African independent companies. This consolidation highlights the dynamic growth and potential of the African energy market that has been gaining momentum.
Numerous African nations are gearing up for a wave of new upstream projects, with Nigeria leading the way with various energy projects planned for this year. Nigeria, a key player in the African energy market, is set to reshape regional production with projects and divestments such as ExxonMobil’s sale of a 30% operated interest in Mobil Producing Nigeria Unlimited to Seplat Energy and TotalEnergies’ divestments to Chappal Energies Offshore.
Apart from Nigeria, Algeria, Angola, Sierra Leone, Congo, and Tanzania have also launched new licensing rounds, indicating a surge in investments in Africa’s energy sector. Shell, in particular, is bolstering its energy portfolio in Africa with a new LNG project in Nigeria, setting the tone for international energy companies looking to engage in pioneering projects on the African continent.
The recent boost in African energy projects is further supported by Afreximbank’s launch of a new investment fund for African midstream and downstream gas infrastructure, highlighting the growing focus on the African energy market. After years of stagnation, the continent is now receiving renewed attention and investment, suggesting a promising future in the global energy market with enhanced energy infrastructure capabilities to drive increased production.
As Africa emerges as a major player in the international energy market, anticipation builds around the continent’s ability to fulfill its potential and become a key contributor to global energy production. The wave of new projects, consolidations, and acquisitions in Africa’s energy sector signifies a transformative period for the continent, positioning it as a significant player in shaping the future of the energy industry.