LAGOS, Feb 5 – Major international oil companies are accelerating their return to offshore exploration in West and Southern Africa, as the combination of promising geology, improved fiscal terms and the need to replenish reserves reshapes global upstream strategies.
Chevron and TotalEnergies are among the companies securing new offshore blocks across the region, reflecting a broader shift as expectations for fossil fuel demand remain firmer than previously anticipated. With U.S. shale growth showing signs of plateauing, exploration capital is increasingly flowing toward frontier and underexplored basins along Africa’s Atlantic margin.
Industry analysts say oil majors are actively rebuilding their acreage positions. According to Welligence Energy Analytics, companies have been able to secure sizeable offshore tracts as governments court investment through regulatory reforms and tax incentives.
West Africa has emerged as a key focus. Since 2020, around 11% of global oil and gas discoveries, equivalent to roughly 8.7 billion barrels of oil equivalent, have been made along the West African margin, according to S&P Global Commodity Insights. Liquids account for about 14% of those finds, or approximately 5.6 billion barrels.
TotalEnergies has been the most active international player, finalising new production-sharing contracts in Nigeria, Congo Brazzaville and Liberia in late 2024. Shell has also re-entered offshore Angola after a two-decade absence, citing the need for new exploration to sustain production into the next decade.
Angola has taken steps to revive upstream investment, introducing reforms and tax reductions in late 2024 aimed at improving the economics of mature assets. The country also exited OPEC earlier, removing production constraints and allowing greater flexibility for operators.
Exploration momentum is extending further south. Namibia has recorded the largest volume of newly discovered and recoverable resources in the region, estimated at 6.2 billion barrels of oil equivalent, significantly ahead of peers such as Ivory Coast, Angola, Nigeria and South Africa.
The Orange Basin, one of the world’s most closely watched exploration zones, has seen multiple discoveries by Azule Energy, a joint venture between Eni and BP, working alongside Rhino Resources.
TotalEnergies is advancing its Venus development in Namibia and has acquired a significant stake in the Mopane discovery, estimated to contain at least 10 billion barrels.
Despite the excitement, technical and geological challenges remain. Namibia’s drilling success rate exceeds 70%, but deep-water complexity and high gas content in some reservoirs continue to test project economics.
Shell recently recorded a writedown on an offshore Namibian discovery, though it has reaffirmed its commitment to further exploration.
Chevron has also expanded its footprint in the region, entering the MSGBC basin with the acquisition of offshore blocks near Guinea-Bissau. The company said the acreage complements its broader West African portfolio, which it views as one of the world’s most prolific exploration corridors.
Executives point to geological similarities between Africa’s Atlantic margin and South America’s offshore basins, particularly Brazil, as a key driver of renewed interest.
The shared geological history continues to underpin expectations of large-scale discoveries capable of reshaping global supply over the coming decades.
