Africa’s oil and gas industry expects a slate of Final Investment Decisions (FID) to be made throughout 2024 as rising global demand incentivizes financiers to support strategic projects. In 2024 thus far, four major hydrocarbons projects in Nigeria, Angola and the Republic of the Congo have already reached FID, signaling a strong intention by project developers to advance African oil and gas developments.
Bonga North – Nigeria
Energy major Shell’s Nigerian subsidiary Shell Nigeria Exploration & Production Company plans to finalize FID for the Bonga North deepwater project in 2024. The $5.5 billion project will unlock over 350 million barrels of oil equivalent, extending the life of the existing Bonga FPSO vessel by 15 years. Operations are slated to commence by 2027/2028.
PAJ Complex – Angola
Operated by international energy firm Azule Energy, the PAJ Complex in Block 31 is one of Angola’s largest upcoming oil developments. The $3.6 billion ultra-deepwater project will involve drilling 10 wells, with an FPSO expected to be deployed. Targeting FID this year, the project is expected to be active by 2026. The complex contains around 150 million barrels of crude oil reserves and is projected to have a production capacity of approximately 25.35 million barrels per year.
South Lokichar Development – Kenya
Independent oil and gas firm Tullow Kenya BV is set to reach FID for Phase 1 of the South Lokichar Development in 2024. Estimated to cost $3.4 billion, phase one of the onshore project includes the development of 321 wells. The project will also include the buildup of an 852 km pipeline, transporting 120,000 barrels of oil per day from the fields to Lamu Port for export to regional and international markets. First production is expected in 2026.
Greater Tortue Ahmeyim Phase 2
Energy majors bp and Kosmos Energy are expected to make FID for Phase 2 of the Greater Tortue Ahmeyim (GTA) LNG project – situated on the maritime border of Senegal and Mauritania – in 2024. Construction of the $2.5 billion ultra-deepwater project is slated for 2025 with commercial operations expected by 2027. Phase 1 of the GTA project is currently on track for first gas production in 2024, having achieved 95% completion in July 2024. The project’s phase two will double output from 2.3 million tons of LNG per annum (mtpa) to 5.2 mtpa.
Matola LNG – Mozambique
French multinational energy firm TotalEnergies plans to make FID for the Matola LNG terminal in Mozambique by September 2024. The $550 million project aims to support regional energy demand while providing feedstock for a planned 2,000 MW gas-to-power plant in Mozambique. TotalEnergies is partnering with industrial gas supplier Gigagoule, Mozambique’s Matola Gas Company and national oil company Empresa Nacional de Hidrocarbonetos to develop the project.
Venue-1X and Graff-1X Discoveries – Namibia
Namibia anticipates FID to be made on the Venus-1X and Graff-1X deepwater discoveries – made in 2022 by multinational energy companies TotalEnergies and Shell – by the end of 2024. Estimated to hold up to 11 billion barrels of crude oil, the discoveries serve as the country’s first major deepwater oil finds. According to Namibia’s Finance Minister Iipumbu Shiimi, the country expects FID to be made on the projects within six months of each other, with first oil production targeted for 2029.
