Due to limited investments across Africa’s upstream sector in recent years, coupled with the negative impacts of Covid-19 on the global economy, the African continent has witnessed a decline in exploration activities, resulting in a shrinking number of discoveries across the continent’s rich basins. However, with exploration making a strong comeback across West Africa, specifically in the Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea-Conakry (MSGBC) region, Africa’s oil and gas sector is set to witness unprecedented growth.Owing to the region’s previous discoveries such as Senegal’s Yakaar-Teranga, Mauritania’s Orca, and Ivory Coast’s Baleine, an increasing number of international independents and majors are showing interest in the region, with multiple exploration projects lined up for 2022 and beyond. Moreover, with countries such as Senegal, Mauritania, Ghana and Ivory Coast successfully hosting Africa’s top explorers in the last five years, an increasing number of exploration companies are set to enter or expand footprints in the area in their search for lucrative discoveries.According to The African Energy Chamber’s State of African Energy report, up to 19 high-impact wells will be drilled between 2022 and 2023 in Africa, with the majority of them located in east and west African countries. With Senegal and Ivory Coast expected to award licensing rounds in 2022 and 2023, the region is set to become a hydrocarbon exploration hive. Market intelligence firm Rystad Energy forecasts that a 30% increase in exploratory drillings will be recorded across the region in 2022, compared to 2021 levels. Already exploratory drilling has increased by 50% in 2022 compared to pre-Covid levels as energy firms rally to participate in West Africa and the MSGBC region’s oil expansion and gas rush.Eni has announced plans to expand drilling in the Baleine-2 appraisal well in the Ivory Coast while Kosmos Energy is expanding its operations in Mauritania and Senegal, with the Africa Oil Corporation boosting investments in the Senegal and Guinea-Bissau Joint Development Zone. Other firms, including Bermuda-based BW Energy and US-based VA ALCO Energy, will also be exploring in Gabon and Ghana, while Australia’s FAR has announced plans to invest in exploration activities in the Panthera, Jatto and Malo prospects of The Gambia.Experts agree that the upstream potential of West Africa and the collective MSGBC region, in conjunction with the significance of regional resources, could position the continent as a global energy giant.With the energy transition taking centre stage and the demand for gas expanding on the continent, the number of projects in the sector are set to increase significantly.
