Africa’s national oil companies transition to competitive upstream players
Africa's national oil companies (NOC) are transforming into competitive upstream players by strengthening their balance-sheets through partial privatisation, transferring regulatory roles to independent entities, and acquiring more assets.
Major oil producers in Africa are working to boost production, with collaboration between NOCs and international oil companies (IOCs) at the forefront.
Libya's NOC is working with IOCs Repsol, bp, TotalEnergies, ConocoPhillips, and more to increase output to 2 million barrels per day (bpd). Algeria's Sonatrach plans to increase hydrocarbon production by 2.5 per cent this year, actively pursuing international partnerships following a revision of its Hydrocarbons Law in 2029. Negotiations are underway with ExxonMobil and Chevron to boost exploration.
Africa has emerged as a major LNG producer, with collaboration between NOCs and IOCs leading to the emergence of new LNG exporters.
Senegal's Petrosen and Mauritania's SMH collaborated with bp and Kosmos Energy to develop the Greater Tortue Ahmeyim LNG project, Mozambique's ENH is working closely with foreign operators to develop several LNG projects, and Angola's NOC Sonangol is working with its New Gas Consortium partners to increase LNG production capacity.
New exploration and production (E&P) markets have opened up across the continent, with Uganda National Oil Company (UNOC) driving exploration across underexplored areas in the country and Namibia's NAMCOR working with IOCs toward first oil production from the Orange Basin by 2029.
South Africa National Petroleum Company (SANPC) seeks to facilitate greater investment in exploration, natural gas monetisation, and infrastructure development.
"African NOCs are driving the continent’s next wave of innovative oil and gas developments. By partnering with global operators and strengthening their operational capacity, NOCs are not only driving projects forward but showcasing the competitiveness of African operators," states Tomás Gerbasio, VP Commercial and Strategic Engagement, African Energy Chamber.