Nigeria, Egypt, Angola… IEA Says Africa’s Upstream Oil And Gas Investment Remains Concentrated In Five Countries
Adedokun Waliyu
2 min read
The International Energy Agency (IEA) has stated that upstream oil and gas investment in Africa remains heavily concentrated in five countries: Algeria, Angola, Egypt, Nigeria, and Libya.
According to the agency’s 2026 World Energy Investment Report, these five countries account for 70 percent of Africa’s upstream oil and gas investment and 80 percent of the continent’s total oil and gas production.
The report revealed that upstream oil and gas investment in Africa declined from $68 billion in 2016 to $37 billion in 2025.
The IEA noted that while the continent’s established oil producers have experienced declining investment, emerging producers have attracted increasing capital.
Investment across the five major producers dropped from $50 billion in 2016 to $25 billion in 2025, although Libya recorded an increase. The agency attributed the overall decline to changing investment competitiveness.
Meanwhile, investment in emerging producers such as Mozambique, Namibia, Senegal, and Uganda rose significantly—from $1.5 billion in 2016 to $5 billion in 2025—despite their relatively low production levels.
The report explained that the increase reflects the development of new, capital-intensive projects, including deepwater oil fields and liquefied natural gas (LNG) terminals, which require higher investment.
Exploration spending in Africa reached nearly $6.5 billion in 2025, driven by ongoing work on recent discoveries. However, the IEA warned that exploration remains highly risky, with national oil companies increasingly taking on larger roles.
The agency also pointed out that limited government budgets in several producer countries have reduced the ability of national oil companies to finance upstream projects, making partnerships and alternative financing arrangements increasingly necessary, as seen in countries like Mozambique and Senegal.
Overall, the IEA said private and international oil companies continue to dominate upstream investment in Africa, providing much of the capital, technology, and project execution expertise needed by the sector. National oil companies account for about 25 percent of total capital expenditure, a figure that has remained broadly consistent over the years.
Upstream investment in Sub-Saharan Africa
The IEA projects that upstream oil and gas investment in Sub-Saharan Africa will increase by 12 percent to about $24 billion in 2026, following an 18 percent decline in 2025.
According to the report, BP is focusing its 2026 investment on increasing production in Angola and Namibia’s Orange Basin through the Azule Energy joint venture.
The agency also noted that LNG projects are continuing in Nigeria and Mozambique, with investments from major international and local companies.
In addition, Nigeria is expanding the development of its deepwater oil prospects through partnerships with major international oil companies.
