Africa to contribute $41bn to exploration, production expenditure – Report

Global Exploration and Production capital expenditure (capex) is forecast to reach approximately USD504 billion by 2026, with Africa contributing about USD41 billion, a new report has said. African Energy Chamber’s 2026 Outlook Report, also said Africa’s hydrocarbon production is expected to remain stable at roughly 11.4 million barrels of oil equivalent per day (boe/d) through […]

Global Exploration and Production capital expenditure (capex) is forecast to reach approximately USD504 billion by 2026, with Africa contributing about USD41 billion, a new report has said.

African Energy Chamber’s 2026 Outlook Report, also said Africa’s hydrocarbon production is expected to remain stable at roughly 11.4 million barrels of oil equivalent per day (boe/d) through 2026.

It also said fresh projects are on track to increase output towards 13.6 million boe/d by 2030.

The report acknowledges that optimism is being tempered by caution.

It said: “But overall, the potential for sustained upstream expansion is truly promising for African states with petroleum reserves. The key will be doing as much as possible to attract the capital needed to pursue the next wave of discoveries.”

The Outlook report notes that upstream capital spending in Africa has risen consistently over the past three years as the sector recovers from the pandemic-related lows of 2020.

Analysts from firms like Wood Mackenzie and Deloitte all describe the same pattern: Companies are channeling a significant share of their cash flow into dividends, buybacks, and debt reduction instead of chasing growth at any cost.