GlobalData says Africa to see US$194bn in oil and gas capex over next eight years

AF O G CapexAfrica has seen brisk activity on the back of recent offshore oil and gas discoveries. (Image source: Tim Abbott/Flickr)Consulting firm GlobalData said about US$194bn will be spent on upcoming oil and gas fields in Africa over the next eight-years, underscoring the pickup in oil and gas industry activity in the region

Oil prices, which fell to multi-year lows, have risen on the back of production cuts from OPEC and other non-OPEC countries like Russia. 

Large offshore oil and gas discoveries in recent years have propped up quite a few economies in the continent.

Oil majors such as Shell, France's Total and Italy's Eni have rushed to cash in on the recent flurry of activity by striking deals for offshore projects.

The firm said that the continent's largest oil producer and OPEC member, Nigeria, will see about US$48.04bn or nearly one-fourth of total capital expenditure on projects in Africa over the period.

GlobalData said that ultra-deepwater oil and gas field will see capex to the tune of US$11bn and that Bonga North and Bonga Southwest/Aparo will see US$8.9bn and US$3.9bn respectively.

Close behind Nigeria, the firm expects Mozambique to scoop up 23.8 per cent of incoming capex over the period.

Angola, another OPEC member and the second largest oil producer in the continent, will see 11.3 per cent of capex coming into the continent. The  Kaombo Complex, Orca and Lucapa deepwater oilfields will see the most amount of spending.

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