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The BED facility will undergo maintenance shutdowns twice in 2026.

Exploration

Liquids-rich development drilling and the ongoing waterflood programme in the Badr El Din (BED) concession has resulted in increased production levels from Egypt for Capricorn Energy's 2025 report at 20,024 barrels of oil equivalent per day, surpassing the year's guidance of 17000-21000 bopd

The new guidance for 2026 is hence set at 18000-22000 boepd, also driven by a forecast to generate 43% liquids. A four-rig drilling programme has been put in place throughout the year with a special focus on the liquids-rich area. It will also include activities on the gas-prone Bahariya target which was found last year. Operating costs for the year are anticipated around US$5-7 barrels of oil equivalent. The US$217mn collected from Egypt in 2025 will cover the funding for the sustainably designed drilling plan.

The BED facility will undergo maintenance shutdowns twice in the year.

The Egyptian General Petroleum Corporation and the Egyptian Cabinet have approved the merged concession agreement, with formal ratification expected within the first half of 2026.

"2025 was a year of significant operational, strategic and financial progress for Capricorn, marked by a number of milestones across our Egypt operations.

"In May we received approval from the Egyptian General Petroleum Corporation (EGPC) to consolidate eight of our existing Egyptian concession agreements into a single, merged concession agreement, unlocking significant fiscal and operational benefits which should allow us to extract additional value from our existing portfolio. The new agreement, anticipated to receive parliamentary ratification in H1 2026, secures access to an additional development lease area and two open exploration areas adjacent to our existing acreage. These additions supported a 20.2 mmboe increase of working interest (WI) 2P reserves (certified at year end), enhancing future development potential. The improved fiscal terms will drive increased investment and cash flow across a range of oil prices and at $80 per bbl our netback improves from $18 to $23 per boe. Furthermore, it includes a 60% increase in gas pricing for incremental volumes from both existing fields and new discoveries.

"Operations in Egypt delivered full year production of 20,024 boepd, exceeding the midpoint of 2025 guidance, supported by liquids-rich development drilling and the ongoing waterflood programme in the Badr El Din (BED) concession.

"Despite a volatile macroeconomic environment and fluctuating commodity prices, we collected $217m from Egypt, reducing the Company’s accounts receivable to $86m.

"Capricorn’s progress in 2025 provides a robust platform to build a cash-generative business. A key priority for 2026 will be accelerating development activities in the merged concession area.

"Our strategic priorities for the coming year are to maximise value from our Egyptian assets through disciplined investment, prioritise shareholder value, and continue to explore value-accretive opportunities, primarily in Egypt, with a secondary focus in the UK North Sea and the broader MENA region," said Randy Neely, the chief executive of Capricorn Energy.

The Nigeria Laide multi-client 3D survey. (Image source: TGS)

Geology & Geophysics

As Nigeria continues to build its domestic industry to attract global investors, seismic surveys remain an integral part of the process 

The latest research comes from the eastern Niger Delta, which is considered one of the country's most prolific hydrocarbon regions, covering approximately 11,700 sq kms. The Nigerian Upstream Petroleum Regulatory Commission has partnered with TGS and SeaSeis Geophysical Limited to announce the Nigeria Laide multi-client 3D survey, which focuses within the outer fold and thrust belt of the deepwater eastern Niger Delta. This area is marked with complex geological challenges such as stacked toe-thrust structures, elongate anticlines (e.g. Bolia–Chota), inner fold-and-thrust-belt geometries, and shale diapirs/mud volcanoes. 

These are addressed with the help of GeoStreamer dual-sensor system, long offsets, wide tow, and a triple-source configuration that are capable of generating modern broadband seismic data to support full-integrity PSTM and Q-PSDM through advanced Elastic FWI-driven velocity model building. This makes it easy for operators and explorers to finalise the next steps based on precisely acquired insights from otherwise inaccessible and challenging zones. 

"Nigeria continues to play a crucial role in the global supply of oil and gas. The expansion of our multi-client library in Nigeria in partnership with the government through the Laide 3D showcases our commitment to furthering hydrocarbon exploration in the region. By utilising industry-trusted acquisition solutions, TGS provides insights that accelerate exploration activity and allow operators to fulfil their exploration ambitions," said Kristian Johansen, CEO of TGS. 

The modern, high-fidelity Nigeria Laide multi-client 3D survey is backed by industry funding, and comes soon after a survey in the western Niger Delta Basin that was announced by Shearwater last December. 

 

 

New log analysis from latest rock data has refined all previously disclosed results.

Technology

With regulatory permits for production testing secured and production liner procured from North America, work crews from Reconnaissance Energy Africa have prepared the Kavango West 1X discovery well in Namibia for testing operations 

Equipment and services will be delivered on site by contracts with Halliburton and SLB, while local suppliers have been engaged in multiple support capacities.

New log analysis from latest rock data has refined all previously disclosed results. The current petrophysical analysis indicates 75 metres (246 feet) of net hydrocarbon pay in the Huttenberg formation, an increase over the previously disclosed 64 metres (210 feet).

ReconAfrica, which is the operator of Kavango West, will be conducting production testing across six optimized zones, three of which are in the Huttenberg formation and three in the deeper Elandshoek formation. A total of 345 metres (1,132 feet) of prospective interval will be isolated and perforated for testing. 

In the shallow waters of Gabon, the company is currently reprocessing 3D seismic data across focused regions for appraisal prospects within the 1,214 sq km-long Ngulu block, including the Loba discovery. 

This strategic block is located on trend to several sizable producing oil fields. The key aspects of the Ngulu block include the Loba oil discovery and over 28 seismically identified prospects in the pre- and post-salt plays. 

 

Major discoveries drove gas output.

Gas

The Nigerian Upstream Petroleum Regulatory Commission has reported that the country's hydrocarbons reserves have reached 37 billion barrels of oil and 215 trillion standard cubic feet of gas as of 1 January 2026

While gas reserves recorded an increase which can be attributed to recent major discoveries, oil output took a slight hit from production and updated field evaluations, as noted by the commission’s chief executive, Oritsemeyiwa Eyesan. Field performance and subsurface technical studies resulted to the low production levels of 2025, according to Eyesan.

The announcement, which aligned with the Petroleum Industry Act (PIA) 2021, recorded crude oil reserves at an estimated 31.09 billion barrels as condensate reserves stood at 5.92 billion barrels.

In the gas front, associated gas reserves were put at 100.21 trillion cu/ft, and non-associated gas reserves stood at 114.98 trillion cu/ft.

Noting the maximum span of the reserves in terms of current production levels, the commission indicated the reserves' life index at 59 years for oil and 85 years for gas.

Advanced reservoir studies, on the other hand, led to an increase in gas reserves by 2.21%.

“Consequently… I hereby declare the Total Oil and Condensate reserves of 37.01 billion barrels and Total Gas reserves of 215.19 trillion cubic feet as the official National Petroleum Reserves Position as of 1st January 2026,” said Eyesan, as she acknowledged the comnmision's role in emphasising upstream performance to heighten reserves growth and maintain production levels. This, she believed, was made easier because of the PIA, which allows the commission to supervise the country's petroleum resources. 

As part of the federal government's efforts to boost oil and gas investment home and abroad, President Bola Tinubu has approved a targeted fiscal incentive package to accelerate the final investment decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater project.

This led to Shell executives visiting the president in Abuja even as global oil prices shoot up due to supply shocks from geopolitical tensions. The major showed much enthusiasm about further investments in Nigeria as it acknowledged the country's improved political stability, policy consistency, and leadership as primary drivers.

“We are very keen to invest in Nigeria, but I would say this has not always been the case,” said Shell’s chief executive officer, Wael Sawan. 

The US$2.5bn plant is expected to become operational from 2029.

Downstream

In a significant China-Africa trade collaboration, Dangote Industries Limited has signed a US$4.2bn, 25‑year natural gas supply agreement with China’s GCL Group to drive its upcoming fertiliser complex in Ethiopia

Signed in Lagos, the agreement applies for GCL to supply natural gas from Ethiopia’s Calub Gas Field in the Ogaden Basin via a dedicated 108‑kilometre pipeline for the fertiliser facility set to be established in Gode, Somali Region.

Developed along with Ethiopian Investment Holdings, the US$2.5bn plant is expected to become operational from 2029. Following commissioning, the facility will be equipped to produce three million tonnes of urea annually. It will be the largest fertiliser hub in East Africa, capable of covering not only Ethiopia’s import demand but also supply to neighbouring markets.

Calling the deal transformative, Aliko Dangote, president of Dangote Industries, said, “Africa’s energy industry cannot continue indefinitely exporting raw materials while importing finished products.

“Through seamless integration and strategic cooperation with GCL, we will achieve an efficient closed‑loop value chain from natural gas extraction to fertiliser production.”

“This cooperation will expand new frontiers in Ethiopia’s energy, chemical, and food security sectors while transitioning toward a mutually beneficial ecosystem‑based framework,” said GCL Chairman Zhu Gongshan.

The project carries a lot of strategic significance in terms of employment generation, infrastructure advancement, and alignment with global low‑carbon goals. 

 

Christopher Hudson, President of dmg events. (Image source: dmg events)

Event News

Oil Review Africa catches up with Christopher Hudson, President of dmg events, ahead of ADIPEC 2025

Excerpts from an interview: 

Energy across Africa, as elsewhere in the world, is seeing major shifts and advancements. How does ADIPEC 2025 reflect this changing industry landscape and help meet the needs? 

Energy is one of the most dynamic and rapidly evolving sectors. According to the International Energy Agency (IEA), global energy demand rose by 2.2% last year, outpacing the average annual increase of 1.3% recorded over the last decade. At the same time, the global population is projected to reach 9.8 billion by 2050, with over 750 million people still lacking access to electricity, and more than 2.1 billion people remain without access to clean cooking. Rising urbanisation and living standards are reshaping energy demand, with air conditioning alone expected to be one of the largest contributors to electricity demand growth in the coming decades. This reveals the sector’s increasing need to not only produce more energy but to produce it in a way that is equitable and sustainable.

In this context, ADIPEC 2025 is being held under the theme of ‘Energy. Intelligence. Impact’. It reflects a simple but powerful truth: meeting the world’s growing need for secure, affordable and sustainable energy will depend on how intelligently we harness every resource – human, technological and natural – to deliver meaningful results for economies and communities alike.

At its core, the theme recognises that intelligence – both human and artificial – is transforming the way energy is produced, managed, and consumed. From AI-driven optimisation and digital integration to advances in hydrogen, LNG, and decarbonisation, intelligent innovation is reshaping the global energy landscape. ADIPEC serves as the meeting point for these forces, where ideas translate into action and impact can be measured in investment, policy, and progress.

AI is a major topic of discussion in the context of energy, due to its high demand. How is ADIPEC responding to the challenges and opportunities of the AI-energy nexus? 

Artificial intelligence is reshaping both global energy demand and the industry’s ability to respond. Data centres already consume around 1.5% of global electricity, and with AI workloads, that demand could more than double by 2030, rising from 415 TWh to 945 TWh. A single advanced AI model can require as much electricity to train as 100 households use in a year, while an AI query may consume 10 times more energy than a standard search.

This convergence is both a challenge and an opportunity. AI requires enormous energy, but it can also optimise grids, cut waste, improve operational efficiency, and accelerate decarbonisation. At ADIPEC 2025, we have expanded our AI Zone into five experiential areas showcasing how AI is transforming systems, people, and infrastructure. Alongside this, more than 80 conference sessions are dedicated to the AI–energy nexus, from predictive analytics to governance frameworks.

For Africa, this is particularly significant. Many countries are rapidly digitalising while also expanding power systems. The ability of AI to enhance reliability and reduce costs could be transformative for energy access and economic growth.

How is the diversity of the African continent and its vast energy sector reflected across ADIPEC 2025’s programme? 

Africa is a core part of ADIPEC’s community. This year, we are proud to welcome a strong delegation of African ministers and leaders, including those from Nigeria, Kenya, Uganda, Sierra Leone, Zimbabwe, Gambia, Equatorial Guinea, and Egypt. Their participation enriches ADIPEC’s Strategic Conference and exhibitions, ensuring Africa’s perspectives are reflected in discussions on natural gas, hydrogen, downstream, and low-carbon solutions.

dmg events is also the largest organiser of energy and infrastructure events across Africa, with long-standing operations in Nigeria, Mozambique, Kenya, Ethiopia, Ghana, Tanzania, South Africa, Egypt and Morocco. This presence gives us a unique vantage point to bridge African priorities with global dialogue.

Africa holds some of the world’s largest reserves of natural gas, oil, and minerals, as well as enormous potential in renewables. ADIPEC is committed to supporting this potential by convening African voices alongside global leaders, unlocking partnerships that can expand access, accelerate industrialisation, and strengthen Africa’s contribution to global energy progress.

Some of ADIPEC 2025’s notable African speakers include: Honourable J. Opiyo Wandayi, Cabinet Secretary for Energy and Petroleum, Kenya; Honourable Sen. Dr. Heineken Lokpobiri, Minister for State (Oil), Petroleum Resources, Nigeria; Rt. Honourable Ekperikpe Ekpo, Minister for State (Gas) Petroleum Resources, Nigeria; Honourable Chief Adebayo Adelabu, Minister of Power, Nigeria; Honourable Julius D. Mattai, Minister of Mines and Mineral Resources, Republic of Sierra Leone; Honourable Ruth Nankabirwa Ssentamu, Minister of Energy and Mineral Development, Uganda; His Excellency Karim Badawi, Minister of Petroleum and Mineral Resources, Arab Republic of Egypt; His Excellency Antonio Oburu Ondo, Minister of Mines and Hydrocarbons, Equatorial Guinea, Honorable Julius D. Mattai, Minister of Mines and Mineral Resources, Republic of Sierra Leonne; Honourable July Moyo, Minister of Energy and Power Development, Zimbabwe; His Excellency Nani Juwara, Minister of Petroleum and Energy, Gambia; Honourable Cheikh Niane, Deputy Minister of Petroleum and Energy, Senegal, and Mathias Katamba, board chairman, Uganda National Oil Company.