African Onshore Oil and Gas Market Sees Surge in Activity as Major Players Divest

The forum will highlight investment opportunities, including available farm-in and merger options involving Africa’s onshore acreage, and aims to attract financial and technical partners to the sector to boost Africa’s oil and gas production.

French oil giant TotalEnergies has recently sold its stake in 18 Oil Mining Licenses (OMLs) in Nigeria to Mauritius-based Chappal Energies, a company known for rejuvenating brownfield assets and unlocking potential in Africa's oil and gas sector. This move is part of a broader trend where global energy majors are divesting from onshore assets in favor of large-scale offshore projects.

The shift towards onshore operations is becoming increasingly evident. Shell, another major player, announced in January the sale of its Nigerian onshore subsidiary, which holds interests in 15 OMLs, to Renaissance, a consortium dominated by local Nigerian exploration and production firms. Similarly, Nigerian multinational Oando recently completed the acquisition of Eni's onshore business. Chappal Energies also acquired Equinor's stake in offshore OML 128 last November.

This trend will be a focal point at the Invest in African Energy 2025 Forum in Paris in May 2025. The forum will highlight investment opportunities, including available farm-in and merger options involving Africa's onshore acreage, and aims to attract financial and technical partners to the sector to boost Africa's oil and gas production.

Nigeria exemplifies this industry shift. The country's 2024 bid round features two onshore blocks in the Niger Delta, an established hydrocarbon region supported by extensive seismic data. Meanwhile, Angola, traditionally focused on offshore exploration, is now turning its attention to its onshore Kwanza Basin. The Angolan NOC Sonangol and Corcel are leading the redevelopment efforts, with recent progress including the spudding of the Tobias-14 well and ongoing flow testing. Angola's latest onshore licensing round saw over 50 bids for 12 blocks, indicating strong interest from operators and non-operators alike. The 2025 round will offer four additional onshore blocks, presenting enticing opportunities for explorers.

Frontier markets are also capitalizing on onshore potential. Canadian independent ReconAfrica, in partnership with NAMCOR, has begun drilling the Naingopo exploration well in Namibia's Kavango Basin. This basin, part of the Damara Fold Belt, is estimated to contain over 22 trillion cubic feet of undiscovered gas. Success here could position Namibia as a significant player in the onshore market, complementing its offshore Orange Basin discoveries.

For junior and independent explorers, Africa's onshore market offers numerous benefits: reduced operational costs, easier access to equipment and infrastructure, faster drilling times, and lower environmental risks. As global markets demand stronger fiscal terms and local value addition, Africa's onshore prospects are emerging as a strategic pathway for increased participation from home-grown explorers and diversification of the upstream landscape.