A total of 43 crude and natural gas projects are expected to start operations in Sub-Saharan Africa by 2025, of which 31 are crude and 12 are natural gas, according to research and consulting firm GlobalData. The company’s latest report states that Nigeria is set to lead the region in terms of number of planned projects, with 11, followed by Angola with eight.
Joseph Gatdula, GlobalData’s senior upstream analyst, explains: “The region will experience investment delays across a wide scope of projects. However, developments will continue to come online in the mid-term, including fields which started development prior to the downturn in prices and those which demonstrate break evens at or below today’s current oil prices.”
Tullow Oil and Total will lead the region in terms of operatorship with five planned projects each. Of the 10 projects the two companies are expected to operate, nine are crude and one is natural gas, with Chevron Corporation occupying third place in terms of development with its three planned projects.
Jonathan Markham, GlobalData’s upstream analyst, notes: “Progress on the liquefied natural gas (LNG) projects in Mozambique has slowed over the last few years due to financing issues and regulatory uncertainty. The operators are expected to start with relatively small scale developments, such as Eni’s 3.4 million metric tonnes per annum (mmtpa) floating liquefied natural gas (FLNG) solution.
“Reduced investment is likely to lead to a slower build-up of the projects than initially planned, only reaching an estimated combined capacity of 30 mmtpa by 2025. A final investment decision (FID) for the FLNG development is expected in 2016, while approval for the onshore facilities is likely to be delayed until 2017 and LNG exports from Mozambique are projected to start at the end 2021.”
Key planned projects in the Sub-Saharan region are expected to contribute 1.1 million barrels of oil per day (bd) to global crude production in 2025, and 7.7 billion cubic feet per day to global gas production.