Africa accounts for 35% of newly discovered oil – Report

Oil-producing African countries have increased their crude production quota, now accounting for 35 per cent of newly discovered oil reserves in 2024, a substantial rise from just seven per cent in 2023, a new report by S&P Global has stated.

The production upsurge shows that African nations are now leading the charge in newly discovered crude oil reserves amidst the energy transition agenda pushed by Western nations.

However, Nigeria, with oil reserves of 37.5 billion barrels, was notably absent from these recent findings.

The report titled “High Impact Wells 2025” explained that while about 8.8 billion barrels of oil equivalent were found, the Cote D’Ivoire Basin and the Orange Sub-basin accounted for 2.9 billion of this figure.

It noted, however, that the figure was the lowest net newly discovered volumes since the 1950s. According to the report, there are a plethora of promising high-impact wells, highlighting the need for advanced exploration.

The report read, “In 2024, Africa accounted for 35 per cent of the global discovered volumes, a significant increase from just seven per cent in 2023. Notably, 60 per cent of offshore Africa’s NFWs were drilled in frontier or immature basins.

“Areas of exploration focus in Africa were the Southwest African Coastal Basin, particularly the Orange Sub-basin, and the Cote d’Ivoire Basin which were major contributors to the nearly 2.9 billion barrels of oil equivalent (Bboe) discovered during the year.”

It said the Orange Sub-basin continued to be an exploration hotspot, with discoveries in the basin by Galp, TotalEnergies, and Shell.

“Galp’s Mopane 1X discovery is the biggest discovery of the year globally and is of real interest due to being in shallower water than previous discoveries (1400 m shallower than Venus) and with good reservoir properties. Exploration continued throughout the year in the basin, with further HIWs slated for 2025.

“Also of note was Eni’s successful  Murene 1X well, which made the Calao discovery. The discovery is the third largest in the basin, further debunking the idea that the potential is limited within the Cote d’Ivoire portion of the basin. If not for the Orange Sub-basin, the Cote d’Ivoire Basin has been the most prolific African basin since 2021, when it yielded the Baleine discovery,” it said.

The report also stated that the top 10 newly discovered oil reserves accounted for approximately 60 per cent of the total new finds.

According to the report, the Orange Sub-basin in Southwest Africa, the Central Arabian Province, and the Guyana Basin collectively contributed to more than half of the year’s discoveries.

“A review of the new finds shows that deepwater explorations are now the major focus of the global oil and gas industry. Drillers reached a water depth of approximately 1,680 meters at the Mopane well. The Murene 1X well in Côte d’Ivoire was drilled to a depth of 2,200 meters.”

“Ultra-deepwater exploration will be a recurring theme, as seen in the Venus 1X well which has a water depth of about 3,000 meters. The Bonga Oil Field in the Niger Delta basin is another ultra-deepwater oil field.”

According to the report, deepwater explorations, which were majorly high-risk explorations, had the potential for high rewards.

Revealing its projections for 2025, the S&P said the Southwest African Coastal Basin, Central Arabian Province, and Guyana Basin will remain significant players in the exploration landscape, all displaying continued opportunities for untapped potential.

“High impact Wells will drive discovery and remain a key indicator of future trade flows in 2025. Despite recent declines in exploration activity and discovered volumes, the industry’s focus on high-quality acreage and frontier basins highlights a commitment to uncovering new resources. The Guyana Basin, Orange Sub-basin, and Central Arabian Province are poised to remain at the forefront of exploration efforts, contributing substantial volumes and showcasing the potential for future discoveries.

“As companies balance the challenges of portfolio optimization, transition, and net-zero obligations, the strategic targeting of both high-risk, high-reward prospects and proven basins will be crucial for sustaining the momentum of resource replenishment and ensuring the continued growth and vitality of the oil and gas sector.

“More than 35 high-impact wells are scheduled globally for 2025, with drilling plans in both immature and frontier basins, as well as mature provinces. Latin America and Africa remain key regions, with significant wells planned in the Guyana Basin and Orange Sub-basin, respectively,” It concluded.

Nigeria has been mostly left out of the conversation about new oil reserves, a development caused by the lack of funding and investments that has plagued the Nigerian oil sector in recent years. However, Shell’s planned $5bn investment in the Bonga North Field suggests that numbers from Nigeria could begin to emerge in the coming years.

Also, Chevron announced the discovery of a new oil field in the Meji NW-1 well, located offshore of the Niger Delta Basin. According to the oil giant, the discovery has the potential for 17,000 barrels per day.

The Secretary-General of the Organisation of the Petroleum Exporting Countries, Mr Haitham Al-Ghais, recently tasked Africa to unlock its proven oil of over 120 billion barrels.