The international energy market is in a constant state of evolution, with market trends shifting as emerging markets are set to attract new and fresh upstream investments. Africa has long been overshadowed by more influential regions of the world in the upstream sector; however, several new developments are pointing to the vital role that the African energy market will play in the new year. New African frontier basins are set to bring in new upstream spending in 2026, as noted by several market analysts.
A new year brings in new possibilities for the African upstream market
The African oil and gas industries are set to bring in new investors and operators this year as the region opens several new licensing rounds, along with a new phase of consolidation and exploration of upstream mergers and acquisitions in the African energy sector. 2025 saw the beginnings of growth for the African energy market.
The spotlight has shifted to the African energy market following the G20 Summit in South Africa in November of last year. At the summit, several nations reaffirmed commitments to new and pioneering energy projects in the coming years. African energy operators have been consolidating new mergers, while some have been acquiring projects from international operators looking to divest holdings.
The African Energy Chamber’s State of African Energy 2026 Outlook paints a pretty picture
The outlook notes the expected increase in energy production across the continent as international energy companies aim to realign their energy project portfolios. While new deals in the North American sector have slowed down, a new wave of possibilities in the African market has emerged, with 2026 looking to be the start of a new era of African energy production in the upstream sector.
“The African oil and gas sector is set for significant consolidation in 2026, particularly among midsize and African independent companies.” – NJ Ayuk, Executive Chairman of the African Energy Chamber
Several African nations are preparing for a wave of new upstream projects
Nigeria is set to see several new upstream energy projects this year. The nation has long been the backbone of the upstream market on the continent, boasting oil and gas projects that will reshape regional production. Some of these new projects and divestments by international energy companies are:
- ExxonMobil’s sale of a 30% operated interest in Mobil Producing Nigeria Unlimited to Seplat Energy
- Eni’s transfer of its onshore subsidiary to Oando
- TotalEnergies’ and Equinor’s asset divestments to Chappal Energies Offshore
- Shell’s sale of its onshore subsidiary, Shell Petroleum Development Company of Nigeria Ltd., to Renaissance, a consortium of five mostly local E&Ps.
New licensing rounds have also popped up in Algeria, Angola, Sierra Leone, Congo, and Tanzania, marking a new future of increased investments in the African energy market. Shell has been boosting its African energy portfolio with a new upstream LNG project in Nigeria, setting an example of new and pioneering energy projects on the African stage for international energy companies.
New and astonishingly large investments in the African energy market have emerged
The wave of new projects in Africa has been boosted by the news that Afreximbank has launched a new investment fund for the African midstream and downstream gas infrastructure, exemplifying the market trend emerging as of late. The increased attention on the African energy market has been a long time coming, following decades of stagnation. Whether or not this new approach will produce results is still up in the air, but with renewed importance being placed on developing the region’s energy infrastructure to handle more production, the continent is set to become a force in the international energy market in the near future.
