The 5 biggest oil and gas projects in Africa

September 9, 2019

oil and gas projects in Africa

The eyes of the oil & gas industry are focused on African countries. Though only currently producing four per cent of the world’s oil, the continent has huge untapped potential and plenty of natural resources to explore.

A total of 70 crude and natural gas projects are expected to start in sub-Saharan Africa alone between 2019 and 2025. Nigeria is expected to reach crude and condensate production of 1,046,940 barrels per day (bd) in 2025.

It is also clear LNG projects in Africa represent a huge opportunity for the continent to establish as a global powerhouse. The discovery of recoverable natural gas resources creates the potential for Mozambique to become a major producer of liquefied natural gas (LNG).

Africa’s set to be a hive of activity over the coming decade - little wonder global oil companies are looking to begin projects there and power Africa to reach its potential. 

Here are 5 African ventures on the list of biggest oil and gas projects in the world

1: Mozambique LNG

Mozambique LNG is a state-of-the-art facility being built on the Afungi peninsula in Cabo Delgado province. The first brick was laid on the East African coast in November 2017.

The project aims to tap into the approximately 75 trillion cubic feet of recoverable natural gas said to lie in Offshore Area 1. The project aims to deliver those natural, sustainable and cleaner gases to various markets.

The project promises that it’s “ committed to shared benefit” and will bring numerous benefits to Mozambique, including:

  • Supporting socio-economic development
  • Delivering positive environmental and social projects
  • Providing jobs for local people
  • Acting with the highest ethical standards

FID was achieved in June 2019, and even with the change in operatorship happening with the take over of Anadarko, this project is now running full steam ahead. Resettlement activities are almost complete, and the early works are underway in Afungi.

With a projected headcount of 15,000, this project is set to transform the employment demographic in Mozambique.

2: Area 4 – Coral FLNG & Rovuma LNG

Area 4 contains approximately 85 trillion cubic feet of natural gas. ExxonMobil states that “tens of billions of dollars” are expected to be invested into creating a “world-class LNG project”, helping transform Mozambique into a major global energy player.

Coral FLNG, operated by Mozambique Rovuma Ventures & lead by Eni, is well underway having passed FID back in 2017. The Reef Consortium (Technip, JGC, SHI) are constructing the vessel in South Korea. When complete, it will travel down to Mozambique and start production from the 5Tcf gas filed at Coral South (in Area 4).

ExxonMobil is leading construction and operation of the Rovuma LNG facility, which will process the gas from the mamba complex in Area 4, offshore Mozambique.

Other benefits predicted from the project’s success include delivering significant revenue to Mozambique’s economy and new industrial opportunities. 

Construction alone will create 5,000 local jobs and promote skills development, with local workers set to receive two million hours of training in total.

3: Tortue Ahmeyim

Based offshore on the maritime border of Mauritania and Senegal, the Tortue Ahmeyim project is a field development operated by BP. 

BP has recently awarded TechnipFMC a $500 million to $1 billion contract, to build the FPSO unit to be deployed for phase 1 of the project. 

Total gas resources in the field are estimated to be around 15 trillion cubic feet. That gas will be exported and made available in Mauritania and Senegal. The final project will provide economic boosts to the region as well as create local jobs.

The gas contains no carbon dioxide or hydrogen sulphide and is lean, with low levels of liquids. This means it should be possible to pipe it 130 km to shore with no deep-water infrastructure required and minimal gas processing.

Phase 1 reached a final investment decision in 2018 in record time. Bernard Looney, BP’s Upstream chief executive at the time said

“It represents the beginning of a multi-phase project that is expected to deliver LNG revenues and gas to Africa and beyond for decades to come.

We see this as the start of a new chapter for Africa’s energy story and are honoured to work alongside our partners and the governments of Mauritania and Senegal”

Phase 2 & 3 pre-feed has commenced for the onshore facility, which is due to be ready for production in 2024.

4: Tanzania LNG Liquefaction Plant

The $30bn project, led by Shell, has been held up for years due to 

  • Regularity delays
  • Finalizing issues relating to the acquisition of land at the site
  • Establishing a legal framework for the nascent hydrocarbon industry. 

However, although negotiations are still on-going, the government recently announced that construction will commence in 2022, with expected completion in 2028.

Tanzania has estimated recoverable reserves of over 57.54 trillion cubic feet (tcf) of natural gas.

The LNG export terminal will be built at Lindi in the south of Tanzania, near the offshore natural gas discoveries in deep water. The project will have capacity to produce 10 million tonnes per annum (MTPA) of liquefied natural gas.

The government of Tanzania is keeping a tight leash on its resources. Laws passed recently to give even greater control of future energy projects could discourage future investors. If they do come to an agreement, this project will be one to watch as it races to catch up with Mozambique.

5: EACOP/Tilenga

The East African Crude Oil Pipeline (EACOP) is an oil export project designed to transport crude oil from Kabaale-Hoima near Lake Albert in Uganda to the Chongoleani peninsula, close to Tanga port in Tanzania. 

The heated pipeline (due to Ugandan crude’s waxy nature) will be 1,443km in length with 216Kbd the expected flow rate per day.

The project is promising residents of Uganda and Tanzania more local jobs, new infrastructure, enhancements in the central corridor between the two regions and more. Already EACOP has seen $3.5 billion USD in investment and a 60% increase in foreign direct investment in Uganda and Tanzania.

FID was expected by the end of 2019, but it has recently been suspended while further negotiation takes place with the governments. 

It is currently unclear how long this process will take, but there is little doubt that the project will eventually move forward. With contracts already awarded, this project will develop very quickly once it is given the green light.

Visit the GETI site to download the report

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This post was written by: Mary McNeely, Business Development Manager for Africa