An overview of forecast demand offshore Africa to 2019

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Author: Catarina Podevyn
Published on: 26/10/2015
Published at: Infield Systems

Africa Oil Week: Stand 45

Infield Systems launches its new online Africa report; highlighting the major trends and developments taking place across the region’s offshore sector. Expected to hold a 20% share of global offshore Capex demand over the 2015-2019 timeframe, Africa, driven by deepwater development offshore Angola, Nigeria and Ghana, remains a pivotal market for the world’s leading IOCs, with operators including Total, Eni, BP, ExxonMobil and Independent Tullow all continuing to invest a significant proportion of their E&P budgets within the region.

Africa Forecast to 2019

Infield Systems forecasts the Africa region to undergo a CAGR of 14.5% in offshore Capex demand during the 2015-2019 timeframe. West Africa drives this demand and is expected to hold an 80% share of African offshore Capex over the five year period, although this represents a decrease from the previous period to 2014 (91%), predominantly as a result of the growth projected for the South and East African sub-region, driven by Mozambique. The North African sub-region is also anticipated to see considerable Capex growth compared to the historical period, primarily as a result of planned capital-intensive projects such as the possible gas export pipeline from Israel’s Leviathan field to Egypt.

Within West Africa, demand is anticipated to remain driven by Angola with key projects including: Total’s Kaombo 1 and 2 and the possible Chissonga development operated by Maersk.  Altogether, Infield Systems expects a total of 111 fields offshore Angola to require Capex spend, whilst average water depths of developments are forecast to stand at around 900 metres. Nigeria is expected to remain the second highest demand driver with forecast Capex expected to increase by 107% compared to the previous five years; predominantly as a result of the giant Egina project, which is expected to form 40% of Nigeria’s offshore Capex over the period. Ghana is expected to comprise 8% of Africa’s offshore Capex over the 2015-2019 timeframe, with the largest demand expected to be required by the subsea sector; driven by projects such as Tweneboa (TEN) and Mahogany East.

Within the South and East African sub-region Infield Systems expects the consortium of Eni CNPC to lead development spend, with activities solely focused upon projects offshore Mozambique, in particular the Coral and Mamba North and South prospects. Anadarko is also expected to direct investment towards developments offshore Mozambique, focusing on prospects within the Prosperidade area. Investment offshore Tanzania could also commence towards the end of the timeframe, whilst offshore Namibia, the Kudu field, operated by NOC Namcor, remains on the table for development before the end of the decade although further delays may also be likely here. 


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