MORE than $169.5bn in capital expenditure will be spent over the lifetime of the top ten upcoming oil and gas projects in Africa to produce 24.8 billion barrels of oil equivalent, according to research and consulting firm GlobalData.
These 10 projects, selected from 93 upcoming projects, will contribute incremental capacity of 920,452 barrels of oil equivalent (boe) to global supply by 2025. Out of the top ten upcoming projects, nine were conventional gas developments, and the remaining project, Banga North, is a conventional oil development. Prosperidade in Mozambique is the largest, with an anticipated peak production of 523,000 barrels of oil equivalent per day (mboed) in 2037 at an estimated cost of $37.5bn.
GlobalData reports the average development breakeven oil price for top upcoming deepwater projects in Africa at $68/bbl and the average development breakeven gas price for top upcoming deepwater and ultra-deepwater projects at $6.6/mcf.
GlobalData estimates $175bn will be spent to bring the top ten upcoming projects online, with $67.7bn forecast by 2025. Ultra-deepwater, conventional gas projects, Prosperidade and Mamba Complex developments in Mozambique, collectively lead capital investment with $37.5bn each over their development lifetime, followed by Mozambique’s Deepwater conventional gas project, Golfinho-Atum Complex with $22bn. Differentiating for project type, GlobalData expects full-cycle capital expenditure per barrel of oil equivalent to average $12.3 for conventional oil projects, and $6.9 for conventional gas developments.