Africa’s Upstream Oil & Gas Capital Expenditure To Reach $41bn Year-end

Africa’s upstream sector now growing rapidly is expected to reach approximately 11.4 million barrels of oil equivalent (MMboed) of production in 2026.

It is estimated that the continent’s upstream sector’s capital expenditure would reach roughly $41 billion thus creating a larger pool of experienced investors and operators seeking international growth opportunities.

Also, African energy investors are increasingly looking beyond domestic upstream opportunities toward major oil, gas and infrastructure developments in South America, with Brazil’s pre-salt offshore sector and Argentina’s expanding LNG and pipeline network emerging as key targets for future capital deployment.

According to the African Energy Chamber (AEC), growing balance sheet strength among African sovereign wealth funds, state-backed investment vehicles and independent operators is contributing to a broader shift toward outward-focused investment strategies across the energy sector.

Brazil’s deepwater pre-salt developments remain among the world’s most competitive offshore oil projects, while Argentina’s Vaca Muerta shale development is moving into a new phase focused on LNG exports, gas monetization and infrastructure expansion, according to the AEC.

The organisation also pointed to opportunities tied to Brazil’s offshore gas infrastructure, FPSO developments and subsea supply chain activity, along with Argentina’s planned pipeline expansions and gas processing projects.

The AEC said African investors are entering the South American market with experience gained through offshore and LNG developments in countries including Congo, Nigeria, Cameroon and Mozambique, particularly in areas such as floating LNG and gas commercialisation.

“The Atlantic has historically been treated as a barrier between these two regions,” said NJ Ayuk, executive chairman of the African Energy Chamber. “The reality is that it is a corridor.”

The organisation said it has been developing bilateral engagement frameworks linking Latin American stakeholders with African governments, national oil companies and private-sector energy companies.

According to the AEC, those initiatives include cooperation efforts involving Petróleos de Venezuela (PDVSA), Venezuela’s Ministry of Hydrocarbons and Brazilian energy stakeholders tied to upstream investment and infrastructure development.

The organisation added that both Africa and South America continue to prioritize energy sovereignty, local content policies and long-term hydrocarbon development strategies, creating opportunities for broader South-South cooperation across offshore oil, LNG and infrastructure sectors.