According to research consultancy Wood Mackenzie’s latest report on upstream activity in sub-Saharan Africa, upstream investment in the region will be cut by $100 billion over the next five years, as output from African producers including Nigeria and Angola is set to be slashed in half by 2030 due to drastic exploration cutbacks and governments need to offer improved fiscal terms to boost investment.
“Exploration cuts in the region will also contribute to a longer-term production slump as explorers have shied away from greenfield prospects, in favour of appraising known discoveries,” said WoodMac’s senior research manager for sub-Saharan Africa, Femi Oso. “Governments in sub-Saharan Africa need to revive the upstream oil and gas industry by offering attractive fiscal terms rather than look to increase state revenues in the current climate,” the analyst added.
