Africa’s renewed exploration momentum is changing how governments allocate oil and gas acreage, with countries increasingly turning to flexible agreements to attract investors and accelerate the assessment of frontier resources.
According to the African Energy Chamber’s (AEC) State of African Energy Outlook 2027, Africa accounted for two-thirds of global deepwater acreage captured in 2025. International oil companies (IOCs) secured more than 200,000 km² along the Atlantic Margin, compared with just 30,000 km² in 2024.
The report attributes the renewed interest to a shift in IOC priorities, with resource security and diversification driving companies to replenish their exploration portfolios and pursue potentially significant discoveries.
Oil Majors Seek Early Access to Africa’s Frontier Acreage
Much of the new acreage has been opened up through memoranda of understanding (MoUs), technical evaluation agreements and reconnaissance permits. These arrangements allow companies to evaluate geological prospects and associated risks before committing to more costly exploration programs.
There are already examples of this approach across West Africa. In June 2026, Guinea awarded Eni reconnaissance permits covering 15 offshore blocks, spanning approximately 49,089 km². The permits allow the Italian energy company to undertake geological, geophysical and geochemical studies as the country looks to revive activity in its largely unexplored offshore sector.
In Sierra Leone, Shell signed a Reconnaissance Permit Agreement in April 2026. The deal covers 18 blocks and follows a similar deal signed between the government and Eni in 2025 covering five offshore blocks, allowing it to carry out preliminary geological and geophysical studies to assess the area’s oil and gas potential. Gabon also signed an MoU with ExxonMobil in October 2025 covering deepwater and ultra-deepwater exploration opportunities offshore.
For governments, these agreements offer a way to open up frontier acreage where limited geological data and high exploration costs might otherwise discourage investment.
African Governments Invite Investors to Assess Untapped Basins
Africa’s frontier markets are also seeking investment to assess geological potential. Malawi, for example, is inviting investment and technical expertise into its largely unexplored oil and gas sector. Speaking at African Energy Week (AEW) 2026 in October, Minister of Energy and Mining Jean Mathanga invited technically capable companies and investors to undertake seismic studies and geological evaluations in the Lake Malawi and Shire Valley basins.
“Commercially recoverable oil and gas have not yet been established. Further seismic and geological studies as well as exploratory drilling are required,” Mathanga said.
Cameroon is also inviting companies to explore its untapped acreage. Nathalie Moudiki, Technical Advisor Nr. 2 at SNH Cameroon, told AEW delegates that, “We invite you to discover the potential of Cameroon because there is a lot to pay attention to. We have identified more than 30 billion barrels [of oil] on top of trillions of gas.”
Established Markets Use Licensing Rounds to Secure Fresh Investment
Established producers are also looking to attract fresh investment through licensing rounds and tenders, although the results have varied.
Nigeria announced the awards from its 2025 licensing round in July 2026, allocating 37 blocks across deepwater, shallow-water and onshore frontier acreage. According to the AEC, the awards went predominantly to Nigerian companies, with Chevron securing the only deepwater block and emerging as the sole IOC to receive an award.
Elsewhere, Egypt is pursuing fresh investment through a new licensing round, while Algeria and Libya have also advanced exploration tenders to attract operators.
By contrast, Angola is shifting away from its multi-year licensing rounds. The National Oil, Gas & Biofuels Agency outlined a new approach to upstream licensing at AEW, with Director of Negotiations Hélder Iombo announcing plans to replace scheduled bid rounds with a system of permanently available acreage.
The two approaches are not mutually exclusive. Competitive licensing rounds give governments a structured way to allocate exploration rights, while preliminary agreements and flexible licensing can help companies assess prospects and reduce geological uncertainty before making larger financial commitments.
“Governments and operators must continue to balance national priorities with investor confidence to unlock Africa’s vast hydrocarbon potential,” NJ Ayuk, Executive Chairman of the AEC, said.
Ultimately, the challenge for African governments is turning renewed investor interest into tangible exploration activity. Flexible agreements and competitive licensing rounds can bring companies into frontier basins, but their effectiveness will be measured by the exploration programs, financial commitments and drilling campaigns that follow.
The State of African Energy 2027 Outlook, by the African Energy Chamber (AEC) in collaboration with S&P Global Energy and powered by S&P Global Energy data.
Download the African Energy Chamber’s State of African Energy 2027 here.
Visit www.aecweek.com for more information.
