European urgency to replace Russian oil and gas with other sources may revive interest in long-shunned projects in Africa, Reuters reports. Reuters estimates that energy companies are contemplating $100 billion worth of projects on the continent.
Countries that could see significant increases in oil investment include South Africa, Tanzania, Namibia, Uganda, Kenya and Mozambique. Explorations by large oil companies including Shell and TotalEnergies preceded the launch of Namibia’s sovereign wealth fund, and are expected to transform the country into one of Africa’s largest oil producers by 2026, according to trade publication Offshore Engineer. Namibia could generate $3.5 billion annually in royalties and taxes as a result of the oil discoveries, News24 reports.
In February, TotalEnergies announced its intent to resume a $20 billion liquified natural gas project in Mozambique, and in June Tanzania signed a $30 billion deal with Shell and Norwegian energy giant Equinor to develop an LNG terminal on the country’s southern coast.