Licensing Round Renaissance: How Africa’s New Acreage Push is Reshaping the Upstream Landscape
Africa’s oil and gas industry is undergoing a quiet but significant transformation. After years of subdued exploration activity, regulatory uncertainty and declining investment, governments across the continent are reopening their doors to explorers through an unprecedented wave of licensing rounds aimed at unlocking untapped hydrocarbon resources, reversing production declines and positioning Africa as a strategic supplier in an increasingly fragmented global energy market.
From Libya’s first bid round in nearly two decades to Angola’s multi-year licensing strategy, Nigeria’s successive acreage offerings and frontier opportunities emerging in countries such as Sierra Leone, The Gambia and Kenya, African producers are betting that access to new acreage and improved fiscal terms can reignite exploration and usher in a new era of upstream growth.
The resurgence comes at a time when Africa remains one of the world’s most resource-rich yet underexplored regions, possessing about 125 billion barrels of proven oil reserves and more than 625 trillion cubic feet of natural gas reserves. According to the African Energy Chamber’s State of African Energy 2026 Outlook Report, the continent is expected to produce 11.4 million barrels of oil equivalent per day this year, while attracting roughly $41 billion in upstream capital expenditure out of the projected global E&P spending of $504 billion.
Moore Global in April, stated that offshore spending across Africa is projected to reach $19 billion in 2026, growing at an average annual rate of 6.6 per cent to nearly $54 billion by 2030. The growth is expected to be driven largely by deepwater developments.
Licensing rounds return to centre stage
For much of the last decade, African exploration activity slowed considerably as companies prioritised lower-risk assets and energy transition concerns altered capital allocation patterns.
Today, however, governments are increasingly turning to licensing rounds as a strategic tool to attract capital, replenish reserves and secure long-term production growth. The continent is witnessing one of the broadest acreage offerings in recent history, spanning mature basins with established petroleum systems and frontier regions that remain largely unexplored.
According to the African Energy Chamber, ongoing and planned licensing rounds across Africa are creating significant opportunities for both international oil majors and indigenous players, while revised fiscal frameworks and incentives are making projects more competitive.
The Executive Chairman of the African Energy Chamber, NJ Ayuk, said the momentum has gathered even greater pace in 2026, with several African countries recording successful licensing rounds. Recent headline awards have seen blocks secured by National Oil Companies (NOCs), such as Petrobras, and International Oil Companies (IOCs), including Eni.
Ayuk attributed the renewed momentum in licensing rounds across Africa to several factors, including depleting reservoirs and declining production from mature fields, improved fiscal reforms and regulatory processes, the availability of high-impact exploration acreage, portfolio restructuring by IOCs, and the growing role of natural gas in Africa’s energy transition pathway.
According to Ayuk, the timing is ideal for governments to open up new acreage, describing it as a pressing necessity. He noted that with many African economies heavily dependent on oil and gas export revenues, preventing a sustained decline in production has become increasingly critical.
“The timing window is right, and a mix of technical credibility, commercial readiness and a business-friendly environment is exactly what can propel and cement multiple African oil and gas economies into significant oil and gas hubs for decades to come,” he told Majorwaves.
Angola bets on fresh discoveries
Few countries illustrate this strategy better than Angola.
The country plans to launch its next licensing round, covering acreage in the offshore Kwanza and Benguela basins, marking the final phase of a six-year strategy initiated in 2019 to award 50 concessions.
Speaking during the Angola Oil & Gas Conference and Exhibition 2025, Minister of Mineral Resources, Petroleum and Gas, Diamantino Azevedo, said the country was determined to sustain crude production above one million barrels per day beyond 2026.
With many of Angola’s producing fields reaching maturity, authorities view exploration as essential to offset natural decline.
“We have a goal to achieve one million bpd in the next year. Even though we have a lot of activities and developments in certain areas, we are a country with matured wells in our fields. Our solution is to look for new deposits. Offshore and onshore, we have seen a growth in exploration across new blocks,” Azevedo said.
Beyond periodic licensing rounds, Angola has implemented a permanent offer regime and marginal field programmes designed to encourage investment in smaller and previously overlooked assets. Legislative reforms and greater engagement with industry stakeholders have also helped attract new entrants and stimulate reinvestment by existing operators.
Nevertheless, challenges remain. The Kwanza Basin’s pre-salt prospects, once viewed as highly promising following similarities with Brazil’s offshore geology, have yielded disappointing drilling results over the years, with many wells turning out dry.
Despite these setbacks, Luanda remains convinced that continued acreage offerings provide the best pathway to new discoveries.
Libya’s dramatic comeback
Perhaps the most symbolic development in Africa’s licensing revival is taking place in Libya.
In March 2025, the National Oil Corporation launched the country’s first oil and gas licensing round since 2007, ending an 18-year hiatus caused by political instability and conflict.
The round offered 22 onshore and offshore blocks across the Sirte, Murzuq and Ghadames basins, regions with established petroleum systems and significant untapped potential.
Thirty-seven companies prequalified, including global giants such as Shell, BP, ExxonMobil, TotalEnergies, Eni and QatarEnergy.
Although only a handful of blocks attracted bids, Libya subsequently signed production-sharing agreements with companies including Repsol, Eni, QatarEnergy and Turkish Petroleum Corporation under its new EPSA V framework.
The revised production-sharing model represents a major departure from the previous regime, which investors had long considered commercially unattractive. Authorities hope the reforms will support plans to raise production from current levels of around 1.43 million barrels per day to two million barrels per day by 2030.
The return of international players signals growing confidence in Libya’s upstream sector and underscores the importance of competitive contractual terms in attracting capital.
Even before the first licensing round has been concluded, Libya is already preparing to launch a second upstream bid round, buoyed by strong international interest in its latest acreage offering.
Speaking at a UK-Libya Roundtable organised by the Libya British Business Council during the Libya Energy & Economic Summit 2026, the country’s Minister of Oil and Gas, Dr. Khalifa Abdulsadek, revealed that plans for the second round are nearly finalized, with a 90 per cent certainty of moving ahead.
According to the minister, the initiative represents a significant milestone in efforts to rejuvenate Libya’s upstream oil and gas industry.
“This is essential for an economy that depends almost 95 per cent on oil and gas,” Abdulsadek said. “That dependence means the sector must be sustained through a consistent and structured process.”
Nigeria seeks to maintain leadership
Africa’s largest crude producer is also embracing licensing rounds as a cornerstone of its growth strategy.
Nigeria’s 2024 licensing round saw 25 companies secure petroleum prospecting licences, while the 2025 round offered 50 blocks comprising onshore, shallow-water, frontier and deepwater assets.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) estimates that the latest round could attract around $10 billion in investment and add two billion barrels of reserves over the next decade, eventually contributing about 400,000 barrels per day to production.
NUPRC has already announced plans for another licensing round in 2026, highlighting the government’s determination to maintain momentum. Commission Chief Executive Oritsemeyiwa Eyesan attributed rising investor confidence to ongoing reforms aimed at improving Nigeria’s competitiveness and strengthening regulatory certainty.
“We are in the process of finalising the 2026 launch which will happen latest by the third quarter. So, this is the make or break point and we want to make sure we make it,” she said in June during a meeting with officials of Meren Energy at the NUPRC headquarters in Abuja.
The country’s efforts coincide with renewed interest in African hydrocarbons, particularly as global companies seek to diversify supply sources amid geopolitical uncertainty.
East Africa opens a new frontier
East Africa is also emerging as a major theatre for exploration.
Kenya is preparing its first licensing round in six years, offering ten blocks in the Anza and Lamu basins. Authorities have restructured petroleum contracts and introduced tax incentives designed to align with international standards. The move represents an attempt to revive momentum after delays surrounding the South Lokichar project.
Uganda, meanwhile, plans to launch its third licensing round during the 2026/27 fiscal year. Despite possessing reserves estimated at 6.5 billion barrels, only about 40 per cent of the Albertine Graben has been explored, leaving considerable upside potential. Preliminary work is also underway in the Moroto-Kadam and Kyoga basins.
Speaking on the planned licensing round at an energy event recently, the country’s Minister for Energy and Ministry Development, Ruth Nankabirwa said: “This will offer new exploration blocks in the Albertine Graben and frontier basins.”
In neighbouring Tanzania, authorities are preparing a long-awaited licensing round involving 26 blocks, including acreage in Lake Tanganyika and the Indian Ocean. At the same time, the country is seeking to conclude a $42 billion liquefied natural gas agreement involving Shell and Equinor. The project, which could unlock more than 47 trillion cubic feet of gas, has the potential to reshape Tanzania’s economy through exports and industrialisation.
Frontier states pursue first oil
Some of Africa’s most ambitious acreage programmes are emerging in frontier jurisdictions hoping to become oil producers.
Sierra Leone is preparing a new offshore licensing round while simultaneously attracting investment through direct negotiations. In April 2026, Nigerian independent Marginal Energy signed a petroleum licence agreement covering five offshore blocks and committing more than $225 million to seismic and drilling activities.
The agreement reflects Sierra Leone’s broader effort to revive interest in its underexplored basin and transform the country into an oil-producing nation.
The Gambia has adopted a similarly proactive approach. In June 2026, the government signed a petroleum exploration agreement with Eni for Offshore Block A1, covering about 1,300 square kilometres in deep water. Officials view the agreement as evidence of growing confidence in the country’s regulatory framework and geological potential.
The country’s Minister of Petroleum, Energy and Mines, Nani Juwara, described the agreement as a defining moment for The Gambia’s energy sector, saying it reflects growing international confidence in the country’s resource potential and investment climate.
Liberia is also promoting offshore opportunities through direct negotiations supported by extensive seismic data libraries.
North Africa’s investment drive
Algeria has intensified efforts to attract investment through successive bid rounds.
Its 2026 licensing round offers seven exploration blocks containing substantial oil and gas potential and forms part of a broader strategy to strengthen the country’s position as a regional energy hub.
The technical phase of the bidding process began on June 1, with access to tender documents and online presentations, followed by data sessions and clarifications running until October 31. Bid submissions are due on November 26, while hydrocarbon contracts with state-owned Algerian energy company Sonatrach are scheduled to be signed on January 31 next year under production-sharing or participation agreements, depending on the block.
Egypt, meanwhile, continues to market offshore acreage in the Mediterranean and onshore opportunities in the Nile Delta as it seeks to boost reserves and reinforce its status as a major LNG exporter.
Regulatory reforms become decisive
Across the continent, one theme is becoming increasingly clear: geology alone is no longer enough.
Countries are recognising that investors demand competitive fiscal regimes, contract flexibility and regulatory certainty. Libya’s shift from EPSA IV to the more investor-friendly EPSA V framework, Angola’s permanent offer regime, Kenya’s tax incentives and Nigeria’s post-Petroleum Industry Act reforms all illustrate a broader trend toward improving the investment climate.
The Republic of Congo is expected to unveil a new Gas Code and launch a fresh licensing round, while Senegal has tightened oversight by revoking inactive licences and increasing state participation through Petrosen.
These reforms reflect a growing understanding that capital is highly mobile and increasingly selective.
Energy transition creates urgency
Ironically, the global energy transition has accelerated rather than diminished Africa’s push for exploration.
While international pressure to reduce emissions persists, many African governments argue that hydrocarbons remain essential for industrialisation, energy access and economic development.
The African Energy Chamber estimates that Africa’s share of global energy investment is rising, supported by demand for secure supplies and the search for new discoveries. At the same time, declining rig rates and surplus drilling capacity are expected to persist through 2027, potentially improving project economics and making exploration campaigns more attractive.
High-impact wells planned in Namibia, South Africa and Côte d’Ivoire further underscore the continent’s growing appeal.
Despite the optimism, challenges remain. Political instability, security concerns, infrastructure deficits and governance issues continue to shape investor decisions. Some licensing rounds have attracted fewer bids than anticipated, demonstrating that attractive geology does not automatically translate into investment.
Questions surrounding energy transition policies, carbon regulations and long-term oil demand also complicate investment decisions.
Nevertheless, Africa’s resource base, improving regulatory frameworks and growing appetite for energy security are combining to create a powerful investment narrative.
According to Rystad Energy, about 40 per cent of all high-impact exploration wells globally in 2026 are expected to be drilled in Africa, with activity concentrated along the Atlantic Margin — from the Orange Basin to the Gulf of Guinea. A majority (around 60%) of this activity is in ultra-deepwater. This reflects a portfolio-defining exploration strategy, led by majors and increasingly supported by NOCs and independent players.
Frontier Founder & CEO Gayle Meikle, in a recent LinkedIn post, said that in a world where capital is disciplined and competition is intense, competitive advantage will be defined less by resource availability and more by the ability of hosts and partners to move rapidly, predictably, and at scale from discovery to development.
“Africa does not need to prove that it has resource. It needs to prove that it can convert it into value. Competitiveness has never been about one factor but about how the whole system works together; from policy, and data through to delivery; the above and below ground conditions must be in tune so that the basins can sing,” she said.
Africa will require more than $600 billion in annual upstream oil and gas investment through 2030 to meet its rapidly growing energy demand, according to a 2024 study by the International Energy Forum.
The dawn of a new exploration cycle
From the deserts of Algeria and Libya to the offshore frontiers of Sierra Leone and The Gambia, and from Nigeria’s prolific Niger Delta to the emerging basins of East Africa, the continent is witnessing the return of acreage diplomacy.
Licensing rounds have once again become one of the most powerful instruments available to governments seeking to attract investment and secure future production.
Whether these efforts ultimately translate into commercial discoveries and sustained output growth will depend on exploration success, policy consistency and the ability of governments to maintain investor confidence.
But one thing is increasingly evident: after years of relative stagnation, Africa’s upstream industry is entering a new exploration cycle, and the race for the continent’s untapped resources has begun anew.
