Leading market intelligence business, Welligence, has released its latest report on the West African Transform Margin, reinforcing the regions’ significance as a hub for exploration and development.
The resurgence of the Transform Margin: The Welligence business intelligence report.
The West Africa Transform Margin is back in the exploration spotlight as Eni’s Baleine and Calao discoveries in Cote d’Ivoire have revived interest. The Transform Margin was one of the industry’s exploration hotspots following the Jubilee discovery, offshore Ghana in 2007. But after a string of sub-commercial discoveries, interest quickly fizzled out. However, the recent surge in activity within the region has triggered a huge amount of interest from the international E&P community.
Mr. Obo Idornigie – Head of Research for Sub-Saharan Africa, at Welligence commented:
“The Transform Margin and the West African oil and gas sector are poised for unprecedented growth. The geology of this region presents a groundbreaking opportunity for exploration and production, attracting significant interest from major and independent operators alike. The combination of favorable fiscal policies and untapped reserves, positions West Africa as a key frontier for the future of global energy”.
“We are delighted to have partnered with the inaugural ‘West African Energy Summit’ event this year, where we will have the opportunity to hear firsthand from many of the governments and operators within the region as to when these projects will be moving forward and the supply chain can expect to engage”.
Can the region build on the momentum of the recent discoveries in Cote d’Ivoire? Will this exploration excitement spark interest in the neighbouring countries?
Welligence Energy Analytics provides an E&A overview and outlook for the region:
Over 6 bnboe has been discovered since 2007
Since the Jubilee discovery in 2007, peak exploration occurred in 2012. But despite efforts to replicate Jubilee in neighboring countries, there was no further commercial discovery within the Cretaceous deepwater play. Activity has been limited since 2015, but the play-opening Baleine find and the promising Caloa look to have revived interest in the Transform Margin.
Eni is leading the charge – Eni has built a strong acreage position in Cote d’Ivoire and Ghana and is looking to strengthen further. The Italian Major is leading the charge with E&A drilling. US Independent, Murphy Oil returned to West Africa in 2023 by taking a large acreage position in Cote d’Ivoire. Shell is understood to be negotiating to take acreage in Cote d’Ivoire and the region will be on the radar of other Majors and independents.
Projects must deliver attractive returns – Achieving material discoveries is only one side of the equation. Equally vital for E&Ps is ensuring projects achieve attractive returns. Both Ghana and Cote d’Ivoire boast competitive fiscal terms. Lead times from discovery to first oil must also be optimised to support strong economics. To this end, and with collaboration from the government, Eni was able to deliver first oil from Baleine in a record time of 13 months.
Is the Transform Margin SSA’s next growth frontier? With close to 2 Bnboe of recoverable volumes discovered since 2021, Cote d’Ivoire has become a focal point for exploration activity in the region. Excitement is also mounting in neighbouring Liberia and Sierra Leone, which have tantalising signals of their working petroleum system.
The positive sentiment around Welligence‘s report is a timely reminder as to the extensive natural resources within the region and comes at a time when access to energy has never been so important for the development of a West African region with several economic challenges to overcome if it is to position itself for a prosperous and sustainable energy future.
The West African Energy Summit will aim to capitalise on this sentiment when it takes place between 3-5th September in Accra later this year and bring together many of the countries from the transform margin.
The event is being run in partnership with the ‘Ministry of Energy of Ghana’, the ‘Petroleum Commission’ and the ‘Ghana National Petroleum Corporation’ and includes participation from over 20 ministers and officials from across 15 African countries as well as several international delegations.
It aims to showcase the best Oil, Gas and Renewable projects from across West Africa, with a view to driving investment and long term partnerships in the region whilst addressing energy security, energy poverty and energy transition challenges.
For full details on the Welligence report, Click the link here.
