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African Mergers and Acquisitions (M&A) Set to Surge in 2026 as Licensing Rounds Open New Opportunities

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According to the African Energy Chamber’s 2026 Outlook, Africa’s upstream sector is set for a transformative year as strategic M&A and investor-friendly licensing rounds create new opportunities for both indigenous and international players

JOHANNESBURG, South Africa, November 5, 2025/APO Group/ –The African upstream sector is set for a dynamic year in 2026 as mergers and acquisitions (M&A) continue to reshape the continent’s energy landscape. According to the African Energy Chamber’s State of African Energy 2026 Outlook (https://EnergyChamber.org), African M&A activity is being driven by strategic realignments among global independents, international oil companies and indigenous operators, alongside a wave of licensing rounds offering new opportunities across both mature and frontier basins. These developments will be a major focus at next year’s African Energy Week (AEW) conference, where stakeholders are expected to explore how corporate transactions and licensing strategies are redefining Africa’s upstream sector.

 

Globally, upstream M&A totaled $51 billion in the first half of 2025, marking a decline from the second half of 2024. Market volatility, financial uncertainty and U.S. trade measures have prompted companies to adopt a more cautious approach, with deal-making concentrated in North America declining significantly. Internationally, deal volumes increased slightly but remained below historical norms, with corporate combinations driving transaction values while standalone asset sales slowed. Upstream firms are increasingly prioritizing capital returns to shareholders, focusing on bolt-on deals, joint exploration and development within their core regions.

In Africa, the M&A landscape is evolving rapidly. Global independent oil companies are divesting mature assets, creating space for local and regional players to expand. Over the past decade, Nigerian independents – including Seplat, Oando, First E&P, Amni, Conoil, Newcross, Aiteo, Neconde and Shoreline – have leveraged auctions and company acquisitions to build significant portfolios. The trend continued in 2024 and early 2025, with several high-profile divestments reshaping Nigeria’s upstream sector. Notable transactions include ExxonMobil’s sale of a 30% operated interest in Mobil Producing Nigeria Unlimited to Seplat Energy, Eni’s transfer of its onshore E&P subsidiary to Oando, and the divestment of TotalEnergies and Equinor ASA’s Nigerian assets to Chappal Energies Offshore.

March 2025 marked another milestone with Shell’s sale of its subsidiary, Shell Petroleum Development Company of Nigeria Ltd, to Renaissance – a consortium of five mostly indigenous Nigerian E&P companies. These deals highlight the growing role of local operators in onshore activities, while international players maintain a strategic presence in deepwater fields. Shell’s FID for the Bonga North deepwater project underscores renewed investor confidence, supported by Nigeria’s Petroleum Industry Act and streamlined divestment approvals.

The African oil and gas sector is set for significant consolidation in 2026, particularly among midsize and African independent companies

Elsewhere in Africa, international trading companies are also reshaping portfolios. Vitol’s $1.65 billion acquisition of Eni assets in Ivory Coast and the Republic of Congo strengthens its African footprint while securing LNG supply and trading synergies. Eni’s divestitures, part of a dual exploration model, retain operatorship while monetizing minority stakes to fund energy transition initiatives. Similarly, Shell’s acquisition of TotalEnergies’ 12.5% stake in Nigeria’s Bonga field for $510 million reflects a focus on high-return projects and supports its global production targets.

Licensing rounds across Africa are further fueling the M&A pipeline. Despite delays in Angola, Congo, Sierra Leone and Tanzania, early 2025 saw significant activity in Algeria and Libya. Algeria’s first bid round in a decade awarded five of six blocks, offering both new production sharing terms and improved royalty/tax arrangements. Libya’s first licensing round in 17 years, covering 22 blocks, introduced revised fiscal terms designed to attract investment. These developments signal a continued trend towards investor-friendly contracts across the continent, creating opportunities for both frontier and mature producers.

“The African oil and gas sector is set for significant consolidation in 2026, particularly among midsize and African independent companies. This trend is driven by a desire for a more efficient and competitive environment, which is ultimately beneficial for both the continent and the industry in the long term,” says NJ Ayuk, Executive Chairman of the African Energy Chamber.

He adds that while cash remains the primary currency for most deals in Africa, an interesting development is the increasing use of stock-for-stock swaps.

“The current climate in African oil and gas can be characterized by an ‘eat or be eaten’ mentality, with many companies prepared to be aggressive and opportunistic in 2026 as momentum builds,” notes Ayuk.

AEW 2026, set to convene industry leaders, policymakers and investors, will serve as a critical forum for discussing these M&A and licensing trends. Delegates can expect in-depth sessions on the strategic implications of asset divestments, the rise of indigenous operators and the impact of evolving licensing frameworks. With Africa’s upstream sector attracting increasing interest from international investors and regional players, AEW 2026 is positioned to highlight the continent’s growing role in global energy markets and the opportunities emerging from ongoing corporate realignments.

Click here (https://apo-opa.co/4ok3k89) to download the African Energy Chamber’s State of African Energy Outlook 2026.

Distributed by APO Group on behalf of African Energy Chamber.

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SLB commissions new fluids systems plant in Pemba to support Mozambique’s offshore energy development

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New facility expands in-country drilling and completion fluids capability, advancing the next phase of SLB’s growth in Mozambique

PEMBA, Mozambique, October 9, 2026/APO Group/ –SLB (NYSE: SLB) (www.SLB.com) announced the opening of a new fluids systems plant in Pemba, Mozambique. The new facility strengthens in-country capacity to prepare, store and deliver drilling and completion fluids for offshore operations, reinforcing the infrastructure needed as Mozambique’s offshore activity grows and its role as a strategic energy hub for East Africa continues to expand.

The commissioning of the plant, also known as a liquid mud plant, coincides with SLB marking 70 years of operations in Mozambique. It reflects the company’s long-term commitment to investing in people, infrastructure and capability that support the country’s long-term offshore energy development plans.

 




  

With an initial storage capacity of 21,000 barrels, the liquid mud plant provides a scalable platform for future growth, supporting multiple customers and rising offshore activity while improving logistics and enhancing operational flexibility.

As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions

“As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions,” said Miguel Baptista, Central, East and Southern Africa, Managing Director, SLB. The new liquid mud plant strengthens local energy infrastructure, expands opportunities for local content development, and enhances our ability to support customers as they deliver some of Africa’s most significant offshore energy resources.”

The liquid mud plant project was delivered with strong local participation and that momentum is expected to continue into operations. During project delivery, more than 100 jobs were created in Pemba with nationals representing 80% of the workforce, reflecting a focus on building local capability.

The project was delivered with a strong focus on safety, operational integrity, and quality, achieving more than 67,000 hours worked without a recordable safety incident.

This key infrastructure strengthens SLB’s ability to support consistent service quality and enhance supply chain readiness for increasing offshore activity across Mozambique, supporting customers execute safely and efficiently while developing local skills and expertise.

Key Points:

  • SLB has commissioned a new fluids system plant in Pemba, expanding in-country drilling and completion fluids capability for offshore operations.
  • With an initial storage capacity of 21,000 barrels, the facility provides a scalable platform to support growing offshore activity in Mozambique.
  • The investment marks the next phase of SLB’s growth in Mozambique, strengthening local capability and supporting long-term offshore energy development.

Distributed by APO Group on behalf of SLB.

 

 




 

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South African Energy Storage Association (SAESA) welcomes 4,600 MW battery storage prioritisation and calls for integrated energy planning

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Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply

JOHANNESBURG, South Africa, October 9, 2026/APO Group/ –The South African Energy Storage Association (SAESA) (www.SAESA.org.za) welcomes the prioritisation of 4,600 MW of battery energy storage under the first Integrated Resource Plan (IRP) 2025 Section 34 determination.

 




  

The timing is significant. Recent Integrated Energy Plan (IEP) modelling and assumptions discussions highlighted a fundamental shift that South Africa’s energy planning now needs to capture: we cannot plan the future power system by counting megawatts of generation alone.

We must plan for when energy is available, where it is available, how it moves through a constrained grid and how it is stored and dispatched when the system needs it most.

The announcement reinforces that shift. Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply.

For SAESA, the message for the IEP is clear: storage, flexibility and system services must be modelled as integral components of South Africa’s future electricity architecture, with their contribution considered from the outset of generation planning.

“The IEP must plan the power system we are becoming, not simply model the power system we have inherited,” says SAESA.

The IEP must plan the power system we are becoming, not simply model the power system we have inherited

Partnership with C&I Energy + Storage Summit

SAESA is an association partner of the C&I Energy + Storage Summit, created by VUKA Group, taking place on 28–29 October 2026 at The Maslow Hotel, Sandton, Johannesburg.

The summit brings together commercial and industrial energy users, project developers, financiers, regulators and solution providers to explore practical approaches to energy security, procurement and storage deployment.

For businesses assessing how storage can support their operations, the event offers an opportunity to meet SAESA and engage with the wider energy community on the decisions shaping South Africa’s evolving electricity system.

Commercial and industrial energy decision-makers are invited to apply to attend as hosted buyers. Qualifying buyers receive complimentary summit access and curated opportunities to engage with industry partners.

 

Meet SAESA at C&I Energy + Storage Summit: Join the Hosted Buyer Programme

The Hosted Buyer Programme connects commercial and industrial energy decision-makers with solution providers shaping South Africa’s evolving private energy market.

Qualified energy buyers receive complimentary access to the summit and curated engagement with industry partners exploring energy procurement, storage deployment and project development.

Apply for the Hosted Buyer Programme (https://apo-opa.co/4ehLijJ)

Distributed by APO Group on behalf of VUKA Group.

 




 

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Afreximbank welcomes launch of Africa Credit Rating Agency as an important step in strengthening Africa’s financial architecture

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Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets

PORT LOUIS, Mauritius, October 8, 2026/APO Group/ –African Export-Import Bank (Afreximbank) (www.Afreximbank.com) welcomes today’s launch of the Africa Credit Rating Agency (AfCRA), an important milestone in strengthening Africa’s financial architecture and expanding the continent’s capacity to generate credible, independent analysis of African credit risk.

 




 
 

Credit ratings play an important role in determining access to capital, influencing investor perceptions and shaping the cost at which governments, institutions and businesses can finance development. It is therefore essential that assessments of African credit risk are independent, rigorous and evidence-based, while reflecting a complete understanding of the structures, institutions and economic realities being assessed.

The establishment of AfCRA adds an important African-led source of credit opinion to the market. Its value will not be measured by whether it produces more favourable ratings, but by the credibility of its analysis, the quality of its data and transparency of its methodology, and its ability to deepen understanding of African sovereigns, sub-sovereigns and corporate credit.

This is particularly important given that many African issuers remain unrated, while local-currency and sub-sovereign markets continue to have limited rating coverage. Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets.

AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans

Alongside fellow members of the Alliance of African Multilateral Financial Institutions (AAMFI), Afreximbank has consistently maintained that African Multilateral Financial Institutions should be assessed on the basis of their fundamentals, performance, legal frameworks, mandates and operating models. Ensuring that these institutional characteristics are properly understood is essential to achieving informed, balanced and credible assessments of African risk.

Commenting on the uniqueness of the African market, and need for AfCRA’s rating methodology to reflect this, Mr Denys Denya, Senior Executive Vice President, Afreximbank, said: “The rating methodology AfCRA develops must recognise the uniqueness of our environment and its institutional structures. The Agency must set its own standards and not follow those set elsewhere — it must build a unique identity that conforms to an ‘African best practice.”

Highlighting the need for the autonomy of the Africa Credit Rating agency as it takes off, Mr Denya added: “Most importantly, AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans. We must all use it, and in return expect a complete assessment of where we (Africa) stand: the strengths the market has ignored, and the weaknesses we still need to fix.”

AfCRA should therefore be seen as complementary to existing international and regional rating agencies, broadening the range of credible analysis available to investors and issuers while strengthening competition, transparency and analytical capacity within Africa’s credit markets.

As Africa seeks to mobilise the scale of capital required for industrialisation, trade, infrastructure and economic transformation, credible African institutions that improve information, strengthen market confidence and deepen the continent’s financial markets will become increasingly important.

Afreximbank congratulates the African Union, the African Peer Review Mechanism (APRM) and all those involved in bringing AfCRA from concept to launch, and looks forward to the contribution the Agency will make to deeper, more transparent and more efficient African capital markets.

Distributed by APO Group on behalf of Afreximbank.

 




 

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