Based on estimates that place South African oil demand at 600,000 barrels per day, the proposed reserve would total about 36 million barrels, representing an asset worth billions of dollars. In addition to the state-held reserves, the draft policy would require licensed wholesalers and importers to maintain inventories equivalent to 21 days of demand. Oversight and management of these strategic oil reserves would fall under the state-owned South African National Petroleum Co.

According to the Department of Mineral and Petroleum Resources, the National Treasury and the SANPC will develop financing mechanisms and instruments for the financing and guaranteeing strategic petroleum stocks.

Regional efforts gain momentum as governments strengthen fuel security

South Africa’s last major emergency stockpiling initiative dates back to the 1970s after the United Nations imposed sanctions on the country over its policy of institutionalized racial segregation. Those circumstances resulted in the construction of the 45 million-barrel Saldanha Bay storage hub on the Atlantic coast.

More recently, concerns over supply security and higher prices linked to the US-Israeli war on Iran have restored the facility’s original purpose of serving as a safeguard against severe oil-supply shortages. The conflict across the Middle East contributed to higher global fuel prices while prompting countries to seek alternative sources of supply. Across Africa, several governments responded by reducing taxes and allocating budget resources to help contain fuel costs.

Alongside these short-term measures, governments are increasingly pursuing infrastructure investments designed to strengthen control over fuel supplies and reduce dependence on trading companies. Morocco announced in June 2026 that it will invest $641 million in the development of fuel-storage facilities, while Uganda plans to expand a state-owned terminal to improve supply stability. Ghana is also preparing to increase the use of domestic crude in its refineries.

At the same time, billionaire Aliko Dangote has accelerated projects across the continent after his Nigerian refinery increased production during the Persian Gulf conflict. These initiatives include constructing another refinery of the same design in Kenya as well as developing storage facilities in The Gambia.

Strengthening Regional Energy Ties

Maixent Raoul Ominga, the Managing Director of SNPC, led a delegation to the petroleum refinery facility in Lagos. He characterized the site as a vital asset for the continent and expressed a strong interest in establishing a long-term relationship.

“We have visited this remarkable refinery, which represents a major industrial achievement for Africa. The Republic of the Congo has refining capacity and we are keen to explore strategic cooperation that will help strengthen the supply of refined petroleum products while creating value for both organisations,” he said.

The dialogue between the two entities centered on several key pillars, including refining operations, energy security, and the sharing of technical knowledge. Ominga commended Dangote Group to prove the ability of African entities to finance and manage world-class industrial infrastructure. He further acknowledged the existing presence of the group in the Congolese cement sector, which has already contributed to local industrial capacity and improved access to essential construction materials.

Commitment to Continental Industrialization

Aliko Dangote, President and Chief Executive of Dangote Industries Limited, stated that the facility serves the broader continent, emphasizing a willingness to meet the specific energy needs of neighboring nations. The petroleum refinery is currently producing fuels that meet international quality standards, which helps in reducing the reliance on imported products from outside the region.

Future Expansion and Investment Goals

Devakumar Edwin, the Group Vice President for Oil and Gas, Dangote Industries Limited, detailed the long-term strategy to expand total refining capacity to 2.1 million barrels per day. This plan includes the current operations in Nigeria and a proposed facility in Kenya to serve East African markets. Furthermore, the organization intends to invest an additional $46 billion between 2026 and 2028 across its refining and fertilizer sectors to support industrial infrastructure development.

The engagement regarding refined product supply cooperation highlights a shared vision to improve energy security and promote self-sufficiency. By strengthening regional value chains and fostering regional energy cooperation, both organizations aim to facilitate increased trade and industrial growth through sustained African energy cooperation.

Technical Specifications and Operational Capacity

The project involved the complex installation of a new 1,600-ton compression module onto the existing Sabratha platform. This module is outfitted with advanced compression trains, providing a total capacity of approximately 440 million standard cubic feet per day (mmscfd). This new gas infrastructure allows for production under low-pressure conditions, which is essential to offset the natural decline of the Bahr Essalam field and maximize the recovery of remaining resources.

Impact on Energy Security and Regional Supply

The successful start-up of the Sabratha Compression Project is expected to increase annual gas production by roughly 800 million cubic meters (mcm), in addition to associated condensate volumes. These increased supplies are vital for Libya’s domestic power generation requirements and will significantly bolster the country’s energy security. Furthermore, the project facilitates the continued export of gas to Italy via the Greenstream pipeline, reinforcing Libya offshore gas production as a key component of the regional energy matrix.

Ongoing Strategic Developments in Libya

Eni stated that the successful launch of the Sabratha Compression Project highlights its ongoing partnership with NOC in advancing technically complex offshore developments and strengthening the reliability of Libya’s gas infrastructure.

The company added that progress is being made on two other key energy projects in the country. Commissioning work has commenced on the Bouri Gas Utilization Project after the installation of the Bouri Gas Recovery Module, while development activities continue on the Structures A&E project, which is designed to bring two offshore gas fields into production.

Eni, which has maintained operations in Libya since 1959, remains the largest international energy operator in the region. The company reported equity production of approximately 162,000 barrels of oil equivalent per day in 2025.

The Bubale-1X well reached a total depth of 20,548 feet (6,263 meters) while operating in water depths of 7,795 feet (2,376 meters). According to the company, the well encountered 100 feet (30 meters) of net oil pay distributed across two reservoirs. Initial evaluations indicate the presence of high-quality light oil, supporting the prospectivity of the acreage within Block CI-709.

Commenting on the results, Eric Hambly, President and Chief Executive Officer of Murphy Oil Corporation, said, “Early results at Bubale reinforce the prospectivity of our Côte d’Ivoire acreage. We are pleased with the results to date, which underscore the value of a disciplined and consistent exploration approach. Our immediate focus now is advancing evaluation plans to define the discovery’s full potential.”

Evaluation Phase Planned Following Completion of Exploration Campaign

The Bubale-1X well represents the third and final exploration well drilled as part of Murphy’s current three-well campaign in Côte d’Ivoire. Following the discovery, the company intends to proceed with the next stage of evaluation activities aimed at better understanding the scale and potential of the find. As part of these plans, one additional well is scheduled for the second half of 2026 to assess the extent of the discovery associated with the Bubale-1X well.

Drilling operations began in late February 2026 when the well was spud by Murphy CI-709 Oil Co., Ltd., a subsidiary of Murphy Oil Corporation and the operator of Block CI-709. Murphy maintains a 90 percent working interest in the block, while Société Nationale d’Opérations Pétrolières de la Côte d’Ivoire (PETROCI) holds the remaining 10 percent interest.

Company Maintains Focus on Global Exploration Portfolio

Murphy Oil Corporation is an independent oil and natural gas company with a multi-basin onshore and offshore portfolio and significant exploration opportunities. The company has operated for more than a century and continues to pursue exploration and development projects across several regions. Its current asset base includes extensive inventory onshore in the Eagle Ford Shale, Tupper Montney and Kaybob Duvernay, alongside offshore operations in the Gulf of America and Canada.

In addition to its producing assets, Murphy continues to pursue long-term growth through offshore exploration and development activities in the Gulf of America, Vietnam and Côte d’Ivoire, where the recent Bubale-1X well discovery adds another milestone to its exploration efforts.

The Angola offshore oil project is being led by Azule Energy, a joint venture between BP and Eni, which serves as the operator. Additional partners include Norway’s Equinor, Angola’s national oil and gas agency ANPG, and the state-owned entity Sonangol.

Project Scope and Technical Details

The Greater PAJ development represents the latest expansion by Azule Energy, currently Angola’s largest independent oil and gas producer. The offshore oil development is located in the Lower Congo Basin and will integrate production from Block 31 with nearby discoveries in Block 31/21. The combined area contains estimated oil reserves of 252 million barrels, positioning it as a substantial addition to Angola’s production capacity. The deepwater infrastructure will feature a new floating production, storage and offloading vessel (FPSO).

Production Timeline and Economic Impact

The project is expected to begin producing crude oil in the first half of 2029, providing a clear development timeline for stakeholders and investors. Joseph Murphy, Chief Executive Officer of Azule Energy, said, “Greater PAJ will contribute to sustaining production, creating value for the country and reinforcing Angola’s position as a key energy supplier in the years ahead.”

Angola’s Strategic Energy Position

Angola maintains its status as a major African crude oil producer and has undertaken substantial reforms to its regulatory framework to attract fresh investment. The country has focused particularly on attracting development in mature and marginal fields as it works to maintain daily crude oil production at approximately one million barrels.

Engineering and Technology Partnerships

Other contracts supporting the Angola offshore oil project implementation were formalized during the signing ceremony, with several specialized engineering and technology firms selected for the work. These include Baker Hughes, Saipem, and TechnipFMC.

The agreement regarding Libya offshore exploration, announced by MOL Group, was concluded in collaboration with joint venture partners Repsol and Türkiye Petrolleri A.O. (TPAO). The consortium had previously secured exploration rights for an area situated in the Mediterranean Sea. This Libya offshore exploration undertaking represents an important milestone for Libya’s oil and gas industry, building upon the consortium’s earlier successful bid for the offshore O7 block.

The O7 block encompasses an area exceeding 10,300 square kilometers and is located approximately 140 kilometers northwest of Benghazi, in the Mediterranean Sea. The region is characterized by depths greater than 1,500 meters and is recognized as one of Libya’s most promising offshore exploration zones. The consortium’s commitment under the agreement includes a minimum work program that involves seismic data acquisition and the drilling of an exploratory well, designed to assess the hydrocarbon potential of the area.

Marton Zsombor, Executive Vice President for Exploration and Production at MOL Group, commented on the progression of the project, noting that the signing of the agreement has propelled the initiative into a new phase. He highlighted Libya’s strategic importance to Europe and emphasized the project’s potential to contribute to both the development of Libya’s domestic energy sector and the diversification of energy supplies for Central and Eastern Europe.

MOL also extended its engagement with Libya earlier in the year, having finalized a strategic partnership agreement with the National Oil Corporation (NOC) in January 2026. This collaboration is geared towards deepening technological cooperation, fostering knowledge exchange, and identifying new commercial opportunities that align with the international growth aspirations of both entities.

Currently, the Hungarian energy company holds oil and gas exploration and production assets in ten countries, with producing fields operational in eight: Hungary, Croatia, Azerbaijan, Iraq, Kazakhstan, Russia, Pakistan, and Egypt. As part of its international growth strategy, MOL has established cooperation agreements with several national energy companies, including partners in Kazakhstan, Azerbaijan, Türkiye, and Libya.

The 2025 tender, launched by the NOC last year, saw five blocks awarded out of twenty that were made available, encompassing both onshore and offshore territories. The recent signings represent the contractual stage following the allocation of a portion of these exploration areas. Specifically, the exploration and production deals involve Spain’s Repsol in partnership with Turkish Petroleum, Italy’s Eni in partnership with QatarEnergy, and the Hungarian group MOL together with Turkish Petroleum and Repsol. These consortia’s structures align with the February award announcements for three of the five allocated blocks.

While the current announcement details these collaborations, it does not reference the two other blocks awarded previously: Block S4, secured by the US company Chevron, and Block M1 in the Murzuq Basin, awarded to Nigeria’s Aiteo. The pact between Eni and QatarEnergy pertains to the O1 offshore exploration license. This block, covering approximately 29,000 square kilometers, is situated in the offshore extension of the Sirte oil and gas province, a vital region for Libya’s energy industry. Eni is designated to operate this concession, with the consortium holding a 100% stake during the exploration and development phases. Plans include acquiring seismic data and conducting drilling operations within the initial five-year exploration period.

Another key partnership involves Repsol, Turkish Petroleum, and MOL, which were awarded offshore Block 07 in the Gulf of Sidra. This strategic location connects major producing areas to coastal export facilities. Additionally, Repsol and Turkish Petroleum secured onshore Block C3 in Cyrenaica, an area within the Sidra oil system, Libya’s primary producing basin.

These exploration and production deals empower the NOC to delegate exploration and development tasks to international partners while retaining public oversight of the nation’s resources. The participating companies will shoulder a substantial portion of the exploration risks, recoup their costs according to the agreements, and subsequently share any resulting production with the national company. Although the NOC did not disclose the financial terms of these agreements, the corporation highlighted that they signify growing international confidence in Libya’s oil and gas sector. The initiative aims to attract qualified investments, intensify exploration efforts, and contribute to the growth of national energy output.

The signing of these exploration and production deals occurs as the NOC is actively working to restore production capacity, reactivate facilities impacted by past conflicts, and strengthen Libya’s standing as a significant energy supplier in the Mediterranean region. Eni, which has had a presence in Libya since 1959, reported an equity production of approximately 162 barrels of oil equivalent per day in 2025.

The Merlin-1X well, which is the tenth to be drilled under the license and was operated by Shell, commenced drilling on 8th April 2026. It successfully penetrated the Coniacian play and revealed a reservoir of good quality. The findings included light oil and a limited amount of associated gas, marking a significant development compared to previous results in the license.

This latest Namibia offshore oil discovery further aids the partners in their assessment of the Orange Basin block and supports the ongoing evaluation of the resource’s potential for commercial viability. The Namibia oil discovery is a testament to the collaborative efforts in the region.

“These are encouraging results that add to our understanding of the Orange Basin potential. We are progressing this opportunity through a disciplined, data-led approach to establish commerciality, focusing our investment on options that are material, competitive and resilient within our portfolio,” said Eugene Okpere, Shell’s Executive Vice President for Exploration, Strategy and Portfolio.

“This is built on strong partnership and alignment, and I thank the Government of the Republic of Namibia, our partners and all teams involved,” he added on the Namibia offshore oil discovery.

QatarEnergy said the Merlin-1X Namibia offshore oil discovery has bolstered confidence in the Orange Basin as a developing hydrocarbon province.

“We are pleased with this discovery, which follows three earlier discovery announcements in Namibia. These results represent a significant step that further strengthens confidence in the Orange Basin as an emerging world-class hydrocarbon province and aligns with QatarEnergy’s strategy to expand its international upstream portfolio through high-impact exploration,” said Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and President and CEO of QatarEnergy.

Looking ahead, Shell has indicated that further drilling later in 2026 is under consideration as part of a comprehensive exploration and appraisal program. The PEL 0039 license encompasses an area of approximately 12,000 square kilometers in deep water, situated more than 250 kilometers offshore Namibia. Over the past four years, the joint venture has undertaken drilling activities at ten different wells within this license, including notable sites such as Graff-1X, La Rona-1X, Jonker-1X, Graff-1A, Lesedi-1X, Cullinan-1X, Jonker-1A, Jonker-2A, Enigma-1X, and Merlin-1X.

QatarEnergy holds a 45% stake in PEL 0039 and also possesses interests in three other offshore Namibian exploration licenses, bringing its total acreage in the country to approximately 34,000 square kilometers.

The Coral Norte FLNG project, situated offshore Mozambique, is being developed by Eni and its partners, including CNPC, ENH, XRG, and KOGAS. This initiative is designed to achieve an annual production of approximately 3.6 million tons of LNG. Upon completion, it will effectively double the existing capacity of the Coral hub to 7 million tons per annum. This expansion is poised to elevate Mozambique into the ranks of Africa’s top three LNG producing nations, further solidifying its influence in the international energy sector.

The Coral Norte FLNG project is conceived as an enhanced replication of the Coral Sul FLNG, which was the initial development within Mozambique’s Area 4 offshore gas block. This strategic replication approach capitalizes on the shared characteristics of the feed gas composition and the deepwater environment. The objective is to enhance execution certainty and optimize operational performance, drawing valuable insights and lessons learned from the preceding development. By standardizing the project delivery model, Technip Energies and its consortium partners are paving a de-risked pathway for scaling operations and ensuring greater predictability throughout all project phases. This significant contract award builds upon prior agreements and underscores the ongoing progress of Technip Energies’ involvement in the Coral Norte FLNG project.

Arnaud Pieton, Chief Executive Officer of Technip Energies, said, “The Coral Norte project reflects the confidence of ENI and its partners in our FLNG execution capabilities and in the performance in operations of the Coral South FLNG. By leveraging our ‘design one, build many’ approach, we are demonstrating how a standardized model can accelerate large-scale offshore project delivery.”

According to Devakumar Edwin, Vice President for Oil and Gas at Dangote Industries Limited, the capacity increase to 700,000 bpd forms part of a comprehensive strategy to more than double processing capabilities to 1.4 million bpd over the next 30 months. This ambitious growth trajectory positions the facility to potentially become the largest refinery globally. Edwin underscored that the expansion initiative reflects a deliberate progression toward continental and global refining dominance, extending well beyond domestic supply requirements.

The 700,000 bpd milestone is anticipated to significantly bolster Nigeria’s energy self-sufficiency by eliminating dependency on imported refined products while establishing the nation as a prominent regional export hub. This development aligns with broader national objectives to enhance local refining infrastructure and maximize economic value derived from Nigeria’s substantial crude oil reserves.

Since commencing fuel production in 2024, the facility owned by Nigerian industrialist and philanthropist Aliko Dangote has rapidly established itself as a major supplier to both domestic and international markets. The refinery has successfully exported refined petroleum products to multiple African nations and key European destinations, including the United Kingdom, France, Spain, Italy, and the Netherlands. Additionally, the facility has supplied petrol to American markets and jet fuel to Saudi Arabia and other international clients.

The facility has also played a stabilizing role within the petroleum industry during periods of disruption, particularly given ongoing Middle Eastern tensions. Many African countries have increasingly turned to the refinery for energy security, demonstrating the strategic importance of local refining capacity in the continental energy landscape.

The crude oil processing capabilities of the refinery have proven instrumental in stabilizing fuel supplies throughout Nigeria, directly reducing the nation’s dependence on imported petroleum products and alleviating pressure on foreign exchange reserves. The growing production volumes have attracted considerable attention from global crude suppliers and commodity trading entities, with the refinery sourcing feedstock from both domestic and international producers to sustain escalating output levels.

Aliko Dangote has communicated ambitious plans to transform the facility into the world’s largest refinery by 2028, with a targeted processing capacity of 1.4 million barrels per day. This expansion initiative is expected to generate substantial economic benefits, including employment creation, increased industrial activity, and improved trade balance positions for the nation.

The refinery will strengthen downstream manufacturing by guaranteeing consistent supply of Liquefied Petroleum Gas (LPG) and other critical industrial feedstocks, particularly polypropylene utilized extensively in packaging materials and consumer goods production. The facility has also outlined future plans for Linear Alkylbenzene (LAB) supply, an essential ingredient in detergent manufacturing, thereby establishing integrated value chains across multiple industrial sectors.