Africa’s Atlantic Margin Enters Next Exploration Cycle as Operators Target Deepwater Discoveries

Africa’s upstream sector is forecast to attract up to $40 billion in annual spending as international oil companies (IOC) turn their attention to under-explored basins across the continent. The African Energy Chamber’s (AEC) State of African Energy 2027 Outlook shows exploration activity increasingly targeting deepwater prospects in frontier and immature basins, with competitive investment terms and shared data strengthening IOC positioning as they chase the next wave of “needle-moving discoveries.” As major operators strengthen their footprint across the continent, Africa is positioning itself for a new cycle of high-impact exploration.

Africa’s Frontier Markets Move into IOC Focus

Frontier basins along Africa’s Atlantic margin have attracted renewed international interest following a string of major discoveries made in recent years. In Morocco, Murphy Oil’s January 2026 entry into the Gharb Deep Offshore License highlights growing interest in the country’s underexplored hydrocarbon provinces and supports the Office National des Hydrocarbures et des Mines broader strategy of attracting experienced international operators. The country has since announced plans to invest $1 billion in oil and gas exploration through 2031, with private companies expected to fund 91% of this program.

In Guinea, Eni has built a substantial technical evaluation footprint, taking 15 blocks covering approximately 49,100 km² across the MSGBC Basin in June 2026. This position gives the company exposure to a broad segment of the northern Atlantic margin, extending across both underexplored and regionally prospective plays.

Both Eni and Shell have strengthened their presence in Sierra Leone, targeting deepwater technical studies. Eni holds five blocks covering about 6,800 km², while Shell has built a larger position with 19 blocks totaling roughly 20,600 km². Speaking at African Energy Week (AEW) 2026, Foday Mansaray, Director General of Sierra Leone's Petroleum Directorate, “we need to convert geological potential into investment positions,” highlighting that “Sierra Leone is open for business.”

Proven Petroleum Markets Expand Deepwater Horizons

Markets with proven petroleum provinces are also making a strong play for deepwater exploration. In Equatorial Guinea, Eni and Chevron have built sizable technical evaluation portfolios after winning six and five reconnaissance blocks, respectively.

At AEW 2026, Chevron’s Vice President of Exploration Kevin McLachlan confirmed the company’s growing focus on Africa. “Two years ago, we reset our exploration strategy to expand from what was infrastructure-oriented to be much more frontier and emerging,” he said. “We doubled our acreage position in the last two years, with positions all across the Atlantic margin as well as the East Med.”

Gabon has also attracted substantial attention from major operators. bp has taken 10 blocks covering roughly 27,100 km² in the Gabon Coastal Basin; Shell controls 14 blocks covering approximately 38,600 km², while ExxonMobil holds the largest footprint in the country, with 20 blocks covering around 53,300 km².

Duplex Yockot, Director General of Economic and Legal Affairs at Gabon's Ministry of Oil and Gas, explained at AEW 2026 that the government is pursuing a targeted approach to investment, offering companies opportunities to evaluate resources before committing to exploration.

“We signed letters of intent to give investors time to assess the opportunities, while also opening a virtual data room to facilitate access to geological information,” he said.

In Angola, IOCs are backing the country’s push to address production decline by pursuing deeper targets in the Congo Fan. Shell returned to the market, committing up to $1 billion on exploration, while Chevron is eyeing drilling opportunities at Blocks 49 and 50. In the Namibe Basin, Azule Energy is expected to drill at Block 28. The AEC Outlook indicates that TotalEnergies may also drill in this basin.

“Africa’s deepwater basins are becoming a major focus for international oil companies seeking the next generation of world-class discoveries. From Morocco to Angola, renewed exploration activity and advances in seismic technology are opening up opportunities in previously underexplored areas. The continent has the potential to become a leading destination for global deepwater investment and establish the next major petroleum production hubs,” said NJ Ayuk, Executive Chairman of the AEC. 

As Africa’s Atlantic margin enters its next phase of exploration, AEW returns from October 4-8, 2027, to facilitate investment across both frontier and producing markets. Convening government representatives, policymakers and operators, the event provides a platform for companies to access acreage, connect with potential partners and drive the next wave of African deepwater project development.Visit www.aecweek.com for more information.

Download the African Energy Chamber’s State of African Energy 2027 here.

Visit www.aecweek.com for more information.