Arrested development in Africa
Africa will experience deep cuts and long delays to discretionary capex. But preparatory work continues for when the market recovers
The retrenchment of the oil and gas industry will be felt severely in Africa. Global capex cuts, perhaps averaging one-third, will fall disproportionately on the continent and NOCs will be in no position to make up the shortfall. The pain will not be spread evenly. Developments requiring capex will be hardest hit. Operationally “all new projects are frozen”, according to a banker at a multilateral institution who spoke to Petroleum Economist. Exporters will also be harder hit than those supplying power generation in domestic markets. While majors have been quick to reassure investors with massive headline cost-cutting figures—such as 25pc for Italy’s Eni and BP—in such a fluid environment, t
Also in this section
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
28 April 2026
Datacentres will guzzle power at a ferocious rate, but the impact on wider energy markets will be far more complex than previously thought
28 April 2026
The key energy player faces balancing regional routes, political complexities, and creating a clear strategic vision for energy security
