Liberia is emerging as a key player in Africa's growing deepwater energy sector, with significant exploration interest in the country's offshore resources.
According to Rystad Energy, the deepwater segment has long played a crucial role in Africa's hydrocarbon production, contributing between 20-25% of the continent's oil and gas output over the last decade. By 2035, this share is expected to rise to between 35-40%, with countries like Liberia poised to capitalize on the region's energy potential.
Rystad Energy estimates that by 2035, there will be an additional 3.5 million barrels of oil equivalent per day (boepd) from pre-FID (final investment decision) and under-construction deepwater projects across Africa.
This growth comes on the heels of successful developments in Namibia and Côte d'Ivoire, which have spurred increased interest in West Africa's deepwater resources. As a result, countries like Liberia, along with Sierra Leone and São Tomé and Príncipe, are becoming key areas for companies looking to secure acreages for future exploration and development.
While the deepwater sector in Africa saw a decline in activity following the COVID-19 pandemic, with average annual sanctioning of deepwater resources dropping from 1.89 billion barrels of oil equivalent (boe) in 2015-2019 to around 330 million boe in the years that followed, recent successes in countries like Namibia, Côte d'Ivoire, and Mozambique signal a coming resurgence.
According to Rystad Energy, deepwater resource sanctioning in Africa could surpass 2 billion boe annually from 2025-2029, potentially reaching over 3 billion boe, provided that key projects move forward on schedule.
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For Liberia, this growing focus on deepwater exploration presents an opportunity to unlock significant economic benefits. The country's offshore resources could play a critical role in Africa's energy landscape, but realizing this potential will require strategic fiscal incentives, improved security for offshore facilities, and continued investment in exploration.
Additionally, Liberia has the potential to leverage its offshore gas resources for gas-to-power projects, which could significantly enhance electricity access both domestically and across the continent.
As Africa's deepwater sector continues to develop, Liberia's role in this energy transformation is becoming increasingly important. If it can align its exploration efforts with broader regional trends, the country could play a vital part in shaping Africa's hydrocarbon future. This insight is backed by Rystad Energy's extensive analysis of the continent's energy landscape.
