African independent oil and gas companies expand upstream role as IOCs divest assets

African independent oil and gas companies are expanding their role in the continent’s upstream sector as international oil companies (IOCs) sell mature assets and local operators take on larger production portfolios.

The trend will be discussed in October at the African Energy Week (AEW) 2026 conference in Cape Town, the African Energy Chamber (AEC) said in a media release.

At AEW 2026, an African Independents Roundtable will examine how indigenous companies are managing acquisitions, securing financing and expanding into gas, refining, petrochemicals and power. The roundtable will also explore inherited environmental liabilities linked to mature onshore and shallow-water projects as energy majors Shell (LSE/NYSE:SHEL), ExxonMobil (NYSE:XOM), Eni (BIT:ENI, NYSE:E), Equinor (NYSE:EQNR) and other IOCs continue their retreat.

According to the AEC, African independents are planning to expand beyond crude production into gas processing, refining, petrochemicals and power generation as they take ownership of strategic oil and gas infrastructure.

Nigeria’s Seplat Energy (NGX:SEPLAT, LSE:SEPL) is one example. After completing its acquisition of Mobil Producing Nigeria Unlimited, the company reported H1 2026 working-interest production of 139,500 barrels of oil equivalent per day (bopd), up 15% from the previous quarter. It revived 24 idle wells, adding 26,000 barrels per day (bpd)  of capacity. Seplat also began gas production from the ANOH Gas Project with capacity of 300mn cubic feet (mmcf) per day, equivalent to about 8.5mn cubic metres (mcm) per day, in January. Furthermore, the company is advancing the Oso-BRT Phase 1 development, a strategic offshore gas project.

Nigerian integrated energy company Oando (NGX:OANDO, JSE:OAO) reported first-half revenue of about $1.5bn, facility uptime of 92% and average production of 42,789 bpd as it integrated assets acquired from Eni. The company is also progressing a $1.5bn financing programme to support a five-year, 100-well drilling campaign.

In Angola, Azule Energy, a 50:50 independent joint venture of BP (LSE/NYSE:BP) and Eni, is advancing the Agogo Integrated West Hub Development, which includes what the company describes as the world’s first purpose-built green FPSO. Azule is targeting production of 250,000 bpd by the end of 2026 and is also expanding into Namibia’s Orange Basin.

African operators are also increasing their presence further down the value chain. Aradel Holdings (NGX:ARADEL) has expanded its Ogbele modular refinery to 11,000 bpd, while private indigenous energy firms Heirs Energies, Aiteo, Chappal Energies and Springfield E&P are pursuing acquisitions, gas commercialisation, gas-to-power generation and brownfield developments.

According to the AEC, these companies represent just a fraction of the indigenous operators demonstrating their ability to take on larger assets and attract further investment. The AEW roundtable will examine funding options for such companies, including reserve-based lending, trader-backed finance and partnerships with African development banks.

“Africa’s independent operators are proving they have the technical capability, financial discipline and long-term vision to lead the continent’s next energy chapter,” said AEC’s executive chairman NJ Ayuk. “AEW 2026 provides the platform where these companies, investors and policymakers can shape the partnerships needed to scale production, strengthen energy security and ensure Africa captures more value from its own resources.”