Sino-African oil and gas cooperation upgraded, Chinese companies accelerate layout of African energy landscape


Published time:

2025-08-01

Africa is rich in oil and gas resources. Proven reserves include 32.35 billion tons of crude oil and 30.87 trillion cubic meters of natural gas; undiscovered resources are estimated at 19.5 billion tons of crude oil and 17.55 trillion cubic meters of natural gas. In 1886, the first exploration well in Africa, the Gemsa d1 well, was drilled in the Suez Basin of Egypt, marking the beginning of modern oil and gas exploration in Africa. Large-scale commercial development has mainly concentrated from the mid-20th century to the present.

Africa is rich in oil and gas resources. Discovered recoverable reserves include 32.35 billion tons of crude oil and 30.87 trillion cubic meters of natural gas; undiscovered resources are estimated at 19.5 billion tons of crude oil and 17.55 trillion cubic meters of natural gas. In 1886, the first exploration well in Africa, the gemsa d1 well, was drilled in the Suez Basin of Egypt, marking the beginning of modern oil and gas exploration in Africa. Large-scale commercial development has mainly concentrated from the mid-20th century to the present day.
Currently, over 1120 oil companies operate in Africa's oil and gas sector. International oil companies in Africa continue to focus primarily on traditional oil and gas operations, with production mainly coming from a few countries in North Africa (Algeria, Libya, Egypt) and West Africa (Nigeria, Angola, Congo).
China and African countries have highly complementary economic and industrial structures, with energy being a key area of cooperation. African countries possess abundant energy resources, while China has a vast market and a complete manufacturing system. Both sides enjoy complementary advantages in resources, markets, and industries.
In the nearly 30 years since Chinese oil companies entered Africa, they have leveraged the advantages of their integrated upstream and downstream business chains. They operate nearly 60 oil and gas projects in more than 20 African countries, including Niger, Mozambique, and Nigeria. These projects cover the entire industrial chain, from exploration and development to pipeline transportation, refining and petrochemicals, engineering technology, construction, and supply of materials and equipment, thus promoting the development of the host countries' petroleum industries.

As the global energy landscape reshapes, cooperation between China and African countries in the oil and gas sector continues to deepen. Recently, the Niger-Benin oil pipeline, constructed by China National Petroleum Corporation (CNPC), officially exported its first batch of crude oil, marking a key step in China's energy layout in West Africa.
According to Reuters, the project has a total investment of approximately US\$4 billion, spans 1950 kilometers, connects the Agadem oil field in Niger to the port of Cotonou in Benin, and is expected to have a daily oil transportation capacity of 90,000 barrels. Nigerien President Mohamed Bazoum stated at the export ceremony that this cooperation is an "important milestone for national energy independence" and also strengthens Sino-African strategic mutual trust.
Meanwhile, in East Africa, the **Uganda-Tanzania Crude Oil Pipeline Project (EACOP)**, in which China National Offshore Oil Corporation (CNOOC) is involved, is accelerating. The pipeline is 1443 kilometers long, with a designed daily production capacity of 230,000 barrels, and is scheduled to be put into operation before the end of 2026. The head of CNOOC Uganda said that the project will create over 10,000 direct jobs and improve the regional economic environment through infrastructure construction.
In North Africa, Sinopec signed a natural gas development agreement with the Algerian national oil company in July for the Guern El Guessa II block, continuing to expand its natural gas resource layout in the Middle East and North Africa. Sinopec stated that this move will help enhance global natural gas supply capacity and meet the growing demand for clean energy in China and the global market.
Experts point out that Chinese companies' oil and gas investment in Africa has gradually upgraded from "resource for investment" to "full industrial chain cooperation," covering upstream exploration, midstream transportation, downstream refining and petrochemicals, and local talent training. At the same time, China has also shown new trends in the integrated development of renewable energy and oil and gas, such as promoting the integrated development of natural gas power generation and solar energy projects in countries like Angola and Mozambique.
A scholar from the Institute of African Studies at the Chinese Academy of Social Sciences said: "The future of China-Africa oil and gas cooperation hinges on three dimensions: 'green, safe, and win-win.' Only by respecting the environment and the interests of local communities can cooperation achieve sustainable development."