IAE 2025: Africa’s Mature Energy Assets Present Massive Upside – If Governments Step Up
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Africa’s mature, mid-life and marginal energy assets could deliver exceptional returns and drive near-term production gains – but only if governments commit to clear, flexible and fit-for-purpose fiscal regimes. That was the consensus among panelists at the Optimizing Returns of Africa’s Mature and Mid-Life Energy Assets session, sponsored by Trident Energy, at the Invest in African Energy Forum in Paris on Wednesday.
As investor sentiment around African hydrocarbons stabilizes after years of volatility, panelists urged regulators to embrace pragmatic reforms that reflect the unique economic realities of brownfield assets – which are often more bankable due to known reserves and established production profiles – as well as marginal fields.
“Marginal is not a size definition – it’s an economic term. It has set costs,” said Tim O’Hanlon, Senior Advisor at Panoro Energy. “The only lever you can pull is in the hands of the government...We need everyone to step up. The government creates a safe environment for us to work in, but it also has to have flexible, appropriate-for-project fiscal terms. It’s better to have 40% of a small field that’s producing than 100% of non-production.”
Didier Lechartier, Head of Business Development at Trident Energy emphasized the technical and regulatory ingredients needed for mature field optimization. “To optimize reserves, operators need to revitalize those fields through smarter developments… But what we need, above all, is more regulatory and fiscal certainty.”
Ian Cloke, COO of Afentra, highlighted Angola as a case study for how agile policy can attract investment even in a competitive environment. “In Angola, you’ve got great rocks, great fluids, good fiscals and regulatory certainty… Angola has been very creative in attracting majors to the deepwater.”
Wade Cherwayko, Chairman of West Oil, shared lessons from Nigeria’s marginal field development, noting the technical ingenuity and alternative logistics required to overcome surface risks and drive returns. “We financed and provided technical support for Amni International on the IMA field during the first stage of indigenization in Nigeria. We used fit-for-purpose equipment, converted a jack-up rig to re-enter a couple wells, and took that asset to 48,000 barrels per day.”
Cherwayko praised Nigeria’s marginal field fiscal regime – characterized by lower royalties, reduced taxes and the absence of state participation – but emphasized that access to financing and surface-level risks remain ongoing challenges. “You have to contend with things like pipeline sabotage and oil theft, so you have to think ahead of the curve and have alternative evacuation options, like trucking or an independent pipeline. There are challenges, but the returns are significantly higher where you can justify a 10% line los