
In the first part of our global survey, we set out some of the opportunities across Africa and South America. From Algeria’s move back to licensing rounds to Guyana’s billion-barrel discoveries, opportunities abound.
In this second instalment, we continue exploring alternative oil investment locations around the world. African opportunities continue to hold sway, driven by existing knowledge and historic ties, but also push further out into Asia-Pacific and North America.
Companies tend to favour established jurisdictions, but Namibia also enters the fray, following the major discoveries by TotalEnergies in the deepwater.
Malaysia
James McCormack, Cavendish research director
The oil and gas sector in Malaysia is undergoing a transformative shift in bolstering exploration and production activities. This growth is largely fuelled by the region’s strategic transition from coal to natural gas, coupled with a surge in energy requirements and increased industrialisation.
To solidify Malaysia’s reputation as an attractive alternative oil investment destination, the government has implemented several incentives. These include simplified fiscal terms for small fields and annual exploration and discovery licensing rounds.
Malaysia has a population and politicians who have a high degree of awareness of the E&P sector and its importance to the economy. These authorities are therefore supportive of policy making and framework conditions to support a long-term viable E&P industry.
In addition to governmental support, the characteristics that make Malaysia an attractive place to do business include a large and active E&P industry, significant existing infrastructure, a stable regulatory framework and an active M&A market.
These initiatives have led to a resurgence in activity in Malaysia, leading to the discovery of over 1bn boe of resources and an uptick in M&A activity – including the combination of Eni and Petronas to create a new Southeast Asian “major”.
MSGBC Basin, Mauritania & Senegal
Jimmy Boulter, Enverus regional manager
You wouldn’t think that a basin recently regarded as an African hotspot, with close to 600 million barrels of oil and 100 Tcf (in place) discovered between 2014-2019, and with two new development projects brought onstream in the past year, could simultaneously be thought of as a no-man’s land for exploration. Yet, this is the case for the MSGBC Basin in Mauritania and Senegal.
Both countries have recently emerged as major oil and gas producers. First oil was achieved at Phase 1 of Woodside’s Sangomar project in June 2024. The first LNG cargo for BP’s cross-border Greater Tortue Ahmeyim Phase 1 development followed in April 2025.
Despite reaching these milestones, a string of drilling failures from 2017-2019, alongside the introduction of tougher fiscal terms in Senegal, a global pandemic and shifting company strategies, combined with devastating impact for exploration. As quick as they came into the MSGBC Basin, the IOCs completed an equally swift exodus since 2019. They relinquished nearly 130,000 square km of offshore exploration acreage on their way out.
Under the right entry conditions, including significantly lower signature bonus expectations for starters (Shell paid $45 million for block C-10), Africa’s forgotten hotspot provides one of the world’s tempting alternative oil investment locations. It has vast amount of untapped exploration and development potential for alternative investors to consider.
Namibia
Grayson Andersen, Stamper Oil and Gas CEO
Namibia is a politically and fiscally stable jurisdiction, which adheres to the rule of law and respects contract law. The entry into Namibia by most of the world’s IOCs over the past decade support the view that Namibia is a good place to do business.
Fiscal terms with respect to oil and gas exploration offer a balance between contractor and state take. This supports oil and gas exploration activities, as shown by the increased levels of activity the past four years.
All the exploration successes to date offshore Namibia have been in the Orange Basin, however, companies like Chevron and Exxon are now starting to evaluate the potential of the other three major basins offshore Namibia: the Walvis, Lüderitz and Namibe.
Stamper Oil and Gas is looking to be part of the continued exploration activities offshore Namibia. We are looking to close an acquisition of five blocks, which have exposure to the Orange, Walvis and Lüderitz Basins.
Nigeria
Oliver Quinn, Meren (formerly Africa Oil) CCO
Nigeria has solidified its position as a leading destination for oil and gas operations and investments. This is underpinned by its substantial hydrocarbon reserves, strategic location and progressive policy reforms.
As Africa’s largest oil producer, Nigeria boasts proven reserves of approximately 37.1 billion barrels. As such, it contributes significantly to the global energy supply. The government’s commitment to fostering a conducive investment climate is evident. Perhaps most strikingly it launched the Petroleum Industry Act (PIA) in 2021. This streamlined regulatory frameworks and offers attractive fiscal incentives to investors.
Last year, Nigeria accounted for three out of four final investment decisions (FIDs) in Africa, totalling $13.5 billion, with major projects such as Shell’s Bonga North Tranche 1 and TotalEnergies’ Ubeta gas project. These developments reflect the country’s strategic efforts to unlock its hydrocarbon potential through investor-friendly policies and global partnerships.
Notably, Nigeria’s strategic location along the Gulf of Guinea enhances its role as a gateway to key markets in Africa, Europe, Asia and the Americas, amplifying its appeal as a hub for energy investments. The divestment trend by IOCs presents increasing opportunities for independents and indigenous players alike, with a number of high-profile transactions in the last couple of years.
Meren recently expanded its interests in Nigeria through its amalgamation with Prime. The company has exposure to three of Nigeria’s top-five producing fields – firmly embedding it in Nigeria’s high-performing deepwater sector.
Peru
Manuel Pablo Zuniga-Pflucker, PetroTal president and CEO
PetroTal was founded by Peruvians for the benefit of Peru. It has the ambition to develop the country’s oil assets to support Peru’s quest for energy independence and economic growth.
Since starting production at its flagship asset, the Bretaña oil field, PetroTal has invested around $625 million. It has grown production to more than 20,000 barrels a day. The company has become the largest crude producer in Peru along the way. To date, PetroTal has produced more than 26 million barrels of oil from Bretaña.
As a place to operate, Peru is excellent. The geology is world class, the fiscal regime is balanced and the country is actively looking to increase foreign direct investment to maximise its domestic energy supplies.
In Peru, PetroTal has also looked to be a leader when it comes to ensuring that local communities benefit from domestic oil production. The company set up the 2.5% social trust fund in 2023 to give back to the local population. As of March 2025, the fund has redistributed $24 million into the local communities.
Peru also has a robust legal framework, with oil and gas contracts governed by supreme decree. This means the continuity of the contracts is guaranteed in perpetuity, even in the event of regime change. This allows operators and investors to take a long-term view when allocating capital to projects and developing hydrocarbon assets in Peru, which is a considerable strength of the country.
US
David Mirzai, SP Angel energy analyst
The US oil and gas sector has been a magnet for UK-listed E&Ps looking to invest in production growth. This was the case even before the arrival of the Trump administration in January.
As far as alternative oil investment locations go, its appeal is evident. From Zephyr Energy in Utah to Nostra Terra in Texas, there is a significant and growing presence of AIM-listed players investing in the US.
New entrants like Union Jack are also investing in near-term US drilling opportunities for production and cash flow growth, which have quicker permitting processes and lower taxes than those on offer from its legacy UK onshore asset base. Clearly scaling the business quickly is important. However, we note regional banks are also more active in reserves-based lending (RBL) for small-cap E&Ps.
We would also be remiss not to mention the significant capital raised on the London AIM-market by traditional E&P investors for the emergent helium sector over the last 18 months. Helium exploration plays have attracted increasing focus and valuations over the last year. A recent global supply shortage pushed spot prices above $500 per mcf – more than 100x the price of natural gas in the US.
Helium One and Mosman have been joined by new entrants Pulsar Helium and Helix Exploration. These are all looking to drill US helium exploration opportunities in areas with proven high helium concentrations. These offer access to existing drilling services and infrastructure.