Global oil demand remains remarkably resilient, with forecasts pointing to steady increases in consumption through mid-century. This enduring appetite underpins a sustained role for oil alongside a growing renewables sector, signalling robust fundamentals for producers focused on cost-efficient, high-net-back assets.
Investment patterns within the upstream sector reflect a careful balance between capital discipline and selective growth. While overall spending is projected to ease slightly, deepwater projects are set to attract increased funding, driven by attractive returns in mature basins and the unlocking of frontier resources. Technological advances in digitalisation, reservoir modelling and predictive maintenance are further enhancing operational efficiency and reducing environmental footprints across offshore developments.
Hybrid energy initiatives are also gaining traction, with co-location of renewable installations—such as floating wind turbines, alongside oil platforms beginning to improve carbon intensity metrics and create new synergies. Such innovations illustrate the industry’s evolving approach, blending traditional hydrocarbons with lower-carbon technologies to meet both shareholder and societal expectations.
In mid-2025, Africa Oil Corp. rebranded as Meren Energy Inc. following its Prime consolidation, which effectively doubled reserves and production capacity. Supported by low lifting costs and favourable Brent pricing, the company has adopted a clear capital-return policy, committing to at least US$100 million in annual dividends and the return of half its excess free cash flow through supplementary distributions or share buy-backs.
Appraisal and development activities across licences in the Niger Delta and Orange Basins are poised to underpin production growth into the latter half of the decade. Advances in subsea tie-backs, FPSO deployments and appraisal drilling campaigns are expected to unlock additional value, while disciplined acquisitions will complement organic optimisation. Together, these dynamics create a fertile landscape for deepwater specialists. Meren Energy Inc. emerges as a nimble operator with a strengthened balance sheet, a defined return mandate and a diversified portfolio of low-cost, high-net-back offshore assets, well positioned to capitalise on enduring demand and the sector’s gradual embrace of hybrid solutions.
Meren Energy Inc (TSE:MER, STO:MER) is a leading independent, full-cycle E&P with production and development assets in deepwater Nigeria, a leading carried position in the Orange Basin across Namibia and South Africa, and operated licences in Equatorial Guinea.
