Geological and Geophysical Data Acquisition in Africa in the Oil and Gas Sector: Strategic Challenges and Development Outlooks

Joël SANON  │  Head of Extractive Sector, ALSF  │  2026
Yocoli Grace-Milca KONAN  │  Legal Counsel, ALSF  │  2026
Cesar VAMOSVER  │  Legal Counsel, ALSF  │  2026

Introduction

Africa's exceptional geological diversity makes it a major reservoir of strategic natural resources, valued at an estimated $6.5 trillion1 and representing 30% of global oil, gas, and mineral reserves. For many sub-Saharan countries, these assets account for over half of exports, and up to 90% in hydrocarbon-dependent economies.

Recent discoveries of oil, gas, and minerals necessary for the energy transition, such as copper, cobalt, rare earths or lithium, highlight both the opportunities and the need for robust legal and institutional frameworks to ensure sovereign, equitable, and sustainable exploitation.

Geological and geophysical data are vital for identifying and assessing resource potential, reducing exploration risks, and attracting investment. However, many African countries face significant challenges in managing such data due to limited financial and technical capacity, unclear legal frameworks, and insufficient mechanisms for collection, processing, and commercialization.

This article examines the legal and strategic dimensions of acquiring and managing geological and geophysical data in the oil & gas sector in Africa. It highlights their role in driving sustainable development and offers recommendations to maximize their value while safeguarding sovereignty and fostering socio-economic growth.

I. Legal and Institutional Frameworks

1.1 Strengthening Legal Frameworks for Sovereign Control and Investment

More and more African countries2 are strengthening their legal and institutional frameworks to better manage geological and geophysical data. This section highlights key regulations and their role in protecting resources while attracting transparent and equitable investment.

A. State Sovereignty and Regulation of Reconnaissance Activities

Most African petroleum legislations are founded on the principle of state ownership of natural resources, as recognized by international conventions such as the African Charter on Human and Peoples' Rights. This grants states full authority over exploration, exploitation, and the geological and geophysical data derived from their territories.

All reconnaissance activities require prior government authorization, with the view to ensuring that only companies with the adequate technical qualifications and financial capacities undertake such operations, as is the case in countries such as South Africa and Côte d'Ivoire.

As geological and geophysical reconnaissance raises critical issues of data sovereignty, with unauthorized export, sharing, or commercialization posing risks to strategic control, strong legal frameworks and well-structured contracts are therefore needed to reinforce data traceability and protection, safeguarding against unauthorized use by third parties.

B. Requirements for Permit Issuance and Obligations of Permit Holders

Obtaining a reconnaissance permit is contingent upon evaluating the legal, technical, and financial capacities of the applicant3. Permit holders must comply with the permit terms, conduct operations in accordance with environmental standards, and regularly submit detailed reports to the competent authority.

In some jurisdictions4, permits must also be officially registered. Furthermore, the export of geological data or samples requires prior approval from the government, reinforcing state control over strategic resources.

In some countries, the legal framework allows granting permit holders non-exclusive rights5 to conduct reconnaissance operations within a defined perimeter and exclusive rights to commercialize collected data for a period that can be extended up to ten years6.

C. Limited Duration of Reconnaissance Permits

Reconnaissance activities are strictly time-bound. The limited duration of permits, often set between one7 and two years, depending on the country, encourages permit holders to conduct their operations within the stipulated timeframe, adhering to technical, environmental, and regulatory requirements.

In most African countries, reconnaissance permits are non-transferable and non-renewable8, underscoring governments' intent to maintain strict control over resource exploration. This approach aims to prevent speculation, or the improper transfer of rights conferred by the permit, ensuring rigorous and transparent management of reconnaissance activities.

This comprehensive approach to managing reconnaissance activities demonstrates African countries' determination to align economic ambitions with strategic sovereignty and sustainable development. By strengthening legal frameworks and enforcing strict oversight, governments aim to maximize the benefits derived from natural resources while safeguarding national interests.

1.2 Monitoring and Institutional Oversight of Local Content in Seismic Data Acquisition

Effective implementation of local content obligations in seismic and geophysical operations requires robust regulatory oversight and institutional coordination. Across Africa, governments have increasingly established competent authorities responsible for reviewing and supervising Local Content plans, conducting compliance assessments, and applying proportionate sanctions where necessary. Structured monitoring mechanisms, including reporting obligations, audits, and performance evaluations, are essential to ensure that commitments relating to seismic data acquisition, processing, and interpretation translate into tangible national participation and capacity development.

Recent reforms illustrate this trend. In Tanzania, the Petroleum (Local Content) Regulations, 2017, mandate the approval and supervision of Local Content plans covering geological and geophysical services by the Petroleum Upstream Regulatory Authority (PURA). In Angola, Presidential Decree No. 271/20 subjects upstream services linked to seismic operations to national participation requirements under the oversight of the National Oil, Gas and Biofuels Agency (ANPG).

In Senegal, the Local Content Law No. 2019-04, read together with the Petroleum Code of 2019, requires operators to prioritize national companies and personnel in seismic campaigns, with monitoring by the Ministry of Petroleum and Energy and National Oil Company of Senegal (PETROSEN).

Beyond compliance enforcement, strategic institutions play a broader role in managing reconnaissance and seismic activities. Agencies such as the Petroleum Agency of South Africa9 contribute to national exploration strategies and oversee seismic data acquisition, including multi-client surveys in frontier areas. Similar institutional arrangements exist in Comoros10 and Côte d'Ivoire, where dedicated geological or interministerial bodies ensure coordinated management of petroleum resources.

To consolidate these efforts, African governments may consider strengthening dedicated seismic data management structures, including national data centers, and embedding structured knowledge-transfer provisions within licenses and agreements. Such measures support long-term institutional resilience, enhance domestic technical expertise, and contribute to balanced and sustainable resource governance.

II. Structuring and Negotiating Contracts Governing Access to Seismic Data

The structuring and negotiation of contracts governing access to seismic data are strategically important for African countries, as they help balance sovereignty over natural resources with investor incentives. Often framed as concessions or Public-Private Partnerships, these agreements must ensure responsible data collection and management, promote technology transfer, and foster local economic development.

Key challenges include clearly defining resource exploitation rights and data-sharing mechanisms in a manner that protects strategic information while sustaining investor confidence, alongside integrating local content obligations such as employment, training, and partnerships with national companies. Effective implementation requires clear provisions, rigorous monitoring, and enforcement measures.

These contracts involve legal, technical, and financial dimensions that must be clearly articulated to ensure compliance with national laws, adherence to international standards, and the use of state-of-the-art methods, ultimately supporting balanced, mutually beneficial outcomes for all stakeholders.

2.1 Key Legal Provisions of a Reconnaissance Contract

• Compliance with local petroleum laws and regulations: Reconnaissance operations must strictly comply with applicable provisions of the petroleum laws and regulations, as well as the conditions specified in the authorization issued by the competent authority granting the permit to the contractor. This helps ensure transparency and compliance with national legal requirements.

• Intellectual Property and Data Access: Seismic data, considered as strategic assets, are central to the reconnaissance agreement. Clauses must precisely define data ownership, usage conditions, and access rights for the parties involved. Additionally, all activities under the agreement must respect third-party intellectual property rights to avoid litigation.

• Confidentiality: The commercial and strategic value of seismic data necessitates rigorous confidentiality clauses to prevent unauthorized disclosure, thereby protecting the parties' interests and preserving the State's strategic resources.

• Guarantees and Liability: Contractors must demonstrate their technical and financial capacity to meet their obligations by employing qualified personnel and using modern equipment. They are also required to obtain appropriate insurance to cover risks associated with their activities, including potential processing errors or pollution incidents. Furthermore, each party remains fully liable for damages or losses caused to third parties.

• Transfer of Rights and Assignment: The transfer of permits or reconnaissance authorizations is generally prohibited by national laws, a restriction that the reconnaissance contract cannot override. However, where legislation does not specify the conditions for assigning the contracting company's rights and obligations, the State is obligated to ensure that any proposed assignment is subject to prior approval by the competent authority.

• Change of Law: Reconnaissance contracts must include a revision clause in case legislative or regulatory changes significantly impact the initial economic balance. This provision maintains project viability while adapting contractual obligations to new realities.

• Force Majeure: The force majeure clause, essential for addressing unforeseen events, must be limited to occurrences beyond the reasonable control of the parties. Reconnaissance contracts should also strengthen information obligations and efforts to mitigate the impact of such events.

• Termination and Compensation: Termination scenarios must be addressed equitably for both the country and the private company, with compensation framed by the damages incurred due to termination.

• Dispute Resolution Clause: Disputes arising from a reconnaissance contract should be resolved amicably as a priority. Failing that, international arbitration usually serves as the ultimate dispute resolution mechanism. The arbitral tribunal may consist of one or three arbitrators, depending on the technicality of the case and the financial stakes, and should include experts in petroleum law to ensure fair and sector-appropriate resolution.

2.2 Key Technical, Financial and Commercial Provisions

• Contract Scope: The parties must define the contract's scope from the outset. This includes (i) the type of seismic data to be collected (2D, 3D, 4D data), (ii) the geographical area for geological and geophysical reconnaissance, and (iii) the duration of studies and project phases, whether acquisition, processing, or data interpretation.

• Risk Allocation: The contract must allocate risks related to technical factors (equipment failures, data processing errors) and environmental factors (adverse weather conditions, difficult site access).

• Transparency and Traceability: The contract should allow the State oversight of licenses signed by the private party with third parties to ensure transparent, fair, and responsible data commercialization based on non-discriminatory criteria.

• Information and Reporting: The contract must include enhanced information and reporting obligations to guarantee transparency and control of activities. These obligations include notifying each multi-client license concluded, regular activity reports, submission of a final report at the end of each seismic or commercialization campaign, and reporting on payments made for the licenses. These measures ensure rigorous traceability and empower states to effectively oversee the management of their natural resources.

• Reprocessing and Commercialization Timeline: The contract should incentivize the private party to reprocess and commercialize data within a specific timeframe and align with the government's expectations for opening oil and gas exploration in the country.

• Knowledge Transfer: This clause requires the private party to train and build the capacities of government officials through a training plan tailored to the country's needs. Additionally, the country should retain the option to request additional training from the recognition company at its own expense.

• Financial Audit: The country or a qualified third party designated for this purpose must periodically audit to verify the compliance of payments and financial obligations of the recognition company.

• Pricing and Payment Terms: Geophysical reconnaissance is an expensive activity. The contract must include a clear pricing structure, which may take the form of lump-sum payments or stage-based project advancements. Provisions for cost overruns, pricing revisions, or penalties for payment delays should also be included.

• Cost and Revenue Sharing Clause: In cases where data generated by reconnaissance activities can be monetized, this clause defines the modalities for revenue sharing between the State and its contractor. Properly structured geological and geophysical data contracts enable balanced partnerships between States and investors and pave the way for better development of oil and gas exploration and exploitation activities across the continent.

Conclusion

In conclusion, geological and geophysical data reconnaissance contracts, by incorporating legal, technical, commercial, and financial clauses, serve as strategic tools to ensure future responsible and balanced exploitation of African countries' natural resources. These contracts must reflect the imperatives of sovereignty, the need to safeguard the economic interests of nations, and attractiveness for investors. Their structuring requires a rigorous and specialized approach, considering local specificities and international standards.

For African countries, a comprehensive understanding of geological and geophysical data represents a strategic opportunity to negotiate better terms for access to their natural resources, forge balanced partnerships with foreign investors, and secure equitable and sustainable revenues.

To this end, it is imperative to strengthen national regulations and modernize the institutions managing natural resources. A clear legal framework must safeguard countries' interests while ensuring transparent governance and balanced contractual relationships between governments and extractive companies.

Local technical and technological capacities must also be enhanced to maximize the economic and social benefits of exploiting geological resources. At the same time, special attention should be given to integrating sustainable development principles to limit environmental impacts and support the energy transition, a crucial issue for the continent.

Disclaimer: This article is provided for general informational purposes only and should not be construed as legal advice. Any government, institution, or stakeholder considering reforms or negotiations in the petroleum sector should seek tailored advice from qualified legal and technical professionals based on the specific circumstances of the relevant jurisdiction.

Notes

1 AfDB, 2023. Available at: https://www.afdb.org/en/...

2 Ghana Petroleum Act, 2016 (Act 919) and Petroleum Commission Act, 2011 (Act 821). — Nigeria PIA, 2021. — Namibia Petroleum Act, 2015.

3 Article 8, Ivorian Petroleum Code.

4 Article 41(e), Act No. 23/2024.

5 Art. 21(2), Comorian Petroleum Code; Art. 12, Ivorian Petroleum Code; Art. 22(2), Kenyan Petroleum Code.

6 Article 40-1(b), Act No. 23/2024.

7 Article 11, Ivorian Petroleum Code; Art. 14(1), Act No. 23 of 2024.

8 Articles 39-4(c-d) Act No. 23/2024; Art. 21(2), Comorian Petroleum Code.

9 Article 10, Act No. 23/2024.

10 Decree No. 10-030/PR of 12 April 2010 establishing the Geological Bureau of the Comoros (BGC).

11 www.alsf.int