The “West Africa Oil & Gas Upstream Market – Growth, Trends, and Forecast (2019 – 2024)” report has been added to ResearchAndMarkets.com’s offering.
The crude oil production from West African countries is expected to increase from 1935.90 in 2018 to 3006.24 thousand barrels per day in 2024.
Major factors driving the market studied are rising consumption power and rapid growth of infrastructures in Africa. Attack on oil and gas infrastructures is expected to hinder the growth of the market studied.
- Africa’s offshore oil and gas industry continues to expand, albeit not very fast, opening up more market opportunities.
- The region’s new oil and gas producers, including Ghana, Equatorial Guinea, Gabon, and Congo (Brazzaville), offer opportunities for the exploration and production activities in West Africa.
- Nigeria dominated the market across the country with the largest oil producer in the region.
Key Market Trends
Increasing Exploration & Production Activities
- West African countries are attracting foreign investments across all economic sectors, due to the factors, such as tax favorability, regulatory environment, stable political system, growing population, and proximity to key markets.
- The growth of Africa’s offshore exploration and production activities has been mainly driven by the efforts of governments in their region.
- In April 2019, the Ministry of Petroleum and Energy, Gambia signed a contract with BP to explore oil and gas in the country.
- In 2018, the Gabon Petroleum Ministry announced that the government planned to revise the Hydrocarbons Law, in order to make licensing and fiscal terms more competitive and flexible for oil and gas companies.
- Additionally, Africa’s offshore deep and ultra-deep space has continued to attract oil explorers and producers in increasing up their operations.
Nigeria to Dominate the Market
- Nigeria dominated the market share in 2018. With growing oil and gas industrial activities and the increasing demand for the crude oil produced in Nigeria, which has low sulfur content is expected to drive the Nigerian oil and gas upstream market.
- Nigeria produces low-sulfur content crude oil, which has a high global demand pertaining to the need for reduction in sulphur content in the products, processed by the global refiners.
- Nigeria is struggling to cope with liquidity, insufficient revenue, and convertibility issues. The country is vigorously adopting measures to overcome economic recession and exploring various alternative revenue sources, especially through gas commercialization and infrastructure development.
- The oil rigs and well-completed count, along with the net crude oil production decreased during the period, but once the oil price started to rise again, the upstream activities began to increase, in turn, impacting the crude oil production and the number of well completion activity in the country positively.
The West Africa oil & gas upstream market is consolidated and the key players in the market includes, Royal Dutch Shell Plc, Total SA, Eni SpA, Exxon Mobil Corporation, Nigerian National Petroleum Corporation, NNPC among others.