Africa’s leading oil producers are seeking to increase their market share on the back of rising upstream investment and efforts to enhance production at existing fields.
While output remains limited – with several African member countries falling below their OPEC production quotas – 2023 saw multiple discoveries made and new developments come online, which could serve to increase production baselines.
In its “Monthly Oil Market Report,” OPEC highlights Africa’s top oil producers and sheds light on key production trends ahead.
Nigeria
Renowned for its high-quality light and sweet crude oil, Nigeria reclaimed its position as Africa’s leading oil producer in 2023.
In September alone, the West African country achieved a production rate of 1.35 million barrels per day (bpd), a notable increase from the 1.18 million bpd and 1.08 million bpd recorded in the previous two months, respectively.
After experiencing a drop in production in 2022 due to natural declines in legacy fields and energy theft, Nigeria lost its top ranking to Angola and has since implemented a series of measures aimed at maximizing output from both mature and new fields.
These range from heightening security measures to combat oil theft, to making substantial new investments in exploration and production (E&P).
Last August, the Nigerian National Petroleum Company partnered with the African Export-Import Bank on a three-billion-dollar loan to enhance operations across the oil value chain.
Libya
Home to Africa’s largest proven oil reserves, Libya solidified its position as the continent’s second-largest producer in 2023.
According to OPEC, the country maintained a consistently high output of just under 1.2 million bpd throughout the year.
This production level is attributed to the resumption of production at several fields that were previously halted due to growing security concerns.
Last August, Eni, Libya’s National Oil Corporation (NOC), bp and the Libyan Investment Authority lifted force majeure and resumed operations in areas A, B and C.
According to the International Monetary Fund, the allocation of seven billion dollars in 2022 towards enhancing the operations of the NOC also contributed to increasing domestic production.
The funding enabled the clearing of backlog payments to suppliers and maintenance firms, as well as facilitated essential infrastructure projects that will help Libya achieve its production target of two million barrels of oil per day by 2030.
Angola
Fueled by an influx of investment in both new and established fields, Angola’s oil production has remained steady, showing only minor fluctuations in recent months.
In Q3 2023, the country produced approximately 1.11 million bpd, a slight increase from 1.098 million bpd in the second quarter and 1.05 million bpd in the first quarter, as reported by OPEC.
The active commitment from operators such as TotalEnergies, Chevron, ExxonMobil and Azule Energy to optimizing output is expected to further enhance Angola’s production levels.
With upcoming E&P projects like the Agogo Oil Field Development (42,000 bpd), Begonia Oil Field (30,000 bpd) and CLOV Phase 3 Project (30,000 bpd) nearing completion in the short term, coupled with the award of new onshore licenses next March, the country hopes to stabilize its production around 1.3 million bpd by 2025.
Algeria
With a renewed focus on leveraging its hydrocarbon resources and a geostrategic position near European markets, Algeria ramped up production efforts in 2023, reaching 960,000 bpd and ranking as Africa’s fourth-largest producer.
This follows enhanced collaboration with local and international partners, including a 2022 agreement among Sonatrach, Eni, TotalEnergies and Occidental Petroleum to increase E&P investments in Block 404 and 208 in the Berkine Basin.
With upcoming prospects such as Eni and Sonatrach’s HDLE-1 discovery in the Zemlet el Arbi concession, new assets will play a crucial role in boosting the country’s oil output, as Sonatrach reported the discovery of 10 new oil and gas deposits in the first half of 2023 alone and is currently evaluating their commerciality.
