The outlook for African oil in 2023 is promising, according to NJ Ayuk, Executive Chairman of the African Energy Chamber. The report details emerging trends shaping the global oil economy and highlights Africa's role in meeting global demand.
«A few years ago, the African energy industry was in survival mode. The COVID-19 pandemic had virtually eliminated demand for crude oil and African exports had plummeted.
Therefore, although many African states continue to feel the wounds inflicted by COVID, I am encouraged to know that Africa's liquid supply in 2023 reached almost 7 million barrels per day (Mbps/d), more than 430,000 barrels per day (bpd). above the African minimums in 2020, around 6.55 Mbps/d.
This progress is one of the topics covered in the African Energy Chamber's report on the state of energy in Africa in the first quarter of 2023, which will be published soon. The report details emerging trends shaping the global oil economy and highlights Africa's role in meeting global demand.
The overall outlook for African oil production in 2023 is promising.
Russian energy supplies to Europe continue to decline following the Ukraine war, Africa is set to increase its oil and natural gas exports to the continent, and African oil supplies are expected to remain stable throughout 2023 and beyond.
The role of Africa in the world oil economy must be highlighted
The State of Energy in Africa Report for the first quarter of 2023 provides a series of key data on African oil production for the remainder of the year.
In 2023, global liquids production (crude + condensate) is expected to remain stable, with an annual average of 83.4 million bpd.
Africa's liquid supply is expected to contribute 8% to global volume throughout the year.
The continent's five main producers - Nigeria, Libya, Algeria, Angola and Egypt - will contribute more than 80% of Africa's liquids production in 2023.
While most of Nigeria and Angola's production comes from offshore projects, that of Algeria, Libya and Egypt comes from their respective onshore fields. Libya is expected to increase production in 2023 as the civil war eases.
New projects across the continent will boost supply in 2023
A series of new projects are expected to boost African supply in 2023.
In Nigeria, Shell's Bonga North project, which could hold up to 525 million barrels of crude, could help the country boost production to pre-pandemic levels. Nigerian production is rebounding, reaching a one-year high of 1.44 million barrels a day in February and accounting for two-thirds of the increase in OPEC oil production that month.
Thanks to a $10 billion investment from TotalEnergies, the Lake Albert development in Uganda, along with the Tilenga and Kingfisher projects and the 1,500 km East African Oil Pipeline (EACOP), are expected to produce up to 230,000 barrels per day.
Ghana is expected to double its production to more than 400,000 barrels per day thanks to recent discoveries in the Deepwater Tano Cape Three Points block, exploited by the Norwegian Aker Energy. Ghana will play an important role in the region's prospects this year as it also reopens its 45,000-barrel-a-day Tema oil refinery.
In Senegal, the exploitation of the Sangomar field, completed in 60% last September, will produce its first oil this year. This $4.6 billion project, led by Woodside Energy in collaboration with Senegalese national oil company Petrosen, is expected to produce about 231 million barrels of oil during its first phase of development, with total recoverable oil resources estimated at about $500 million. of barrels throughout their useful life.
Angolan production soared to 34.29 million barrels in January, an increase of more than 580,000 barrels compared to the previous month. Its capacity has more than tripled since the completion of the rehabilitation and expansion of its Luanda refinery, to 65,000 barrels per day.
These impressive figures represent a major growth trend for Africa through 2023. With more than 70 oil and gas projects coming online by 2025, analysts predict that Africa could be producing up to 2.3 million barrels of crude oil per day in 2025.
The increase in oil production represents a revival for African economies
The data and forecasts in our report “The State of African Energy Q1 2023 Report” paint an encouraging picture of the African energy industry. In a turbulent global oil and gas market, the continent's oil production is stable and growing. “Our oil and gas industry is poised to breathe new life into our economies and create new opportunities for Africans in 2023.”