Market Size of Africa Oil and Gas Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 5.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Africa Oil and Gas Market Analysis
The African Oil and Gas market is expected to register a CAGR of more than 5.5% during the forecast period of 2022-2027. The COVID-19 pandemic caused a global decline in oil and gas consumption, leading to a crash in oil prices worldwide. This crash turned upstream activities in the region economically unfeasible. For example, Aker Energy postponed the development of its Pecan oil field located in offshore Ghana. In terms of market growth, factors such as the increasing production of oil and gas in the region and the strengthening of crude oil prices due to various geopolitical reasons are likely to drive the market during the forecast period. However, political instability, coupled with vandalism of oil and gas infrastructure and theft of petroleum products, results in business losses for stakeholders, reducing the confidence to invest in oil and gas projects, which is anticipated to restrain the oil and gas market during the forecast period.
- Offshore upstream activities are expected to dominate the market due to their relative insulation from vandalism. These sites are comparatively less accessible for the terrorists and vandalism groups in the region, such as the attack on the Anadarko Petroleum LPG project in northern Mozambique.
- The recent offshore discovery of oil and gas in Senegal showcases the potential of the West African offshore region, which is largely untapped, for which the National Oil Company of Senegal, PETROSEN, officially launched the licensing round for 12 blocks in January 2020. Also, several other offshore discoveries are recorded in the region, which is expected to create a lucrative opportunity for oil and gas upstream companies to invest in this region.
- Nigeria dominated the market due to many upstream projects due to operators gaining confidence and increased production, with a rise in crude oil prices after a slump. Therefore, Nigeria is expected to dominate the market during the forecast period.
Africa Oil and Gas Industry Segmentation
The scope of the Africa Oil and Gas Market report includes:
| By Type | |
| Upstream | |
| Midstream | |
| Downstream |
| By Geography | |
| Algeria | |
| Nigeria | |
| Egypt | |
| Rest of Africa |
Africa Oil and Gas Market Size Summary
The African oil and gas market is poised for growth, driven by increasing production and strengthening crude oil prices, despite challenges such as political instability and infrastructure vandalism. The market's expansion is largely attributed to offshore upstream activities, which are less susceptible to vandalism compared to onshore sites. The discovery of new oil and gas reserves, particularly in West Africa, presents significant opportunities for investment. Countries like Nigeria are central to this growth, with numerous upstream projects and a resurgence in production following a rise in crude oil prices. However, the region's market dynamics are influenced by global economic conditions and geopolitical factors, which can impact investment confidence.
Nigeria stands out as a dominant player in the African oil and gas sector, with substantial proven reserves and a critical role in the country's economy. The sector is vital for Nigeria, accounting for a significant portion of exports and government revenue. Despite recent declines in production due to maturing fields and reduced foreign investment, Nigeria aims to enhance its status as an export hub, targeting markets in Asia to meet growing gas demand. The Nigerian National Petroleum Company Ltd's recent financial commitments and regulatory initiatives are expected to bolster the upstream sector, reinforcing Nigeria's leadership in the African oil and gas market during the forecast period.
Africa Oil and Gas Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Macro-economic Condition in the Oil and Gas Industry
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1.3 Crude Oil Production and Forecast in thousand barrels per day, till 2027
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1.4 Natural Gas Production and Forecast in million-ton oil equivalent, till 2027
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1.5 Recent Trends and Developments
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1.6 Government Policies and Regulations
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1.7 Market Dynamics
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1.7.1 Drivers
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1.7.2 Restraints
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1.8 Supply Chain Analysis
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1.9 Porter's Five Forces Analysis
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1.9.1 Bargaining Power of Suppliers
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1.9.2 Bargaining Power of Consumers
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1.9.3 Threat of New Entrants
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1.9.4 Threat of Substitute Products and Services
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1.9.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Upstream
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2.1.2 Midstream
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2.1.3 Downstream
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2.2 By Geography
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2.2.1 Algeria
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2.2.2 Nigeria
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2.2.3 Egypt
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2.2.4 Rest of Africa
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Africa Oil and Gas Market Size FAQs
What is the current Africa Oil and Gas Market size?
The Africa Oil and Gas Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)
Who are the key players in Africa Oil and Gas Market?
TotalEnergies SE, Eni SpA, Exxon Mobil Corporation, Nigerian National Petroleum Corporation and Shell PLC are the major companies operating in the Africa Oil and Gas Market.
