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.
