Africa Oilfield Services Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Africa Oilfield Services Market Analysis

The Africa Oilfield Services Market size is estimated at USD 6.38 billion in 2025, and is expected to reach USD 8.93 billion by 2030, at a CAGR of 6.95% during the forecast period (2025-2030).

The African oilfield services sector is experiencing significant transformation driven by increasing energy demands and technological advancement. Africa's primary energy consumption reached 19.99 Exajoules in 2021, growing at a steady CAGR of 1.94%, significantly higher than the global CAGR of 1.34%. This rising energy consumption has spurred increased investment in exploration and production activities, with major oil companies focusing on both conventional and unconventional resources. The sector has witnessed substantial technological integration, with companies increasingly adopting digital technologies such as data analytics, artificial intelligence, and the Internet of Things to improve operational efficiency and productivity.

The industry has shown remarkable resilience through strategic adaptations and operational improvements. As of March 2023, the total rig count in Africa stood at 97, demonstrating a significant recovery from 51 rigs in January 2021. This recovery has been accompanied by substantial investments in oilfield technology and automation, particularly in mature fields where enhanced recovery techniques are crucial. Companies are increasingly focusing on implementing advanced drilling services technologies and digital solutions to optimize well performance and reduce operational costs.

The market is witnessing a surge in strategic contracts and partnerships, particularly in offshore developments. In March 2023, Shelf Drilling secured a two-year contract worth approximately USD 118 million for operations offshore Nigeria, while Dolphin Drilling won a contract for the Blackford Dolphin semi-submersible drilling rig with an estimated day rate of USD 325,000. These developments highlight the industry's growing focus on technological advancement and operational efficiency, with companies investing in modern oilfield equipment and innovative solutions to enhance productivity.

The sector is experiencing a significant shift towards sustainable and efficient operations through digital transformation. Major service providers are investing in advanced technologies such as automated drilling systems, remote monitoring capabilities, and predictive maintenance solutions. In January 2023, Eni and the National Oil Corporation of Libya signed a USD 8 billion agreement for the development of Structures A&E, demonstrating the industry's commitment to long-term investments in advanced technologies and sustainable practices. This digital transformation is not only improving operational efficiency but also enabling better resource management and environmental compliance across the region.

Africa Oilfield Services Market Trends

Increasing Development of Offshore Fields

The African region has witnessed significant momentum in offshore oil and gas field development, driven by new discoveries and increasing investments in deepwater and ultra-deepwater projects. In March 2023, Namibia's state-owned oil company NAMCOR announced its third oil discovery in the Orange Basin offshore southern Namibia with partners Shell and QatarEnergy in the Jonker-1X deepwater exploration well. This discovery, along with others in the region, has attracted major international oil companies to invest in Africa's offshore sector. The Nigerian government's announcement in 2023 to auction seven deep offshore oil blocks, located at depths between 1,200 meters and 3,100 meters off the city of Lagos, further demonstrates the growing focus on offshore development in the region.

The increasing offshore activity is evidenced by several major contract awards and developments in early 2023. Shelf Drilling secured a two-year contract worth approximately USD 118 million for offshore operations in Nigeria, with planned operations starting in May 2023. This highlights the demand for offshore services in the region. Similarly, Peak Petroleum Industries Ltd awarded a contract to Dolphin Drilling for the Blackford Dolphin semi-submersible drilling rig, with an estimated effective day rate of USD 325,000, including mobilization fees. In Angola, Eni Angola and its partners in Block 15/06 initiated the Agogo Integrated West Hub development project, which comprises 36 new wells and represents a significant investment of around USD 7.8 billion. These developments are complemented by the steady rise in offshore rig counts, with Baker Hughes International Rig Count reporting 26 offshore rigs operating in Africa as of March 2023, showing a significant increase from previous years.

The development of offshore fields is further supported by strategic partnerships and technological advancements in the region. In January 2023, Stena Drilling signed a contract with Shell subsidiaries for a three-well project in offshore Egypt, incorporating advanced Managed Pressure Drilling (MPD) technology. Additionally, ExxonMobil's commitment to invest USD 200 million in Angola's frontier exploration well demonstrates the continued interest in developing new offshore areas. These investments and technological implementations are crucial for accessing previously unreachable reserves and improving the efficiency of offshore services and subsea services across the African continent. Furthermore, the integration of well intervention techniques is enhancing the operational capabilities of these projects.

Segment Analysis: By Service Type

Drilling Services Segment in Africa Oilfield Services Market

The drilling services segment continues to dominate the Africa oilfield services market, holding approximately 43% market share in 2024. This significant market position is driven by the increasing development of offshore fields across Africa and growing exploration activities in countries like Nigeria, Angola, and Algeria. The segment's dominance is further strengthened by the rising active rig count in the region, with Baker Hughes International Rig Count reporting 97 active rigs in Africa as of March 2023. The segment encompasses various critical services, including rotary drilling, directional drilling, and managed pressure drilling, which are essential for both onshore and offshore operations. Major companies like Schlumberger, Halliburton, and Baker Hughes are heavily invested in providing advanced drilling services technologies and solutions across the African continent, particularly in deepwater and ultra-deepwater projects.

Completion Services Segment in Africa Oilfield Services Market

The oil well completion services segment is projected to be the fastest-growing segment in the Africa oilfield services market during 2024-2029, with an estimated growth rate of around 7%. This accelerated growth is attributed to the increasing number of wells requiring completion services across major oil-producing nations in Africa. The segment's growth is particularly driven by the rising demand for advanced completion technologies in offshore projects, especially in countries like Nigeria, Angola, and Egypt. The adoption of sophisticated completion techniques such as intelligent completions, multi-stage completions, and advanced sand control solutions is becoming increasingly prevalent. Furthermore, the segment is benefiting from the industry's focus on maximizing well productivity and optimizing reservoir performance through enhanced completion designs and technologies.

Remaining Segments in Service Type

The production services and intervention services segment, along with other services, play crucial roles in the African oilfield services market. Production services focus on maintaining and optimizing well performance throughout its lifecycle, including well testing, artificial lift systems, and production optimization solutions. The other services segment encompasses essential support services such as seismic data acquisition, drilling waste management, and offshore support vessels. These segments are particularly important in mature fields where production optimization and maintenance are critical for extending field life and maintaining production levels. Both segments continue to evolve with the integration of digital technologies and automation solutions to enhance operational efficiency and reduce costs.

Segment Analysis: Location of Deployment

Onshore Segment in Africa Oilfield Services Market

The onshore segment dominates the Africa oilfield services market, commanding approximately 76% market share in 2024. This dominance is primarily attributed to the lower costs associated with onshore drilling compared to offshore operations, as it requires less complex infrastructure and technology. The segment benefits from easier transportation of equipment and supplies by truck or rail, reducing operational costs significantly. Additionally, onshore operations require relatively less skilled workers compared to offshore regions, which minimizes training costs and operational risks. The segment's strength is further reinforced by significant investments, with onshore investments projected to reach nearly USD 11 billion between 2022 and 2025, representing the largest category of contingent projects in Africa. Countries like Algeria, Libya, and Chad are driving growth through brownfield projects, while Uganda and Kenya are contributing through greenfield developments.

Offshore Segment in Africa Oilfield Services Market

The offshore segment is emerging as the fastest-growing segment in the Africa oilfield services market for the period 2024-2029. This growth is driven by significant oil and gas discoveries in countries such as Mozambique, Tanzania, Senegal, Mauritania, and South Africa, which hold immense potential for additional exploration and production activities. The segment is witnessing increased investment in deep and ultra-deepwater areas, particularly in Northern and Western Africa, where major projects have either commenced or are awaiting resource appraisal and development. The availability of abundant resources, coupled with technological advancements in offshore drilling and production technology, has increased operational efficiency and reduced risks associated with offshore activities. Major offshore discoveries and the current geopolitical climate have positioned Africa favorably to find markets for its offshore resources, particularly in meeting European energy demands.

Africa Oilfield Services Market Geography Segment Analysis

Africa Oilfield Services Market in Algeria

Algeria dominates the African oilfield services landscape, commanding approximately 25% of the market share in 2024. The country's oilfield services market is projected to grow at around 7% annually from 2024 to 2029, driven by significant investments in both onshore and offshore activities. The country's state-owned company, Sonatrach, plays a pivotal role, accounting for nearly 80% of Algeria's total hydrocarbon output. The implementation of the new Hydrocarbons Law has created a more attractive environment for international oil companies, simplifying contractual agreements and improving fiscal terms. The country's commitment to developing its vast hydrocarbon resources is evident through its comprehensive five-year investment plan, with a significant portion directed towards exploration and production activities. Algeria's oilfield services sector benefits from the country's strategic focus on both conventional and unconventional resources, although the development of shale resources faces environmental challenges due to water scarcity concerns. The demand for reservoir services and production services is expected to rise as Algeria continues to expand its hydrocarbon exploration efforts.

Africa Oilfield Services Market in Nigeria

Nigeria's oilfield services market continues to evolve with the implementation of the Petroleum Industry Act (PIA), which has reshaped the regulatory landscape and created new opportunities for service providers. The country's upstream sector is characterized by a mix of onshore and offshore activities, with deepwater projects gaining increasing prominence. The Nigerian National Petroleum Company (NNPC) has been actively pursuing partnerships with international oil companies to enhance production capabilities and optimize existing fields. The sector faces unique challenges, including security concerns in the Niger Delta region and the need for infrastructure modernization. However, the government's focus on gas development initiatives and the drive to increase domestic production capacity have created new opportunities for oilfield service providers. The country's efforts to reduce gas flaring and develop its gas infrastructure have also opened up new avenues for specialized oil well services and reservoir services.

Africa Oilfield Services Market in Angola

Angola's oilfield services market is characterized by its strong focus on offshore operations, particularly in deepwater and ultra-deepwater segments. The country has implemented significant reforms to revitalize its oil and gas sector, including the introduction of new licensing rounds and improved fiscal terms for operators. The National Agency of Petroleum, Gas, and Biofuels (ANPG) has been instrumental in attracting investments through its six-year licensing strategy. The market has seen increased activity in well intervention services, drilling operations, and subsea services, particularly in the prolific Kwanza and Congo basins. Angola's commitment to maintaining its position as a major African oil producer has led to increased demand for enhanced oil recovery services and well optimization solutions. The country's focus on developing its gas resources and reducing flaring has also created opportunities for specialized service providers in gas processing and handling equipment, including oil maintenance services.

Africa Oilfield Services Market in Other Countries

The oilfield services market in other African countries presents a diverse landscape of opportunities and challenges. Countries like Libya, Egypt, and the Republic of Congo are emerging as significant players in the regional market. Libya's vast hydrocarbon reserves and ongoing efforts to stabilize its oil sector are creating new opportunities for service providers. Egypt's aggressive exploration campaign in the Mediterranean Sea and Western Desert regions has stimulated demand for various oilfield services. The Republic of Congo's focus on developing its offshore resources has attracted international service companies. Emerging markets such as Mozambique, Tanzania, and Mauritania are developing their nascent gas sectors, creating new demands for specialized services. These countries are at different stages of development in their oil and gas sectors, each presenting unique opportunities for oilfield service providers based on their specific geological, technical, and operational requirements. The growing need for petroleum services and well services is evident as these nations expand their exploration and production activities.