The oil and gas industry is one of the largest and most lucrative sectors in Africa. The continent is also a significant global player. Africa had a total of around 125 billion barrels of crude oil reserves. Additionally, the continent has estimated natural gas reserves of 600 trillion cubic feet (Tcf). Africa produced 231 billion cubic metres of natural gas in 2020, which was a 70% increase on 2000 production levels. Also, 40% of new gas discoveries globally over the last decade have been in Africa mainly in Senegal, Mauritania, Mozambique and Tanzania. The industry is projected to increase at a CAGR of 5.5% between 2022 and 2027. 

Nigeria has the largest oil industry in Africa with over 37 billion barrels of oil reserves and the world’s 9th largest gas reserves at 187 Tcf. It produces about 1.2 million barrels per day and 48.5 cubic metres of gas yearly. It famously has the low sulphur Bonny Light Crude which is reputed for its quality. Some 14% of Europe’s natural gas imports in 2022 were from Nigeria. Ghana recently found oil totalling 660 million barrels. Ghana’s oil production is at about 177 thousand barrels per day. While Senegal has not been a producer of oil and gas, it recently found oil offshore and is due to start production in 2023 after the rights for various oil fields have been auctioned off. Ivory Coast and South Africa do not have significant oil production. Instead, they are net importers of oil. 

Recently, the increase in the price of oil and gas resulting from the ongoing Russia-Ukraine war and the post-COVID supply chain issues have provided a source of growth for the industry after almost a decade of slumping oil prices.