Oil & Gas Industry in Africa 1

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Content:

1. Introduction:
2. History
3. Oil and Gas reserves
4. Oil and Gas production
5. Changing production share in world market
6. Oil and Gas consumption
7. Oil and Gas export
8. Future potentials
9. Reference

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Introduction

The continent of Africa is the world's second largest continent


after Asia, with a total surface area, including several
surrounding islands of 30,313,000 square kilometres. It
stretches from 40 degrees latitude in the north to 34 35'
degrees south and has 54 independent countries - 48 mainland
and 6 island states - with an estimated total population of 700
million.
africa covering 23% of the world's total land area and
containing 10% of the world's population and is expected to
grow future to more than 17% at 2020.
Africa is comprised of numerous ethnic and linguistic
groups ,estimates of the number of languages range from 700
to 3000 major languages in terms of the numbers of speakers.
Africa contain essential components for human sustenance ,the
continent's rich natural endowments not only oil and gas but
also other fuel and non-fuel minerals as well as timber, natural
fibers, spices, exotic fauna and more.

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AFRICA LOCATION MAP

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HISTORY:
 Oil and gas resources are concentrated in a relatively
small number of countries and sub-regions (North and
Western Africa).

 These are Nigeria, Algeria, Libya, Angola, Egypt, Sudan,


Equatorial Guinea, Congo Republic, Chad, Gabon,
Tunisia and Cameroon.

 these countries contain on great reserves from oil & gas


that had been discovered long time ago & here we can
mention: 1-egypt: oil exploration began in the
1860 & the first field was discovered in 1869 .
 2-algeria:first exploration was granted in 1952.
 3-libya: oil exploration began in the 1955 & the first
field was discovered in1959.
 4-nigeria:in the late 1960 ,the discovery of petroleum in
commercial quantities.
 There are noticeable changes in the geography of oil and
gas supply in Africa in the last fifteen years. Notable
among the new producing countries are Sudan,
Equatorial Guinea and Chad.
Today, Africa enters a new phase in the history of global oil
and gas development as the continent’s industries and
businesses slowly realign around increased self-determination.
The drive to use some of the precious energy sought by foreign
interests for internal domestic markets, while also capturing
much needed capital from international oil and gas trade, will
set the tone for the foreseeable future.

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Oil reserves:
African oil proven reserves at end of 2006 has about (117.2
Bbbl).
Africa shares with about (9.7%) of the world's proven oil
reserves which equal about (1208.2 Bbbls) at end of 2006.
The African oil reserves:

At end At end At end Share of R/P


Country 1986 1996 2006 total word ratio
Libya 22.8 29.5 41.5 3.40% 61.9
Nigeria 6.7 20.8 36.2 3% 40.3
Algeria 8.8 10.8 12.3 1.00% 16.8
Angola 1.4 3.7 9 0.70% 17.6
Sudan 0.3 0.3 6.4 0.50% 44.2
Egypt 4.5 3.8 3.7 0.30% 15
Cabon 0.6 2.8 2.1 0.20% 25.3
Congo 0.7 1.6 1.9 0.20% 19.9
(Brazzaville)
Equatorial 0 0.6 1.8 0.10% 13.8
guinea
Chad 0 0 0.9 0.10% 16.1
Tunisia 1.8 0.3 0.7 0.10% 17.5
Other Africa 1 0.7 0.6 0.10% 24.6

Total Africa 58 74.9 117.2 9.70% 32.1

(This table shows the serves of Africa countries) (Bbbl)


 Libya, Nigeria, Algeria combined account for about
(76.8%) of the Africa's oil reserves.
 Africa oil reserves had been increased in the last 10 year
due to the new exploration.
 Africa is relatively under explored for hydrocarbon this
is true for even established producers such as Algeria.

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Libya and Nigeria for example, only a handful of
exploration well have been drilled in Algeria's offshore
basins, though the potential is thought to be enormous.
Although Nigeria has been a major oil export for
decades, significant offshore as well as onshore oil
resources remain explored.

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Gas reserves:
 The African gas reserves are about (500.67 TCF) at the
end of 2006, Africa has about 7.8% of the world proven
gas. Which equal abut (6405.48 TCF)
 Nigeria, Algeria, Egypt and Libya combined account for
about 92.3% of the Africa's gas reserves:

The African gas reserves:

Share
of
At end At end At end At end total
Country 1986 tcm 1996 tcm 2006 tcm 2006 tcf world
Nigeria 2.4 3.48 5.21 183.9 2.90%
Algeria 3.26 3.7 4.5 159 2.50%
Egypt 0.29 0.85 1.94 68.48 1.10%
Libya 0.73 1.31 1.32 46.45 0.70%
Other Africa 0.72 0.83 1.21 42.82 0.70%
Total Africa 7.4 10.17 14.18 500.7 7.80%

 Africa gas reserves had been increased in last 20 years


due to the new exploration.
 And Africa have unenough development for example
most gas fields that are not associated with established
oilfields in Nigeria have yet to be developed, estimates
vary significantly, but Nigeria is thought to contain on
more from (180 TFC) of natural gas reserves.

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 Oil and gas production:
 Oil production:
 The African oil production is about (9990 mbblpd) at the
end of 2006, Africa has about 12.1% of world oil
production which equal about (81663 mbblpd).

African oil production by country:

Change 2006 share


2006 over total
Country 2005 2006 2005 world
Nigeria 2580 2460 -4.90% 3.00%
Algeria 2016 2005 -0.30% 2.20%
Libya 1751 1835 4.20% 2.20%
Angola 1233 1409 14.30% 1.80%
Egypt 696 678 -2.50% 0.80%
Sudan 355 397 11.80% 0.50%
Equatorial guinea 356 358 0.60% 0.50%
Congo (Brazzaville) 246 262 6.70% 0.30%
Gabon 234 232 -0.90% 0.30%
Chad 173 153 -11.70% 0.20%
Tunisia 74 69 -7.10% 0.10%
Other Africa 72 68 -5.30% 0.10%
Cameron 58 63 8.60% 0.10%

Total Africa 9846 9990 1.40% 12.10%

(This table shows the production of Africa countries) (mbblpd)

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 Africa oil production had been increased in last 5 years
due to the new exploration that revealed a great amount
of oil production in different countries in the continent.
And increasing in Africa oil production if Africa oil
fields have he excellent development.

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Gas production:
The African gas production is about (17.5 BCFPD) at the end
of 2006. Africa has about 6.3% of world gas production which
equal about (277.2 Bcfpd).
The African gas production by country:
Change 2006 share
2006 o0ver of total
Country Bcfpd Bcfpd 2005 world
2005 2006
Algeria 8.5 8.2 -4.30% 2.90%

Egypt 3.4 4.3 29.30% 1.60%

Nigeria 2.2 2.7 25.90% 1%

Libya 1.1 1.4 31% 0.50%

Other Africa 0.8 0.8 -- 0.30%

 Africa gas production had been increased in last 20


years, because the increase world demands to the natural
gas for example the most of industry in china and India
paused on natural gas as fuel.

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 Changing production share in world market:
The global competition for oil and gas is becoming more
vigorous in light of the Asian drivers enormous appetite for oil
and gas and the crisis in the Middle East where he bulk of
global oil and gas reserves are located. With a moderate
decline in North Sea production the global market will
increase import in amounts of oil and gas production from
Africa. Africa with proved reserves of 75.4 billion barrels of
oil at end 1998 (7% of the world total) and in 1998 it produced
7.8 million barrels per day (381 million tons/ year) of over 40
types of crude oil.
African oils growing importance in the world is apparent in the
recent production increases. Throughout the 1990S, Africa
accounted for about 10 percent of world production. This
decade, the share increased to 12 percent, between 2000 and
2005, Africa supplied more than 2 million barrels per day
(bpd) or about 25 percent more oil to world market, this is not
due to increase in just Nigeria, Algeria and Libya, Angola,
Sudan equatorial Guinea and Chad have all increased their
contributions as well – Angola alone was responsible for about
500.000 bpd of this increase (Angola production accounts for
13 percent of Africa is total output). Sudan's crude oil
production rose during one year from 350,000 BPD to 400,000
BPD. With new fields coming on stream, Sudan anticipates
that its oil production will reach 600,000 BPD .
Additionally, Africa has emerged as an important supplier of
liquefied natural gas (LNG) to the world, with natural gas
production increasing by more than 5 Tcf and African LNG
now accounting for more than 27 percent of global trade. As
with oil, new African producing countries are participating in
natural gas production and trade movements, as Algeria,
Egypt and Nigeria are now joined by Libya.

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from,1965 to 2006 the Africa oil production changing from
2240 to 9990 thousand barrel daily.
From 1970 to 2006 the Africa gas production changing from
7.3 to 17.5 billion cubic feet daily.
 Last 10 years African oil production changing:-

Country Mbblpd Mbblpd Mbblpd Mbblpd Mbblpd Mbblpd Mbblpd


2000 2001 2002 2003 2004 2005 2006
African 7830 7887 8001 8398 9263 9846 9990
production
Total world 75033 74932 74496 77056 80244 81250 81663
production
Africa 10% 10.5% 10.7% 10.9% 11.5% 12% 12.1%
share of
world
production

Last 10 years Africa gas production changing:-


Country bcfpd Bcfpd Bcfpd Bcfpd Bcfpd Bcfpd Bcfpd
2000 2001 2002 2003 2004 2005 2006
African 12.2 12.3 12.6 13.6 14.1 15.9 17.5
production
Total world 234 240.2 244.3 252.9 260.8 269 277.2
production
Africa share 5% 5.1% 5.2% 5.4% 5.4% 5.9% 6.3%
of world
production

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Oil and gas consumption:
 oil consumption:
The African consume of refinery product is about (2790
mbblpd) at end 2006 the African has about 3.4% of world
consumption of refinery product which equals about (83719 m
bblpd).
African oil consumption by country:

Country mbblpd Mbblpd Mbblpd 2006 share of


total world
2005 2006 Change 2006
over 2005
Egypt 623 612 -2.40% 0.70%

South Africa 494 499 0.60% 0.60%

Algeria 251 260 4.30% 0.30%

Other Africa 1362 1419 4.20% 1.70%

Total Africa 2731 2790 2.00% 3.40%

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Gas consumption:
The African gas consumption is about (7.3 bcfpd) at end 2006.
Africa has about 2.6% of world gas consumption which equals
about (275.8 bcfpd).
African gas consumption by country:

Nigeria BCF 2004 BCF 2005 BCF 2006


Egypt 1,111 1,208 1,268
Algeria 681 803 897
Nigeria 329 366 375
Libya 209 206 226
Tunisia 131 152 141
Total Africa 2,626 2,951 3,126

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Oil and gas export:
Oil export:
The African oil export is about (7929 mbblpd) at end of 2006.
African has about 15% of world oil export wihch equals about
(52561 mbblpd).

African oil export by country:


Country mbblpd Mbblpd Change 2006 share of
2005 2006 2006 over 2005 total world

North Africa 3070 3225 5.1% 6.1%


West Africa 4358 4704 7.9% 8.9%

African oil export country in 2006:

Thousand barrels daily


Country Crude export Product export
West Africa 4548 156
North Africa 2575 651

Oil inter-area movement 2006


TO

Thousan Usa Canada Mexico s. c ceut Europe Africa Australia China Japan Singapore
d barrels America
daily
from

North 36.3 8.9 0.3 4.1 96.4 3.2 0.1 3.7 0.2 0.2
Africa

West 95.2 1.8 0 9.9 39.7 2.9 0 37 3.7 0.3


Africa

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TO
Thousand barrels daily Other Africa pacific Rest of world Total
from

North Africa 5.3 0.7 159.3

West Africa 43.2 0.3 233.9

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Gas export:-
The African gas export is about (3216 bcf) in the end of 2005.
African has about 10.7% of the world gas export which equal
about (29923 bcf).
Africa's top gas export countries by pipeline and LNG are:
Algeria (71%), Nigeria (13%), Egypt (8%) and Libya (5%) in
2005.

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Africa gas export by country in 2006:

Country Gas export TCF Percent (%) of


African export

Algeria 2.16 58.74 %

Nigerai 0.62 16.91 %

Egypt 0.6 16.26 %

Libya 0.3 8.09 %

Total 3.68 100 %

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Future potential:

As we can notice in previous paragraphs, Africa oil and gas


exploration is only in the beginning stage, spatially in the coast
and desert areas.

By 2020, projections show proved oil reserves to increases to


231 billion barrel. And projections show production reaching
al most 17 million barrels per day in 2020.

Oil consumption is projected to more than double from 2.3


Million barrels per day in 2006 to between 5.1 and 5.3 Million
barrels per day in 2020.

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Reference:

Book:
1. World oil& GAS review 2006.
2. BP Statistical Review of World Energy June 2007

Web site:
1. www.eia.doe.cov
2. http://www.bp.com/statisticalreview

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