West Africa Oil & Gas Upstream Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 6.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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West Africa Oil & Gas Upstream Market Analysis
The West African oil and gas upstream market is anticipated to register a CAGR of more than 6.5% during the forecast period.
The outbreak of COVID-19 negatively impacted the market. Currently, the market has reached pre-pandemic levels.
- Factors such as the region's increasing oil and gas production 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 West African oil and gas upstream market during the forecast period.
- Several offshore discoveries have been done in the region in recent years, 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 a large number of upstream projects coming up in the country 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.
West Africa Oil & Gas Upstream Market Trends
The Offshore Segment is Expected to be the Fastest-growing Segment
- In contrast to the offshore sector, the onshore sector in West Africa is vulnerable to terrorist operations. As a result, investors are more focused on the offshore market, leading to a proliferation of offshore projects and discoveries while the onshore sector remains unexplored.
- The offshore oil and gas sector in West Africa is still growing, albeit slowly, which is creating new market potential. Oil explorers and producers have continued to extend their operations in West Africa's offshore deep and ultra-deep space, particularly in Southern and Western Africa, where substantial projects have either started or have been announced, awaiting resource appraisal and development.
- The growth of West Africa's offshore exploration and production activities has been mainly driven by the efforts of governments in their region to provide key incentives and supporting policies to unlock the investment opportunity, as well as the growing number of international oil and gas companies interested in exploring alternative fields to replace the maturing offshore producing sites in countries such as Nigeria and Ghana.
- In August 2022, Nigeria's state-owned oil company, Nigerian National Petroleum Company (NNPC) Limited, renewed its oil production sharing contracts for five deep-water blocks with multinational oil companies Shell, Equinox, Chevron, ExxonMobil, Sinopec, and Nigerian company South Atlantic Petroleum. Over the following 20 years, the business plans to generate up to 10 billion barrels of oil. The OML 128, 130, 132, 133, and 138 blocks are jointly and individually owned by NNPC.
- Furthermore, in Angola, Ghana, and Nigeria, several long-term tenders for the development of reserves have been issued. The West African offshore region has also recently witnessed successful discoveries, such as Eni's recent finding in offshore Cote d'Ivoire and Ghana. Such discoveries will require an additional appraisal, and development activities in the region are likely to attract investors, thereby driving the market demand during the forecast period.
- Thus, based on the above-mentioned factors, the offshore segment is expected to dominate the West African oil and gas upstream market during the forecast period.
Nigeria is Expected to Dominate the Market
- In terms of proven oil and gas reserves, Nigeria is one of Africa's largest nations. Nigeria had reserves of 5.53 trillion cubic meters of natural gas and 36.9 million barrels of crude oil as of 2021, respectively. While the nation's proven gas reserves have increased by almost 10% during the same time, proved oil reserves have remained largely stable since 2006.
- Nigeria is having trouble managing its cash flow, low revenue, and convertibility problems. The nation is actively taking action to combat the economic downturn. It is investigating a number of alternative revenue streams, particularly through the commercialization of gas and the expansion of its infrastructure.
- Furthermore, the country plans to become an export hub in Africa by exporting not only to regional countries but also to other Asian countries like India and China, where the gas demand is anticipated to increase in the coming years, resulting in increased upstream activities in the region.
- In January 2022, Nigerian National Petroleum Company Ltd secured a USD 5 billion corporate finance commitment from the African Export-Import Bank to fund major investments in the Nigerian upstream sector. This is likely to aid the market's growth during the forecast period.
- Therefore, based on the above-mentioned factors, Nigeria is expected to dominate the West African oil and gas upstream market during the forecast period.
West Africa Oil & Gas Upstream Industry Overview
The West African oil and gas upstream market is consolidated. Some of the key players in the market (in no particular order) include Shell PLC, TotalEnergies SE, Eni SpA, Exxon Mobil Corporation, and Nigerian National Petroleum Corporation.
West Africa Oil & Gas Upstream Market Leaders
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TotalEnergies SE
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Eni SpA
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Exxon Mobil Corporation
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Nigerian National Petroleum Corporation
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Shell Plc
*Disclaimer: Major Players sorted in no particular order
West Africa Oil & Gas Upstream Market News
- July 2022: Tullow Energy announced that the company was finalizing the development concept for its Tweneboa-Enyenra-Ntomme (TEN) field offshore Ghana. The development concept aims to tap 750 million barrels of oil.
- July 2022: TotalEnergies SE started production from the Ikike field in Nigeria, which is expected to deliver peak production of 50,000 barrels of oil equivalent per day by the end of 2022.
West Africa Oil & Gas Upstream Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Macro-economic Condition in the Oil and Gas Industry
4.3 Crude Oil Production and Forecast in thousand barrels per day, till 2028
4.4 Natural Gas Production and Forecast in million-ton oil equivalent, till 2028
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.2 Restraints
4.8 Supply Chain Analysis
4.9 Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitute Products and Services
4.9.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Location of Deployment
5.1.1 Onshore
5.1.2 Offshore
5.2 Geography
5.2.1 Nigeria
5.2.2 Ghana
5.2.3 Ivory Coast
5.2.4 Senegal
5.2.5 Rest of West Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Shell PLC
6.3.2 TotalEnergies SE
6.3.3 Eni SpA
6.3.4 Exxon Mobil Corporation
6.3.5 Nigerian National Petroleum Corporation
6.3.6 Ghana National Petroleum Corporation (GNPC)
6.3.7 BP PLC
6.3.8 Cairn Energy PLC
6.3.9 Chevron Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
West Africa Oil & Gas Upstream Industry Segmentation
The oil and gas upstream sector includes all the steps involved, from the preliminary exploration through the extraction of the resource. Upstream companies are involved in all the life cycle stages of the oil and gas industry. The West African oil and gas upstream market is segmented by location of deployment and region. By location of deployment, the market is segmented into onshore and offshore. The report also covers the market size and forecasts for the oil and gas upstream market across major, major countries in the region. The market sizing and forecasts have been done based on volume (thousand barrels per day and million tons of oil equivalent).
| Location of Deployment | |
| Onshore | |
| Offshore |
| Geography | |
| Nigeria | |
| Ghana | |
| Ivory Coast | |
| Senegal | |
| Rest of West Africa |
West Africa Oil & Gas Upstream Market Research FAQs
What is the current West Africa Oil and Gas Upstream Market size?
The West Africa Oil and Gas Upstream Market is projected to register a CAGR of greater than 6.5% during the forecast period (2024-2029)
Who are the key players in West Africa Oil and Gas Upstream Market?
TotalEnergies SE, Eni SpA, Exxon Mobil Corporation, Nigerian National Petroleum Corporation and Shell Plc are the major companies operating in the West Africa Oil and Gas Upstream Market.
What years does this West Africa Oil and Gas Upstream Market cover?
The report covers the West Africa Oil and Gas Upstream Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the West Africa Oil and Gas Upstream Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
West Africa Oil & Gas Upstream Industry Report
Statistics for the 2024 West Africa Oil & Gas Upstream market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. West Africa Oil & Gas Upstream analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
