In 2023, Africa’s prominent oil producers are actively working to expand their market share, driven by increased upstream investments and efforts to optimize production at existing fields. Although output remains constrained, several African nations are making new discoveries and launching developments that have the potential to elevate production baselines. The monthly Oil Market Report by OPEC sheds light on Africa’s primary oil producers and outlines key production trends for the future.
Nigeria
Renowned for its high-quality light and sweet crude oil, Nigeria reclaimed its status as Africa’s leading oil producer in 2023. In September alone, the West African country achieved a production rate of 1.35 million barrels per day (bpd), marking a significant increase from the previous two months (1.18 million bpd and 1.08 million bpd, respectively). After facing a decline in production in 2022 due to natural decreases in legacy fields and energy theft, Nigeria implemented measures to maximize output from both mature and new fields. These initiatives range from heightened security measures against oil theft to substantial investments in exploration and production (E&P). In August, the Nigerian National Petroleum Company secured a three-billion-dollar loan with the African Export-Import Bank to enhance operations across the oil value chain.
Libya
Home to Africa’s largest proven oil reserves, Libya consolidated its position as the continent’s second-largest producer in 2023. Throughout the year, the country maintained a consistently high output of just under 1.2 million bpd. The resumption of production at previously halted fields, due to growing security concerns, contributed to this production level. Last August, Eni, Libya’s National Oil Corporation (NOC), bp, and the Libyan Investment Authority lifted force majeure and resumed operations in areas A, B, and C. A substantial allocation of seven billion dollars in 2022 toward enhancing NOC operations further boosted domestic production, enabling the clearing of backlog payments and supporting essential infrastructure projects aimed at achieving Libya’s 2030 production target of two million barrels of oil per day.
Angola
With an influx of investment in both new and established fields, Angola’s oil production remained stable in 2023, showing minor fluctuations in recent months. In Q3 2023, the country produced approximately 1.11 million bpd, a slight increase from the second quarter. Active commitment from operators such as TotalEnergies, Chevron, ExxonMobil, and Azule Energy is expected to optimize output further. Upcoming exploration and production projects, including the Agogo Oil Field Development, Begonia Oil Field, and CLOV Phase 3 Project, are nearing completion, and new onshore licenses are expected to stabilize production around 1.3 million bpd by 2025.
Algeria
Renewing its focus on hydrocarbon resources and leveraging its strategic position near European markets, Algeria intensified production efforts in 2023, reaching 960,000 bpd and securing its position as Africa’s fourth-largest producer. Collaborative agreements with local and international partners, including the 2022 agreement among Sonatrach, Eni, TotalEnergies, and Occidental Petroleum, contributed to increased exploration and production investments. With upcoming prospects such as Eni and Sonatrach’s HDLE-1 discovery, Algeria anticipates a crucial boost in oil output, with Sonatrach reporting the discovery of 10 new oil and gas deposits in the first half of 2023 and actively evaluating their commercial viability.
