Advertising

West African Oil: Hopes and Challenges for 2024

Against a backdrop of underinvestment and security challenges, West African oil producers, notably Nigeria and Angola, face a crucial turning point for 2024

energynews
Le 19 December 2023

Please share:

Oil producers in West Africa, particularly Nigeria and Angola, have had a difficult year, marked by production interruptions, chronic under-investment, security problems and oil theft. These challenges have hampered the achievement of the ambitious targets set for 2023, notably the increase in oil production and the reopening of refineries.
Despite efforts to increase production by 2023, Nigeria and Angola have only managed to stabilize their output. Nigeria produced an average of 1.4 million barrels per day (b/d), while Angola reached 1.1 million b/d. Insufficient investment, particularly in exploration, has been a major problem, with the major oil companies leaving for new horizons such as Namibia and Guyana.

Security Issues and Political Implications

Oil theft in Nigeria’s Delta region continues to cost around 400,000 b/d. In addition, the risk to investors is increasing due to regional political instability. OPEC+ reduced production quotas in Nigeria, Angola and the Republic of Congo, putting further pressure on these already fragile economies.
West African producers also had difficulty selling their oil. Nigeria produces light, sweet crude oil, while Angola produces heavy, slightly sweet grades. Increased competition from US exports and changes in global demand have affected the market performance of these grades.

Challenges for 2024

Priorities for Nigeria include reducing oil theft, investing in infrastructure and gas, and implementing investor-friendly reforms. Angola, for its part, must continue to improve its investment climate. Increased refining capacity could also reduce dependence on imports of volatile fuels.
2024 promises to be a crucial year for the West African oil industry. With persistent challenges but opportunities for reform and investment, the sector can look forward to a turnaround, despite current obstacles.

Advertising

Recently published in Oil

Sovcomflot maintains its share of Russian non-G7 oil exports at 80%.

Despite Western sanctions, Sovcomflot retains a significant share of Russia's non-G7 crude oil exports, exceeding 80% in August. New U.S. sanctions increase pressure to reduce Russian revenues.

OPEC+ Extends Production Cut to Stabilize Oil Prices

Under pressure from falling prices, OPEC+ decided to extend the production cut by 2.2 million barrels per day until December 2024 to maintain market balance.

OPEC+ Extends Production Cut to Stabilize Oil Prices

Under pressure from falling prices, OPEC+ decided to extend the production cut by 2.2 million barrels per day until December 2024 to maintain market balance.

Norway challenges climate injunction blocking three oil fields

Norway is requesting the lifting of injunctions on three oil fields, arguing that the economic impacts outweigh the environmental benefits claimed.

Norway challenges climate injunction blocking three oil fields

Norway is requesting the lifting of injunctions on three oil fields, arguing that the economic impacts outweigh the environmental benefits claimed.

Brent crude falls to a 9-month record low: Markets in a state of uncertainty

Brent crude prices fell sharply on expectations of a rapid resumption of Libyan exports and possible adjustments to OPEC+ production cuts.

Brent crude falls to a 9-month record low: Markets in a state of uncertainty

Brent crude prices fell sharply on expectations of a rapid resumption of Libyan exports and possible adjustments to OPEC+ production cuts.

Conflicts surrounding oil development in Ecuador’s Yasuni reserve

Indigenous communities in the Ecuadorian Amazon, including the Waorani, are contesting the impacts of oil extraction in the Yasuni reserve, raising questions about the country's resource management and economic strategies.

Russian oil exports down on Asian demand

Exports of Russian petroleum products fell sharply in August, to a level not seen since the pandemic, due to weaker demand in Asia and a shift towards the domestic market.

Russian oil exports down on Asian demand

Exports of Russian petroleum products fell sharply in August, to a level not seen since the pandemic, due to weaker demand in Asia and a shift towards the domestic market.

Saipem signs two contracts with Saudi Aramco worth USD 1 billion

Saipem wins two offshore oil engineering, procurement, construction and installation (EPCI) contracts with Saudi Aramco, worth a total of around 1 billion USD, for the Marjan, Zuluf and Safaniyah fields in Saudi Arabia.

Saipem signs two contracts with Saudi Aramco worth USD 1 billion

Saudi Arabia: Lower Asian crude oil prices expected in October

Saudi Arabia adjusts its official crude oil sales prices for Asia in October, due to a lower Dubai benchmark and reduced refining margins in China.

Saudi Arabia: Lower Asian crude oil prices expected in October

Saudi Arabia adjusts its official crude oil sales prices for Asia in October, due to a lower Dubai benchmark and reduced refining margins in China.

Nigeria: Dangote Refinery redefines NNPC Ltd’s strategies

Dangote Oil Refinery begins gasoline production in Nigeria, introducing new logistical and financial challenges for NNPC Ltd, the sole buyer and exclusive distributor.

Kurdish production complicates Baghdad’s gas ambitions

Iraqi Kurdistan continues to increase its oil production despite restrictions from Baghdad, which is trying to comply with OPEC+ quotas and attract US gas investment to diversify its energy sources.

Kurdish production complicates Baghdad’s gas ambitions

Iraqi Kurdistan continues to increase its oil production despite restrictions from Baghdad, which is trying to comply with OPEC+ quotas and attract US gas investment to diversify its energy sources.

OPEC+: Production increases despite falling oil prices

OPEC+ is sticking to its strategy of increasing oil production from October onwards, despite downward pressure on Brent and WTI prices and expectations of market stabilization.

OPEC+: Production increases despite falling oil prices

OPEC+ is sticking to its strategy of increasing oil production from October onwards, despite downward pressure on Brent and WTI prices and expectations of market stabilization.

Namibia: ReconAfrica signs strategic agreement with BW Energy

ReconAfrica is moving ahead with exploration of the PEL 73 block in northeast Namibia, with a new agreement to sell a 20% interest to BW Energy for USD 22 million and a drilling program underway.

Namibia: ReconAfrica signs strategic agreement with BW Energy

ReconAfrica is moving ahead with exploration of the PEL 73 block in northeast Namibia, with a new agreement to sell a 20% interest to BW Energy for USD 22 million and a drilling program underway.

Shell plans massive cuts in its oil exploration division

Shell plans to significantly reduce headcount in its exploration division, with job cuts mainly in the USA, the Netherlands and the UK, as part of a global cost-cutting strategy.

United States: Oil inventories fall despite intensified refining

U.S. crude oil inventories decline less than expected, despite a notable rise in refinery activity, questioning analysts on market dynamics

United States: Oil inventories fall despite intensified refining

U.S. crude oil inventories decline less than expected, despite a notable rise in refinery activity, questioning analysts on market dynamics

ExxonMobil sells $1 billion of conventional assets in the Permian Basin

ExxonMobil sells conventional oil fields in the Permian Basin to refocus on shale, following its acquisition of Pioneer Natural Resources.

ExxonMobil sells $1 billion of conventional assets in the Permian Basin

ExxonMobil sells conventional oil fields in the Permian Basin to refocus on shale, following its acquisition of Pioneer Natural Resources.

Fuel oil market forecast to reach USD 260.1 billion by 2030 despite regulations

The fuel oil market is expected to reach USD 260.1 billion by 2030, with average annual growth of 4.61%, despite the challenges posed by environmental regulations and price volatility.

Fuel oil market forecast to reach USD 260.1 billion by 2030 despite regulations

The fuel oil market is expected to reach USD 260.1 billion by 2030, with average annual growth of 4.61%, despite the challenges posed by environmental regulations and price volatility.

ExxonMobil: stable oil demand of over 100 mb/d until 2050

ExxonMobil expects global oil demand to exceed 100 million barrels per day in 2050, a projection that diverges from the more cautious forecasts of the IEA and BP.

Sinopec cuts crude processing, impact on imports expected

Sinopec adjusts its crude processing by 1.6% for the second half of 2024, potentially impacting crude oil imports into China against a backdrop of falling demand.

Sinopec cuts crude processing, impact on imports expected

Sinopec adjusts its crude processing by 1.6% for the second half of 2024, potentially impacting crude oil imports into China against a backdrop of falling demand.

Mexico: Olmeca refinery processes 65,000 barrels/day without producing gasoline

In July, Pemex's Olmeca refinery processed 65,000 barrels of crude oil a day without producing any gasoline, despite massive investment.

Mexico: Olmeca refinery processes 65,000 barrels/day without producing gasoline

In July, Pemex's Olmeca refinery processed 65,000 barrels of crude oil a day without producing any gasoline, despite massive investment.

Shell plans partial shutdown of Zydeco pipeline for maintenance

Shell announces the temporary shutdown of segments of the Zydeco pipeline from September 24 to 27, reducing the supply of light crude to Louisiana.

Shell plans partial shutdown of Zydeco pipeline for maintenance

Shell announces the temporary shutdown of segments of the Zydeco pipeline from September 24 to 27, reducing the supply of light crude to Louisiana.

Paret Mining LLC acquires 10,000-acre strategic oil reserve

Paret Mining LLC, headed by Emmanuel Fritz Paret, strengthens its position in the US energy sector with the acquisition of a 10,000-acre reserve in Kentucky, comprising oil and natural gas wells.

Nigeria: Oando strengthens its position with the acquisition of Eni’s oil assets

Oando concludes the purchase of Eni's onshore blocks, doubling its crude production and strengthening its presence in the Nigerian energy sector.

Nigeria: Oando strengthens its position with the acquisition of Eni’s oil assets

Oando concludes the purchase of Eni's onshore blocks, doubling its crude production and strengthening its presence in the Nigerian energy sector.

India overtakes China as Russia’s largest oil importer

In July, India became the biggest buyer of Russian oil, surpassing China, against a backdrop of Western sanctions against Moscow and changes in global trade flows.

India overtakes China as Russia’s largest oil importer

In July, India became the biggest buyer of Russian oil, surpassing China, against a backdrop of Western sanctions against Moscow and changes in global trade flows.

Uganda steps up oil exploration on its territory

Uganda is stepping up exploration in the Moroto-Kadam and Kyoga basins, aiming to boost its reserves to 6.5 billion barrels of oil, a strategic move to solidify its position in the energy industry.

Uganda steps up oil exploration on its territory

Uganda is stepping up exploration in the Moroto-Kadam and Kyoga basins, aiming to boost its reserves to 6.5 billion barrels of oil, a strategic move to solidify its position in the energy industry.