Africa’s oil production is set for a gradual decline in 2024, the African Energy Chamber said in a new report on the industry this weekend.
The chamber forecasts “relative calm” in the global oil market for the remainder of 2023, NJ Ayuk, Executive Chairman of the African Energy Chamber, wrote.
“For now, the wild extremes of the pandemic era appear to be behind us,” Ayuk said, but noted that declining oil production in Africa is not welcome news for the African oil-producing nations.
OPEC member nations Nigeria, Libya, Algeria, and Angola are driving Africa’s oil and condensates production, with Nigeria the largest producer, contributing a little over a fifth of these countries’ combined total annual volumes.
However, Africa’s OPEC producers, including Nigeria, need to address production outages caused by pipeline vandalism and militant activity, exacerbated by declining legacy fields and a lack of new start-ups, the African Energy Chamber says.
Earlier this month, Nigeria’s state-run NNPC officially launched a new grade of crude oil, Nembe, in an attempt to undo the damage from long-running thefts and attacks in the country’s Niger Delta region.
“We should be seizing every opportunity to capitalize on our oil and gas resources,” the executive chairman of the African Energy Chamber noted.
“Every drop of oil extracted is a pathway to economic growth — revenue that can fund social programs, infrastructure development, and much-needed technology transfers from the international oil companies (IOCs) that invest in Africa,” Ayuk said.
