Top 10 Highest Oil Producing Countries in Africa (2024)

Oil is a non-renewable resource that is essential for the global economy. It is used to produce a wide range of products, including gasoline, diesel fuel, jet fuel, heating oil, and petrochemicals. Africa is home to five of the top 30 oil producing countries in the world, and its oil and gas industry plays a vital role in the continent’s economy.

In this blog post, we will take a look at the top 10 highest oil producing countries in Africa in 2024. We will also discuss the oil production history of each country, the major oil fields, the oil and gas companies operating in the country, and the economic impact of oil production. Finally, we will look at the future of oil production in Africa and the challenges and opportunities that lie ahead.

WHY IS OIL PRODUCTION IMPORTANT IN AFRICA?

Oil production is important in Africa for a number of reasons. First, it is a major source of revenue for many African countries. Oil exports account for a significant portion of the government’s budget in many oil-producing countries, and the revenue is used to fund essential services such as education, healthcare, and infrastructure development.

Second, the oil and gas industry provides employment for millions of Africans. Direct and indirect employment in the oil and gas sector is estimated to be around 5 million jobs in Africa.

Third, the oil and gas industry can help to drive economic growth in Africa. The oil and gas sector is a major source of investment and foreign exchange for many African countries. This investment can help to create new jobs, boost economic growth, and reduce poverty.

WHAT ARE THE BENEFITS AND CHALLENGES OF OIL PRODUCTION IN AFRICA?

The oil and gas industry offers a number of benefits for African countries, but there are also some challenges.

One of the main challenges is that the oil and gas industry is volatile. Oil prices can fluctuate wildly, and this can have a significant impact on the economies of oil-producing countries. Another challenge is that the oil and gas industry is capital-intensive, and many African countries lack the financial resources to invest in the sector.

Finally, the oil and gas industry can have a negative impact on the environment. Oil production can lead to air pollution, water pollution, and land degradation. It is important for African countries to develop sustainable oil production practices that minimize the environmental impact of the industry.

In the next section, we will take a closer look at the oil production history, major oil fields, oil and gas companies operating in the country, and economic impact of oil production of each of the top 10 oil producing countries in Africa.

TOP 10 HIGHEST OIL PRODUCING COUNTRIES IN AFRICA (2024)

Here are the largest oil producing countries in Africa at the moment as seen in the OPEC.

NIGERIA

Nigeria is the leading oil producer in Africa this 2023 according to a report from statisca. Nigeria’s oil production history dates back to the 1950s, when the first oil field was discovered in the Niger Delta. Oil production has grown steadily over the years, and Nigeria is now the largest crude oil exporter in the continent.

The major oil fields in Nigeria are located in the Niger Delta. These fields include the Forcados, Bonny Light, and Qua Iboe fields.

There are several major oil and gas companies operating in Nigeria. Some of them include Shell, ExxonMobil, Chevron, and TotalEnergies. All these companies are regulated by the Nigerian National Petroleum Corporation (NNPC). The NNPC is in charge of harnessing Nigeria’s oil and gas reserves for sustaining national development. It is saddled with exploring, producing, refining oil, and regulates the markets and other retails petroleum products.

Oil production is the backbone of the Nigerian economy. Oil exports account for over 90% of Nigeria’s foreign exchange earnings. The oil and gas industry also provides employment for millions of Nigerians. Unfortunately, Nigeria has become the capital of poverty in the world, despite its rank as Africa’s largest oil producer.

Nigeria’s oil and gas sector faces a number of challenges, including oil theft, pipeline vandalism, and insecurity. However, there are also a number of opportunities for the sector, such as the development of new oil fields and the expansion of the domestic gas market.

LIBYA

Libya’s oil production history dates back to the 1960s, when the first oil field was discovered. Oil production grew rapidly in the 1970s and 1980s, and Libya became one of the largest oil producers in the world. However, oil production declined sharply in the 2010s due to civil war and political instability.

The major oil fields in Libya are located in the Sirte Basin and the Ghadames Basin. These fields include the Sharara, El Feel, and Wafa fields.

The major oil and gas companies operating in Libya include the National Oil Corporation of Libya (NOC), BP, TotalEnergies, and Eni.

Oil production is the backbone of the Libyan economy. Oil exports account for over 90% of Libya’s foreign exchange earnings. The oil and gas industry also provides employment for millions of Libyans.

Libya’s oil and gas sector faces a number of challenges, including political instability, aging infrastructure, and oil theft. However, there are also a number of opportunities for the sector, such as the development of new oil fields and the expansion of the domestic gas market.

ALGERIA

Algeria is the third highest oil producing country in Africa as its oil production history dates back to the 1950s, when the first oil field was discovered. Oil production grew rapidly in the 1960s and 1970s, and Algeria became one of the largest oil producers in Africa. Oil production has declined in recent years, but Algeria remains a major oil producer till date.

The major oil fields in Algeria are located in the Sahara Desert. These fields include the Hassi Messaoud, Hassi R’Mel, and In Salah fields.

The major oil and gas companies operating in Algeria include Sonatrach, BP, TotalEnergies, and Eni.

Oil production is an important part of the Algerian economy. Oil exports account for around 30% of Algeria’s foreign exchange earnings. The oil and gas industry also provides employment for millions of Algerians.

Algeria’s oil and gas sector faces a number of challenges, including declining oil production, aging infrastructure, and political instability. However, there are also a number of opportunities for the sector, such as the development of new oil fields and the expansion of the domestic gas market.

ANGOLA

Angola’s status as one of the leading oil-producing countries in Africa can be attributed to several key factors. This country’s oil production history dates back to the 1960s, when the first oil field was discovered. Oil production then grew rapidly in the 1970s and 1980s, and Angola became one of the largest oil producers in Africa. Oil production has declined in recent years, but Angola remains among the major oil producer.

Oil revenue is a cornerstone of Angola’s economy, contributing significantly to government finances. The income generated from oil exports has supported economic development and infrastructure projects, albeit with some challenges related to governance and corruption.

Angola possesses substantial oil reserves, particularly offshore in the Atlantic Ocean. Major oil fields, such as the Zafiro Field and Block 17, are rich sources of crude oil, which has contributed to the country’s prominence in the African oil industry. Angola has successfully attracted foreign investment from major international oil companies, including Chevron, Total, BP, and ExxonMobil. These companies have played a crucial role in the development of Angola’s oil sector, bringing in expertise, technology, and capital.

The oil and gas sector in Angola has been instrumental in creating jobs and stimulating economic activity. The industry provides employment opportunities for a significant portion of the population, from skilled labor in oil fields to various support services.

Despite its position in African oil production, Angola faces several challenges and considerations. These include the need for economic diversification to reduce overreliance on oil, addressing issues related to corruption and governance, and focusing on sustainable development. Diversification efforts are essential to ensure long-term economic stability, especially as global oil markets are subject to price fluctuations and uncertainties.

Angola’s journey as a leading oil producer in Africa highlights the potential for resource-rich nations to use their oil and gas wealth to drive economic development and reduce poverty. However, it also underscores the importance of managing this valuable resource wisely, diversifying the economy, and promoting transparency to ensure a sustainable and prosperous future.

EGYPT

Egypt is one of the leading oil producers in Africa, and its oil and gas sector plays an important role in the country’s economy. Egypt’s oil production history dates back to the early 1900s, and the country has been a significant oil producer since the 1960s.

Egypt’s major oil fields are located in the Gulf of Suez and the Western Desert. The country’s largest oil field is the Belayim field, which is located in the Gulf of Suez. The Belayim field is estimated to contain over 10 billion barrels of oil reserves. Other major oil fields in Egypt include the Ras Gharib field, the Morgan field, and the Abu Rudeis field.

The major oil and gas companies operating in Egypt include the Egyptian General Petroleum Corporation (EGPC), Shell, ExxonMobil, and Chevron. These companies are involved in all aspects of the oil and gas industry in Egypt, including exploration and production, transportation, refining, and marketing.

Egypt’s oil and gas sector is a major contributor to the country’s economy. Oil exports account for around 10% of Egypt’s foreign exchange earnings. The oil and gas industry also provides employment for millions of Egyptians.

In recent years, Egypt has been investing heavily in its oil and gas sector. The country is developing new oil fields and expanding its refining and petrochemical industries. Egypt is also aiming to increase its domestic production of natural gas.

Egypt is a key player in the African oil and gas industry. The country is a member of the Organization of the Petroleum Exporting Countries (OPEC) and plays an active role in the organization. Egypt is also a member of the Gas Exporting Countries Forum (GECF).

Egypt is well-positioned to continue to be a leading oil and gas producer in Africa. The country has significant oil and gas reserves, and it is investing heavily in its oil and gas sector. Egypt is also a member of key international oil and gas organizations.

Here are some of the key factors that have contributed to Egypt’s success as an oil producer:

• Favorable geological conditions: Egypt has a number of sedimentary basins that are rich in oil and gas reserves. These basins are located in both the Gulf of Suez and the Western Desert.
• A long history of oil exploration and production: Egypt has been producing oil since the early 1900s. This long history has given the country a deep understanding of its oil and gas resources and the expertise to develop and produce them efficiently.
• A supportive government: The Egyptian government has been supportive of the oil and gas industry. The government has provided tax breaks and other incentives to oil and gas companies. The government has also invested in infrastructure, such as pipelines and refineries, to support the industry.
• A skilled workforce: Egypt has a large and skilled workforce that is experienced in the oil and gas industry. This workforce has been instrumental in the development of Egypt’s oil and gas sector.

Egypt’s success as an oil producer has had a number of positive benefits for the country. The oil and gas sector has generated significant revenue for the government, which has been used to fund social programs and infrastructure development. The industry has also created jobs and boosted economic growth.

Egypt’s oil and gas sector is facing a number of challenges, including declining oil production, aging infrastructure, and subsidies. However, the country is well-positioned to overcome these challenges and continue to be a leading oil producer in Africa.

SOUTH SUDAN

South Sudan is Africa’s sixth oil producing country, with an estimated 3.6 billion barrels of proven oil reserves. The country’s oil production began in the early 2000s and grew rapidly in the late 2000s, making South Sudan one of the largest oil producers in Africa.

South Sudan’s oil industry is concentrated in the Upper Nile region, where the country’s largest oil fields, including Heglig, Unity, and Palouge, are located. The country’s oil production is dominated by foreign oil companies, including CNPC, Petronas, and Nilepet.

Oil production is the backbone of the South Sudanese economy, accounting for over 90% of the country’s foreign exchange earnings and over 50% of its government revenue. The oil industry also provides employment for millions of South Sudanese.

However, South Sudan’s oil industry has faced a number of challenges in recent years, including civil war, political instability, and aging infrastructure. These challenges have led to a decline in oil production, which has had a significant impact on the country’s economy.

Despite the challenges, South Sudan remains a major oil producer in Africa. The country has the potential to increase its oil production in the future, especially if it can resolve its civil war and political instability.

CONGO

Congo, also known as the Republic of the Congo, is one of Africa’s leading oil producing countries. It is the 7th largest oil producer in Africa and the 47th largest oil producer in the world. Congo’s oil production is concentrated in the offshore Pointe Noire Basin, where the Djeno, N’Kossa, and Yombo fields are located.

The oil and gas industry is the backbone of the Congolese economy, accounting for around 70% of government revenue and 80% of exports. The industry also provides employment for millions of Congolese people.

Congo’s oil production has been declining in recent years, but the country remains a significant oil producer. In 2022, Congo produced an average of 340,000 barrels of oil per day.

The Congolese government is working to attract investment in the oil and gas sector in order to boost production. The government is also working to diversify the economy by developing other industries, such as agriculture and tourism.

Despite its leading position in oil production, Congo faces a number of challenges, including:

• Declining oil production: Congo’s oil production has been declining in recent years due to the depletion of existing oil fields and the lack of investment in new exploration and development.
• Aging infrastructure: Congo’s oil and gas infrastructure is aging and needs to be upgraded.
• Corruption: Corruption is a major problem in Congo and can hinder the development of the oil and gas sector.

The Congolese government is working to address these challenges in order to maintain its position as a leading oil producer in Africa. The government is investing in new exploration and development, upgrading infrastructure, and combating corruption. If Congo is able to successfully address these challenges, it can continue to play an important role in the African oil and gas industry.

GABON

Gabon is one of the leading oil producing countries in Africa, with a production of around 220,000 barrels per day. The country’s oil and gas sector is the backbone of the economy, accounting for over 80% of government revenue and 90% of exports.

The first oil field in Gabon was discovered in 1956, and production began in 1957. Gabon joined the Organization of the Petroleum Exporting Countries (OPEC) in 1975. The country’s oil production peaked in the early 1990s, but has since declined due to the depletion of existing fields and a lack of investment in exploration and development.

Gabon’s oil reserves are estimated to be around 2.5 billion barrels. The country’s major oil fields are located in the offshore Rabi Basin. The main oil and gas companies operating in Gabon are TotalEnergies, Perenco, and Eni.

The oil and gas sector plays a vital role in the Gabonese economy. The sector provides employment for millions of people and generates significant government revenue. The oil and gas sector also contributes to the development of the country’s infrastructure and social services.

However, the oil and gas sector also faces a number of challenges, including declining production, aging infrastructure, and corruption. The sector is also vulnerable to fluctuations in oil prices.

The Gabonese government is committed to developing the country’s renewable energy sector. The government has set a target of increasing the share of renewable energy in the country’s energy mix to 25% by 2030. Gabon has significant potential for renewable energy development, including solar, hydro, and biomass.

The development of the renewable energy sector will help to reduce Gabon’s reliance on oil and gas, and make the country’s energy supply more sustainable.

EQUATORIAL GUINEA

Equatorial Guinea is a small country in Central Africa, but it is one of the continent’s leading oil producers. The country has proven crude oil reserves of 1.1 billion barrels and condensate reserves of 0.5 billion barrels. In 2023, Equatorial Guinea produced an average of 130,000 barrels of oil per day, making it the 10th largest oil producer in Africa.

Oil production in Equatorial Guinea began in the early 1990s, following the discovery of the Alba oil field in 1992. The discovery of the Alba field led to a surge in oil exploration and development in Equatorial Guinea, and the country’s oil production has grown steadily ever since.

The major oil fields in Equatorial Guinea include the Alba field, the Zafiro field, and the Okume field. These fields are all located offshore in the Gulf of Guinea. The major oil and gas companies operating in Equatorial Guinea include ExxonMobil, Marathon Oil, and Noble Energy. These companies have invested billions of dollars in oil and gas exploration and development in Equatorial Guinea.

Oil production is the backbone of the Equatorial Guinean economy. Oil exports account for over 80% of the country’s government revenue and over 90% of its foreign exchange earnings. The oil and gas industry also provides employment for millions of Equatorial Guineans.

The government of Equatorial Guinea is committed to sustainable oil and gas development. The country has implemented a number of environmental regulations to protect its environment. Equatorial Guinea is a member of OPEC+ and is committed to complying with OPEC+ production quotas. This helps to ensure that oil prices remain stable.

Equatorial Guinea has proven crude oil reserves of 1.1 billion barrels and condensate reserves of 0.5 billion barrels. These reserves are sufficient to support the country’s current level of oil production for many years to come. Equatorial Guinea exports most of its oil production to China, the United States, and Europe.

CAMEROON

Cameroon is one of Africa’s leading oil producing countries, with a daily production of over 120,000 barrels of oil. The country’s oil reserves are estimated to be around 1.5 billion barrels, and oil production accounts for over 40% of government revenue.

The oil industry in Cameroon is dominated by a few large international oil companies, including TotalEnergies, Perenco, and ExxonMobil. These companies operate a number of oil fields in the country, both onshore and offshore.

The oil industry plays a vital role in the Cameroonian economy. It provides employment for millions of people, generates billions of dollars in revenue for the government, and attracts foreign investment. The oil industry also helps to fund essential government services, such as education, healthcare, and infrastructure development.

However, the oil industry in Cameroon also faces a number of challenges. One of the biggest challenges is oil theft and pipeline vandalism. These activities cost the government and oil companies billions of dollars each year. Another challenge is the declining oil production. Oil production in Cameroon has been declining for the past few years, and this is expected to continue in the coming years.

Despite these challenges, Cameroon remains a major oil producer in Africa. The country has significant oil reserves, and the oil industry plays a vital role in the economy. The government is taking steps to address the challenges facing the oil industry, such as investing in security and developing new oil fields.

TRENDS SHAPING AFRICA’S OIL AND GAS INDUSTRY

The African oil and gas industry is not only about the production of crude oil and condensate but also about the challenges and opportunities it presents. Some notable trends include:

• Sustainability and Renewable Energy: As the world increasingly shifts towards renewable energy sources to combat climate change, African nations are beginning to explore the potential of renewable energy, particularly solar and wind power. This not only helps in reducing greenhouse gas emissions but also diversifies their energy mix.
• OPEC and OPEC+: African nations are significant contributors to OPEC and OPEC+ agreements, which aim to stabilize global oil prices. These collaborations affect their oil production and export quotas.
• Economic Impact: Oil and gas play a crucial role in the economies of these countries, contributing to government revenues, creating jobs, and reducing poverty. However, overreliance on oil can lead to economic vulnerabilities, which is why diversification efforts are essential.
• Environment and Climate Change: Environmental concerns and the impact of oil production on climate change are increasingly being addressed through regulations and investments in cleaner technologies.

BUILDING A SUSTAINABLE FUTURE

Africa’s oil production presents both opportunities and challenges. It’s essential for these nations to diversify their economies, invest in renewable energy, and manage their resources sustainably. By doing so, they can not only secure a stable economic future but also contribute to global efforts in mitigating climate change and protecting the environment. The journey towards sustainable development in the African oil and gas sector is a promising one, as these nations seek to balance their energy needs with environmental responsibility.

CONCLUSION

The top 10 highest oil producing countries in Africa are Nigeria, Libya, Algeria, Angola, Egypt, South Sudan, Congo, Gabon, Equatorial Guinea, and Cameroon. These countries produce a combined total of over 8 million barrels of oil per day. The oil and gas industry plays a vital role in the economies of these countries, providing revenue, employment, and investment. However, it is important for African countries to develop sustainable oil production practices that minimize the environmental impact of the industry.