Africa is home to some of the world’s largest oil reserves which are scattered round the continent and serving as a major contributor to its economy.
These oil reserveplay crucial tooles and helps to boost the revenue of the government in these countries.
Despite these plethora of oil reserves, the oil sector in Africa faces several challenges, including political instability, corruption, lack of infrastructure, and environmental concerns.
Due to these challenges, efforts are being made to by the government to ameliorate these problems through regulations and sustainable practices.
Some African countries have implemented local content policies to ensure that local communities benefit from the oil sector.
These policies aim to promote local employment, skills development, and the participation of local businesses in the sector.
This article curated by African Gazette, enumerates top 10 countries in Africa who are the highest producers of oil in 2024.
Summary of top 10 oil producing countries in Africa
- Libya
- Nigeria
- Angola
- Algeria
- Egypt
- DR. Congo
- Gabon
- Ghana
- Chad
- Sudan
Libya
Oil reserves in Libya are the largest in Africa, and among the ten largest oil reserves globally with 46.4 billion barrels produced annually.
The country has so far emerged as the highest crude oil producer in Africa following the drop of Nigeria’s output by 6.8 per cent to 1.23 million barrels per day in March 2024, from 1.32 bpd in February 2024.
It is considered a highly attractive oil area due to its low cost of oil production, low sulfur content, being classified as “sweet crude” and in its proximity to European markets.
The country has vast oil reserves and aspires to achieve an output of 2 million barrels per day in the nearest future.
Nigeria
Nigeria is the second largest oil producer in Africa and eleventh largest producer globally with significant reserves and production capacity.
The country’s oil industry plays a crucial role in its economy, contributing a substantial portion to government revenue.
Proceeds from the exports of crude oil and petroleum products has helped to support Nigeria’s economy and budget immensely.
Nine percent of Nigeria’s GDP and nearly ninety percent of its export value are attributed to the petroleum industry.
Angola
Angola is another major oil producer in Africa, with a well-established oil industry that has been a key driver of economic growth in the country.
Angola’s offshore oil fields are among the most productive in the region and the third-largest in Africa with an average of 1.098 million barrels of crude oil per day.
The industry faces numerous obstacles to investment despite the availability of oil, one of which is the concessionaire’s inconsistent performance.
Algeria
Algeria is a significant oil producer in North Africa, with substantial reserves and production capacity.
The country’s oil industry has been a major source of revenue for the government for many years.
Algeria’s oil reserves are all located onshore, but the country is interested in developing offshore capacity.
The majority of Algeria’s oil comes from the Edjele and Hassi Messaoud oil fields, which were the two main oil fields in 1956.
The country is a large oil producer with 12.2 billion barrels of proven oil reserves and annual exports of about 540,000 barels per day.
Egypt
With rising production levels in recent years, Egypt has become a more significant player in the African oil market.
The country’s offshore fields in the Mediterranean Sea have contributed to its rising oil output.
Egypt has significant oil and gas reserves, and its oil and gas industry is a key part of its economy.
The oil and gas industry in Egypt is a major participant in the regional energy market, with over 50 international oil companies (IOCs) functioning within the nation.
DR. Congo
The Republic of Congo is a significant oil producer in Central Africa, with offshore fields that have boosted its oil production levels.
The country’s oil industry plays a crucial role in its economy with proven oil reserves of over five billion barrels which are exported to countries like China, Singapore, the United Arab Emirates, Hong Kong, and Tanzania.
The Democratic Republic of Congo (DRC) produces 25,000 barrels of offshore oil per day as of March 2024 and all of this oil is exported from the Coastal Basin.
Gabon
Gabon is a longstanding oil producer in Central Africa, with offshore fields that have supported its oil industry for many years.
It is the seventh largest producer of oil in Africa, and the sector has been a key driver of economic development in the country.
The oil and gas market in Gabon is anticipated to expand between 2020 and 2025 at a compound annual growth rate (CAGR) of more than 0.8%.
Ghana
The oil industry in Ghana has experienced substantial growth since the commercial oil was discovered in 2007.
International oil companies, including Tullow Ghana, Vitol, Kosmos Energy, and ENI, are involved in Ghana’s oil and gas industry.
However, Ghana’s production of crude oil fell dramatically in the first three quarters of 2023, and in the second half of the year, oil revenues made up just 7% of the nation’s GDP.
In 2020, Ghana produced over 173,000 barrels of crude oil per day, and the Ministry of Energy expects production to reach 500,000 barrels per day by 2024.
Ghana is seeking to increase oil and gas production in order to raise money and finance its energy transition as it goes through its worst economic crisis in decades.
Chad
An estimated 1.5 billion barrels of proven oil reserves were present in Chad as of 2018, making it an oil-producing nation.
Chad’s oil reserves are the ninth largest in Africa, but small compared to other Sub-Saharan African countries.
The country’s oil production began in 2003, and in 2020, the oil sector contributed 14.5% of Chad’s GDP and over 70% of its exports.
Its oil is primarily sourced from the Doba Basin in southern Chad, where foreign drillers discovered oil in the early 1970s.
However, Chad also has other natural resources, including uranium, gold, limestone, and cultivable land but still faces poverty and food insecurity, with almost half of its population living below the poverty line.
Sudan
With the majority of its production occurring in the Muglad and Melut basins, Sudan is estimated to have 5 billion barrels of proven crude oil reserves as of March 2024.
The capacity of the Sudan Oil Refinery is 90,000 to 95,000 barrels per day, while the country’s oil fields produced 59,000 barrels per day in this year.
With the United Arab Emirates being the top destination nation by volume, Sudan exported roughly 125,000 barrels of crude oil per day in 2023.
Despite the fact that Sudan’s oil sector has greatly influenced its politics and economy, the nation lost 75% of its crude oil production following South Sudan’s 2012 secession.
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