Oil & Gas

Africa’s Massive Untapped Potential of Natural Gas Supplies.

Oil Investment Opportunities In Africa

Anchor intermediary Platform (AIP) brings you the juicy investment opportunities in the African oil industry in the Eastern , southern and Western regions. We survey and source out the necessary information that an investor would prefer to know before putting a foot into that certain kind of venture.

There are a number of oil producing countries in Africa which include Uganda, Tanzania, South Sudan, Kenya, Nigeria, Angola, Algeria and Egypt. All these present the opportunities to invest in African Oil when an opportunity comes. Some of these countries face a financial challenge to facility their oil projects and therefore they want and greatly welcome investors that can finance these projects.

Pump Jack In Turkana (Kenya)

The two investors in Turkana oil development with 50% and 25% equity, have announced plans to sell their entire interests in Kenya. The joint venture operator, has also announced that it will lay off 650 employees in Kenya. This essentially means that the Turkana oil development plans have been frozen, at least until a new principal investor and operator is found. The latest investment plans for Turkana oil involved producing and exporting 60,000 barrel per day (bpd) of crude oil by pipeline via Lamu. Final investments decisions were expected this year with a target for first oil exports in 2023/24. Although Africa Oil (with 25% interest) has not announced its immediate plans, it is a fact that it does not have sufficient technical and financial capacity to develop and operate the oilfields on its own. Its fortunes are dependent on finding new sufficiently capitalized partners. Alternatively, Africa Oil may also opt to sell its stake and quit the scene.

Oil in Uganda

Uganda has proven crude oil reserves of 6.5 billion barrels, about 2.2 billion of which is recoverable. The International Monetary Fund was quoted in 2013 as saying that these reserves are the fourth-largest in sub-Saharan Africa, behind Nigeria, Angola, and South Sudan

Oil in Nigeria

The largest oil producing country in Africa is Nigeria. Here, the oil industry generates around 2.35 million barrels of oil on a daily basis, which represents approximately 113 million tonnes every year. Since the middle of the 20th century, the country has been developing its oil processing industry. Today, oil makes up 90% of total exports from Nigeria and generates around 80% of its revenue.

Oil in Algeria

Algeria produced approximately 1.3 million barrels of oil per day in 2019 to maintain its position among the top tier of African oil producers. However, production is down substantially since 2005, when Algeria’s output was almost 1.7 million barrels of oil per day. OPEC production cuts and a lack of foreign investment played major parts in the nation’s declining oil output. Algeria also exports substantial amounts of natural gas, most of which go to Europe. 

Oil in Angola

Angola is the second largest oil producing country in Africa, although it temporarily ranked as the top producer for a seven month period in 2016. The oil industry here produces around 1.82 million barrels of oil every day, which represents an estimated 88.7 million tonnes on a yearly basis. The oil and gas industries make up approximately 45% of Angola’s gross domestic product (GDP).

Oil in Egypt

Egypt produced about 630,000 barrels of oil per day in 2019, with output remaining remarkably steady. The country became much more stable between 2014 and 2019. Egypt is also the largest oil producer in Africa that was not a member of OPEC. On the other hand, the government’s pro-market reforms reduced subsidies for the oil industry.

Egypt’s state-owned oil company, Egyptian General Petroleum Corporation (EGPC), historically dominated oil production in the country. EGPC partners with several international oil companies in offshore and onshore production operations in Egypt. Eni and BP are major shareholders  in offshore Egyptian production assets. Furthermore, the Egyptian government has worked to make the country more attractive to foreign investment. Reforms include reducing subsidies to EGPC and reducing the amount of payments in arrears  to international oil companies.