West Africa Oil & Gas Upstream Market - Growth, Trends, and Forecast (2019 - 2024)

New York, Oct. 30, 2019 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "West Africa Oil & Gas Upstream Market - Growth, Trends, and Forecast (2019 - 2024)" - https://www.reportlinker.com/p05790943/?utm_source=GNW
However, the vandalism of oil and gas infrastructure and theft of petroleum products resulted in business loss for the stakeholders. Factors like these reduce the confidence in making investments in oil and gas projects. Therefore, militant activities that hamper the oil and gas infrastructure is anticipated to restrain the West African upstream market during the forecast period.

- Africa’s offshore exploration and production activities are expected to dominate the market, mainly due to their relative insulation from vandalism as these sites are comparatively less accessible for the terrorist as well as the vandalism groups in the region.
- The recent offshore discovery of oil and gas in Senegal showcase the potential of West African offshore region which is largely untapped. Also, there are several other offshore discoveries recorded in the region, which is expected to create a lucrative opportunity for oil & gas upstream companies to invest in this region.
- Nigeria dominated the market due to a large number of upstream projects coming up in the country as the operators started gaining confidence with the advent of oil price recovery and kickstarted few projects.

Key Market Trends
Offshore Sector - Potential Market

- The onshore sector in West Africa region is prone to terrorist activities than the offshore sector, which makes investors to focus on the offshore market, as a result of which, numerous offshore project and discoveries came up, and the onshore sector remains undiscovered.
- Africa’s offshore oil and gas industry continues to expand, albeit not very fast, opening up more market opportunities. Africa’s offshore deep and ultra-deep space has continued to attract oil explorers and producers in increasing their operations, especially in Southern and Western Africa, where major projects have either started or have been unveiled, awaiting resource appraisal and development.
- The growth of Africa’s offshore exploration and production activities has been mainly driven by the efforts of governments in their region, to provide key incentives and supporting policies to unlock the investment opportunity, as well as a growing list of international oil and gas companies interested in exploring alternative fields to replace the maturing offshore producing sites in countries, such as Nigeria and Ghana.
- As the region’s newest oil and gas producer, Ghana has seen the highest growth in oil production in 2018 among its peers. In 2018, Ghana launched its first offshore licensing round for six blocks. This contributed to the growth in offshore exploration activities in the country.
- China National Offshore Oil Corporation has mobilized a USD 3 billion investment, in addition to the USD 14 billion already spent on its existing oil and gas operations in the West African country. In addition, one of the most ambitious ultra-deep offshore projects is the Egina oil field in water depths of between 1,400 and 1,700 meters. In addition to this, there are a number of offshore discoveries/projects in pipeline in the region, which is expected to drive the growth in the offshore sector.

Nigeria to Dominate the Market

- Nigeria dominated the West African oil & gas upstream market in 2018. With growing oil and gas activities and the increasing demand for the crude oil produced in Nigeria, which has low sulfur content is expected to drive the Nigerian oil and gas upstream market.
- Nigeria produces low-sulfur content crude oil, which has a high global demand pertaining to the need for reduction in sulphur content in the products, processed by the global refiners.
- Nigeria is struggling to cope with liquidity, insufficient revenue, and convertibility issues. The country is vigorously adopting measures to overcome economic recession and exploring various alternative revenue sources, especially through gas commercialization and infrastructure development.
- Due to militancy, aging oilfields, need for governance reforms, and a lack of new investments, merged along with the slump in oil price, starting from 2014-2015, Nigeria’s oil and gas upstream market was hampered. The oil rigs and well-completed count, along with the net crude oil production decreased during the period, but once the oil price started to rise again, the upstream activities began to increase, in turn, impacting the crude oil production and the number of well completion activity in the country positively.

Competitive Landscape
The West Africa oil & gas upstream market is consolidated and The key players in the market includes, Royal Dutch Shell Plc, Total SA, Eni SpA, Exxon Mobil Corporation, Nigerian National Petroleum Corporation, NNPC among others.

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