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Africa oil and gas: a continent on the move - Company exposure in the region - EY - Global

Africa oil and gas: a continent on the move

Company exposure in the region

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Rig activity in Africa is dominated by land drilling, although offshore activity has increased in recent years particularly off West Africa.

African oil and gas production is led by the major integrated companies, particularly the Italian and French majors, ENI and Total SA respectively.

Foreign investors interested in Africa

Italian and French investors, who have deep roots in the region, aren't the only foreign investors interested in Africa.

In recent years, Africa has seen increasing interest from NOCs as well as traded companies from outside the region, notably from China, India, Malaysia and Russia.

African oil and gas production exposure

Exploration and drilling activity

African drilling activity accounts for a relatively small portion of the global industry total typically ranging between 4 % and 7% of the global total.

As of the end of 2010, Baker Hughes reported 182 active rotary rigs in Africa, out of a global total of 3,227 rigs. Rig activity in Africa is dominated by land drilling, although offshore activity has increased in recent years particularly off West Africa.

Drilling activity in Africa: 1982-2010 (Baker Hughes monthly rig counts)

Drilling activity in Africa

Other oil and gas activity

The sustained growth in the upstream segment of the African oil and gas industry is linked to strong growth in the associated midstream and downstream infrastructure parts of the business:

  • Pipelines
  • Refineries
  • Terminals
  • Storage capacity

New pipeline capacity may be necessary, particularly where new production is landlocked, such as is the case in Chad, Sudan and Uganda.

New Chinese-backed refineries are under construction in Chad and Niger, and have been proposed in Egypt, Sudan and Nigeria.2

2US Department of Energy/Energy Information Administration, international energy database, accessed 15 February 2011; International Energy Agency, World Energy Outlook 2010, November 2010; and US Department of Energy/Energy Information Administration, International Energy Outlook 2010, July 2010.

 


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