1. Overview of Oil &Gas in Western Africa
By Ian Lee
Centre Director, Accra OC

2. West Africa
Economic Overview

3. Average growth rate of 7% over the last 5 years
NIGERIA (2014)
GDP $568.51b
Population m
Oil % of GDP
Per capita $
ANGOLA (2014)
GDP $131.4b
Population m
Oil % of GDP
Per capita $5273
COTE D’IVOIRE (2014)
GDP $34.25b
Population   m
Oil % of GDP
Per capita $1509
GHANA (2014)
GDP $38.65b
Population   m
Oil % of GDP
Per capita $1462

4. West Africa Overview
Angola Cote Ivoire Ghana Nigeria

5. Africa holds 8% of the World’s Oil & Gas Reserves and Western Africa has more than half of those reserves.

6. New discoveries leading to major field development
COUNTRY
OIL RESERVES MMBBL
DAILY PROD. (Barrels) 2014
Cote D’Ivoire
100
38,560
Ghana
660
110,000
Nigeria
37,200
2.5m
Angola
10,470 2m
Almost 30% of global oil and gas discoveries made over the last five years were in Sub-Saharan Africa, reflecting a growing global appetite for African oil and gas resources.
In 2014, Africa proven reserve was 129.2billion barrels. The continent produced 8.2 million bpd in % of the daily production came from Nigeria, Algeria Egypt and Angola.

7. Majority of Oil and Gas fields are located in the Western Coast
There are currently 29 offshore fields operating in the region
A total of 29 FPSOs are sited off the coast of the western Africa .
It is estimated that there are about 95 rigs situated in the region

8. Partnership between NOCs and IOCs

9. Ghana

10. Ghana: New player on the block
Ghana started oil production in late just three years after Kosmos Discovery of the of Mahogany . The Jubilee Field is currently the only operating field.
New discoveries have been made since the first. These discoveries are in the development stage. The TEN and the Sankofa- Gye Nyame project(OCTP).
About USD 20billion will be spent in the next 5 years on field development .
The GNPC projects that the daily oil production of Ghana will reach 250,000 bpd by 2021.

11. Outlook Short to Medium term.
The main focus over the last two years has been the development of TEN and Sankofa fields. TEN is on course to deliver first oil mid Sankofa should also meet it’s 2017 deadline for first oil.
Government will continue to invest in the field development as associated gas in these fields is key to addressing the energy needs of the country. Already gas from Jubilee is being processed and fed into the power plants in the west of Ghana.
Exploration work is expected to continue on Deepwater Tano/Cape Three Point Block by Hess.
There will be increase Infrastructure development to support the oil and gas sector. The Takoradi Port is being developed in to an Oil services port, The Atuabo Free Port when completed will serve as a supply base. A strategic partner is being sort for The Tema Shipyard.

12. Nigeria

13. Nigeria :staying in the lead
Nigeria is Africa’s largest producer of oil and the 2nd largest reserves after Libya. It has a reserve of 37.2 billion barrels.
Daily production is 2.2 million bpd which is below the target of 4million bpd by government.
Most recent exploration activities are now focused on deep and ultra deep areas since onshore oil reserves are declining as these fields age. The Niger Delta still holds 60% of most of the country’s oil production.
There are currently 60 producing onshore and shallow water fields while there are 14 offshore producing fields

14. Outlook Short to Medium term.
Further fields developments are planned following discoveries around existing fields. There is the planned development of Erha(ExxonMobil, Chevron and Agip) and Erha North Phase 2(ExxonMobil), Zabazaba/Etan development( 2016).
Deepwater production could go up by 600,000 bpd if all the projects go by plan.
It remains to be seen if the Petroleum Industry Bill by the last administration will be passed. The IOCs have withheld further investments as result of uncertainty over the PIB.

15. Angola

16. Angola:pushing to overtake
onshore drilling started with a major find in the Kwanza Valley in By 1991, focussed had shifted to Deepwater exploration
It is now the second biggest oil producer in Sub-Saharan Africa, with proven reserves of approximately 9.5bn barrels
and average production in 2011 of1.65mbpd
There are 14 offshore producing fields in Angola.

17. Outlook Short to Medium term.
Field development will continue on off shore fields despite the fall in oil prices. About 6 fields are to start producing from now to 2017.
Onshore activities are going to pick up in the Lower Congo basin onshore area in the Cabinda North and South blocks. Sonangol, with China Sonangol, carries out exploration activity at Cabinda North.

18. Cote d’Ivoire

19. Cote d’Ivoire
Cote d’Ivoire has more gas fields than oil fields. There is a proven reserve of 100 million barrels of oil.
Most of the gas fields were not developed in the 1980s but the situation has changed since Afren development of the Kudu, Eland and Ibex gas fields.
Africa Petroleum and Total are also prospecting to start the development

20. Outlook Short to Medium term.
For Cote d’Ivoire the focus will remain producing gas to meet the energy needs of the country. The country aim is to be power sufficient as well as become a net exporter of power.
It remains to be seen what the outcome of the boundary dispute with Ghana will be. If it is ruled in their favour, then there will be prospecting for oil.

21. Market Trends in West Africa
Increasing participation from governments and Asian companies
while pushing for local involvement.

22. Key Market Trends
Tighter’ local contents laws aimed at promoting local companies and increasing partnerships
Increased government participation
Increased involvement of companies from Asia

23. ‘Tighter’ local contents laws aimed at promoting local companies and increasing partnerships
A number of local content laws have been passed over the last five years to increase the level of participation by local companies
A lot of emphasis is being placed n partnership between foreign companies and local companies as part of local content requirement
Awarding contracts is skewed toward a jv with high local participation.

24. Increased government participation
Oil revenue is a major source of revenue for most of the Governments in these countries. Governments playing an important role to improve the climate for increased investments.
Governments are also co-investors in the development of the fields and exploration. GNPC has a subsidiary Exploco which is venturing into exploration activity. Nigeria has NAPIMS which invests in some of the projects.

25. Increased involvement of companies from Asia.
Increased involvement of companies from Asia in field development. e.g. Sinopec Addax, MODEC, Samsung. There are Singapore Flagged vessels also operating in the region.
As a result of the vast reserves in the region, there has been huge investment and interest from Asia. China leads the pack with large investments in fields in Angola and Nigeria

26. Conclusion

27. Conclusion
With growing interest and investment from India, China and international oil companies operating in Africa, there has been increased competition for exploration
African nations and consumers are starting to focus more and more on securing adequate supplies of crude oil and liquid fuels to satisfy growing local demand.
Exploration and refining capacity in Africa will continue to increase, as countries strive to have a greater security of supply and increase export earnings from the sale of refined products.
At the same time, political intervention and the nationalization of resources will be key issues that will affect the oil and gas industry in the coming years.