{UAH} Africa's top oil producer status: Angola vs. Nigeria

Africa's top oil producer status: Angola vs. Nigeria

July 30, 2014 | Filed under: West-Africa Energy | Author: FEMI ASU

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The debate over whether Angola will soon displace Nigeria to become Africa's top crude oil producer again came to the fore with the upgrade of a production vessel by Italian oil major Eni for new pumping this year as the southwest African country targets output rivaling its bigger competitor, Nigeria.

Angola, Africa's biggest oil producer after Nigeria, is on track to ramp up exploration and production in the country as it seeks to increase production to 2 million barrels per day (bpd) next year and then maintain that level for five years. 

Eni plans to start production within five months as operator of Block 15-06's West Hub fields, estimated to hold reserves of 200 million barrels, and boost flows to 80,000 bpd. The block's East Hub development is due to pump about 49,000 bpd after starting in 2016, according to the company. 

 The block is one of eight offshore projects being counted on to help raise production to 2 million bpd by next year from 1.66 million last month. That compares with Nigeria's 2.15 million barrels daily. 

Last month, Total started up CLOV, a major deepwater offshore development, with a production capacity of 160,000 bpd of oil. The $10 billion CLOV project is esti¬mated to hold 505 million barrels of crude oil and comprises 34 wells. 

Angola produced 1.73 million bpd on average last year, while Nigerian output averaged 1.9 million.

Angola could potentially regain the top oil producer spot by the end of 2014 with the start of oil production from the CLOV field proj¬ect, according to Ecobank Research in its recent report. 

In 2009, Angola displaced Nigeria as the top African crude oil producer after years of militancy significantly reduced Nigeria's capacity. But the country's grip on the title was short-lived as Nigeria regained it in 2010 as production hit 2.4 million bpd. 

With rising security problems related to oil theft, pipeline sabotage and piracy in the Gulf of Guinea affecting production and curtailing oil exploration projects, Nigeria is struggling to boost production. The largest risk faced by Nigeria will come in the form of delayed offshore projects and investments as a result of the uncertainty surrounding the adoption and content of the Petroleum Industry Bill (PIB). 

FEMI ASU 

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Gwokto La'Kitgum

"Even a small dog can piss on a tall Building", Jim Hightower

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