West Africa Oil and Gas

by S. P. Stultz-Karim

The recent surge in oil prices is likely to be sustained over the medium term, so long as oil producing countries maintain the strict production quotas set by OPEC.

The upstream oil industry is one of Africa’s top economic priorities and is dominated by 5 countries accounting for 90% of the continent's oil production. Africa’s estimated proven oil reserves as of January 1, 1998 was 70.1 billion barrels, and total continental production in 1997 was 7.6

million barrels per day (bpd). The leading West Africa oil producing countries are Angola and Nigeria followed by Gabon, Congo, and Cameroon. Equatorial Guinea and the Democratic Republic of Congo plan to increase their production.

Improved petroleum regulatory policies aligned with good governance, sustained higher oil prices, and increased regional integration and cooperation will make the petroleum industry, a hub for the economic development of the West Africa region.

ANGOLA

Although not a member of OPEC, Angola is a significant oil producer. Major offshore oil discoveries have made the country a leading area for exploration in sub-Saharan Africa. This has added to national stability following a twenty year civil war and ongoing conflict, which has replaced the fractious peace accord between rebel leader Jonas Savimbi and the Angolan government. Angola is nevertheless a key producer and exporter in Africa's oil industry.