The African continent is home to five of the top 30 oil-producing countries in the world. It accounted for more than 6.03 million barrels per day in 2023, which is about 8.23% of world output. This level of production is down somewhat from 2019 when African production was over 7 million barrels per day.
The major production declines between 2010 and 2015 were mostly due to lower global oil prices. Output stabilized between 2015 and 2019. However, the global financial crisis and a production dispute between Saudi Arabia and Russia in early 2020 dramatically reduced oil prices. While prices have stabilized, future levels of production in Africa remain highly uncertain.
Key Takeaways
- Africa is home to 5 of the world’s top 30 largest oil-producers.
- Altogether, it accounts for over 8% of world oil production.
- Nigeria is Africa’s largest oil producer, and the 16th-largest in the world.
- Libya was the second-largest producer in Africa in 2023, but production is unstable.
- Angola, Algeria and Egypt are also major producers.
1. Nigeria
Nigeria produced more than 1.4 million barrels of oil per day in 2023 to rank as the 16th-largest oil producer in the world. The country produced around 2 million barrels per day between 2015 and 2019, and an annual average of about 1.5 million barrels per day from 2016 through 2023. Fluctuations in annual oil production, especially since 2005, can be attributed partly to security problems connected to violent militant groups in the country. Nigeria is home to the third-largest proven oil reserves in Africa. However, the U.S. Energy Information Administration (EIA) reports that security issues and other business risks in the country have reduced oil exploration efforts.
The state-owned Nigerian National Petroleum Corporation (NNPC) is responsible for regulating Nigeria’s oil and gas sector, as well as developing its oil and gas assets. The NNPC relies heavily on international oil companies to fund development and provide expertise. Most large onshore oil production operations in the country are operated as joint ventures between the NNPC and private oil firms, with the NNPC as majority owner. Comparatively costly and complicated offshore oil developments are typically organized under production-sharing contracts. The terms of these contracts can be adjusted to provide appropriate incentives to international operators. The largest global oil companies operating in Nigeria include Chevron, Exxon Mobil, Shell, Total, and Eni.
2. Algeria
Algeria produced approximately 1.2 million barrels of oil per day in 2023 to maintain its position among the top tier of African oil producers. However, production is down substantially since 2008, when Algeria’s output was over 1.7 million barrels of oil per day. Project delays, technical problems, and lack of foreign investment played major parts in the nation’s declining oil output. Algeria also exports substantial amounts of natural gas, most of which go to Europe.
Sonatrach is Algeria’s state-owned oil and gas company. Sonatrach continues to dominate the oil industry in Algeria. However, lower oil prices led to some reforms in 2019, including a lower tax burden. International oil majors involved in Algerian oil production include Chevron, Lukoil, and Exxon Mobile.
3. Angola
Angola produced over 1.1 million barrels of oil per day in 2023, continuing a trend of level production. Angola was producing around 1.8 million barrels per day in 2015, but output decreased steadily during the rest of the decade. This decline was partly due to a cut that the nation agreed to as a member of the Organization of Petroleum Exporting Countries (OPEC). Angola withdrew from OPEC effective Jan. 1, 2024. Angola offers access to abundant offshore and deep-water oil reserves in the South Atlantic.
The Sociedade Nacional de Combustiveis de Angola, also known as Sonangol, is Angola’s state-owned oil company. It historically oversaw virtually all oil and gas development in the country. However, President João Lourenço made substantial efforts to form a new independent regulatory organization called Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG). Some of the most significant international oil companies operating in Angola include BP, Chevron, Exxon Mobil, Total, Statoil, Eni, and Equinor.
Important
All oil production statistics given in this article include lease condensate and come from U.S. Energy Information Administration (EIA) datasets unless otherwise indicated.
4. Libya
Libya produced over 1.2 million barrels of oil per day in 2023, up more than 200% from low levels in 2016 and 2020. This fantastic fluctuation was primarily the result of armed conflict and political instability within the country. Furthermore, Libya was exempt from the 2016 OPEC production cuts because output had already fallen from 1.7 million barrels per day in 2010. Unfortunately, production fell dramatically in early 2020 as the civil war in Libya intensified. The country contains the sixth-largest proven reserves of oil in Africa.
Until a ceasefire agreement in October 2020, Libya was embroiled in a civil war between the Government of National Accord (GNA) and the Libyan National Army (LNA). International oil companies were active in Libyan oil production before the wars following the overthrow of Muammar Gaddafi. However, the future of the oil industry remains uncertain; oil production was cut in half for an entire month in 2024 due to factional struggles within the new Libyan government.
5. Egypt
Egypt produced about 564,000 barrels of oil per day in 2023, with output remaining steady. The country became much more stable between 2014 and 2019. Before Angola left OPEC in 2024, Egypt was the largest oil producer in Africa that was not a member. On the other hand, the government’s pro-market reforms reduced subsidies for the oil industry.
Egypt’s state-owned oil company, Egyptian General Petroleum Corporation (EGPC), historically dominated oil production in the country. EGPC partners with several international oil companies in offshore and onshore production operations in Egypt. Eni and BP are major shareholders in offshore Egyptian production assets. Furthermore, the Egyptian government has worked to make the country more attractive to foreign investment. Reforms include reducing subsidies to EGPC and reducing the amount of payments in arrears to international oil companies.
What Is the Biggest Oil Producer in Africa?
Nigeria is the largest oil-producing country in Africa, and the 16th-largest oil producer in the world. Nigeria produced about 1.4 million barrels of oil per day in 2023, although annual production has fallen due to security and other business risks.
What Are the Most Developed Countries in Africa?
The island country of Mauritius is the most developed country in Africa, according to the United Nations Development Program, with a Human Development Index of 0.802. The Seychelles, Algeria, Egypt, and Tunisia also rank highly with HDI above 0.730.
What Is the “Resource Curse”?
The resource curse, also known as the paradox of plenty, is an observation that countries with abundant natural resources often underperform economically. When a country relies heavily on a single natural resource, it often fails to make investments in other sectors of the economy and becomes dependent on global commodity prices. If commodity prices fall, the country may have difficulty diversifying its economy. Oil-rich countries like Saudi Arabia and Angola are sometimes cited as examples of the resource curse.
The Bottom Line
Although Africa is home to significant oil reserves, the continent accounts for less than 10% of worldwide crude production. In some countries, lack of capital, corruption, and security risks have raised the costs of exploring oil resources to their full potential. Nigeria is by far the largest oil producer in Africa, with Angola, Algeria, Egypt, and Libya also producing significant quantities.