When talking about Africa’s Oil & Gas Sector, you should know that North Africa is the key region.

North AfricaNorth Africa plays a vital role in the development and growth of the global oil industry. North Africa possesses massive oil and gas reserves, viewed as strategically vital because of their proximity to European consumers across the Mediterranean Sea. North Africa continues to be a leader in oil and gas production and exports. Algeria and Egypt are valuable exporters of LNG and maintained strength in oil and gas prices have boosted exploration and development activities in Northern Africa.

North Africa Resources and Production

Libyan oil reserves account for almost three quarters of North Africa’s total oil production. In terms of natural gas reserves, Algeria, Libya and Egypt once again contain the majority of the regional resource, except that Algeria is the main site of the reserves. Algeria is the eighth largest country worldwide in terms of proven gas reserves. Proved gas reserves have grown significantly over the past decade, with the most significant new finds in Egypt. Egypt joined the ranks of LNG exporters in 2005. 

The upstream sector receives the bulk of the attention, with numerous oil and gas development projects underway and or under evaluation. North Africa’s refining industry also has evolved under interesting historical circumstances, and progress continues to be made. All five North African countries operate refineries, but most of them are technologically unsophisticated. There is a growing emphasis on updating antiquated refinery equipment and investing in technology that will allow the refining companies to improve fuel quality and yields, both for domestic and export markets.

As the global economy continues to recover, it would not be surprising to see additional plans announced in North Africa.


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