ROCKVILLE, MD — (Marketwire) — 03/15/11 — MarketResearch.com has announced the addition of GBI Research’s new report ‘Oil Market in Africa to 2015 – Offshore Finds Transforming Africa into a Major Oil Producing Region,’ to their collection of Oilfield Equipment & Services market reports. For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=6164897
Since the discovery of the giant Jubilee field in 2007, Ghana has emerged as a lucrative area for oil exploration and production. Following the discovery, Tullow Oil and its partners have drilled a number of successful exploration and appraisal wells in the country. Tullow Oil recently announced a new offshore discovery (Owo), making it the company’s third major field in the country after Jubilee and Tweneboa.
The first oil from Jubilee field started in December 2010, establishing Ghana as a significant oil producing nation. Following a period of testing, production will gradually increase over approximately six months to plateau at 120,000 barrels of oil per day (bopd). The field will also produce approximately 12 million cubic feet per day (MMcfd) of natural gas.
The continued success of exploration activities in the country promises Ghana’s emergence as a key oil exporting country in West Africa.
East Africa has significant oil and gas prospects to become a leading oil and gas producer in the future. Oil and gas exploration and production activities are increasing in East Africa with significant players such as Anadarko, Eni and Petrobras, all planning to develop their reserves in the region to meet the increasing oil and gas demand globally. Moreover, the increased oil and gas exploration and production can serve the continent’s domestic demand. The continent’s oil demand is expected to increase by around 40%, to around 4.3 million barrels per day (MMbbl/d) in 2020 from approximately 3 MMbbl/d in 2008. This leads to an annual growth rate of 3%.The increased East African oil and gas production can also support the increased energy demand in West and Central Africa, which is expected to increase by 60% till 2020. In South and North Africa, the increase could be around 57% and 22% respectively.
East Africa’s geological conditions support the possibility of abundant oil and gas reserves in the region. Oil was assumed to be present beneath parts of East Africa, as far back as the late 19th century, with the finding of thick, greasy sediment on the shores of Mozambique. Moreover, various seismic studies have revealed that countries up the coast of East Africa have vast natural gas resources as well as massive offshore oil deposits. There is a fault line running from Somalia to Madagascar known as the Davie Fracture Zone. According to seismic analysis, it is proposed that there is a huge presence of oil deposits in this region, similar to those of the North Sea or Middle East. North Africa has witnessed 20,000 wells drilled over the past few decades, while about 14,000 wells have been drilled in and off West Africa. In East Africa, about 500 wells have been drilled.