Oil and Gas Exploration and Production

OIL RIGCrude oil production in southern Africa is dominated by Angola, while the region's refineries are concentrated in South Africa.

Angola's crude oil production has quadrupled over the past two decades while the country's known oil reserves have tripled since 2000. Angola has now consolidated its position as sub-Saharan Africa's second largest oil producer, after Nigeria.

Angola's crude oil production averaged 1.7 million barrels per day (bpd) in 2007. The majority of this comes from fields offshore of the northern Cabinda province. Angola's oil and oil derivatives industry accounts for 92 percent of the country's total exports. Petroleum and petroleum products generated nearly US$9.7 billion in State revenues in 2004.

Namibia has a fledgling oil and gas production industry and it is likely that the country has more gas than oil potential. To date, 14 wells have been drilled offshore, including seven in the productive Kudu gas field. The National Petroleum Corporation of Namibia, NAMCOR, and the electricity utility, NamPower have been jointly mandated by the Namibian government to pursue the development of the Kudu Gas-to-Power project in a bid to meet Namibia's growing demand for electricity.

South Africa is the second largest oil consumer in Africa and the continent's largest net oil importer. Total oil production in South Africa currently accounts for approximately 10 percent of domestic needs. After 30 years of extensive exploration, small oil and gas fields have been discovered offshore, particularly in the Bredasdorp basin (off the southern Cape coast) and off the west coast near the Namibian border.

At Mossel Bay, on the Cape South Coast, PetroSA operates the world's first gas-to-liquid (GTL) refinery. It remains the third largest GTL refinery among the five now operating worldwide. Gas and condensate from the F-A gas field, situated 90km off Mossel Bay, are piped ashore to the refinery. In 2000, the adjacent E-M gas field, with reserves of about 400 billion cubic feet was linked to the F-A platform. Current average daily production from the F-A, E-M and satellite fields is approximately 195 million standard cubic feet of gas per day and 5 190 barrels of oil per day.