Ghana rises to 5th place in African offshore oil rig demand overtaking Libya
Regarding the African energy landscape, Ghana has emerged as a pivotal player, securing the 5th position in offshore oil rig demand on the continent, as per the 2024 State of African Energy report by the African Energy Chamber.
Surpassing the likes of Libya, which now finds itself in 8th place, Ghana’s ascendancy underscores a substantial reservoir of oil and natural gas reserves within its maritime boundaries.
The report delineates the components contributing to offshore rig demand—encompassing oil reserves, contingent resources, and exploration activities. Ghana’s surge in offshore rig demand from 2022 highlights its robust position in the sector.
The nation presently boasts approximately 660 million barrels of proven oil reserves, with a daily production output of 177,000 barrels.
Ghana, alongside Namibia, South Africa, Equatorial Guinea, and Mozambique, solidifies its standing in the top five countries with the highest percentage of contingent resources rig demand. This accentuates the sensitivity of rig demand in these nations to anticipated investment decisions.
The report identifies Egypt as the frontrunner in cumulative offshore rig demand from 2020 to 2030, registering approximately 123 rig years. Angola and Nigeria follow closely behind. Notably, the majority of the top 20 countries exhibit robust rig demand, with only 32% tied to contingent resources and exploration.
As the African continent witnesses a surge in drilling activity, with an estimated 6% year-on-year growth, the trajectory since the post-pandemic era has been upward. The expected increase to 967 wells in 2023 signifies a noteworthy uptrend, with 80% of wells historically drilled onshore.
Against the backdrop of an 11% year-on-year increase in drilling levels in 2022, totaling 910 wells, the African energy landscape appears poised for continued expansion. The intricate interplay of economic, geopolitical, and energy market dynamics is poised to redefine Africa’s role in the global energy arena.
