The Organisation of the Petroleum Exporting Countries (OPEC) said Africa would reduce dependence on oil importation as it strives to meet the projected production output for 2026.
In its 2021 World Oil Outlook seen by Ripples Nigeria on Saturday, OPEC said Africa would add 1.2 million barrels per day (mb/d) to production output by 2026.
The continent’s oil output was estimated at 6.9 million barrels by research firm, Statista, in 2020, down from 7.9 million barrels per day recorded in 2019.
The development coincided with the onset of the COVID-19 pandemic which slowed down global trade.
The oil cartel attributed the rise in the projected production output to increased private investments, including the Dangote Refinery, which is expected to come onstream in 2022.
The refinery owned by Africa’s richest man, Aliko Dangote, will contribute 650,000 bpd to Nigeria’s oil output, which was 1.2 million barrels per day in August.
In Nigeria, there are other private investments in refinery operation, with BUA Group also constructing a 200,000 bpd refinery in Ibeno, Akwa Ibom.
This is expected to commence operation by 2025.
Commenting on Africa’s oil prospect backed by private investment, OPEC said: “Once commissioned, these projects will help to reduce product imports to Nigeria and West Africa and will, in turn, increase the use of local crude. In North Africa, refinery capacity expansions are likely in Algeria and Egypt.
“These refinery investments will also play a role in the 6.9 million bpd global expectation. Around 3.5 mb/d of capacity is under construction or close to this stage; hence, these are the projects with the highest certainty to materialize in the medium-term.”
“There are also projects totalling 3.4 mb/d that are mostly in early stages of development, but still advanced enough in terms of financing and engineering to be considered ‘firm’ medium-term additions.”
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