Nigeria and other oil-producing countries in sub-Saharan Africa saw a 40 per cent decline in oil and gas investment in 2020 to the lowest level in nearly 20 years, a new report has said.
The report titled ‘Sub-Saharan Africa Upstream: 2020 in review’, was released on Wednesday by Africa Oil Week in partnership with Wood Mackenzie.
It said, “The year 2020 was a brutal year for sub-Saharan Africa. The investment was slashed by 40 per cent and upstream value was down by 20 per cent with pre-FID (Final Investment Decision) projects deferred and downgraded.
Woodside’s Sangomar in Senegal was the only project sanctioned,” it said. “Nigeria hardest hit with capital expenditure cut by 79 per cent but spend on Total’s Mozambique LNG development picked up pace.
Upstream NPV10 falls 20 per cent and value of pre-FID projects nearly halves. Nigeria’s suffers the biggest reduction, but some gains in South Africa.”
The report said crude oil production fell by five per cent as the Organisation of Petroleum Exporting Countries and its allies agreed to cut production to stabilise the oil price.
It said gas production was down four per cent due to declining production in Nigeria and Equatorial Guinea.