Nigeria and other African oil-producing countries will lose an estimated N1tn in oil export revenues over the next 20 years as prices are forecast to remain low, a new report by PricewaterhouseCoopers has said.
PwC, in its Africa Oil and Gas Review 2020, said oil production in Africa saw a decline of 10 per cent in 2020 from 8.3 million barrels per day, driven by the COVID-19 demand slowdown for exports. It said the continent’s proven oil reserves remained static at 125.7 billion barrels from the end of 2019 to 2020.
Oil exports saw a decline of more than 10 per cent in 2020, with the top five African crude oil-exporting countries experiencing a total decline of 11 per cent from 5.3 million barrels in 2019 to 4.2 million barrels in 2020, according to the report.
“Nigeria, Algeria, Angola, Libya and Egypt could each be facing $20bn or more in lost export revenue in 2020,” the PwC said. It said Africa’s proven gas reserves remained at 527 trillion cubic feet between 2019 and 2020, with production declining by nine per cent in 2020 due to COVID-19 from 238 billion cubic feet in 2019.