West African offshore to see continued growth

March 12, 2003
Despite exploration declines over the last few years, West Africa's offshore will see continued growth. Dr. Andrew Latham, a principal consultant at Wood Mackenzie, told participants at the Offshore West Africa conference in Namibia, "The end of 2003 and beyond marks the onset of a major growth phase for West Africa."

Despite exploration declines over the last few years, West Africa's offshore will see continued growth.

Dr. Andrew Latham, a principal consultant at Wood Mackenzie, told participants at the Offshore West Africa conference in Namibia, "The end of 2003 and beyond marks the onset of a major growth phase for West Africa."

The primary reasons for declining production are the long project lead-time and the limited gas markets, Latham said. But the biggest thing restricting production is the quotas imposed on Nigeria as a result of the company's membership in OPEC. Nigeria produces 2.5 MMb/d of oil at present, but could easily produce 3 MMb/d, Latham said.

Recent production for Africa's offshore has only offset decline in the last 7 to 8 years, Latham said, but the continent's western coast has tremendous potential. "West Africa is poised now for a real quantum leap in oil production," he said.

03/12/03