By Olakunle Oke
Algeria, Libya, and Nigeria have retained their positions as Africa’s leading oil and gas exploration and producing nations, according to the September 2025 Monthly Oil Market Report (MOMR) released by the Organization of Petroleum Exporting Countries (OPEC).
The report revealed that in August 2025, Algeria recorded the highest rig count on the continent with 40 rigs, followed by Libya with 18 and Nigeria with 15. In comparison, the countries had deployed 42, 18, and 13 rigs, respectively, in July. Equatorial Guinea, on the other hand, recorded no rig activity during the period, while Congo and Gabon deployed just one and three rigs, respectively.
Globally, OPEC members posted a combined total of 596 rigs, with Saudi Arabia maintaining the lead at 232 rigs. Outside the cartel, non-OPEC producers recorded 1,268 rigs, bringing the world rig count to 1,864.
Beyond exploration figures, the OPEC report highlighted the need for increased investment across the sector. It noted that global manufacturing investment remained stable, underpinned by significant industrial output growth. Industrial production grew by 5.7 percent year-on-year in July, though slightly lower than the 6.8 percent recorded in June and 5.8 percent in May.
The report also drew attention to merchandise exports, which increased by 7.2 percent in July, up from 5.9 percent in June. Exports to the European Union and Southeast Asia grew strongly, offsetting weaker shipments to the United States, as producers redirected trade flows.
On the global economic front, OPEC pointed to the ongoing US-China tariff dispute. The deadline for fresh US tariff increases on Chinese goods was deferred a second time on August 12, with both sides agreeing to extend their tariff truce by 90 days until November 10. Chinese producers are increasingly targeting markets in Asia, Africa, and Latin America to cushion the impact of US trade restrictions.
OPEC further noted that China’s infrastructure-related fiscal spending remained steady, with the government continuing to finance education, healthcare, and public wages to support household consumption. Road traffic in Chinese cities reportedly rose by 5.2 percentage points in the week ending August 27, signalling robust demand for refined petroleum products.
In terms of specific product outlook, naphtha demand is projected to lead with an increase of 160,000 barrels per day (tb/d) year-on-year in 2025, while NGLs/LPG demand is expected to grow by 40 tb/d. Jet fuel/kerosene demand is forecast to rise by around 70 tb/d. However, gasoil/diesel demand is projected to decline by 40 tb/d and gasoline demand by about 10 tb/d.