According to a report from GlobalData, Nigeria is set to dominate the upcoming oil and gas projects in Africa between 2023 and 2027. With 89 assets currently under construction, Nigeria will be home to 34 fields and 32 refinery projects expected to begin operations during this period.
The Dangote refinery in Lagos and Oil Mining Lease (OML) 13 in Akwa Ibom is expected to contribute to Nigeria’s share of the projects. OML 13, a key field project during the 2023-2027 period, has a production capacity of 184,333 barrels of oil equivalent per day (bored) and a project cost of $3.2 billion, while the Lagos I refinery has a capacity of 650 million barrels per day (mbd) and a cost of $16.1 billion.
Nigeria is one of the world’s leading exporters of crude oil, and the development of fields is critical to sustaining future oil and gas production. In addition, there is a focus on developing refineries and oil storage projects in Nigeria to reduce imports of refined products and boost exports.
The report states that 492 oil and gas projects expected in Africa comprise 139 upstream, and 162 midstream, the highest number of all the projects. The refinery will total 77, with petrochemicals comprising 144 of the projects.
According to the report, new build projects dominate the upcoming projects’ landscape in Africa, constituting 82 percent of the total across the value chain.
The midstream sector is expected to witness substantial project starts, with the trunk/transmission pipelines segment constituting 34 percent of all projects, followed by oil storage and gas processing with 28 per cent and 22 percent, respectively.
Refinery and petrochemical projects, on the other hand, constitute 39 percent of all upcoming oil and gas projects in Africa between 2023 and 2027.
According to the report, around 40 percent of projects in Africa are in the construction and commissioning stages, while another 40 percent are in the planning stages, and the rest have either been approved or are awaiting approval.
Nigeria’s National Petroleum Company Limited (NNPC) and Natural Oilfield Services Limited (NOSL) are jointly handling exploration work on OML 13, a large block in Akwa Ibom State that is reported to hold over 900 million barrels of oil and 5 trillion cubic (tcf) of gas.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has begun the process of concluding a mini-bid round for seven deep offshore open blocks that will likely boost Nigeria’s oil and gas reserves.
Himani Pandey, an oil and gas analyst at GlobalData, notes that Nigeria remains critical to oil and gas exploration on the continent.
“Being one of the leading exporters of crude oil in the world, Nigeria continues to focus on the development of fields to sustain future oil and gas production,” Pandey said. “There is also a focus on the development of refineries and oil storage projects in Nigeria in order to reduce imports of refined products and boost exports,” he added.
Source:
https://www.marketscreener.com/quote/stock/GLOBALDATA-PLC-13101755/news/With-89-Expected-Assets-Nigeria-to-Top-Africa-s-Upcoming-Oil-Gas-Projects-By-2027-43458050/