Nigeria to account for 23% of Oil & Gas projects in Africa by 2025 — Report
A report by GlobalData, an oil data and analytics company, has said Nigeria may account for 23 percent of all oil and gas projects in Africa in the next four years.
The report said that over 100 oil and gas projects are set to start in the country by 2025 to reduce the country’s reliance on fuel importation to meet the local demands.
A breakdown of the projects, according to the report, shows that petrochemical projects will hold the highest share of new projects in Nigeria through 2025 with 28 projects, followed by 25 expected upstream oil and gas projects, 24 refinery projects, and 23 midstream projects.
The report said some of the notable projects in the upstream sector include the deepwater Bonga North oilfield and the onshore conventional gas Okpokunou cluster development.
Bonga North is currently in its Front End Engineering Design (FEED) stage and is expected to start operations by 2025. Cluster development is at a feasibility stage and is expected to begin operations by 2024.
Projects in Nigeria’s refining sector will also be closely watched as Nigeria is eager to reduce its reliance on fuel imports, revamp its old refineries, and build new ones.
Dangote refinery with a production capacity of 650,000 barrel per day will be a key project, which is expected to start operations in 2022 and become the largest oil refinery in Africa.
Commenting on the development, Oil & Gas Analyst at GlobalData, Teja Pappoppula, said: “Nigeria is betting on several refinery and petrochemicals projects to meet its growing domestic demand and reduce its reliance on imports.
“The projects also have potential to transform Nigeria as an exporter of refined products to neighbouring countries.”
Source: Hallmark News