OUR GREAT MINDS

    by Tina Olivero

    Nigeria: Highest capex on crude natural gas projects

    In Sub-Saharan Africa, a total of 67 key crude oil and natural gas projects are expected to start operations by 2025. Nigeria leads with the highest number of planned projects, followed by Mozambique. In terms of announced projects, Nigeria once again leads, followed by Angola and Uganda. Key projects in Sub-Saharan Africa are expected to contribute up to 2.1 million barrels of oil equivalent per day to global crude and condensate production and more than 9.4 billion cubic feet per day to global gas production in 2025.

    Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData, a leading data and analytics company.

    The company’s report: ‘H2 2018 Production and Capital Expenditure Outlook for Key Planned Upstream Projects in Sub-Saharan Africa – Royal Dutch Shell Dominates Production and Capex Outlook’ reveals that Nigeria leads in the sub-Saharan Africa with a capex of US$59bn on 28 planned and announced projects during the 2018–2025 forecast period. Of the total count, 8 are planned and 20 are announced projects.

    Soorya Tejomoortula, Oil and Gas Analyst at GlobalData, comments: “Nigeria is investing heavily in new oil and gas projects to further boost its oil and gas production. Majority of production from these projects is for exports, generating significant revenues for the country.”

    In total, 67 crude and natural gas projects are expected to start operations in the sub-Saharan Africa during the forecast period. Among these, 16 are planned projects with identified development plans, and 51 are early-stage announced projects that are undergoing conceptual studies and that are expected to get approved for development.

    Nigeria Capex

    GlobalData identifies Angola as the second highest country in the sub-Saharan Africa with five upcoming projects, which are expected to come online by 2025.

    Among operators, Shell Petroleum Development Company of Nigeria Ltd leads with the highest operatorship of four upcoming projects in the sub-Saharan Africa during the forecast period – three announced and one planned – all being conventional gas projects. Sonangol P&P occupies second place with operatorship of three upcoming oil projects.

    Key projects in the sub-Saharan Africa are expected to contribute about 1.1 million barrels of oil equivalent per day and around 9.4 billion cubic feet per day of global gas production in 2025. The region is expected to spend proposed capex of US$20.3bn to bring the planned projects online and US$154.6bn on key announced projects during the forecast period.

    Royal Dutch Shell Plc, Exxon Mobil, Nigerian National Petroleum Corporation, Eni SpA, and Sonangol EP are the key players in terms of highest capex spending on the major planned and announced projects in sub-Saharan Africa. These companies are expected to collectively spend about US$64bn on planned and announced projects during the outlook period.

    To gain access to our latest press releases: GlobalData Media Centre

    About GlobalData

    4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.

    Source & Graphics: provided by Soorya Tejomoortula, Oil and Gas Analyst at GlobalData

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