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Nigeria's oil and gas Industry

Nigeria

Nigeria's oil and gas industry in figures

Oil reserves36.9 billion barrels

Oil production1.63 million bopd

Gas reserves5.5 tcm

Gas production45.9 bcm

Nigeria: African Powerhouse

Nigeria’s oil and gas industry has come a long way since oil was discovered in the Niger Delta in 1956, with the nation now boasting the largest reserves in Africa. The hydrocarbons sector is the major breadwinner for the country in terms of foreign exchange earnings and represents around 80% of the nation’s budget revenues. The OPEC member has often held the position of top crude producer in Africa, although competing countries in the region have recently come neck-to-neck with the West African nation.

The oil and gas sector is dominated by NOC Nigerian National Petroleum Corporation, which regulates and participates in all areas of the industry’s value chain. While the country contains many hydrocarbons-rich basins, the majority of producing assets are crowded around the prolific Niger Delta basin in the south of the country.

The country’s regulatory issues and fiscal uncertainties have long been challenges for international investors looking to participate in the market and have led to significant delays or cancellations of prospective projects. The government has continuously reformed its policies to address these issues and open the market while successfully increasing safety of its assets.

Traditionally an oil producing country, Nigeria has struggled to transition towards gas and beyond fossil fuels as the global industry moves towards reducing carbon emissions and utilising more green energy sources. To address this, the government set up the Gas Master Plan in 2008 that has propelled the country to develop gas infrastructure, including gas processing plants, pipelines and gas-to-power and petrochemical facilities.

The country aims to set itself up both as a top producer and potential refining hub for the region through several large projects, including the 650,000-bopd Dangote Refinery. However, nearby countries have also made efforts to up their refining potential and could potentially take a large share of regional refining.

Interviews, articles and news on Nigeria's energy industry

Local content for Angolan offshore projects TEY_post_Lamia-RAMOU2
Interview
Angola - November 21, 2023

Lamia Ramou, country representative of Red Offshore, talks to The Energy Year about the business rationale behind the creation…

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TotalEnergies spuds new offshore well in Nigeria
NEWS
Nigeria - November 17, 2023

TotalEnergies has spud the first development well on its deepwater Akpo West play offshore Nigeria, Upstream Online reported on…

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Nigeria launches new Nembe oil grade and new terminal
NEWS
Nigeria - November 10, 2023

Nigeria has launched a new grade of crude oil as it ramps up oil and gas production, Reuters reported on Wednesday.

The new…

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Nigeria shortens oil and gas contract negotiations
NEWS
Nigeria - September 26, 2023

Nigeria’s NOC NNPC has signed an agreement with partnered oil majors to cut deadlines on contract negotiations from three…

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BW Offshore sells FPSO to Nigerian entity
NEWS
Nigeria - September 18, 2023

BW Offshore has sold the Nigeria-based Abo FPSO to Nigerian Transport Group for USD 20 million, the international FPSO owner and…

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Eni divests onshore Nigerian energy assets
NEWS
Nigeria - September 05, 2023

Eni has signed an agreement with local energy player Oando for the sale of its Nigerian subsidiary focused on onshore upstream…

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Nigeria prioritises giant FLNG project
NEWS
Nigeria - July 24, 2023

Nigeria’s oil and gas industry has come a long way since oil was discovered in the Niger Delta in 1956, with the nation now boasting the largest reserves in Africa.…

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Oil and gas discovered offshore Nigeria
NEWS
Nigeria - June 14, 2023

Nigeria’s oil and gas industry has come a long way since oil was discovered in the Niger Delta in 1956, with the nation now boasting the largest reserves in Africa.…

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