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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

Nigeria launches bid round for 12 oil and gas blocks
NEWS
Nigeria - May 09, 2024

Nigeria has opened a bid round covering 12 onshore and deepwater oil and gas blocks in its prolific Niger Delta Basin.

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Nigeria to introduce crude trading on commodities exchange
NEWS
Nigeria - April 19, 2024

Up to 20% of Nigeria's crude will be traded on the Lagos commodities exchange under a new government plan.

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Africa Energy Bank on track for $5-billion launch this year
NEWS
Multinational - March 27, 2024

The Africa Energy Bank, a fund created to address gaps in oil and gas project finance in Africa, is on track to begin operations…

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Nigeria gives companies until 2028 to adopt eco reporting
NEWS
Nigeria - March 22, 2024

Nigerian companies will face penalties starting in 2028 if they fail to report eco-friendly and climate impact practices.

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Savannah buys out partners in Nigeria field for $61.5 million
NEWS
Nigeria - March 19, 2024

Savannah Energy has bought out the 49% of shares held by partners in Nigeria's Stubb Creek oil and gasfield for USD 61.5 million.

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Nigeria limits sulphur content of refined oil products
NEWS
Nigeria - March 15, 2024

Refined oil products used in Nigeria are now limited to a maximum sulphur content of 200 ppm.

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