With the presidential election concluded and President Muhammadu Buhari re-elected for another four year term, the Nigerian National Petroleum Corporation (NNPC) has called on investors to take advantage of the $48 billion investment opportunities in the oil and gas industry in the country.
It is believed that with the re-election of President Muhammadu Buhari, government policies in oil and gas industry would be consistent for investors to take advantage of.
Reeling out the numerous potentials of Africa’s Oil and Gas Industry, Maikanti Baru, group managing director of NNPC at 2019 International Petroleum Week conference which began in London on Wednesday said the continent’s energy outlook was looking positive amid difficult operating and economic headwinds.
Maikanti Baru emphasised the need for investors to utilize the over $48billion investment opportunities available in the upcoming capital projects within Nigeria’s Oil and Gas Industry.
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The NNPC boss who spoke on “Opportunities for Africa’s Oil & Gas Industry” under the sub-theme “The New Frontier for Africa’s Oil & Gas”, explained that over 41billion barrels of oil and 319trillion cubic feet of gas were yet to be discovered in sub-Saharan Africa alone, while between 2008 and 2017, exploratory success in the sub-region was at least 45%.
According to him, there has been a surge in the capital expenditure (CAPEX) across Africa’s Oil and Gas Sector, with close to $194billion earmarked to be spent between 2018 and 2025 on 93 upcoming oil and gas fields in Africa.
“Out of this $194billion, Nigeria accounts for $48.04 billion (over 24.8%) of the total CAPEX coming into upcoming projects in Africa over 2018 to 2025, with over 20 planned projects,” Baru stated.
He observed that 23.8% of the CAPEX in Africa would be spent in Mozambique, 11.3% in Angola while about 29.2% would be spent in Tanzania, Senegal, Mauritania, Uganda, Egypt, Algeria and Kenya combined.
He informed that with over 14 oil producing countries, Africa currently accounts for 7.5% (126.5Billion barrels of crude oil) and 7.1% (488 Tcf of gas) of global proven oil and gas reserves respectively.
He maintained that in terms of production, the continent accounted for 8.7% (8.1Million barrels per day) of global oil production and 6.1% (21.8bscfd) of global gas production, even as it consumed 4Million barrels of oil per day and 13.7bscfd of gas (equivalent to 4.1% and 3.9% of global oil and consumption respectively).
Shedding more light on investment opportunities in Nigeria, he observed that the NNPC’s Frontier Exploration Service was currently drilling the Kolmani River-2 Well where desktop estimates revealed that about 400Bcf of gas is expected to be encountered.
He stressed that several new frontiers for exploration opportunities abound in Nigeria, even as offshore discoveries in the country have mostly been limited to between 1,000 – 1,500m of water depth.
“Beyond these water depths, the new frontiers of ultra-deep waters need to be tested. And that is where we need the investors,” Baru told the audience.
He stated that unless issues related to Legal and Regulatory uncertainties, lack of infrastructure, skilled manpower shortage, transparency and accountability are addressed amongst key stakeholders, the continent’s Oil and Gas Industry may not achieve its full potentials.
