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posted 6 years ago
The Group Managing Director of the Nigerian National Petroleum
Corporation (NNPC), Dr. Maikanti Baru has called on investors to utilize the
over $48billion investment opportunities available in the upcoming capital
projects within Nigeria’s Oil and Gas Industry.
Dr. Baru made
this call while speaking at a Panel Session on the topic “Insights on Future
Exploration Hotspots: Opportunities for Africa’s Oil & Gas Industry” under
the sub-theme “The New Frontier for Africa’s Oil & Gas” at the 2019
International Petroleum Week conference which began in London, Wednesday 27th
February, 2019.
Reeling out the
numerous potentials of Africa’s Oil and Gas Industry, the NNPC GMD said the
continent’s energy outlook was looking positive amid difficult operating and
economic headwinds. He 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. Baru 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, Dr. Baru 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. Organised annually by the
London-based Energy Institute, the IP Week is a global oil and gas platform
where executives and other energy professionals discuss the big issues
affecting the sector.
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