Nigeria to lead African upstream projects

April 15, 2021
Nigeria is expected to have 100 oil and gas projects start operations across the value chain between 2021 and 2025, according to GlobalData.

Offshore staff

LONDON Nigeria is expected to have 100 oil and gas projects start operations across the value chain between 2021 and 2025. This accounts for 23% of the total project starts in Africa.

Newbuild projects account for around 90% of the total projects starting operations across the value chain, according to GlobalData.

The consultant’s report, ‘Africa Oil and Gas Projects Outlook to 2025 - Development Stage, Capacity, Capex and Contractor Details of All New Build and Expansion Projects,’ reveals that of the 100 projects petrochemicals will have the highest count with 28 projects, followed by upstream (25), refinery (24) and midstream (23).

Teja Pappoppula, Oil & Gas Analyst at GlobalData, said: “Nigeria is betting on several refinery and petrochemicals projects to meet its growing domestic demand and reduce its reliance on imports. The projects also have potential to transform Nigeria as an exporter of refined products to neighboring countries.”

In refineries, the 650,000 b/d Lagos I is a key project expected to start operations in 2022. Once the project begins operation, it could become the largest oil refinery in Africa. Among the upcoming petrochemical projects in Nigeria by 2025, Brass Fertilizer & Petrochemical Company Brass Methanol Plant is a key project with a capacity of 1.70 million metric tons per annum (mtpa). The newbuild plant has already received approval and is expected to start operations by 2025.

In the upstream (fields) segment, the company expects 25 projects to start operations in Nigeria during 2021 to 2025. Some of the notable projects include Bonga North and Okpokunou Cluster Development. Bonga North is a deepwater conventional oil field presently in FEED stage and is expected to start operations by 2025. The Cluster Development is an onshore conventional gas field presently in feasibility stage and is expected to start operations by 2024.

Midstream projects account for around 23% of all oil and gas projects in Nigeria by 2025. Gas processing projects account for around 39%. ANOH-Seplat is one of the key projects with a capacity of 300 MMcf/d. The project is in currently in the construction stage and is expected to start operations in 2022.

In LNG, the $7-billion Nigeria Expansion is a key liquefaction project with a capacity of 7.60 mtpa. It has been approved and is expected to start operations in 2025.

04/15/2021

Courtesy SBM Offshore / GustoMSC via aukevisser.nl
Courtesy Sintana Energy's Corporate Presentation May 2024