Investment in the Nigerian upstream oil and gas sector declined by 13% annually, during 2015-2017, due to the downturn in the crude oil price. The decline in spending was largest in 2016, driven by severe disruptions on major oilfields. Oil and condensate production recovered in 2017 and is estimated to remain at the level of 2 million bbl/d in 2018. The drilling activity in the country is ramping up and is expected to continue on account of current and upcoming projects. However, production is not expected to ramp up in the coming years, as the new projects that are expected to come online may be able to offset the declining volume from brownfields, keeping the oil supply stable, provided the political situation does not exacerbate, leading to renewed supply disruption.
- Development of ultra-deepwater Egina oilfield by Total is one of the key projects, which started production in the first week of 2019. The Egina field may significantly boost the production and cash flow, in 2019, and continue onward.
- Further, NNPC (Nigeria National Petroleum Corporation) has signed an agreement for seven Critical Gas Development Projects, to deliver around 3.4 bcf of gas per day, in order to bridge the medium-term supply gap, by 2020, on an accelerated basis.
- The country is further seeking self-reliance in terms of fuel supply and planning to almost double its production and reach 4 MMbopd by 2025.
Scope of the Report
The Nigeria oil & gas upstream market report include:
Key Market Trends
Attack on Oil & Gas Infrastructure
- Oil and gas production had been hampered in Nigeria in the past few years, due to the attack on oil and gas infrastructure by militants.
- In 2016, Shell, in Nigeria, witnessed roughly 700,000 barrels per day being deferred, due to pipeline vandalism. This resulted in costing the country revenue of about USD 13.3 billion.
- During the low international crude oil price scenario, in the past, coupled with the recession in the country, the fall in crude oil production, due to pipeline vandalism, was a serious problem and resulted in lowering the confidence of the investors from investing in new projects.
- Further, the US Department of Energy (DOE) issued a final rule to accelerate the approval process of small-scale export of natural gas, including LNG. The initiative aims to accelerate the DOE’s processing of small-scale export applications and reduce administrative burdens for the small-scale natural gas export market. The rule will enable LNG projects with an estimated export capacity of one metric ton per annum or under, to avoid the current extensive permitting procedure.
- As a result, increasing investment in natural gas infrastructure including pipelines and LNG facilities to meet the growing demand for the same is expected to translate into huge investment in the coming years.
Nigerian oil & gas midstream market remains fragmented with key players such as Nigerian National Petroleum Corporation, Royal Dutch Shell PLC, Chevron Corporation, Exxon Mobil Corporation, and Total SA.
1.1 Scope of Study
1.2 Market Definition
1.3 Study Assumptions
1.4 Study Deliverables
1.5 Research Phases
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.2 Oil and Gas Reserves, 2010-2017
4.3 Upstream Spending in USD billion, by Category, 2017-2024
4.4 Crude Oil Production in billion barrels per day, till 2024
4.5 Natural Gas Production in billion cubic feet per day, till 2024
4.6 Recent Trends and Developments
4.7 Government Policies and Regulations
4.8 Market Dynamics
4.9 PESTLE Analysis
5. MARKET SEGMENTATION
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Nigerian National Petroleum Corporation
6.3.2 Royal Dutch Shell PLC
6.3.3 Chevron Corporation
6.3.4 Exxon Mobil Corporation
6.3.5 Total SA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS