JOHANNESBURG/South Africa: Nigeria, Africa’s largest oil producer, is gearing up to showcase its burgeoning gas sector at the upcoming African Energy Week (AEW) conference, slated for November. The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, is set to highlight the vast opportunities for foreign investment in Nigeria’s gas value chain during the event.
With ambitious plans to ramp up production to 5.5 billion cubic feet per day by 2030, Nigeria is actively seeking project developers, technology providers, and financiers to tap into its immense gas reserves, estimated at 200 trillion cubic feet. AEW 2024 aims to facilitate this engagement, offering insights into ongoing projects, planned developments, and strategies for bolstering regional energy security through Nigeria’s abundant natural gas resources.
Recognized as the premier platform for energy stakeholders, AEW has become the official nexus for signing major deals in African energy. Interested parties can find more information about the event at www.AECWeek.com.
Significant strides have already been made in Nigeria towards meeting its 2030 production targets. Supermajor TotalEnergies commenced production at the Akpo West field in February 2024, adding 14,000 barrels of condensate per day and anticipating an additional four million cubic meters of gas production by 2028. Additionally, a shareholder’s agreement was inked for the development of a 1.8 billion tons per annum Floating Liquefied Natural Gas (FLNG) project, marking Nigeria’s first foray into floating facilities.
Nigeria’s upstream sector is poised for expansion, with plans for a licensing round in 2024 aimed at attracting more foreign investment. Major players like Shell and Chevron have already committed substantial investments in Nigerian gas projects, with Shell pledging $1 billion over the next decade and Chevron focusing on seismic acquisition in deepwater blocks. AEW 2024 will showcase available blocks, fostering connections between potential investors and exploration and production (E&P) entities.
In tandem with efforts to attract upstream investments, the Nigerian government is rolling out incentives to entice oil and gas investors, including revising signature bonuses, streamlining licensing processes, and reducing contract costs. The implementation of the Petroleum Industry Act in 2021 has further bolstered the investment landscape, restoring confidence among investors and laying the groundwork for long-term commitments in Nigeria’s petroleum sector.
Moreover, Nigeria is actively bolstering its downstream industry to position itself as a regional hub for petroleum products. Key infrastructure projects, such as the Ajaokuta-Kaduna-Kano pipeline and the Nigeria-Morocco pipeline, are underway to enhance regional connectivity and facilitate the efficient distribution of gas resources.
As Nigeria progresses towards monetizing its gas reserves through LNG and LPG infrastructure, AEW 2024 stands poised to connect potential investors with lucrative project development opportunities, further solidifying Nigeria’s status as a key player in Africa’s energy landscape.
