Lagos — Nigeria is expected to spend US$59 billion as capital expenditure or capex on upstream oil and gas projects between 2018 and 2025, according to figures from GlobalData, a leading data and analytics company.
The company’s report, ‘H2 2018 Production and Capital Expenditure Outlook for Key Planned Upstream Projects in Sub-Saharan’, showed that Nigeria accounts for more than 34 percent of the proposed capex on planned and announced crude and natural gas projects in sub-Saharan Africa over the period 2018–2025.
Nigeria has 8 planned and 20 announced projects during the forecast period, the report said.
With US$59 billion capex projected for 28 projects, Nigeria leads in sub-Saharan Africa.
Soorya Tejomoortula, Oil and Gas analyst at GlobalData, comments: “Nigeria is investing heavily in new oil and gas projects to further boost its oil and gas production. Majority of production from these projects is for exports, generating significant revenues for the country.”
In total, 67 crude and natural gas projects are expected to start operations in sub-Saharan Africa during the forecast period. Among these, 16 are planned projects with identified development plans, and 51 are early-stage announced projects that are undergoing conceptual studies and that are expected to get approved for development.
GlobalData identified Angola as the second highest country in sub-Saharan Africa with five upcoming projects, which are expected to come online by 2025.
Among operators, Shell Petroleum Development Company of Nigeria Ltd leads with the highest operatorship of four upcoming projects in sub-Saharan Africa during the forecast period – three announced and one planned – all being conventional gas projects.
Sonangol P&P occupies second place with operatorship of three upcoming oil projects.
Key projects in sub-Saharan Africa are expected to contribute about 1.1 million barrels of oil equivalent per day and around 9.4 billion cubic feet per day of global gas production in 2025.
The region is expected to spend proposed capex of US$20.3 billion to bring the planned projects online and US$154.6 billion on key announced projects during the forecast period.
Royal Dutch Shell Plc, Exxon Mobil, Nigerian National Petroleum Corporation, Eni SpA, and Sonangol EP are the key players in terms of highest capex spending on the major planned and announced projects in sub-Saharan Africa.
These companies are expected to collectively spend about US$64 billion on planned and announced projects during the outlook period.