Nigeria to lead major upstream oil projects in Africa by 2027

Nigeria will dominate the upcoming projects’ landscape in Africa, accounting for 23 per cent of the total projects expected to begin operations by 2027, GlobalData has revealed. This was contained in the report it posted on its website yesterday. The report showed major upstream oil and gas projects coming up in Nigeria between 2023 and 2027. The report was titled: Africa Oil and Gas Projects Analytics and Forecast by Project Type, Sector, Countries, Development Stage, Capacity and Cost, 2023- 2027. GlobalData is an organisation that provides analytics solutions such as advisory and execution and data science services for on-site, as-a-service onshore and offshore. According to the report, Africa is expected to witness 492 projects, starting operations between 2023 and 2027.

It added that of these, midstream should be the highest with 162; upstream projects amount to 139, refinery, 77 and petrochemicals 144. It explained that in the midstream sector, the trunk/transmission pipelines segment alone constitutes 34 per cent of all projects, followed by oil storage, 28 per cent; and gas processing, 22 per cent. It added that refinery and petrochemical projects constitute 39 per cent of all upcoming oil and gas projects in Africa between 2023 and 2027. It further said that new build projects dominate the upcoming projects’ landscape in Africa, constituting 82 per cent of the total across the value chain. According to it, the share of new build projects, is especially high in the midstream sector, with 38 per cent of the total new build projects with expansion projects leading in the upstream (fields) sector. It explained that around 40 per cent of projects in Africa are in the construction and commissioning stages. It further said that these are more likely to commence operations during the outlook period. It added that another 40 per cent of projects are in the planning stages, while the rest have either been approved or are awaiting approval. Global data stated: “In the Nigerian oil and gas sector, fields and refineries are set to lead upcoming project starts, accounting for about 57% of the total project starts between 2023 and 2027, “34 fields and 32 refinery projects are expected to start operations in Nigeria during the period 2023- 2027. The midstream sector is also expected to witness substantial project starts, with the oil storage and gas processing segments leading with 12 and 11 projects, respectively. “Among the upcoming field projects in Nigeria, OML 13 is a key field project during the 2023-2027 period, with a total production capacity of 184,333 barrels of oil equivalent per day (boed) and a project cost of $3.2 billion. Among refineries, the Lagos I refinery is a key project with a cost of $16.1 billion and a capacity of 650 million barrels per day (mbd).” Himani Pant Pandey, Oil and Gas Analyst at GlobalData, said, “Being one of the leading exporters of crude oil in the world, Nigeria continues to focus on the development of fields to sustain future oil and gas production. “There is also a focus on the development of refineries and oil storage projects in Nigeria in order to reduce imports of refined products and boost exports.”