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Business News of Thursday, 12 May 2022

Source: punchng.com

Oil sector to see 109 projects in four years – Report

Oil refinery Oil refinery

Nigeria’s already dwindling oil production will finally get a boost, as 109 oil and gas projects will commence operations in the sector in the next four years.

A report by GlobalData, a leading data and analytics company, said the projects would account for more than 24 per cent of the predicted total projects starting within the period.

The report, ‘Africa Oil and Gas Projects Analytics and Forecast by Project Type, Sector, Countries, Development Stage, Capacity and Cost, 2022-2026’, said that out of the 109 projects, petrochemicals would account for 14; upstream fields, 26; midstream, 31; and downstream, 38.

Teja Pappoppula, Oil & Gas Analyst at GlobalData, commented: “Nigeria is mainly investing in oil & gas production, storage and refinery projects over the next five years. These upcoming projects would boost Nigeria’s economy and help the country to transform from an importer to an exporter of refined products, especially to neighbouring countries.”

Among the upcoming refinery projects in Nigeria, Lagos I is a key project with a total capacity of 650,000 barrels per day (mbd) expected to start operations in 2022.

It is the largest individual refinery in Africa, and it is currently in the construction stage.

“Midstream projects account for around 28% of all oil and gas projects in Nigeria by 2026. Gas processing projects constitute the bulk of upcoming midstream projects with ANOH-Seplat, ANOH-SPDC and Brass being the key projects with a capacity of 300 million cubic feet per day (mmcfd) each.

The country is also making significant investments in natural gas processing, pipelines and liquefaction projects to reduce its dependence on oil, which currently drives the majority of revenue in the country,” he added.

Low investments in new and existing projects have been identified as one of the key factors leading to the dwindling oil output in Nigeria.