Nigeria to Attract $48 Billion Oil Investment within the Next Seven Years
The Nigerian National Petroleum Corporation (NNPC) said Nigeria will attract $48.04 billion or 24.8 per cent of an estimated $194 billion total oil and gas investment slated to be made in Africa within the next seven years.
Angola, which is the Nigeria’s closest rival, will make 11.3 per cent of the total expected. However, Mozambique, an emerging jurisdiction, will have as much as 23.8 per cent of the $194 billion investment. The NNPC stated that within this investment window, Nigeria would account for 20 out of the 93 projects to be funded across the continent’s oil and gas industry.
The Group Managing Director of NNPC, Dr. Maikanti Baru made the announcement during a session at the 2019 edition of the International Petroleum Week in London, which is organised by the London-based Energy Institute, and attracts top executives of global oil and gas firms, as well as other energy professionals to discuss issues affecting the hydrocarbon sector.
Baru called on investors across the globe to take advantage of the $48.04 billion expected investment opportunities. He said Africa’s energy outlook was looking positive amid difficult operating and economic headwinds, and explained that over 41 billion barrels of oil and 319 trillion cubic feet (tcf) of gas were yet to be discovered in Sub-Saharan Africa alone.
The Managing Director revealed that between 2008 and 2017, exploratory success in the sub-region was at least 45 percent, adding that there has been a surge in the capital expenditure (CAPEX) across Africa’s oil and gas sector, with close to $194 billion earmarked to be spent between 2018 and 2025 on 93 upcoming oil and gas fields in Africa.
According to Baru, “out of this $194 billion, Nigeria accounts for $48.04 billion (over 24.8 percent) of the total CAPEX coming into upcoming projects in Africa over 2018 to 2025, with over 20 planned projects”.
He noted that 23.8 per cent of the CAPEX in Africa would be spent in Mozambique; 11.3 per cent in Angola while about 29.2 per cent would be spent in Tanzania, Senegal, Mauritania, Uganda, Egypt, Algeria and Kenya combined.