Nigeria’s Ministry of Petroleum Resources has partnered with African Energy Week (AEW) 2022, taking place in Cape Town from 18-21 October
AEW 2022 extends on the narrative of making energy poverty history by 2030, uniting energy leaders, global financiers, and both public and private sector executives for a week of intense dialogue on Africa’s energy future.
More than 36 billion barrels of crude oil reserves and 200 tcf of natural gas have made Nigeria an attractive market for hydrocarbon exploration and production. However, it has been the dedication and determination of the Ministry of Petroleum Resources that has made the sector so successful. From drafting and implementing progressive legislature such as the Petroleum Industry Bill (PIB) – implemented in 2021 – to driving African gas monetisation through declarations such as the Decade of Gas Initiative, the Ministry, under the guidance of HE chief Timipre Sylva, minister of state for petroleum, has established the country as a top African producer and globally competitive energy market.
The enhancement of domestic oil company participation; the scaling-up of production through refinery developments such as the Dangote Refinery; and the incentivisation of exploration through the launching of a marginal field bid licensing round – whereby 600 companies applied to bid for the 57 marginal oil fields on offer – has further cemented the country’s position as the largest oil producer in sub-Saharan Africa.
As one of Africa’s more mature energy markets, Nigeria boasts the participation of a number of international oil companies (IOC) – including Chevron, TotalEnergies, Shell, ExxonMobil, Schlumberger, Halliburton, Baker Hughes and TechnipFMC. These companies continue to play a pivotal role in Nigeria’s energy success. However, with an increasing number of IOCs divesting from African hydrocarbon assets, Nigeria’s indigenous companies have stepped up, taking on a more proactive role in the sector. Companies such as the Nigerian National Oil Corporation, Oando Plc, Tenoil Petroleum and Energy Services, Frontier Oil Limited, Seplat Petroleum Development Company and First Hydrocarbon Nigeria Company Limited have positioned themselves as key drivers of growth in the sector.
On the gas front, 200 tcf of reserves, coupled with the global move towards cleaner sources of fuel, has motivated the Ministry to place gas at the forefront of the country’s developmental agenda. Backed by the Decade of Gas Initiative, the country is accelerating gas developments, with projects such as the US$2.8bn Ajaokuta-Kaduna-Kano pipeline and the US$10bn Nigeria Liquefied Natural Gas Train 7 further positioning the country as a leading gas market. Nigeria continues to champion Africa’s gas sector, and with the Minister representing a critical figure in the discussion on gas-to-power, gas monetisation, and opportunities for addressing energy poverty, AEW 2022 will be the official platform to participate in African gas dialogue.
Finally, Nigeria has and continues to take a leading role in the African energy space. With the COVID-19 pandemic and energy transition causing many global financiers to reduce fossil fuel spending, the country has managed to remain competitive for investment through the implementation of the PIB. The legislation has ensured an increased level of transparency and accountability across the industry, while offering new fiscal incentives to investors. This, coupled with the fact that the country has significant resources awaiting exploitation, has positioned Nigeria as an attractive destination, serving as a model for other African producing states.
By hosting a Nigerian pavilion, the Ministry will showcase a range of Nigeria-specific investment opportunities; highlight post-PIB prospects; and emphasize the role Nigerian oil and gas plays in Africa, while providing a platform for deal signing and partnerships.
