BY CHIKA IZUORA, Lagos
The federal government is targeting to execute as many as 100 oil and gas projects by 2025. This, it said, was in line with its determination to shore up production and increase reserve base,
According to a report by data and analytics company, GlobalData, this will account for 23 per cent of all startup projects in the industry across Africa within the next five years.
Petrochemical projects, the report said, will hold the highest share of new startup projects in Nigeria through 2025, with 28 projects, followed by 25 expected upstream oil and gas projects, 24 refinery projects, and 23 midstream projects.
In the upstream, some of the notable projects include; the deepwater Bonga North oilfield and the onshore conventional gas, Okpokunou Cluster Development. Bonga North is currently in its Front End Engineering Design (FEED) stage and is expected to start operations by 2025. Cluster Development is at a feasibility stage and is expected to begin operations by 2024, GlobalData said.
Projects in Nigeria’s refining sector will also be closely watched as the biggest African economy is eager to reduce its reliance on fuel imports, revamp its old refineries, and build new ones.
The 650,000 barrel per day Lagos refinery is a key project expected to start operations in 2022 and become the largest oil refinery in Africa.
“Nigeria is betting on several refinery and petrochemicals projects to meet its growing domestic demand and reduce its reliance on imports,’’the report read in part.
also have potential to transform Nigeria as an exporter of refined products to neighboring countries,” Oil & Gas analyst at GlobalData, Teja Pappoppula, said.
Nigeria, Africa’s largest crude oil producer and exporter, expects to end its crude-for-fuel swap deals by 2023 when its refining capacity is set to increase with state refineries revamped and a new refinery built, group managing director of the Nigerian National Petroleum Corporation (NNPC),Mele Kyari, said in October last year. Nigerian refineries, which are in need of refurbishment, will be fully revamped and running by 2023, he added.