Yemisi Izuora
The Nigerian National Petroleum Company Ltd. (NNPCL) will be speaking on ongoing major fiscal reforms as it joins the African Energy Week (AEW): Invest in African Energy conference as a Diamond Sponsor.
The NNPCL’s return to the conference – which convenes from November 4-8 in Cape Town, South Africa, affirms its commitment to attracting newfound investment into Nigeria’s hydrocarbon market, as the country targets $10 billion in oil and gas expenditure within the next 12-18 months.
Under Nigeria’s Petroleum Industry Act (PIA) implemented in 2021 and providing the legal, governance, regulatory and fiscal framework for the country’s oil and gas industry NNPC Ltd. is prioritizing exploration and the domestic uptake of locally-produced oil and gas.
The company is seeking fresh partnerships with IOCs and independents while promoting investment in both on- and offshore basins, and AEW: Invest in African Energy 2024 will help drive these objectives.
The Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy.
In the oil sector, NNPCL is striving towards near-term development with the aim of meeting domestic demand. Despite representing one of the biggest oil producers in Africa with output measuring close to 1.3 million barrels per day (bpd). Nigeria has long-faced cost and supply challenges.
Historically, the majority of Nigerian crude has been exported, with NNPC Ltd. importing refined petroleum to meet in-country demand. However, new developments promise to reverse this trend, with NNPCL spearheading exploration and enhanced feedstock for the country’s new 650,000 bpd Dangote refinery.
In partnership with energy major Chevron, NNPCL made a near-field discovery in the Niger Delta in September 2024.
The discovery, made at Oil Mining Lease (OML) 49, is situated in the shallow offshore and is set to breathe new life into the maturing Meji field.
The discovery affirms the potential for incremental production in Nigeria. Beyond existing assets, NNPCL continues to explore Nigeria’s frontier basins. The company is actively drilling in the northern province of the country, targeting deposits in the Kolmani River II Well on the Upper Benue Trough in the Gongola Basin.
Concurrently, the company is exploring the country’s inland basins, with drilling campaigns underway at the Wadi-2 Appraisal-Exploratory Well in Oil Petroleum License (OPL) 732 and at the Ebenyi-1 Exploration Well in OPL 826. Post-drilling well testing began in July 2024.
Meanwhile, NNPCL is positioning natural gas a key driver of economic growth in Nigeria. In line with national diversification efforts, the company is pursuing increased investment across the gas value chain while leveraging domestic resources to support clean energy adoption across the economy.
In October 2024, NNPCL announced plans to develop a 100 million standard cubic feet per day (mscf/d) natural gas distribution facility in Kogi State in the North Central Region.
The facility will supply various LNG and CNG facilities in the Ajaokuta area with gas, supporting gas-to-industry adoption in Nigeria.
Additionally, NNPCL signed an agreement to supply energy company A4E Energy with 5 mscf/d over a period of 10 years.
Gas will be used as feedstock for A4E Energy’s CNG facility and CNG dispensing stations.
Under Nigeria’s Decade of Gas initiative aimed at leveraging private sector investment to bolster gas development across the country NNPCL is working closely with international partners to scale-up LNG capacity in the country.
In collaboration with UTM Offshore, NNPCL is developing the country’s first-ever FLNG facility.
The 2.8 million ton per annum facility will produce LNG, LPG and condensate from flared gas captured at OML 104.
The project obtained a license in September 2024, with production set to be start in 2029.
The NNPCL and Golar LNG are also deploying an FLNG vessel in the shallow waters of the Niger Delta, targeting 400-500 mscf/d.
“Nigeria has the potential to become one of the world’s biggest oil and gas producers, yet lack of investment continues to hamper development. Through its multi-faceted development approach, NNPCL is making strides towards enhancing domestic supply, bringing new fields online and driving long-term and sustainable growth in Nigeria,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.
At the Invest in African Energy 2024, NNPCL will engage with a suite of foreign investors and project developers, promoting opportunities in Nigeria’s energy market.
An Invest in Nigeria Energies country spotlight will take place during the event, offering in-depth insight into the state of play of the country’s oil and gas opportunities