Africa’s Leading Producer
Producing 2.1 million barrels per day (bpd), Nigeria serves as Africa’s largest oil and gas producer, although production is currently limited to 1.4 million bpd by OPEC-led quotas. In a bid to develop untapped resources and
monetize existing resources, 2020 has seen the launch of a marginal field bid round and construction on the $2.8 billion Ajaokuta-Kaduna-Kano gas pipeline project, with a revised Petroleum Industry Bill and heightened M&A activity also expected this year.
Planned Liquid Fuels Projects
Exploration activities in Nigeria have largely targeted deepwater and ultra deepwater offshore fields, while smaller fields, such as the offshore Gbetiokun and onshore Qua Iboe fields have provided marginal increases to crude oil production in the past year, partially offsetting production declines at Nigeria’s more mature fields.
Refining and Refined Oil Products
Nigeria relies on imports of petroleum products to meet domestic demand. Its three major crude oil refineries continuously operate under capacity due to operational failures, fires and sabotage, mainly on the crude oil pipelines feeding the refineries. While all three refineries are currently operated by the NNPC, the government is seeking a private sector company to manage operations after rehabilitation is completed.