Nigeria is blessed with numerous sedimentary basins that posses the necessary play elements for hydrocarbon generation and trapping. However, commercial hydrocarbon discoveries have been encountered only in the Niger Delta and the Anambra basins (in the southern part of the country) as the other basins are currently underexplored.
Nigeria’s hydrocarbon reserves are estimated at about 37 billion barrels of oil and 183 trillion standard cubic feet of gas. Current daily production stands at over 2 million barrels of oil and 7 billion standard cubic feet of gas.
Nigeria produces and exports 22 million MT pa of LNG, but over 15% of gas produced is currently flared. A dramatic reduction in flared gas volumes is envisaged as the National Gas Master Plan targeted at utilizing the gas resources for power generation is implemented.
The country has enormous potential to increase its reserves and production but exploration and development activity has been constrained by uncertainties caused by the delay in passing the Petroleum Industry Bill (PIB) into law. The PIB is the result of a wide ranging review of the legal and regulatory framework of the Nigerian petroleum industry. A boom in Exploration and Production activity is anticipated when the bill is eventually passed.
It is noteworthy that over 1,000 fields have been discovered in the Niger Delta region of which less than 20% are producing. This is further evidence of the abundant opportunities that exist in the Nigerian Oil & Gas industry.
Substantial business opportunities exist in the following specific areas:
Prospecting and mining license acquisition for oil and gas development through bid rounds, farm-ins to existing acreage and international oil company divestments.
Gas utilization projects for Power, Fertiliser, Methanol, GTL and other gas based industries
Nigeria has been an oil producing country for over 50 years and is blessed with skilled manpower. Many oil companies have established a presence in Nigeria and used this as a springboard for expansion into the West African sub region.