Nigeria and other African countries are becoming a major investment magnet as new discoveries position the continent as a guarantor of energy safety to emerging Asian countries, a report by the Journal of Petroleum Technology (JPT) has indicated.
Quoting secondary resources, it said that Africa accounted for 8.8 per cent of the planet’s oil production in 2019, whereas Nigeria had been Africa’s top oil producer at 2.2 per cent; Algeria was next at 1.6 per cent; afterwards, Angola, 1.5 per cent while Libya’s production was 1.3 per cent.
The report published recently indicated that Africa contributed 6 per cent to the planet’s natural gas generation in 2019, with Algeria ranking as the continent’s leading gas producer at a global share of 2.2 per cent followed by Egypt, 1.6 per cent, and Nigeria, 1.2 per cent.
“Keen to grow its reserve base, Nigeria is currently preparing a fresh Petroleum Industry Bill (PIB), and the government has provisionally awarded tenders to develop 57 oil fields, with $500 million in signature bonuses at stake.
“Nigeria is targeting marginal fields for the first time in 20 years as the nation appears not only to boost its revenues but also to increase local involvement in the oil industry from indigenous companies, which typically work these areas that are marginal.
“Involving more local participation to produce Nigeria’s oil riches may also help to tamp down the sabotage, theft, and security problems that Shell blames to its drop in its Nigerian manufacturing from 266,000 BOED in 2019 to 223,000 in 2020, according to its yearly report,” the report stressed.
It said that although Shell is scaling down its Nigerian oil assets, it still continues to concentrate on gas and heavy water, including that in May 2020, Shell Gas announced it had attained a last investment decision to add a seventh train to Nigeria’s Bonny Island centre, adding 8 mtpa of future natural gas (LNG) capacity.
In Angola, it said that Last month, Angola’s National Oil, Gas, and Biofuel’s Agency kicked off a set of electronic and on-site roadshows and specialized demonstrations to promote blocks offered in the country’s 2020 ongoing bid round.
To attract investors, the report stated that Nigeria and Angola are having to navigate not just the pandemic’s effect on financial markets, but also stiff competition from frontier regions like Guyana and Suriname which discuss West Africa’s fertile geology and therefore are capturing current headlines.
Besides upping its investment in Nigeria LNG, it noticed that Shell can also be playing a part in the re-emergence of Egypt as a regional LNG provider in the eastern Mediterranean.
“BP’s statistical review ranks Nigeria as Africa’s top LNG producer at 28.8 Bcm in 2019; Algeria follows 16.6 Bcm; Angola, 5.8 Bcm; and Egypt in 4.5 Bcm.