Nigeria: Still a Strategic Energy Province

Nigeria’s Oil Industry

1. Africa’s largest oil producer – has capacity for 2.4mbpd but producing 1.4mbpd
2. 288 upstream concessions with 145 operational
3. 37 billion proven oil reserves
4. 206 TFC of proven gas reserves (mostly unutilised/undeveloped)

In 2021, the country awarded over 50 Marginal Fields to indigenous companies

IOCs divestments have been on for the past decade and continuing

The divestments have created several unicorns in Nigeria’s oil and gas industry

1. Multinationals have divested over 35 producing assets between 2010 and 2024
2. Exit of some multinationals provides unrivalled opportunities for indigenous players
3. All of the assets went to local companies with some in alliance with foreign ones
4. Lack of financial depth of some indigenous companies also boon to investors that missed the divestments
5. More serene operating environment expected on the back of creation of Host Community Development Trusts.