Nigeria: Over $50bn oil industry projects to be developed in 5 years
Lagos – The Nigerian oil and gas industry boasts opportunities valued at over $50 billion and projected to be developed within five years. These were showcased by international and indigenous companies at the 2023 Nigerian Oil and Gas Opportunity Fair, NOGOF, which held at the Nigerian Content Development and Monitoring Board, NCDMB, headquarters in Yenagoa, Bayelsa State.
Speaking at the end of the two-day fair which drew 1,086 registered participants, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote, said the quantum of opportunities covered different segments of the industry and required proper collation as they run into billions of dollars.
He said: “Some of the opportunities are from the indigenous players, some by NNPC Ltd and the international oil companies. If you put them together, in the next 5 years, they would exceed $50 billion that would be invested in the Nigerian oil and gas industry”.
Listing a few of the opportunities and their values, he stated: “Bonga Southwest which Shell talked about is almost about $7 billion to $8 billion. Shell also talked about Bonga North which they might take final investment decisions (FID) early next year and (it) is almost $3 billion.”
On steps to be taken by service Kcyoamripanies and other players wishing to participate effectively in the projects and opportunities, Wabote charged such firms to prepare themselves adequately, restating that the oil and gas industry “is highly technical and does not compromise safety and standards”.
He added: “If someone gives you projects, he intends to execute in the next two years; Nigerian companies having listened to the opportunities, should go back and continue to build their capacities in readiness to actively participate.”
He also advised that the oil and gas sector is not an environment where an entrepreneur can immediately step in and achieve success. “You must
have the staying power to succeed,” he stressed.
The NCDMB helmsman promised that the Board would collate the existing opportunities into a compendium and make them available to registered participants.
Wabote. who confirmed that the Board tracks the development of the opportunities showcased at every edition of NOGOF, provided an update of projects shared at previous editions, hinting that “most of them have come to fruition, others are challenged by security concerns, final investment decisions (FID) challenges, bankability, and regulatory requirements and approvals. But those that have crossed the hurdles have been developed and are producing today.”
He added “We shared Ikike and today it is almost doing 50,000 barrels per day; we shared Nigeria LNG Train 7 almost 6 years ago and today it is in full steam, hoping to be completed in 2026. We shared the upstream opportunities that will feed into Train 7, HI, HA, and Obeta projects. This has been a tremendous success by NCDMB.”