The Energy Republic February - March Edition 2023

NOG SPECIAL REPORT
Be A Part Of Nigeria's Evolving Energy Industry Opportunity
The conference is a cri cal facilitator of
dialogue around energy agendas on a
local level, par cularly as diesel and
petrol prices con nue to escalate across
Nigeria. Opera ng expenses are also
rising despite the con nuing unreliability
of power from the na onal grid and
businesses are passing increased costs
down to consumers. In addi on, the
Energy Progress Report 2022, published
by the Interna onal Energy Agency (IEA),
along with the United Na ons Sta s cs
Division, the Interna onal Renewable
Energy Agency (IRENA), the World Bank
and the World Health Organiza on
(WHO), es mates that nearly 92 million
Nigerians lack access to electricity from
the na onal grid.
In his keynote address at NOG Conference
2022, The Vice President of Nigeria, Prof.
Yemi Osinbajo noted: "The Federal
Government is aware of the challenges
confron ng the industry and has been
working to address them. We are not
unmindful of the peculiar challenges
confron ng the oil and gas operators in
Nigeria from infrastructural deficiencies
and insecurity to the high cost of
opera on, to men on just a few. The
government is working consciously to
tackle all without lagging on our path to
mee ng the global demand that our
signatory to interna onal protocols on
cleaner energy has placed on us.”
In addi on to its crude oil reserves,
Nigeria also has plen ful energy source
op ons in the form of natural gas, solar,
hydro, wind, biomass and geothermal.
“Oil will help Nigeria create wealth, while
there is an opportunity for the country to
operate in the gas space, and the focus of
the NNPC is to deepen gas mone za on
for both domes c and export. The
forecasts of the Organisa on of
Petroleum Expor ng Countries (OPEC)
and other key organiza ons in the oil
industry have shown that even by 2050,
there will s ll be a demand of about 100
million barrels.
Nigeria as an energy resource-dependent
country, the oil will remain relevant to the
country beyond 2050.
“With majority of Nigerians lacking access to
energy, NOG was a huge opportunity for both
local and foreigner investors to come into the
sector,” said Mele Kolo Kyari, Group Managing
Director – NNPC. “Our investments in the
Nigerian gas market are premised on the belief
that the market will grow given the domes c
need,” says Mele Kyari, GMD of the NNPC
Limited, while speaking at NOG 2022
conference in Abuja.
On the gas side, the country has the 9th largest
gas reserves in the world with about 209
trillion cubic feet (tcf) and upside poten al of
about 600tcf. In terms of gas produc on and
u liza on, Nigeria averages about 8.4bscfd.
While only 18 percent of the produc on is
consumed in the domes c market (Power,
Industries, and WAGP), 43 percent is exported
as LNG, 32 percent is re-injected for enhanced
oil recovery and other opera onal uses like
fuel gas while 7 percent of total gas produc on
is currently being flared.
The Federal Government has said that the
value of Nigeria’s proven gas reserves was over
$803.4 trillion, adding that the country had the
most extensive gas resource in Africa.
In an exclusive interview with the Managing
Director & Chief Execu ve Officer of ND
Western at NOG 2022 Conference, Mr.
Eberechukwu Oji, outlined some key
opportuni es in the Nigerian fron er basins.
According to him, “ There are lots of
opportuni es for growth in the E&P business.
If you look at the value chain of E&P business,
we have Seismic – where you have to go and
see if oil is in this place.
“One of the problems we have in Nigeria today
is that we aren’t exploring enough. We are
producing what we have already explored.
There are few companies I know today that are
shoo ng Seismic.
“If we want to grow in the industry, we have to
be shoo ng Seismic. There are huge
opportuni es there.
“If anybody is thinking of where to invest in the
Nigerian oil and gas industry, Seismic is an area
where there are investment opportuni es.
“Another opportunity is field development. We
have the big marginal field bid rounds that were
done last year. So many companies now have
access to these acreages. They need to be
developed and bring the fields to produc on.
There is drilling, field development, and subsurface
study that needs to be done for all these
companies.
“There are very huge opportuni es in the
marginal field space. We also expect that very
soon the country should be going out for another
round of bidding for OMLs on bigger acreages.
That’s also an opportunity area.
“In terms of exis ng infrastructure, there is a
huge opportunity such as asset integrity. Most
plants are inherited from the Interna onal Oil
Companies (IOCs) in the 70s and most of these
plants need an upgrade. This is a big opportunity
area for companies that can execute and finance
the work.
“There are opportuni es in the areas of trading,
bringing liquidity into the market.”
Indeed, there are huge opportuni es in the
Nigerian oil and gas value chain that haven’t been
fully explored.
The focus of NOG Energy Week 2023
To further explore opportuni es for Nigeria and
its role in the global energy landscape, NOG
Energy Week will bring together policy makers,
financers, investors and business leaders to
discuss strategies, prac cal solu ons and the
resources required to address supply challenges
while also progressing toward net zero
ambi ons.
NOG Energy Week will take place on 2 – 6 July
2023 and expects to host over 5000 a endees,
including delegates, 350+ exhibi ng companies,
85 industry expert speakers and 35 sessions
across two conference streams.
A end NOG Energy Week 2023 to network with
industry stakeholders, policy makers, energy
leaders, industry professionals and financiers
from around the globe across the en re oil, gas,
LNG, renewables, power and the energy
spectrum and discuss the industry’s most
immediate challenges and ambi ons to achieve
energy security for the na on, while naviga ng
the journey towards a secure, sustainable and
just energy transi on for Nigeria.
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THE ENERGY REPUBLIC I SPECIAL EDITION