Nigeria’s Deepwater Oil Sector Gains Global Recognition
Nigeria has emerged as one of the top three countries for deepwater oil projects, according to the Presidency. This marks a significant shift in the country’s oil and gas industry, as Nigeria moves from being ranked in the bottom quartile of 13 indexed nations to now securing a spot among the world’s top three performers in deepwater exploration.
In a recent keynote address delivered at an Executive Session of the Energy Institute and the National Association of Petroleum Explorationists (NAPE), Mrs. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, highlighted the country’s progress and the reforms that have helped position Nigeria as a key player in the global oil market.
Key Reforms Driving Growth in Deepwater Projects
Mrs. Verheijen attributed the sector’s success to the series of major reforms introduced by the Tinubu administration. These reforms, aimed at improving Nigeria’s fiscal attractiveness and simplifying the business environment, have helped address critical bottlenecks in the oil and gas industry.
“The deepwater gas sector, in particular, has witnessed transformative changes. Where there was once a complete absence of a fiscal framework, we now have one in place for the first time in Nigeria’s history,” Verheijen said. She added that these reforms were not just theoretical but targeted actual projects in the investment pipeline, making them a reality for the country.
Unlocking Potential with Major Investments
One notable achievement highlighted by Verheijen was the recent Final Investment Decision (FID) reached in April 2024 on the Ubeta Non-Associated Gas project, a $500 million venture. The Ubeta field, first discovered in 1965, has now been unlocked, opening new prospects for the Nigerian economy and benefiting numerous local communities and businesses.
“With this project, we are not just creating opportunities in the energy sector, but we are also helping to drive prosperity across Nigeria,” Verheijen remarked.
Tapping into Global Financing for Deepwater Projects
Verheijen further disclosed that Nigeria is well-positioned to tap into a staggering $90 billion in global financing for deepwater oil projects. This funding is available through International Oil Companies (IOCs) already operating in the country. She emphasized that securing even 20% of this global financing would be enough to fund five major deepwater projects in Nigeria.
“With these reforms and increased access to international financing, Nigeria is poised to capitalize on deepwater oil exploration and expand its reach in the global energy market,” she said.
A Bright Future for Nigeria’s Oil and Gas Sector
Nigeria’s ranking among the top three in deepwater oil projects is a clear indication of the country’s evolving role in the global energy market. With strategic investments and a more investor-friendly environment, Nigeria’s oil and gas sector is set for a new era of growth and prosperity.
As the government continues to prioritize reforms and partnerships with global oil players, the future of Nigeria’s deepwater oil sector looks increasingly promising, offering both economic benefits and long-term sustainability for the country’s energy future.
