Nigeria Tops Mozambique, Angola With N6.21Tr Oil & Gas CapEx

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Nigeria is expected to dominate the oil and gas sector in Africa in the next seven years with her Capital Expenditure (CapEx) outlook projected at $17.3 billion. At the current exchange rate, this will amount to some N6.21 trillion.

 

GlobalData, a leading data and analytics company says in sub-Saharan Africa, Nigeria will be leading with 10 planned oil and gas projects expected to start operations between 2018 and 2025.

 

She will be followed by Mozambique with two projects. In terms of announced projects, Nigeria once again leads with 13 projects, followed by Angola with five announced projects, according to GlobalData.

 

The company’s latest report: ‘H1 2018 Production and Capital Expenditure Outlook for Key Planned Upstream Projects in sub-Saharan Africa‘ indicates that a total of 64 planned and announced crude and natural gas projects are expected to commence operations in sub-Saharan Africa between 2018 and 2025.

 

Among these, 20 represent the number of planned projects with identified development plans and 44 represent the number of early-stage announced projects that are undergoing conceptual studies and that are expected to get approved for development.

 

GlobalData’s Oil and Gas Analyst, Joseph Gatdula, says the total crude and condensate production from announced and planned projects in sub-Saharan Africa is expected to be around two million barrels per day (mmbd) in 2025 and the total natural gas production in 2025 is about 8.1 billion cubic feet per day (bcfd).

 

A proposed CapEx of $40.7 billion is expected to be spent on development of planned projects in sub-Saharan Africa, and $117.1billion is expected to be spent on key announced projects.

 

Among countries, the top three in terms of highest planned CapEx spending are Nigeria, Mozambique and Angola with around $17.3 billion, $7.7 billion, and $5.1 billion respectively, during 2018–2025. With early-stage projects Indonesia Mozambique with a CapEx of $38.5 billion, followed by Nigeria with $29.4 billion.

 

Among companies, Eni SpA, Royal Dutch Shell Plc, and Total SA have the highest level of spending on planned projects with $7.2 billion, and $5.6 billion and $3.4 billion respectively. The highest level of spending on early-stage announced projects is by Shell, Exxon Mobil, and Eni with $15.5 billion, $12.9 billion, and $6.9 billion spent on CapEx, respectively.

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