WeeklySA_AdminINVESTMENT: NNPC to engage with foreign investors and project developers in promoting opportunities in Africa powerhouse’s energy market…
By WSAM Reporter
Parastatal Nigerian National Petroleum Company (NNPC) has joined “the African Energy Week (AEW): Invest in African Energy” conference, which takes place in South Africa from Monday until Friday next week, as a co-sponsor.
NNPC Ltd.’s return to the conference, which convenes at the Cape Town International Convention Centre, affirms its commitment to attracting new-found investment into Nigeria’s hydrocarbon market, as the country targets R170 billion in oil and gas expenditure within the next 12 to 18 months. Under Nigeria’s Petroleum Industry Act, the parastatal is prioritising exploration and the domestic uptake of locally-produced oil and gas. The company is seeking fresh partnerships with IOCs and independents while promoting investment in both on- and offshore basins, and AEW: Invest in African Energy 2024 will help drive these objectives.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy.
In the oil sector, NNPC is striving towards near-term development with the aim of meeting domestic demand. Despite representing one of the biggest oil producers in Africa – with output measuring close to 1.3 million barrels per day – Nigeria has long-faced cost and supply challenges.
Historically, the majority of Nigerian crude has been exported, with NNPC importing refined petroleum to meet in-country demand. However, new developments promise to reverse this trend, with NNPC spearheading exploration and enhanced feedstock for the country’s new 650 000 barrels-per-day refinery: Dangote.
In partnership with energy major Chevron, NNPC made a near-field discovery in the Niger Delta in September 2024. The discovery, made at Oil Mining Lease (OML) 49, is situated in the shallow offshore and is set to breathe new life into the maturing Meji field. The discovery affirms the potential for incremental production in Nigeria.
Beyond existing assets, NNPC continues to explore Nigeria’s frontier basins. The company is actively drilling in the northern province of the country, targeting deposits in the Kolmani River II Well on the Upper Benue Trough in the Gongola Basin.
Meanwhile, NNPC Ltd. is positioning natural gas as a key driver of economic growth in Nigeria. In line with national diversification efforts, the company is pursuing increased investment across the gas value chain while leveraging domestic resources to support clean energy adoption across the economy. In October 2024, NNPC announced plans to develop a 100 million standard cubic feet per day natural gas distribution facility in Kogi State in the North Central Region.
The facility will supply various LNG and CNG facilities in the Ajaokuta area with gas, supporting gas-to-industry adoption in Nigeria. Additionally, NNPC Ltd. signed an agreement to supply energy company A4E
“Nigeria has the potential to become one of the world’s biggest oil and gas producers, yet lack of investment continues to hamper development. Through its multi-faceted development approach, NNPC Ltd. is making strides towards enhancing domestic supply, bringing new fields online and driving long-term and sustainable growth in Nigeria,” states NJ Ayuk, Executive Chairman of the African Energy Chamber. At next week’s conference, NNPC will engage with a suite of foreign investors and project developers, promoting opportunities in Nigeria’s energy market. An Invest in Nigeria Energies country spotlight will take place during the event, offering in-depth insight into the state of play of the country’s oil and gas opportunities.
