Nigeria accounts for more than 34 per cent of the proposed capital expenditure on planned and announced crude and natural gas projects in sub-Saharan Africa over the period 2018–2025.
According to GlobalData, a data and analytics company, in its ‘H2 2018 Production and Capital Expenditure Outlook for Key Planned Upstream Projects in Sub-Saharan Africa-Royal Dutch Shell Dominates Production and Capex Outlook’ report revealed that Nigeria leads in sub-Saharan Africa with a capex of $59 billion on 28 planned and announced projects during the 2018–2025 forecast period.
Of that amount, eight are planned and 20 are announced projects.
“Nigeria is investing heavily in new oil and gas projects to further boost its oil and gas production. Majority of production from these projects is for exports, generating significant revenues for the country.”
In total, 67 crude and natural gas projects are expected to start operations in sub-Saharan Africa during the forecast period. Among these, 16 are planned projects with identified development plans, and 51 are early-stage announced projects that are undergoing conceptual studies and that are expected to get approved for development.
Angola is the second highest country in sub-Saharan Africa with five upcoming projects, which are expected to come online by 2025.
Among operators, Shell Petroleum Development Company of Nigeria Ltd leads with the highest operatorship of four upcoming projects in sub-Saharan Africa during the forecast period–three announced and one planned–all being conventional gas projects. Sonangol P&P occupies second place with operatorship of three upcoming oil projects.
The important projects in sub-Saharan Africa are expected to contribute about 1.1mn boepd and around 9.4 bcfd of global gas production in 2025. The region is expected to spend proposed capex of $20.3 billion to bring the planned projects online and $154.6 billion on vital announced projects during the forecast period.
Royal Dutch Shell Plc, Exxon Mobil, Nigerian National Petroleum Corporation, Eni SpA, and Sonangol EP are the main players in terms of highest capex spending on the major planned and announced projects in sub-Saharan Africa. These companies are expected to collectively spend about $64bn on planned and announced projects during the outlook period.
