Nigeria Oil & Gas Market Report 2021-2026: Growth, Trends, and Forecasts - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Nigeria Oil & Gas Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.

The Nigeria oil and gas market is expected to grow at a CAGR of more than 2 % during the forecast period of 2021 - 2026.

In addition to the country-wide economic impact of COVID-19, crude producers are faced with a decline in both price and demand for crude, resulting in an oil glut. In its industry circular as of 30 March 2020, the Department of Petroleum Resources (DPR), stated that it considers the situation occasioned by the COVID-19 pandemic a force majeure, and has directed all operators to limit the number of personnel at project sites.

This has the potential of leading to a breach of specific contract terms. However, some of the major factors driving the market include increasing investments in the upstream sector, development of large-scale and modular refineries in the country. Oil and gas production had been hampered in Nigeria in the past few years, due to the attack on oil and gas infrastructure by militants.

Further, oil theft has been one of the major issues faced by the oil & gas market in Nigeria, which resulted in huge losses to operating companies in the country. Such factors are expected to have a negative impact on the market growth during the forecast period.

Nigeria's offshore oil and gas industry continues to expand, albeit not very fast, opening more market opportunities. The growth of Nigeria's offshore exploration and production activities has been mainly driven by the efforts of the government to improve the country's hydrocarbon industry.

Lack of infrastructure, uncertainties in regulations, and security concerns have led Nigeria to underutilize its refining capacities, thereby pushing the country to become a net importer of refined petroleum products. However, Nigeria is on the edge of altering refined products' supply dynamics in the region with the help of the upcoming Dangote Refinery and is expected to become the regional refining hub in the coming years. Once completed, the country is planning to be come the refinery hub in Africa. This, in turn, is expected to attract foreign players to tap into the country's downstream market in the near future.

Given the country's huge gas reserves and its advantage as a clean fuel, gas has already witnessed a massive surge in its domestic consumption in the recent years. Further, the country is steadily moving away from oil and exploring different ways to replace the oil consumption with gas in power as well as the transportation sector.

The shift to gas is also supported by the fact that major oil reserves are likely to get dry in coming three to four decades. Hence, the oil market is considered to be one of the most vulnerable markets where natural gas has the highest potential to penetrate. Moreover, gas production has become a major focus for the oil & gas companies, in response to strong investment in gas-to-power projects, across the region.

Key Market Trends

Offshore Oil & Gas Segment to Witness Significant Growth

• Nigeria's offshore oil and gas industry continues to expand, albeit not very fast, opening up more market opportunities. The growth of Nigeria's offshore exploration and production activities has been mainly driven by the efforts of governments in their region, such as providing key incentives and supporting policies to unlock the investment opportunity, as well as a growing list of international oil and gas companies interested in exploring alternative fields to replace the maturing offshore producing sites.
• The China National Offshore Oil Corporation has mobilized a USD 3 billion investment, in addition to the USD 14 billion already spent on its existing oil and gas operations in the West African country. A large share of this investment goes into the operations in Nigeria. One of the most ambitious ultra-deep offshore projects is the Egina oil field in water depths of between 1,400 and 1,700 meters. Total projected that the oil field is expected to peak at 200,000 barrels/day.
• Therefore, due to above mentioned factors the offshore segment is expected to be the fastest growing segment.
• Some of the major players operating in the market include Nigerian National Petroleum Corporation (NNPC), Royal Dutch Shell PLC, Total SA, Chevron Corporation, and Exxon Mobil Corporation.

Key Topics Covered:

1 INTRODUCTION

2 EXECUTIVE SUMMARY

3 RESEARCH METHODOLOGY

4 MARKET OVERVIEW

4.1 Introduction

4.2 Oil and Gas Reserves, 2010-2019

4.3 Oil & Gas Upstream Spending in USD billion, till 2026

4.4 Crude Oil Production Forecast in billion barrels per day, till 2026

4.5 Natural Gas Production Forecast in billion cubic feet per day, till 2026

4.6 Oil Breakeven Prices in USD/bbl for Key Unsanctioned Projects

4.7 Active Rig Count in Nigeria, till January 2021

4.8 Recent Trends and Developments

4.9 Government Policies and Regulations

4.10 Market Dynamics

4.11 Supply Chain Analysis

4.12 PESTLE ANALYSIS

5 MARKET SEGMENTATION - BY SECTOR

5.1 Upstream

5.2 Midstream

5.3 Downstream

6 COMPETITIVE LANDSCAPE

6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements

6.2 Strategies Adopted by Leading Players

6.3 Company Profiles

6.3.1 Nigerian National Petroleum Corporation (NNPC)

6.3.2 Royal Dutch Shell PLC

6.3.3 Total SA

6.3.4 Chevron Corporation

6.3.5 Exxon Mobil Corporation

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

For more information about this report visit https://www.researchandmarkets.com/r/v0jqsc