Nigeria’s Ministry of Petroleum Resources Signs Partnership with African Energy
Nigeria’s Ministry of Petroleum Resources has fully endorsed African Energy Week (AEW) 2022, partnering with the AEC for the second edition of Africa’s premier energy event. Taking place in Cape Town on the 18th -21st of October, AEW 2022 extends on the narrative of making energy poverty history by 2030, uniting energy leaders, global financiers, and both public and private sector executives for a week of intense dialogue on Africa’s energy future. Having partnered with one of Africa’s energy sector heavyweights, the event is well positioned to lead Africa into a new era of growth and investment.
Over 36 billion barrels of crude oil reserves and 200 trillion cubic feet (tcf) of natural gas have made Nigeria an attractive market for hydrocarbon exploration and production. However, it has been the dedication and determination of the Ministry of Petroleum Resources that has made the sector so successful. From drafting and implementing progressive legislature such as the Petroleum Industry Bill (PIB) – implemented in 2021 – to driving African gas monetization through declarations such as the ‘Decade of Gas Initiative,’ the Ministry, under the guidance of H.E. Chief Timipre Sylva, Minister of State for Petroleum, has established the country as a top African producer and globally competitive energy market.
Under the auspices of the Ministry, Nigeria has become a major African player across multiple fronts. Through the enhancement of domestic oil company participation; the scaling-up of production through refinery developments such as the Dangote Refinery; and the incentivization of exploration through the launching of a marginal field bid licensing round – whereby 600 companies applied to bid for the 57 marginal oil fields on offer – has further cemented the country’s position as the largest oil producer in sub-Saharan Africa.
As one of Africa’s more mature energy markets, Nigeria boasts the participation of a number of international oil companies (IOC) – including Chevron, TotalEnergies, Shell, ExxonMobil, Schlumberger, Halliburton, Baker Hughes, and TechnipFMC. These companies continue to play a pivotal role in Nigeria’s energy success. However, with an increasing number of IOCs divesting from African hydrocarbon assets, Nigeria’s indigenous companies have stepped up, taking on a more proactive role in the sector. Companies such as the Nigerian National Oil Corporation, Oando Plc, Tenoil Petroleum and Energy Services, Frontier Oil Limited, Seplat Petroleum Development Company, and First Hydrocarbon Nigeria Company Limited have positioned themselves as key drivers of growth in the sector. While global stakeholders call for the abandonment of the resource, Nigeria has made a strong case for the role of oil in Africa, a narrative which will be driven at AEW 2022 in Cape Town.
On the gas front, 200 tcf of reserves, coupled with the global move towards cleaner sources of fuel, has motivated the Ministry to place gas at the forefront of the country’s developmental agenda. Backed by the Decade of Gas initiative, the country is accelerating gas developments, with projects such as the $2.8 billion Ajaokuta-Kaduna-Kano pipeline and the $10 billion Nigeria Liquefied Natural Gas Train 7 further positioning the country as a leading gas market. Nigeria continues to champion Africa’s gas sector, and with the Minister representing a critical figure in the discussion on gas-to-power, gas monetization, and opportunities for addressing energy poverty, AEW 2022 will be the official platform to participate in African gas dialogue.
Finally, Nigeria has and continues to take a leading role in the African energy space. With the COVID-19 pandemic and energy transition causing many global financiers to reduce fossil fuel spending, the country has managed to remain competitive for investment through the implementation of the PIB. The legislation has ensured an increased level of transparency and accountability across the industry, while offering new fiscal incentives to investors. This, coupled with the fact that the country has significant resources awaiting exploitation, has positioned Nigeria as an attractive destination, serving as a model for other African producing states.
“Official endorsement from Nigeria’s Ministry of Petroleum is huge for both the AEC and AEW 2022. This is a testament to the work we continue to do for the oil and gas sector in Nigeria and Africa. In 2021, AEW was the official meeting place for the African energy industry, uniting stakeholders from across Africa and the world in Cape Town to discuss the future of the industry. Now, driven by a partnership with one of Africa’s top energy markets, AEW is even better positioned to assist Nigeria capture the benefits of the Petroleum Industry Act, the Decade of Gas and drive-up investments into Nigeria. Deals will be signed in Cape Town this year.” states NJ Ayuk, Executive Chairman of the AEC.
In addition to endorsing the event, the Minister has confirmed the participation of the Ministry, confirming that a delegation will be coming to AEW 2022 in Cape Town to lead discussions, promote Nigerian investments, and initiate continent wide energy development. By hosting a Nigerian pavilion, the Ministry will showcase a range of Nigeria-specific investment opportunities; highlight post-PIB prospects; and emphasize the role Nigerian oil and gas plays in Africa, while providing a platform for deal signing and partnerships.
AEW 2022 is committed to showcasing opportunities across Nigeria’s up-, mid- and downstream industries. In addition to the Nigerian pavilion, the event will comprise Nigerian deal signing sessions; country-specific panel discussions; as well as presentation and technical sessions from Nigerian energy experts. Whether its oil and gas, investment, or energy transition, Nigeria continues to be an advocate for Africa-focused and African-held energy dialogue, and AEW 2022 will emphasize this.
