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Nigeria To Receive 98.44 Oil, Gas Projects – Report

By Teddy Nwanunobi

Nigeria is expected to receive over 98.44 oil and gas projects (over 23 per cent) from a total of 428 new projects that are billed to start operations from 2021 to 2025, a new report by GlobaData, a leading research body, said.

The number of the projects that are coming to Nigeria is because the West African nation is regarded as one of the biggest crude oil producers on the continent.

Titled ‘Africa Oil and Gas Projects Outlook to 2025 – Development Stage, Capacity, Capex and Contractor Details of All New Build and Expansion Projects’, the report showed that Africa’s 428 oil and gas projects would commence operations in the period.

The outlook of Nigeria’s oil and gas sector had remained elusive due to a poor fiscal and regulatory framework.

Nigeria has been unable to pass relevant legislations to bolster confidence and reduce uncertainty.

The report noted that refinery and petrochemical segments would witness the start of operations of 65 and 105 projects, respectively.

Offshore-Technology reported that refinery and petrochemical projects together constitute about 55 per cent of upcoming oil and gas projects during the 2021 to 2025 period.

The midstream sector follows next, with the pipeline segment accounting for 33 per cent of projects.

This is followed by oil storage and gas processing, with 30 per cent and 23 per cent, respectively.

The report further highlighted that new projects lead the upcoming project’s landscape in Africa standing at around 79 per cent of the total projects across the value chain.

About 40 per cent of the projects, according to the report, are in the construction and commissioning stages, and are more likely to commence operations during the outlook period.

It noted that about 40 per cent of the projects are in the planning stages, while the rest have been approved, or awaiting approvals.

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