NNPCL to Project Nigeria’s Oil&Gas Reforms

Samuel Mobolaji

The Nigerian National Petroleum Company Ltd. (NNPCL) will be highlighting on ongoing major fiscal reforms as it joins the African Energy Week (AEW): Invest in African Energy conference as a Diamond Sponsor.

The NNPCL’s return to the conference – which convenes from November 4-8 in Cape Town, South Africa, affirms its commitment to attracting newfound investment into Nigeria’s hydrocarbon market, as the country targets $10 billion in oil and gas expenditure within the next 12-18 months.

Under Nigeria’s Petroleum Industry Act (PIA) implemented in 2021 and providing the legal, governance, regulatory and fiscal framework for the country’s oil and gas industry NNPC Ltd. is prioritizing 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.

The 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, NNPCL 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 (bpd). Nigeria has long-faced cost and supply challenges.

Historically, the majority of Nigerian crude has been exported, with NNPC Ltd. importing refined petroleum to meet in-country demand. However, new developments promise to reverse this trend, with NNPCL spearheading exploration and enhanced feedstock for the country’s new 650,000 bpd Dangote refinery.

In partnership with energy major Chevron, NNPCL 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, NNPCL 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.

Concurrently, the company is exploring the country’s inland basins, with drilling campaigns underway at the Wadi-2 Appraisal-Exploratory Well in Oil Petroleum License (OPL) 732 and at the Ebenyi-1 Exploration Well in OPL 826. Post-drilling well testing began in July 2024.

Meanwhile, NNPCL is positioning natural gas 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, NNPCL announced plans to develop a 100 million standard cubic feet per day (mscf/d) 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.