Nigeria is in need of an estimated $7.6 billion to increase its oil production to 2.1 million barrels per day (bpd) by 2025, up from the current 1.3 million bpd recorded in September. Dr. Austin Avuru, Chairman of AA Holdings, emphasized the significance of this investment, which would involve drilling approximately 426 wells with the assistance of 45 rigs to revitalize the country’s oil production. The investment is expected to play a crucial role in strengthening Nigeria’s economy and its position in the global oil market.
At the 41st Nigeria Association of Petroleum Explorationists (NAPE) annual international Conference and Exhibitions, themed “Unlocking Nigeria’s remaining energy potential to fuel economic growth and diversification: opportunities and challenges,” Avuru emphasized the need for increased investment to maintain the balance between supply and demand, particularly due to the substantial decline in existing production.
According to Avuru, the proportion of hydrocarbons in Nigeria’s energy mix may decrease significantly from 82% to about 20% in an extreme case, with renewables increasing from zero to approximately 60% by 2060. In a more likely scenario, hydrocarbons might constitute around 40% of the energy mix, with renewables increasing to about 60%.
James Makinde, General Manager of Gas Business at Seplat Energy PLC, highlighted the potential deficit in gas supply to the market by 2030, which could be as much as 3.1 billion cubic feet per day (BCF/D) if the current approach is maintained. Nigeria’s primary reforms to address gas sector challenges focus on the Decade of Gas initiative, with priority interventions including ensuring attractive returns for investors, supporting essential infrastructure, and enhancing investor confidence.
Makinde also emphasized the importance of incentivizing private sector engagement, gas infrastructure development, and the implementation of the Petroleum Industry Act (PIA) to boost investments and make energy more affordable and reliable in Nigeria.
