"Rising Domestic Refinery Crude Oil Demand: A Looming Challenge for International Oil Companies in Nigeria"
Several international oil companies (IOCs) like Shell, ExxonMobil, TotalEnergies, and Equinor have recently sold significant assets in Nigeria's onshore oil and gas industry.
Chevron is also looking to sell oil blocks, and this trend is likely to continue.
The Nigerian government reports that $21 billion worth of assets have been divested, with annual upstream capital expenditures dropping from $15 billion in 2014 to just $3 billion in 2023, raising concerns for Nigeria's oil sector.
The Edo refinery sources its crude from the Oza field, ordering 150,000 barrels to meet demand.
However, the Petroleum Industry Act (PIA) came too late, and provisions like the Domestic Crude Oil Supply Obligation (DCSO) are outdated.
NNPCL and its JV partners can't meet the needs of modular refineries and DR.
Forcing IOCs to divert supply to domestic refineries may drive them out of Nigeria, further hurting our economy.
Meanwhile, Namibia and Senegal have made significant oil discoveries, with Namibia finding 2.6 billion barrels, positioning itself as a future major player.
With Nigeria's proven reserves at 37.50 billion barrels, the 2024 oil bid round offers 17 oil blocks for sale.
This is where investment and pressure should focus to boost our upstream sector and crude oil output.
COO | Senior Project Manager | Oil & Energy Expert | Africa’s 40 Under 40
3 个月I will like to add that the Divestment is also driven my ESG Target of these organizations, not just because of our specific socio-economic scenarios. EU Company especially are crazy about ESG and there is nothing we can do about it. #GeorgeNWOGU