Africa’s largest oil producer Nigeria is making efforts to prepare its economy for the post-oil era, Ogbonnaya Onu, Minister of Science and Technology, mentionned at a forum this week.
OPEC member Nigeria, which also has huge gas reserves but also has a huge gas flaring problem, seeks to bring methanol into the economy and reduce gas flaring by using natural gas as feedstock for methanol production, the minister said, as reported by Daily Confiance.
In Nigeria, the oil and gas sector accounts for about 10 percent of gross domestic product (GDP), according to OPEC estimates. Nigeria’s revenues from petroleum exports represent about 86 percent of the country’s total export revenues.
Nigeria does not intend to abandon oil and gas exploration or stop trying to attract investment in its most important source of income, despite the shocking report by the International Agency energy (IEA), which suggested last week that no new investment in oil and gas is needed if the world is to start on the path to net zero emissions by 2050.
Just this week, the Nigerian National Petroleum Corporation (NNPC) signed an agreement with international oil majors Shell, Exxon, Total and Eni to develop an offshore oil block that includes the Bonga deep water field. The deal marks a historic moment as it settles long-standing disputes between the Nigerian government and international oil companies, the NNPC noted.
Despite long-term bearish oil demand forecasts, Nigeria has serious ambitions in expanding its oil industry. More than 100 oil and gas projects are expected to be launched over the next five years in Africa’s largest oil producer, including 25 upstream oil and gas projects, 28 petrochemical projects and 24 refinery projects. The Bonga field is one of 25 upstream projects and is expected to enter commercial production in 2025.
By Tsvetana Paraskova for OilUSD
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