Nigeria will spend an average capital expenditure (capex) of US$8.4bn each year on 249 oil and gas fields between 2018 and 2020, said GlobalData
According to the data and analytics company, the capex into Nigeria’s oil and gas projects will add up to US$25.3bn by 2020.
Nigeria’s ultra-deepwater projects will be responsible for more than 28 per cent of US$25.3bn of upstream capex in the country. The shallow water projects will account for 26 per cent of upstream capex with US$6.7bn by 2020.
The deepwater and onshore projects in Nigeria will necessitate between US$6bn and US$5.5bn respectively in capex in the given time period.
Nigerian National Petroleum Corporation (NNPC) is expected to lead Nigeria in capex, investing US$5.3bn into the upstream projects by 2020. Royal Dutch Shell Plc and Eni SpA will invest with US$4.7bn and US$2.8bn respectively.
Zabazaba-Etan Project, a planned shallow water conventional oil field, will lead capital investment with US$4.8bn to be spent between 2018 and 2020. The Owowo West, a conventional oil field in the Niger Delta Basin, will follow next with a capex of US$1.8bn.
According to GlobalData, the average remaining capex per boe for Nigeria projects at US$6.7. The ultra-deepwater projects have the highest remaining capex/boe at US$11.20, followed by deepwater projects at US$9.7.
The shallow water and onshore projects have capex/boe at US$7 and US$3.3 respectively.