An average capital expenditure (capex) of $8.4bn per year will be spent on 249 oil and gas fields in Nigeria between 2018 and 2020. Capex into Nigeria’s oil and gas projects will add up to $25.3bn over the three-year period in upstream capex by 2020, according to GlobalData, a leading data and analytics company.

Ultra-deepwater projects will be responsible for over 28 percent of $25.3bn of upstream capex in Nigeria, or $7.2bn by 2020. The shallow water projects will account for 26 percent of upstream capex with $6.7bn by 2020, while deepwater and onshore projects will necessitate $6.0bn and $5.5bn respectively in capex over the period.

GlobalData expects that Nigerian National Petroleum Corporation will lead Nigeria in capex, investing $5.3bn into the country’s upstream projects by 2020. Royal Dutch Shell Plc and Eni SpA will follow, with $4.7bn and $2.8bn respectively.

Zabazaba-Etan Project, a planned shallow water conventional oil field, will lead capital investment with $4.8bn to be spent between 2018 and 2020. Nigerian Agip Exploration Ltd. is the operator for the field. Owowo West, a conventional oil field in the Niger Delta Basin, will follow next with a capex of $1.8bn. Esso Exploration and Production Nigeria Limited is its operator.

GlobalData reports the average remaining capex per barrel of oil equivalent (boe) for Nigeria projects at $6.7. Ultra-deepwater projects have the highest remaining capex/boe at $11.20, followed by deepwater projects at $9.7. The shallow water and onshore projects have capex/boe at $7.0 and $3.3 respectively.

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Source: Press Release