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There have been no new oil and gas developments – AEC
The African Energy Chamber (AEC) made this observation in its State of African Energy report, which was published on October 26, 2022.
- There have been no new oil and gas developments
- The AEC report
No new oil and gas developments have been noted in Nigeria since President Muhammadu Buhari signed the Petroleum Industry Act (PIA) 2021 into law.
The African Energy Chamber (AEC) made this observation in its State of African Energy report, which was published on October 26, 2022.
Part of the AEC report said: “The recently passed Petroleum Industry Act (PIA) seems to be having little impact on resolving the deep-water operators’ issues and no new developments have kicked off since the bill was passed.”
According to a breakeven oil price analysis, the PIA has had a net favorable effect on onshore oil projects when compared to the previous administration, according to the report’s findings (s).
Onshore oil companies, as opposed to multinational oil corporations, are primarily indigenous (or smaller) firms that face financial challenges and are unable to scale their operations. Consequently, the PIA’s goals for output are hampered.
The AEC report
Nigeria’s production goals: According to the AEC report, Nigeria had long hoped to produce 2 million barrels per day. However, various constraints, such as the international oil companies (IOCs) from onshore oil explorations, have prevented this from becoming a reality. According to the research, their withdrawals will significantly lower the capital expenditures (CAPEX) required to increase the nation’s oil production.
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IOCs that are leaving the industry include Shell Petroleum Development Company (SPDC), a joint venture between Shell Plc, TotalEnergies, Eni, and NNPC Limited, which is aiming to end its onshore and swamp operations in Nigeria.
In a related event, US energy giant ExxonMobil revealed that it was getting out of the shelf water depth business in Nigeria in order to cut back on its high emissions oil and gas business and switch to cleaner energy sources.
Oil market winners and losers in Africa: According to the AEC research, Libya, Chad, and Egypt are predicted to see the most growth from 2022 to 2030, while Nigeria, Ghana, Algeria, and South Sudan are expected to experience a decline from the forecast made for 2022. According to the report, Nigeria’s volume has decreased as a result of closures and maintenance tasks.