Page 4 - AfrOil Week 13 2022

AfrOil COMMENTARY AfrOil

(Photo: NNPC)
How Nigeria can gain

market share in Europe

Nigeria can increase oil and gas exports to Europe by ramping up production and increasing

investment in exploration and infrastructure development, writes the African Energy Chamber

APART from retaining its position amongst the to increase to 1.46mn barrels per day (bpd) in
leading oil and gas producers in Africa in 2022, 2022, following low production levels in 2021
WHAT: Nigeria, with over 37bn barrels of crude oil that were driven by the coronavirus (COVID-
The fall in Russian oil and reserves, has the potential to improve its energy 19) pandemic.
gas deliveries to Europe exports to Europe and help address anticipated This will provide an opportunity for Nige-
could be an opportunity crude oil and natural gas shortages. ria to increase its exports to Europe, become a
for Nigeria to help fill With the EU planning to ban crude oil global energy hub and to fully make use of its
the gap. imports from Russia by increasing trade with hydrocarbon resources for the purpose of fue-
other non-Russian economies and the Russian ling economic growth.
WHY: government promising to cut natural gas sup- Nigeria heavily relies on its offshore projects
The passage of the PIA is plies if sanctions from Western countries con- to sustain crude oil production and supply,
designed to facilitate in- tinue, potential supply disruptions to Europe are with 65% of the country’s total production in
vestment in the country’s
oil and gas resources. anticipated. 2022 anticipated to come from such projects.
Accordingly, the West African country is However, this will change with Nigeria’s crude
WHAT NEXT: expected to ramp up production in 2022 and oil production anticipated to decline in 2023
Nigeria may have to wait retain its position as Africa’s largest crude oil onwards, due to decreases in production in leg-
for deepwater projects to producer. This is a development that will enable acy fields.
come on stream before Nigeria to increase its export capacity. The country will have to wait for deepwater
its production capacity projects to come online to improve its produc-
improves. Rising oil production tion capacity, according to the African Energy
Nigeria’s annual crude oil production is expected Chamber (AEC) Q1-2022 Outlook.

P4 www. NEWSBASE .com Week 13 30•March•2022