Page 4 - AfrOil Week 13 2022
P. 4

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
   1   2   3   4   5   6   7   8   9