A new report has indicated that that Nigeria’s hydrocarbon resources market will exponentially grow over the next seven years based on current reforms to attract new investments to the industry and fully optimize its full potential in terms of contributions to the nation’s yearly Gross Domestic Product (GDP).
The latest report by ResearchAndMarkets.com indicated that Nigeria offshore oil and gas production market continued to thrive, with a valuation of US$ 34.18 billion in 2023, and is expected grow to an estimated US$ 47.03 billion by 2031, representing a Compound Annual Growth Rate (CAGR) of 4.1% within the period spanning from 2023 to 2031.
The research firm’s report also shows that Nigeria’s production of 552.84 million barrels of crude oil, including condensate in 2023 alone, reaffirms the country’s critical role in shaping Africa’s and indeed global energy landscape.
According to the firm, the Nigerian oil and gas market is meticulously segmented by type and application to provide a structured view of the industry dynamics, with crude oil emerging as the dominant segment, with rising demand from international markets favouring the country’s crude oil.
On the application front, the report reflected that transportation led the market with its substantial share in 2023 and is anticipated to maintain this trend throughout the forecast period.
ResearchAndMarkets.com also noted that concurrently, the power generation segment continued to exhibit promising growth prospects, with a projected CAGR of 5.7%, powered by rising demand for natural gas in electricity generation.
A further analysis of the nation’s hydrocarbon resources landscape showed the prominence of major players such as TotalEnergies SE, CNOOC Ltd, Shell Plc, among others, as entities that are instrumental in steering the market towards growth, propelled by strategic inorganic tactics like mergers, acquisitions, and partnerships that not only enhance outreach but also address customer demand efficiently. These strategies, coupled with product and service enhancements integrating advanced technology, are pivotal for market expansion.
The researchers also highlighted a significant shift in the E&P activities with Nigeria offshore oil and gas producers increasingly leaning towards the exploration and production of offshore natural gas, in alignment with the national initiative for competitive market stature.
Industry analysts believe that the Petroleum Industry Act (PIA) 2021 exemplifies the Nigerian government’s commitment to rebuild investor interest in the upstream subsector of the industry and prioritize community welfare in regions impacted by oil exploration.
