Africa’s largest oil producer, Nigeria, is making efforts to prepare its economy for a post-oil era, Science and Technology Minister Ogbonnaya Onu said at a forum this week.
OPEC member Nigeria, which also has huge gas reserves but also has a major problem with gas flaring, is trying to introduce methanol into the economy and reduce gas flaring by using the natural gas as a feedstock for methanol production said the minister, as promoted by Daily Trust.
In Nigeria, the oil and gas sector accounts for around 10 percent of gross domestic product (GDP), according to OPEC estimates. Nigeria’s oil export revenues account for around 86 percent of the country’s total export revenues.
Nigeria has no plans to stop oil and gas exploration or to stop attempting to attract investment in its main sources of income, despite the shocking report from the International Energy Agency (IEA) that suggested last week that new investments in oil and gas are not necessary if the world is to be on the path to net zero emissions by 2050.
Just this week, the Nigerian National Petroleum Corporation (NNPC) signed a contract with international oil companies Shell, Exxon, Total and Eni to develop an offshore oil block that will encompass the deep-water bonga field. The deal marks a historic moment as it resolved longstanding disputes between the Nigerian government and international oil companies, the NNPC noted.
Despite long-term declining forecasts for oil demand, Nigeria has serious ambitions to expand its oil industry. Over the next five years, more than 100 oil and gas projects are expected to start in Africa’s largest oil producer, including 25 upstream oil and gas projects, 28 petrochemical projects and 24 refinery projects. The Bonga field is one of the 25 upstream projects and is expected to start commercial production in 2025.
By Tsvetana Paraskova for Oil Genealogie
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