Luka Binniyat
27 February 2007
Abuja — The Minister of Energy, Dr. Edmund Daukoru, has chest-thumbed that the Nigeria Energy sector, has become one of the world's fastest expanding energy sector, grossing in record high investments and posting an even more positive forecast for the near future.
The Minister who made these revelation at a Press conference in Abuja last Friday, said that the Nigerian Hydrocarbon sector is growing at an unprecedented rate, as an estimated inflow of spending in the upstream petroleum sector is expected to grow at an average of N3.6 trillion ($20 billion) annually and will swell to N130 trillion ($100 billion) between 2007 and 2011.
The industry investment for the upstream oil sector was $5billion in 2000 and $10 billion in 2006.
While making this revelation, he also added that Nigeria is about the second fastest gas growing sector, after Qatar .
On the upstream oil sector, Daukoru told the press that, the sector continues to see unprecedented growth, noting that since 1999, oil reserves have grown by about 5 billion barrels, as a result of serious exploration in the Nigeria deepwater
"Reserves now stand at about 35 billion barrels", he said, adding that, "the Nigeria's production capacity now stands 3 million barrels per day (mbpd) with recent additions from Bonga and Erha oil fields of 500,000 bpd"
He said that an additional capacity is in progress from the deepwater sector, through projects like Agbami (190,000 bpd); Akpo (160,000 bpd) and Usan (120,000 bpd).
"In the inland swamp terrains", said the Minister, "an additional; 2mbpd is expected by 2010", he said, adding that, "a combination of these projects will arrest production decline and grow capacity to over 4 million bpd by 2010 in line with the 1999 aspiration".
According to him, Nigerian's capacity growth of between 2005-2010 is estimated at 6% annually, saying it is at per with other major oil producing countries who have about 3% capacity growth annually.
"The capacity growth is evidenced in the industry investment level. Compared to OPEC countries, Nigeria is forecast to see an unprecedented growth rate at the highest level of upstream investment between 2005-2010. Specifically, between 2007-2011, total industry spends is estimated at about $100 billion - an average of $20 billion annually, up from $5 billion in 2000 and $10 billion in 2006", he said. On the Nigerian Gas sector, Daukoru, a geo-physicist, with 30 years experience in the oil and gas sector, said that the Nigerian Liquefied Gas (LNG), has grown to Train 6 today from Train 2 in 1999, to make Nigeria one of the fastest growing LNG destinations.
"The NLG now exports about 22 million ones Per Annum (mtpa) and about 3.5 mtpa in Natural Gas Liquids (NGL).
"The plant has delivered over $3 billion in revenue to Nigeria , compared with zero income from pre-1999", he said.
"With high gas price in western markets", he said, "the Nigerian gas sector has repositioned itself to leverage the opportunities resulting from these changes", he said.
He said that two new LNG plants are now being built with a combined capacity of 32 mtpa, saying that the plants are scheduled to come on stream by 2011.
" Nigeria is now on tract to be the second fastest growing LNG capacity in the world, second only to Qatar ", he said.
ABUJA - The Minister of Energy, Dr. Edmund Daukoru, has chest-thumbed that the Nigeria Energy sector, has become one of the world's fastest expanding energy sector, grossing in record high investments and posting an even more positive forecast for the near future.
The Minister who made these revelation at a Press conference in Abuja last Friday, said that the Nigerian Hydrocarbon sector is growing at an unprecedented rate, as an estimated inflow of spending in the upstream petroleum sector is expected to grow at an average of N3.6 trillion ($20 billion) annually and will swell to N130 trillion ($100 billion) between 2007 and 2011.
The industry investment for the upstream oil sector was $5billion in 2000 and $10 billion in 2006.
While making this revelation, he also added that Nigeria is about the second fastest gas growing sector, after Qatar .
On the upstream oil sector, Daukoru told the press that, the sector continues to see unprecedented growth, noting that since 1999, oil reserves have grown by about 5 billion barrels, as a result of serious exploration in the Nigeria deepwater
"Reserves now stand at about 35 billion barrels", he said, adding that, "the Nigeria's production capacity now stands 3 million barrels per day (mbpd) with recent additions from Bonga and Erha oil fields of 500,000 bpd"
He said that an additional capacity is in progress from the deepwater sector, through projects like Agbami (190,000 bpd); Akpo (160,000 bpd) and Usan (120,000 bpd).
"In the inland swamp terrains", said the Minister, "an additional; 2mbpd is expected by 2010", he said, adding that, "a combination of these projects will arrest production decline and grow capacity to over 4 million bpd by 2010 in line with the 1999 aspiration".
According to him, Nigerian's capacity growth of between 2005-2010 is estimated at 6% annually, saying it is at per with other major oil producing countries who have about 3% capacity growth annually.
"The capacity growth is evidenced in the industry investment level. Compared to OPEC countries, Nigeria is forecast to see an unprecedented growth rate at the highest level of upstream investment between 2005-2010. Specifically, between 2007-2011, total industry spends is estimated at about $100 billion - an average of $20 billion annually, up from $5 billion in 2000 and $10 billion in 2006", he said. On the Nigerian Gas sector, Daukoru, a geo-physicist, with 30 years experience in the oil and gas sector, said that the Nigerian Liquefied Gas (LNG), has grown to Train 6 today from Train 2 in 1999, to make Nigeria one of the fastest growing LNG destinations.
"The NLG now exports about 22 million ones Per Annum (mtpa) and about 3.5 mtpa in Natural Gas Liquids (NGL).
"The plant has delivered over $3 billion in revenue to Nigeria , compared with zero income from pre-1999", he said.
"With high gas price in western markets", he said, "the Nigerian gas sector has repositioned itself to leverage the opportunities resulting from these changes", he said.
He said that two new LNG plants are now being built with a combined capacity of 32 mtpa, saying that the plants are scheduled to come on stream by 2011.
"Nigeria is now on tract to be the second fastest growing LNG capacity in the world, second only to Qatar ", he said.
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