GlobalData expects that an average capex of $8.4bn per year would be spent on 249 oil and gas fields in Nigeria between 2018 and 2020. Capital expenditure in to Nigeria’s oil and gas projects will add up to $25.3bn over the three-year period in upstream capital expenditure by 2020.

Ultra-deepwater projects will be responsible for over 28% of $25.3bn of upstream capital expenditure in Nigeria, or $7.2bn by 2020. The shallow water projects will account 26% of upstream capital expenditure with $6.7bn by 2020, while deepwater and onshore projects will necessitate $6.0bn and $5.5bn respectively in capital expenditure over the period.

GlobalData expects that Nigerian National Petroleum Corporation will lead Nigeria in capital expenditure, investing $5.3bn into the country’s upstream projects by 2020. Royal Dutch Shell Plc and Eni SpA will follows next, with $4.7bn and $2.8bn respectively.

Top Ten Companies by Capital Expenditure into Nigeria’s Upstream by 2020

Source: Upstream Analytics                                                                                                                 © GlobalData

Zabazaba-Etan Project, a planned shallow water conventional oil field, will lead capital investment with $4.8bn to be spent between 2018 and 2020. Nigerian Agip Exploration Ltd. is the operator for the field. Owowo West, a conventional oil field in the Niger Delta Basin, will follow next with a capex of $1.8bn. Esso Exploration and Production Nigeria Limited is its operator.

GlobalData reports the average remaining capital expenditure per barrel of oil equivalent (capex/boe) for Nigeria projects at $6.7. Ultra-deepwater projects have the highest remaining capex/boe at $11.20, followed by deepwater projects at $9.7. The shallow water and onshore projects have capex/boe at $7.0 and $3.3 respectively.