Nigeria Offshore Oil and Gas Production Market Growth 2031
The Nigeria offshore oil and gas production market size is projected to reach US$ 47.03 billion by 2031 from US$ 34.18 billion in 2023. The market is expected to register a CAGR of 4.1% during 2023–2031. Rising use of natural gas in energy transition is likely to remain key trend in the market.
Nigeria Offshore Oil and Gas Production Market Analysis
Growing developments in the offshore oil & gas industry in Nigeria, divestment in onshore oil and gas production by oil majors and increasing focus and investments in the offshore oil & gas sector by international oil companies propel the offshore oil and gas production market. However, security threats and obstacles in the Nigerian oil & gas industry restrain the market growth. Moreover, developments in the oil & gas industry and the rising need for natural gas infrastructure are expected to create opportunities for key companies operating in the market during the forecast period. Furthermore, the role of natural gas in the country’s energy transition goal is expected to be the key trend in the Nigeria offshore oil and gas market from 2023 to 2031.
The Nigeria offshore oil and gas production market is segmented on the basis of type and application. By type, the market is bifurcated into crude oil and natural gas. Based on application, the Nigeria offshore oil and gas production market is segmented into power generation, industrial, transportation, and others.
The ecosystem of the Nigeria offshore oil and gas production market comprises a complex network of stakeholders operating in seismic research, drilling and discovery, development, and production. It is included in the exploration & production or upstream sector of the oil & gas industry value chain. The upstream sector is the stage in the value chain where oil and gas are searched, developed, and produced so that they can be sold on the wholesale market. It represents the source of oil and gas supply, and the activities of the value chain indicated. This sector is technologically advanced and the most complex in the upstream, midstream, and downstream sectors. It also involves high-risk economic activities, and the potential for returns is generally the highest.
Nigeria Offshore Oil and Gas Production Market Overview
The oil & gas industry is the major industry in Nigeria's energy market and plays an important role in the country’s economy. The industry has been a major source of revenue generation in the country and is currently the source of nearly 95% of the foreign exchange earnings. Investors looking to get into the oil & gas industry can quickly become overwhelmed by the complex jargon and unique metrics used throughout the industry. Nigeria is the largest oil and gas exporter in Africa. The country exports most of the oil it produces despite having a refining capacity of nearly 450,000 BPD. While in the past, most oil was transported through Nigeria to the US. Today, Nigerian oil is transported primarily to Asia, Europe, and South America.
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Nigeria Offshore Oil and Gas Production Market: Strategic Insights
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Nigeria Offshore Oil and Gas Production Market Drivers and Opportunities
Growing Developments in Offshore Oil & Gas Industry
There is an increase in developments and investments by major international oil and gas players in scaling up production and expanding their presence in the Nigerian offshore oil & gas industry owing to the increasing insecurity and oil theft. A few major initiatives and developments in the industry in Nigeria are listed below:
- In January 2024, TotalEnergies, along with its partners, started production of oil and gas from the Akpo West Floating Production Storage and Offloading (FPSO) facility on the PML2 license in Nigeria. The offshore field is expected to add 14,000 bbl of condensate production by Mid-2024 and up to 4 million cubic feet of gas per day by 2028.
- In December 2023, Shell Plc announced its plans to invest US$ 1 billion over the next decade to boost natural gas output in Nigeria for domestic supplies and exports. Through this investment, the company aims to extend the Bonga FPSO vessel life and development of Bonga North, Bonga South-West, and Nnwa Doro facilities in the short to long term.
- In January 2024, Chevron announced its plans to increase its investments in Nigeria's deepwater areas. The company plans to acquire seismic data in several deepwater areas and expand its Agbami field project. The American multinational also acquired a stake in offshore OPL 215—joining TotalEnergies—and extended three of its deepwater licenses for 20 years.
- In May 2023, TotalEnergies Upstream Nigeria Limited secured its renewal of a production license in offshore Nigeria. This 20-year renewal expansion plan enables the oil major to develop hydrocarbons in the OML 130 block containing the Akpo and Egina fields.
- In May 2024, the Nigerian National Petroleum Co. Ltd. collaborated with First E&P and restarted oil production from the offshore Madu field in Nigeria.
Thus, growing developments in the offshore oil & gas industry in Nigeria drive the Nigeria offshore oil and gas production market growth.
Development and Rise in Need for Natural Gas Infrastructure
Nigeria is committed to monetizing its natural gas resources and becoming a leading LNG exporter in global markets. Its most notable project – the US$ 5 billion Nigeria LNG Train 7 expansion – is expected to increase processing capacity by 35%, from 22 million tonnes to 30 million tonnes per year. As a result of such initiatives, the country can export higher volumes of gas to markets such as Europe, where Nigeria exported 9.4 billion cubic meters of LNG in 2023. However, to accelerate exports, Nigeria needs significant investments in deep-sea natural gas projects and infrastructure development.
Nigeria has issued a call for upstream investment, with a strong focus on deep offshore and a licensing round in 2024 to attract new operators. The country is also using gas monetization as a means to eliminate gas flaring and has flared around 275 million cubic feet per day (cfd) in 2023. The gas flared in Nigeria has the potential to generate 1,125 GW of electricity for the country, presenting significant opportunities for gas-power infrastructure. Meanwhile, Nigeria's Upstream Petroleum Regulatory Commission has cleared 48 gas flaring sites for commercialization as part of efforts to expand the domestic gas market and decarbonize upstream activities.
Nigeria Offshore Oil and Gas Production Market Report Segmentation Analysis
Key segments that contributed to the derivation of the Nigeria offshore oil and gas production market analysis are type and application.
- Based on type, the Nigeria offshore oil and gas production market is bifurcated into crude oil and natural gas. The crude oil segment held a larger market share in 2023.
- The market, in terms of application, is segmented into power generation, transportation, industrial, and others. The transportation segment accounted for the largest market share in 2023.
Nigeria Offshore Oil and Gas Production Market Share Analysis by Geography
The geographic scope of the Nigeria offshore oil and gas production market report offers in detail country analysis of Nigeria. Nigeria has been the largest crude oil producer in Africa for many years. According to the Nigerian Upstream Petroleum Regulatory Commission, the total volume of crude oil (including condensate) produced in the country accounted for 552.84 million barrels in 2023.
Nigeria Offshore Oil and Gas Production Market Report Scope
Nigeria Offshore Oil and Gas Production Market News and Recent Developments
The Nigeria offshore oil and gas production market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the market are listed below:
- TotalEnergies, with its partners, announced the start of production from the Akpo West field on the PML2 license in Nigeria. Akpo West, located 135 km off the coast, is tied back to the Akpo Floating Production Storage and Offloading (FPSO) facility that started-up in 2009. The facility produced 124,000 barrels of oil equivalent per day in 2023. Akpo West is expected to add 14,000 barrels of condensate production per day by mid-2024, to be followed by up to 4 million cubic meters of gas per day by 2028. (Source: TotalEnergies, Press Release, July 2024)
Nigeria Offshore Oil and Gas Production Market Report Coverage and Deliverables
The “Nigeria Offshore Oil and Gas Production Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Nigeria offshore oil and gas production market size and forecast at country levels for all the key market segments covered under the scope
- Nigeria offshore oil and gas production market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Nigeria offshore oil and gas production market analysis covering key market trends, country framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Nigeria offshore oil and gas production market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
Partnership, business expansion, agreements, and investments are the key strategies adopted by the players in Nigeria offshore oil and gas production market.
Increasing role of natural gas in the energy transition targets of Nigeria is expected to be the key trend for the Nigeria offshore oil and gas production market.
Increase in development and rise in need for natural gas infrastructure are expected to be the key opportunities in Nigeria offshore oil and gas production market.
TotalEnergies SE, CNOOC Ltd, Shell Plc, Chevron Corporation, ExxonMobil Corporation, Africa Oil Corp., Nigerian National Petroleum Corporation, Lekoil Nigeria Ltd., Pinnacle Oil and Gas Limited, and Midwestern Oil and Gas Company Limited are the key market players operating in the Nigeria offshore oil and gas production market.
Growing developments in the offshore oil and gas industry and government initiatives towards new offshore drilling and development projects are anticipated to be the key drivers behind the Nigeria offshore oil and gas production market growth during the forecast period.
1. Introduction
1.1 The Insight Partners Research Report Guidance
1.2 Market Segmentation
2. Executive Summary
2.1 Key Insights
2.2 Market Attractiveness
3. Research Methodology
3.1 Secondary Research
3.2 Primary Research
3.2.1 Hypothesis formulation:
3.2.2 Macro-economic factor analysis:
3.2.3 Developing base number:
3.2.4 Data Triangulation:
3.2.5 Country level data:
4. Nigeria Offshore Oil and Gas Production Market Landscape
4.1 Overview
4.2 PEST Analysis
4.3 Ecosystem Analysis
4.3.1 List of Players in the Nigeria Offshore Oil and Production
5. Nigeria Offshore Oil and Gas Production Market – Key Market Dynamics
5.1 Nigeria Offshore Oil and Gas Production Market – Key Market Dynamics
5.2 Market Drivers
5.2.1 Growing Developments in Offshore Oil & Gas Industry
5.2.2 Government Initiatives in New Offshore Drilling and Development Projects
5.3 Market Restraints
5.3.1 Security Threats and Obstacles in Nigerian Oil & Gas Industry
5.4 Market Opportunities
5.4.1 Development and Rise in Need for Natural Gas Infrastructure
5.5 Future Trends
5.5.1 Role of Natural Gas in Energy Transition
5.6 Impact of Drivers and Restraints:
6. Nigeria Offshore Oil and Gas Production Market Analysis
6.1 Nigeria Offshore Oil and Gas Production Market Revenue (US$ Billion), 2021–2031
6.2 Nigeria Offshore Oil and Gas Production Market Forecast and Analysis
7. Nigeria Offshore Oil and Gas Production Market Analysis – by Type
7.1 Crude Oil
7.1.1 Overview
7.1.2 Crude Oil: Nigeria Offshore Oil and Gas Production Market – Revenue and Forecast to 2031 (US$ Billion)
7.2 Natural Gas
7.2.1 Overview
7.2.2 Natural Gas: Nigeria Offshore Oil and Gas Production Market – Revenue and Forecast to 2031 (US$ Billion)
8. Nigeria Offshore Oil and Gas Production Market Analysis – by Application
8.1 Power Generation
8.1.1 Overview
8.1.2 Power Generation: Nigeria Offshore Oil and Gas Production Market – Revenue and Forecast to 2031 (US$ Billion)
8.2 Transportation
8.2.1 Overview
8.2.2 Transportation: Nigeria Offshore Oil and Gas Production Market – Revenue and Forecast to 2031 (US$ Billion)
8.3 Industrial
8.3.1 Overview
8.3.2 Industrial: Nigeria Offshore Oil and Gas Production Market – Revenue and Forecast to 2031 (US$ Billion)
8.4 Others
8.4.1 Overview
8.4.2 Others: Nigeria Offshore Oil and Gas Production Market – Revenue and Forecast to 2031 (US$ Billion)
9. Competitive Landscape
9.1 Heat Map Analysis of Key Players
9.2 Company Positioning and Concentration
10. Industry Landscape
10.1 Overview
10.2 Market Initiative
11. Company Profiles
11.1 CNOOC Ltd
11.1.1 Key Facts
11.1.2 Business Description
11.1.3 Products and Services
11.1.4 Financial Overview
11.1.5 SWOT Analysis
11.1.6 Key Developments
11.2 TotalEnergies SE
11.2.1 Key Facts
11.2.2 Business Description
11.2.3 Products and Services
11.2.4 Financial Overview
11.2.5 SWOT Analysis
11.2.6 Key Developments
11.3 Shell Plc
11.3.1 Key Facts
11.3.2 Business Description
11.3.3 Products and Services
11.3.4 Financial Overview
11.3.5 SWOT Analysis
11.3.6 Key Developments
11.4 Africa Oil Corp
11.4.1 Key Facts
11.4.2 Business Description
11.4.3 Products and Services
11.4.4 Financial Overview
11.4.5 SWOT Analysis
11.4.6 Key Developments
11.5 Chevron Corp
11.5.1 Key Facts
11.5.2 Business Description
11.5.3 Products and Services
11.5.4 Financial Overview
11.5.5 SWOT Analysis
11.5.6 Key Developments
11.6 Exxon Mobil Corp
11.6.1 Key Facts
11.6.2 Business Description
11.6.3 Products and Services
11.6.4 Financial Overview
11.6.5 SWOT Analysis
11.6.6 Key Developments
11.7 Nigerian National Petroleum Corp
11.7.1 Key Facts
11.7.2 Business Description
11.7.3 Products and Services
11.7.4 Financial Overview
11.7.5 SWOT Analysis
11.7.6 Key Developments
11.8 Midwestern Oil & Gas Company Limited
11.8.1 Key Facts
11.8.2 Business Description
11.8.3 Products and Services
11.8.4 Financial Overview
11.8.5 SWOT Analysis
11.8.6 Key Developments
11.9 LEKOIL NIGERIA LIMITED
11.9.1 Key Facts
11.9.2 Business Description
11.9.3 Products and Services
11.9.4 Financial Overview
11.9.5 SWOT Analysis
11.9.6 Key Developments
11.10 Pinnacle Oil and Gas Limited
11.10.1 Key Facts
11.10.2 Business Description
11.10.3 Products and Services
11.10.4 Financial Overview
11.10.5 SWOT Analysis
11.10.6 Key Developments
12. Appendix
12.1 About The Insight Partners
List of Tables
Table 1. Nigeria Offshore Oil and Gas Production Market Segmentation
Table 2. List of Players
Table 3. Nigeria Offshore Oil and Gas Production Market – Revenue and Forecast to 2031 (US$ Billion)
Table 4. Nigeria Offshore Oil and Gas Production Market – Revenue and Forecast to 2031 (US$ Billion) – by Type
Table 5. Nigeria Offshore Oil and Gas Production Market – Revenue and Forecast to 2031 (US$ Billion) – by Application
List of Figures
Figure 1. Nigeria Offshore Oil and Gas Production Market
Figure 2. PEST Analysis
Figure 3. Nigeria Offshore Oil and Gas Production Ecosystem
Figure 4. Impact Analysis of Drivers and Restraints
Figure 5. Nigeria Offshore Oil and Gas Production Market Revenue (US$ Billion), 2021–2031
Figure 6. Nigeria Offshore Oil and Gas Production Market Share (%) – by Type, 2023 and 2031
Figure 7. Crude Oil: Nigeria Offshore Oil and Gas Production Market– Revenue and Forecast to 2031 (US$ Billion)
Figure 8. Natural Gas: Nigeria Offshore Oil and Gas Production Market– Revenue and Forecast to 2031 (US$ Billion)
Figure 9. Nigeria Offshore Oil and Gas Production Market Share (%) – by Application, 2023 and 2031
Figure 10. Power Generation: Nigeria Offshore Oil and Gas Production Market– Revenue and Forecast to 2031 (US$ Billion)
Figure 11. Transportation: Nigeria Offshore Oil and Gas Production Market– Revenue and Forecast to 2031 (US$ Billion)
Figure 12. Industrial: Nigeria Offshore Oil and Gas Production Market– Revenue and Forecast to 2031 (US$ Billion)
Figure 13. Others: Nigeria Offshore Oil and Gas Production Market– Revenue and Forecast to 2031 (US$ Billion)
Figure 14. Heat Map Analysis of Key Players
Figure 15. Company Positioning and Concentration
The List of Companies - Nigeria Offshore Oil and Gas Production Market
- TotalEnergies SE
- CNOOC Ltd
- Shell Plc
- Chevron Corporation
- ExxonMobil Corporation
- Africa Oil Corp.
- Nigerian National Petroleum Corporation
- Lekoil Nigeria Ltd.
- Pinnacle Oil and Gas Limited
- Midwestern Oil and Gas Company Limited
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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