“The new refinery in Nigeria and some issues in securing domestic supplies played a role for those unique flows earlier this year. But going forward, with the refinery now aiming to secure domestic flows, and probably looking at other crude grades, it is difficult to forecast if the volume flowing from the U.S. to Nigeria will persist,” agreed Giovanni Staunovo, an analyst at UBS.
African exploration and production company Petralon Energy is on track to boost Nigerian crude production by a further 2,500 barrels per day (bpd), following drilling activities at the Dawes Island field, according to a news release from the African Energy Chamber. The company has recently completed a new well at the field, aligning with plans to maximize output at the field. Operated by Petralon Energy subsidiary Petralon 54 Limited, the field is situated in Petroleum Prospecting License (PPL) 259.
Shell announced last December the final investment decision for the development of the Bonga North deep-water project. The project will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility.
Four months after scrapping the fuel subsidies, Tinubu established the Presidential Compressed Natural Gas Initiative (PCNGI) to drive CNG adoption and ease Nigeria into a cleaner energy era. Experts say mass adoption of CNG will reduce greenhouse gas emissions, improve air quality and cut maintenance costs.
President Bola Ahmed Tinubu has signed a new executive order introducing performance-based tax incentives to reduce project costs and boost investment in upstream oil and gas operations, the Special Adviser to the President on Energy Olu Verheijen announced on Thursday.
TotalEnergies SE has signed a deal to sell its 12.5 percent stake in Nigeria’s OML118 production sharing contract, which contains the producing Bonga field, to Shell PLC for $510 million.
The French company, through subsidiary TotalEnergies EP Nigeria Ltd., derived 11,000 barrels of oil equivalent a day (boed) from its share of production in the block, mainly oil, in 2024.
The OML118 Production Sharing Contract (PSC) is located deep offshore at ~74 mi (120 km) south of the Niger Delta in Nigeria, and contains the Bonga field, which started production in 2005, as well as the Bonga North field, the development of which started in 2024. Production from the OML 118 PSC, which is mainly oil, represents approximately 11,000 boed in TotalEnergies’ company share in 2024.
“The promoters of the project, African Refinery Group, had in 2016 won a competitive bid to co-locate a crude oil refinery within the site of the Port Harcourt Refinery Complex, and it executed an agreement to run and operate a 100,000 BPD refinery on 45 hectares of vacant land within the battery limit of the refinery complex”, the NCDMB said March 9, 2025, announcing its acquisition.
The producer aims to reach oil output of 2.4 million barrels a day after dropping to less than half of that level in 2022. Nigeria has taken measures to reduce vandalism and improve regulations, as oil majors have divested from onshore and shallow water fields due to security concerns. Local independent companies are expected to raise output as assets are transferred from recent sales.
“Petrobras is no longer active in Nigeria, but they are very keen on coming back to Nigeria. They said they want frontier acreage in deep waters,” Nigeria’s foreign minister said, as quoted by Reuters. The publication recalls that Brazil used to operate in the deepwater sector of Nigeria’s continental shelf some 30 years ago but a decade ago it sold its operations there to raise cash for growth at home.