Nigeria Offshore Oil and Gas Production Market Size and Forecast (2021-2031)

According to our latest study on “Nigeria Offshore Oil and Gas Production Market Forecast to 2031 – Country Analysis – by Type and Application,” the market is expected to grow from US$ 34.18 billion in 2023 to US$ 47.03 billion by 2031; it is anticipated to record a CAGR of 4.1% from 2023 to 2031. Apart from growth drivers, the report covers the Nigeria offshore oil and gas production market trends and their foreseeable impact during the forecast period.

In May 2024, the Nigerian Upstream Petroleum Regulatory Commission relaunched Nigeria’s 2024 licensing round at the Invest in African Energy forum in Paris as industry players revealed key investment opportunities. Nigeria’s latest licensing round includes 12 deep offshore and shallow water oil blocks, including five offshore blocks from last year’s round, and is available for tender until January 2025. Nigeria aims to attract local and international explorers to its acreage to expand its reserve base and maximize production. The country is seeking to accelerate upstream investments with the federal government introducing tax credits for unrelated greenfield gas development and commercial incentives for deepwater oil and gas projects. Leading operators such as Shell, TotalEnergies, and Chevron have announced investments of billions to develop Nigeria’s oil and gas supply, coupled with onshore and marginal field opportunities for local and emerging explorers.

Nigeria Offshore Oil and Gas Production Market Share — by Region, 2022

Source: the Research Team Analysis

The Nigerian government launched several major projects aimed at improving energy security and oil refining and gas processing capabilities. Train 7 expansion project at the Nigeria LNG plant will increase Nigeria’s LNG production capacity to 30 million tons per year by 2027. Also, the 650,000 bpd Dangote refinery became operational in 2023. Such projects have taken and represented a significant new domestic market for Nigerian crude oil. Thus, government initiatives toward new offshore drilling and development projects fuel the Nigeria offshore oil and gas production market growth.

Based on type, the Nigeria offshore oil and gas production market is bifurcated into crude oil and natural gas. Crude oil produced in the country is majorly used in various sectors, including transportation, residential, commercial & public services, and agriculture. Natural gas is utilized mainly in sectors such as power generation, industrial, residential, and others. The crude oil segment held a larger Nigeria offshore oil and gas production market share in 2023.

Total crude oil and condensate produced in Nigeria accounted for an average of 1.51 million barrels per day in 2023, with 1.25 million barrels of oil and 0.26 million barrels of condensate per day as per the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) report. Major onshore oil and gas producers, including Exxon Mobil Corporation, TotalEnergies, Shell, and Eni, have decided to leave Nigeria’s oil-rich Niger Delta in recent years and focus on deep-sea drilling, citing security concerns such as theft and sabotage. However, their exit was delayed by regulatory hurdles. The majors’ exit means there are 26 onshore blocks on offer, containing an estimated reserve of 13.76 billion barrels of oil, 2.70 billion barrels of condensate, and about 90,717 billion cubic feet of gas, as per the NUPRC.

The international oil company’s withdrawal from Nigeria does not mean that they are leaving completely. Offshore locations—which lack the security challenges of onshore locations—are becoming increasingly attractive to the major market players. The government’s Ministry of Petroleum Resources states about 13 billion of Nigeria’s 37 billion barrels of proven oil reserves were in the deepwater sector, which would create an opportunity for the players operating in the offshore oil and gas production market. In December 2023, TotalEnergies announced its plan to invest, with a focus on offshore oil projects and gas production. As per President Tinubu, Nigeria will be the top-level investment choice in the offshore and onshore sectors in the coming years by tackling the obstacles in oil and gas production in the country, which contributes to the growing Nigeria offshore oil and gas production market size.

The scope of the Nigeria offshore oil and gas production market report focuses on Nigeria. The country 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. However, disruptions in production outages or unplanned production in the country resulted in declining crude oil production below Angola, which is the second-largest producer in the region. Nigeria faced a decline in oil production during 2008-2010, 2016-2018, and 2022 owing to the recession, militant strikes on oil infrastructure, facility closure & oil worker strikes, respectively.

The Nigerian government is engaged in taking initiatives to increase the production of oil and gas and attract international oil and gas producers to the country. In August 2021, the Nigerian government passed the Petroleum Industry Act. The new act is aimed at attracting investor interest in the upstream development and addressing grievances of communities affected by oil exploration and production. The act changed the legal framework, which includes:

Formation of two different industry regulators—the Nigerian Upstream Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory AuthorityRestructuring of the Nigerian National Petroleum CorporationReducing the royalty structure and tax for crude oil productionModification of terms and conditions in licensing and leasing of oil fields.The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) aims to increase the oil and condensate production to more than 2.5 million barrels per day (mbpd) by 2026 from 1.51 mbpd in 2023. Thus, initiatives by the government to boost the production of oil and gas drive the Nigeria offshore oil and gas production market size.

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 among the key players profiled in the Nigeria offshore oil and gas production market report. Companies in the market mainly focus on product and service enhancements by integrating advanced features and technologies into their offerings.

1. Introduction
1.1 the Research Team 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 Research Team

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

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