Weekly Oil & Gas Engineering international news update: April 16

Reports on planned oil and gas pipelines in the EMEA region and Nigeria's plans to spend $25 billion on upstream CAPEX by 2020.

By GlobalData April 16, 2018

Analysis of the planned and announced trunk/transmission oil and gas pipelines in Europe, Middle East, and Africa (EMEA) shows the Trans Saharan Gas project pipeline is the longest planned pipeline with a length of 4,400km. The African Renaissance Project pipeline and the Gasnosu pipeline follow with lengths of 2,600km and 2,100km, respectively, according to GlobalData.

The Trans Saharan Gas project pipeline begins in Nigeria and is an onshore pipeline. It is expected to start operations in 2021. The Nigerian National Petroleum Corporation (45%), the Republic of Niger (10%), and Sonatrach SPA (45%) are its stakeholders, and Trans Saharan Natural Gas Consortium is the operator. The pipeline has capital expenditures (CAPEX) of $12 billion.

The African Renaissance Project pipeline starts in Mozambique and has a proposed length of 2,600km. It is an onshore gas pipeline and is expected to start operations in 2021. China National Petroleum Corporation (20%), Empresa Nacional de Hidrocarbonetos EP (28%), and Profin Consulting Sociedade Anonima (28%) are its stakeholders. The pipeline has a total CAPEX of $6 billion.

The Gasnosu pipeline, which also starts in Mozambique, is the third-longest planned pipeline, with a length of 2,100km. It is an onshore gas pipeline and is expected to start operations in 2020. Gigajoule International (Pty) Ltd has a 49.6% stake, but the other stakeholders are unknown. Matola Gas Co. is its operator, and the pipeline has a total CAPEX of $4 billion.

The Iranian Gas Trunk line-IGAT IX pipeline, which starts in Iran, is the fourth-longest planned pipeline, with a length of 1,900km. It is an onshore gas pipeline and is expected to start operations in 2020. National Iranian Gas Co. has a 100% equity stake in the pipeline and is also the operator. The pipeline has a total CAPEX of $6 billion.

The fifth-longest planned pipeline, Trans Anatolian (TANAP), starts in Turkey, with a length of 1,850km. It is an onshore gas pipeline and is expected to start operations in 2018. Botas Petroleum Pipeline Corporation, BP Plc and State Oil Company of the Azerbaijan Republic have 30%, 12% and 28.4% stakes, respectively, but the other stakeholders are unknown. Tanap Dogalgaz Iletim AS is the operator. The pipeline has a total CAPEX of $8 billion.

Nigeria to spend $25 billion on upstream CAPEX by 2020

An average CAPEX of $8.4 billion per year will be spent on 249 oil and gas fields in Nigeria between 2018 and 2020. CAPEX into Nigeria’s oil and gas projects will add up to $25.3 billion over the three-year period in upstream CAPEX by 2020.

Ultra-deepwater projects will be responsible for over 28 percent of $25.3 billion of upstream CAPEX in Nigeria, or $7.2 billion by 2020. The shallow water projects will account for 26% of upstream CAPEX with $6.7 billiob by 2020, while deepwater and onshore projects will necessitate $6 and $5.5 billion, respectively, in CAPEX over the period.

Nigerian National Petroleum Corporation is expected to lead Nigeria in CAPEX by investing $5.3 billion into the country’s upstream projects by 2020. Royal Dutch Shell Plc and Eni SpA will follow, with $4.7 and $2.8 billiob respectively.

Zabazaba-Etan Project, a planned shallow water conventional oil field, will lead capital investment with $4.8 billion 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 $1.8 billion. Esso Exploration and Production Nigeria Limited is its operator.

GlobalData reports the average remaining CAPEX per barrel of oil equivalent (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. 

– Edited from GlobalData press releases by CFE Media.