Nigeria, Angola, and Gabon to Launch 10 Offshore Oil Projects to Boost Output
Nigeria, Two Others Set to Launch Ten Offshore Projects to Increase Crude Production
In a bold push to bolster crude oil output and reassert its influence in the global energy market, Nigeria, alongside two other West African nations—Gabon and Angola—is set to launch ten new offshore oil projects over the next three years. These developments signal a resurgence of interest in the region’s deepwater assets and reflect broader efforts to revive production levels in response to shifting global energy demands and investment patterns.
The initiative, spearheaded by both national oil companies and major international players, is expected to yield substantial returns not only in production volume but also in foreign direct investment, job creation, and infrastructure expansion across the region.
Strategic Move Amid Declining Output
Nigeria, Africa’s largest oil producer, has struggled in recent years to maintain stable production levels due to pipeline vandalism, regulatory uncertainties, and underinvestment in key assets. According to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country’s daily crude oil output has hovered below its 1.8 million barrels per day (bpd) OPEC quota, impacting both revenue and economic stability.
To reverse this trend, the Nigerian government approved a $17.64 billion oil development plan aimed at recovering 2.12 billion barrels of crude oil over five years. The bulk of this recovery is expected to come from deepwater and ultra-deepwater fields, with offshore projects offering a more secure and technologically advanced alternative to onshore operations often plagued by security concerns.
Flagship Projects and Key Players
Among the ten offshore projects earmarked, Nigeria will host six, with the remaining four spread between Angola and Gabon. Some of the most notable developments in Nigeria include:
1. Shell’s Bonga North Project
Shell Nigeria Exploration and Production Company (SNEPCo) has reached a final investment decision (FID) on the Bonga North deepwater project, situated in Oil Mining Lease (OML) 118. This project is expected to add up to 110,000 bpd to Nigeria’s output when fully operational. It builds on the success of the original Bonga field, which has been producing since 2005.
2. TotalEnergies’ Preowei Development
French energy giant TotalEnergies is advancing the Preowei Phase I development, a subsea tieback to the existing Egina FPSO. The project is expected to come onstream by 2026, delivering an estimated 65,000 bpd. This development reflects a strategic shift toward leveraging existing infrastructure to lower costs and environmental impacts.
3. ExxonMobil’s Owowo and Bosi Projects
ExxonMobil has committed to a $10 billion investment in Nigeria, with much of it centered around the Owowo and Bosi deepwater developments. These projects are expected to contribute an additional 50,000 bpd each. The company aims to work in close collaboration with the Nigerian National Petroleum Company Limited (NNPCL) to expedite approvals and streamline project delivery.
4. New FPSO Facility in Lagos
An advanced Floating Production, Storage, and Offloading (FPSO) facility is under construction in Lagos and is poised to handle over 40,000 bpd. This facility will serve as a strategic hub for multiple offshore fields, optimizing logistics and reducing downtime.
Regional Collaboration and Expansion
While Nigeria leads the offshore initiative, Angola and Gabon are also moving forward with ambitious deepwater projects. Angola’s national oil company, Sonangol, recently partnered with Italy’s Eni to develop two ultra-deepwater blocks in the Lower Congo Basin, with a combined expected output of 150,000 bpd by 2027.
Gabon, though smaller in production capacity, has also signed a memorandum of understanding with Malaysia’s Petronas to explore and develop offshore fields previously deemed nonviable due to technological constraints. Advances in subsea drilling and floating infrastructure have made such ventures economically feasible.
Economic and Strategic Implications
The ten offshore projects are anticipated to collectively add up to 800,000 bpd to the combined output of the three countries. For Nigeria alone, this could mean reaching or even surpassing its OPEC quota, thereby increasing foreign exchange earnings and bolstering the country’s foreign reserves.
Dr. Sarki Auwalu, Director of NUPRC, emphasized the projects’ role in Nigeria’s broader energy transition strategy. “We are looking not just at quantity but sustainability—developing resources responsibly with the support of international partners and technology,” he said.
From an investment standpoint, the projects are also drawing attention from financial institutions and sovereign wealth funds, particularly in the Gulf region. The stability and growth potential of offshore oil make it an attractive option for long-term capital.
Challenges and Concerns
Despite the optimism, challenges remain. Experts warn that bureaucratic delays, coupled with environmental concerns and community grievances, could stall some of the projects. Activist groups have called for greater transparency in contract awards and environmental impact assessments, particularly in ecologically sensitive offshore areas.
In addition, the volatility of global oil prices poses a risk to long-term planning. While current market conditions favor increased output due to tight supply from OPEC+ cuts and geopolitical tensions, a future downturn could affect project viability and investment appetite.
Government Policy and Regulatory Support
To facilitate these offshore ventures, the Nigerian government has continued to implement reforms under the Petroleum Industry Act (PIA). These reforms include the streamlining of licensing processes, the establishment of a clear fiscal regime for deepwater operations, and the creation of the Nigerian Upstream Investment Management Services (NUIMS) unit to coordinate investments.
Minister of State for Petroleum Resources, Heineken Lokpobiri, recently stated that “with the right policy environment and global partnerships, Nigeria can double its production by 2030 and regain its leadership role in Africa’s energy narrative.”
Global Market Dynamics
These offshore projects come at a time when global energy markets are grappling with supply disruptions due to the Russia-Ukraine conflict, OPEC+ output limits, and increasing demand from Asia. West Africa’s renewed activity is seen as a stabilizing force that could offer alternative supply routes for Europe and North America.
Energy analysts suggest that if executed effectively, the combined projects in Nigeria, Angola, and Gabon could make the Gulf of Guinea one of the world’s most important offshore oil hubs, rivaling the North Sea and parts of South America.
Conclusion
The upcoming wave of offshore oil projects marks a pivotal moment for Nigeria and its West African partners. It reflects a commitment to harnessing deepwater resources in a way that promotes economic growth, regional cooperation, and energy security.
With strong backing from international oil companies and a renewed focus on investment-friendly policies, Nigeria is well-positioned to transform its offshore sector into a cornerstone of national prosperity. As global energy dynamics evolve, the successful implementation of these projects could secure West Africa’s place as a key player in the 21st-century oil economy.