Table of Contents
1 Table of Contents 2
1.1 List of Tables 8
1.2 List of Figures 10
2 Nigeria Energy Sector 11
2.1 Nigeria Energy Sector, Market Overview 11
2.2 Nigeria Energy Sector, Crude Oil 12
2.2.1 Nigeria Crude Oil, Overview 12
2.2.2 Nigeria Crude Oil, Supply and Demand Balance 12
2.2.3 Nigeria Crude Oil, Regulatory Structure 18
2.2.4 Nigeria Crude Oil, Infrastructure 18
3 Nigeria, Fiscal Regime 20
3.1 Nigeria Petroleum Fiscal Environment 20
3.1.1 Governing Law 20
3.1.2 Licensing Authority 20
3.1.3 National Oil Company 20
3.1.4 Contract Type 20
3.1.5 State Participation 21
3.2 License Terms 21
3.2.1 Exploration Type of Right 21
3.2.2 Area 21
3.2.3 Duration 21
3.2.4 Relinquishment 21
3.2.5 Exploration obligation 21
3.2.6 Production Rights, Area & Duration 22
3.3 Key Fiscal Terms 23
3.3.1 Royalty 23
3.3.2 Fees 23
3.3.3 Petroleum Profit Tax 23
3.3.4 Deductions and Depreciation 23
3.3.5 Petroleum Investment Allowance (PIA) 24
3.3.6 Withholding Tax 24
3.3.7 Ring Fence 24
3.4 Nigeria, Fiscal System - Economic Modeling Methodology 25
3.4.1 Economic Modeling Methodology 26
3.5 Nigeria, Fiscal System - Sample Economics 27
3.6 Nigeria, Fiscal System - Sample Asset Valuation 28
4 Nigeria Oil Upstream Investment Environment Benchmarking 29
4.1 Introduction 29
4.2 The Overall Ranking 29
4.3 Upstream Fiscal Attractiveness 29
4.3.1 Maximum Government Take Index 31
4.3.2 Fiscal Flexibility 31
4.3.3 Maximum State Participation 31
4.3.4 Maximum Domestic Market Obligation 32
4.4 Oil Sector Performance 32
4.4.1 Exploration Activity 34
4.4.2 Oil Production 35
4.4.3 Oil Reserves 35
4.4.4 Oil Consumption 35
4.4.5 Refining Industry 36
4.5 Economic Performance 36
4.5.1 GDP Growth Index 38
4.5.2 FDI Confidence Index 38
4.5.3 Balance of Trade Index 38
4.6 Socio-Political Performance 38
4.6.1 Democracy Index 40
4.6.2 Governance Index 40
5 Nigeria Exploration and Production Sector 41
5.1 Nigeria Exploration and Production Sector, Country Snapshot 41
5.1.1 Nigeria Exploration and Production Sector, Key Data 41
5.1.2 Nigeria Exploration and Production Sector, Crude Oil Assets Map 41
5.2 Nigeria Exploration and Production Sector, Gross Crude Oil Production 42
5.2.1 Nigeria Exploration and Production Sector, Gross Crude Oil-Historical Production 42
5.2.2 Nigeria Exploration and Production Sector, Gross Crude Oil-Historical Production by Type 43
5.2.3 Nigeria Exploration and Production Sector, Gross Crude Oil Production by Assets 44
5.2.4 Nigeria Exploration and Production Sector, Gross Equity Weighted Crude Oil Production by Company 46
5.2.5 Nigeria Exploration and Production Oil Sector, Market Share based on Gross Equity Weighted Crude Oil Production 47
5.3 Nigeria Exploration and Production Sector, Gross Crude Oil Forecasts 49
5.3.1 Nigeria Exploration and Production Sector, Gross Crude Oil Forecasted Production 49
5.4 Nigeria Exploration And Production Sector, Crude Oil Asset Details 53
5.4.1 Nigeria Exploration And Production Sector, Active Crude Oil Asset Details 53
5.4.2 Nigeria Exploration and Production Sector, Planned Crude Oil Asset Details 57
5.5 Nigeria Exploration and Production Sector, Major Oil Discoveries 58
5.5.1 Nigeria Exploration and Production Sector, Number of Oil Discoveries, 2004- 2009 58
5.5.2 Nigeria Exploration And Production Sector, Oil Discovery Details 59
5.6 Nigeria Exploration And Production Sector, Recent Discoveries 60
5.6.1 Jun 25, 2010: Afren Taps Oil At Ebok Deep Exploration Well Im OML 67, Offshore Nigeria 60
5.6.2 Jun 24, 2010: Total Announces Hydrocarbon Discovery At OML 136, Offshore Western Nigeria 60
5.7 Nigeria Exploration And Production Sector, Drilling and Production Updates 61
5.7.1 Aug 11, 2010: OMEL's Nigerian Find May Not Be Commercially Viable: Indian Oil Minister 61
5.7.2 Aug 09, 2010: Mart Resources Announces Rig Mobilization At UMU-6 Well In Nigeria 61
5.7.3 Aug 02, 2010: Total Resumes Operations At Akpo Offshore Oil Field In Nigeria 61
5.7.4 Jul 28, 2010: Total's Amenam Crude Oil Production Falls On Technical Issue 61
5.7.5 Jul 07, 2010: Shell Commences Oil And Gas Production From Gbaran-Ubie Project In Nigeria 62
6 Nigeria FPSO Industry 63
6.1 Nigeria FPSO Industry, FPSO Capacity Details by Vessel 63
6.2 Nigeria FPSO Industry, FPSO Vessel Specifications 64
7 Nigeria Pipeline Sector 65
7.1 Nigeria Pipeline Sector, Key Data 65
7.2 Nigeria Pipeline Sector, an Overview 65
7.3 Nigeria Pipeline Sector, Comparision of Key Crude Oil Pipeline Companies 65
7.4 Nigeria Pipeline Sector, Petroleum Product Pipeline Companies 66
7.5 Nigeria Pipeline Sector, Crude Oil Pipelines 67
7.6 Nigeria Pipeline Sector, Petroleum Product Pipelines 68
8 Nigeria Refining Sector 69
8.1 Nigeria Refining Sector, Key Data 69
8.2 Nigeria Refining Sector, An Overview 69
8.2.1 Nigeria Refining Sector, Total Refining Capacity 69
8.3 Nigeria Refining Sector, Capacity- Wise Market Share by Company 70
8.4 Nigeria Refining Sector, Crude Distillation Unit Capacity 71
8.5 Nigeria Refining Sector, Fluid Catalytic Cracking Capacity 71
9 Nigeria Oil and Chemicals Storage Sector 72
9.1 Nigeria Oil and Chemicals Storage Sector, Key Data 72
9.2 Nigeria Oil and Chemicals Storage Sector, An Overview 72
9.2.1 Nigeria Oil and Chemicals Storage Sector, Total Storage Capacity 72
9.3 Nigeria Oil and Chemicals Storage Sector, Capacity-Wise Market Share by Company 73
9.4 Nigeria Oil and Chemicals Storage Sector, Storage Capacity 75
10 Profile of Royal Dutch Shell plc 76
10.1 Royal Dutch Shell plc, Key Information 76
10.2 Royal Dutch Shell plc, Company Overview 76
10.3 Royal Dutch Shell plc, Business Description 76
10.3.1 Business Overview 76
10.3.2 Corporate 77
10.3.3 Downstream 77
10.3.4 Upstream 79
10.4 Royal Dutch Shell plc, SWOT Analysis 80
10.4.1 Overview 80
10.4.2 Royal Dutch Shell plc Strengths 81
10.4.3 Royal Dutch Shell plc Weaknesses 82
10.4.4 Royal Dutch Shell plc Opportunities 83
10.4.5 Royal Dutch Shell plc Threats 85
11 Profile of Exxon Mobil Corporation 87
11.1 Exxon Mobil Corporation, Key Information 87
11.2 Exxon Mobil Corporation, Company Overview 87
11.3 Exxon Mobil Corporation, Business Description 87
11.3.1 Business Overview 87
11.3.2 Chemical 88
11.3.3 Downstream 89
11.3.4 Upstream 91
11.4 Exxon Mobil Corporation, SWOT Analysis 92
11.4.1 Overview 92
11.4.2 Exxon Mobil Corporation Strengths 93
11.4.3 Exxon Mobil Corporation Weaknesses 94
11.4.4 Exxon Mobil Corporation Opportunities 95
11.4.5 Exxon Mobil Corporation Threats 97
12 Profile of Eni S.p.A. 99
12.1 Eni S.p.A., Key Information 99
12.2 Eni S.p.A., Company Overview 99
12.3 Eni S.p.A., Business Description 99
12.3.1 Business Overview 99
12.3.2 Engineering and Construction 100
12.3.3 Exploration & Production 101
12.3.4 Gas & Power 102
12.3.5 Others 104
12.3.6 Petrochemicals 104
12.3.7 Refining and Marketing 105
12.4 Eni S.p.A., SWOT Analysis 106
12.4.1 Overview 106
12.4.2 Eni S.p.A. Strengths 107
12.4.3 Eni S.p.A. Weaknesses 108
12.4.4 Eni S.p.A. Opportunities 109
12.4.5 Eni S.p.A. Threats 110
13 Financial Deals Landscape 112
13.1 Detailed Deal Summary 112
13.1.1 Rumored Deals 112
13.1.2 Acquisition 113
13.1.3 Private Equity 116
13.1.4 Equity Offerings 118
13.1.5 Partnerships 119
13.1.6 Asset Transactions 120
14 Recent Developments 131
14.1 License Rounds 131
14.1.1 Jun 23, 2010: Nigeria May Auction Oil Exploration Blocks In August 2010 131
14.1.2 May 27, 2010: Nigeria To Unveil Details Of New Oil Bidding Round Within Four Weeks 131
14.2 License Awards 131
14.2.1 Apr 22, 2010: Mart Resources And Its Partners Receive Approval For UMU-6 Development Well, Onshore Nigeria 131
14.3 Strategy and Business Expansion 132
14.3.1 Aug 13, 2010: Imo State Seeks NNPC's Support To Build Refinery 132
14.3.2 Aug 10, 2010: OMEL To Set Up 180,000 Bpd Oil Refinery In Nigeria 132
14.3.3 Jul 20, 2010: US Supports Nigeria On PIB: NNPC 133
14.4 Other Significant Developments 133
14.4.1 Aug 30, 2010: Shell Near Completion Of $1 Billion Oil Pipeline In Nigeria 133
14.4.2 Aug 27, 2010: Nigeria Unveils Three-Step Action Plan To Boost Gas Supplies To Power Plants 134
14.4.3 Aug 10, 2010: Four Arab States Show Interest In Buying Iranian Gas 134
14.4.4 Jul 21, 2010: Septa Energy Plans $1 Billion Investment On Domestic Gas Project In Nigeria 134
14.4.5 Jul 20, 2010: NNPC, Zamfara State To Build Refinery 135
14.4.6 Jul 08, 2010: Nigeria Pledges Support For Ugandan Petroleum Industry 135
14.4.7 Jul 07, 2010: Maurel & Prom Provides Operations Update 136
14.4.8 Jul 07, 2010: Iran, Nigeria Discuss Closer Cooperation In Oil And Gas Sectors 137
14.4.9 Jul 06, 2010: NNPC To Start Preliminary Design For Kogi Greenfield Refinery In Nigeria 137
15 Appendix 138
15.1 Methodology 138
15.1.1 Coverage 138
15.1.2 Secondary Research 139
15.1.3 Primary Research 139
15.1.4 E&P Forecasts 140
15.1.5 Midstream Forecasts 141
15.1.6 Expert Panel Validation 141
15.2 Contact Us 142
15.3 About GlobalData 142
15.4 Disclaimer 142
1.1 List of Tables
Table 1: Nigeria, Historic and Forecast Production and Consumption of Crude Oil, 1996-2020 13
Table 2: Nigeria, Historic and Forecast Imports and Exports of Crude Oil, 1996-2020 15
Table 3: Nigeria, Historic Reserves of Crude Oil, 1996-2009 17
Table 4: Nigeria, Crude Oil and Natural Gas, Exploration commitment, 2009 22
Table 5: Nigeria, Crude Oil and Natural Gas, Minimum Work Programme, 2009 22
Table 6: Nigeria, Crude Oil and Natural Gas, Royalty Rate For Joint Venture Contracts, 2009 23
Table 7: Nigeria, Crude Oil and Natural Gas, Petroleum Investment Allowances, 2009 24
Table 8: Nigeria, Base Asset Remaining NPV, Sensitivity to Discount Rates, Mid 2009 28
Table 9: West Africa, Investment Benchmarking, Overall Country Rankings, July 2010 29
Table 10: West Africa, Investment Benchmarking, Upstream Fiscal Attractiveness, July 2010 30
Table 11: West Africa, Investment Benchmarking, Oil Sector Performance, July 2010 32
Table 12: West Africa, Investment Benchmarking, Economic Performance, July 2010 36
Table 13: West Africa, Country Standings, Economic Performance, July 2010 37
Table 14: West Africa, Investment Benchmarking, Socio-Political Performance, July 2010 39
Table 15: West Africa, Country Standings, Socio-Political Performance, July 2010 39
Table 16: Nigeria, Crude Oil Key Statistics, 2009 41
Table 17: Nigeria, Total Gross Crude Oil Production (MMBBLs), 2002-2009 42
Table 18: Nigeria, Total Gross Crude Oil Production (MMBBLs) by Type, 2002- 2009 43
Table 19: Nigeria, Gross Crude Oil Production (MMBBLs), by Assets, 2002-2009 44
Table 20: Nigeria, Gross Equity Weighted Crude Oil Production by Company (MMBBLs), 2002-2009 46
Table 21: Nigeria, Market Share (%) based on Gross Equity Weighted Crude Oil Production, 2002-2009 47
Table 22: Nigeria, Gross Crude Oil Production (MMBBLs), Forecast by Assets, 2010- 2015 49
Table 23: Nigeria, Gross Crude Oil Production (MMBBLs), Forecast by Assets, 2010- 2015 (Contd.1) 50
Table 24: Nigeria, Gross Crude Oil Production (MMBBLs), Forecast by Assets, 2010- 2015 (Contd.2) 51
Table 25: Nigeria, Gross Crude Oil Production (MMBBLs), Forecast by Assets, 2010- 2015 (Contd.3) 52
Table 26: Nigeria, Active Oil Field Asset Details 53
Table 27: Nigeria, Planned Oil Field Assets Details 57
Table 28: Nigeria, Number of Oil Discoveries, 2004-2009 58
Table 29: Nigeria, Oil Discovery Details, 2004-2009 59
Table 30: Nigeria FPSO Industry, FPSO Oil Production Capacities, 2009 63
Table 31: Nigeria FPSO Industry, FPSO Vessel Specifications, 2009 64
Table 32: Nigeria, Pipeline Key Statistics, 2009 65
Table 33: Nigeria, Crude Oil Pipeline Length by Company (Km), 2009 65
Table 34: Nigeria, Petroleum Product Pipeline Length by Company (Km), 2009 66
Table 35: Nigeria, Crude Oil Pipelines, 2009 67
Table 36: Nigeria, Petroleum Product Pipelines, 2009 68
Table 37: Nigeria, Refinery Key Statistics, 2009 69
Table 38: Nigeria, Total Refining Capacity (MMTPA), 2000- 2013 69
Table 39: Nigeria, Refining Capacity by Company (MMTPA), 2000-2013 70
Table 40: Nigeria, Crude Distillation Unit Capacity (MMTPA), 2000-2013 71
Table 41: Nigeria, Fluid Catalytic Cracking Unit Capacity (MMTPA), 2000-2013 71
Table 42: Nigeria, Oil Storage Key Statistics, 2009 72
Table 43: Nigeria, Total Oil and Chemicals Storage Capacity (Thousand M3), 2000- 2013 72
Table 44: Nigeria, Oil and Chemicals Storage Capacity by Company (Thousand M3), 2000-2013 73
Table 45: Nigeria, Oil and Chemicals Storage Capacity (Thousand M3), 2000-2013 75
Table 46: Royal Dutch Shell plc, Key Facts 76
Table 47: Royal Dutch Shell plc, SWOT Analysis 81
Table 48: Exxon Mobil Corporation, Key Facts 87
Table 49: Exxon Mobil Corporation, SWOT Analysis 93
Table 50: Eni S.p.A., Key Facts 99
Table 51: Eni S.p.A., SWOT Analysis 107
Table 52: China National Offshore Oil To Acquire Oil Reserves In Nigeria 112
Table 53: Maurel & Prom Acquires 45% Interest In Seplat Petroleum Development Company 113
Table 54: Essar Oil Terminated Plan To Acquire Port Harcourt Refining Company 114
Table 55: To Acquire Port Harcourt Refinery 115
Table 56: To Sell Eurpean LPG Business And Oil and Gas Fields In The North Sea And Nigeria 116
Table 57: Standard Chartered Private Equity Invests $47.5 Million In Seven Energy 117
Table 58: Completes Right Issue Of $142.6 Million 118
Table 59: Forms Joint Venture With NNPC 119
Table 60: Sirius Petroleum To Acquire 40% Stake In Ke Marginal Fiel 120
Table 61: Petroleum Company To Acquire 45% Interest In OML 4, 38 And 41 In Nigerian Onshore 121
Table 62: Shell To Sell Stake In Three Oil Licenses In Nigeria 122
Table 63: To Acquire 32.5% Stake In OML 115 123
Table 64: Shell To Sell Three Production Licenses In Nigeria 124
Table 65: ERHC Energy To Acquire Working Interest In Eremor Marginal Field 125
Table 66: Asia Petroleum Acquires Oyo Oilfield From CAMAC Energy Holdings 126
Table 67: Addax Acquires An Additional 51% Interest In JDZ Exploration Block 3 To Addax 127
Table 68: To Acquire 28% Stake In Okwok Field From Addax Petroleum 128
Table 69: Moni Pulo Petroleum Acquires Three New Oil Blocks 129
Table 70: Oando Acquires 15% Stake In Two Blocks From Agip 130
1.2 List of Figures
Figure 1: Nigeria, Energy Sector Split By Fuel Type, 2009 11
Figure 2: Nigeria, Crude Oil Production And Consumption (Thousand Barrels Per Day), 1996-2020 14
Figure 3: Nigeria, Crude Oil Exports (Thousand Barrels Per Day), 1996-2020 16
Figure 4: Nigeria, Crude Oil Reserves (Million Barrels), 1996-2009 18
Figure 5: Nigeria, Full Field Economics, Sample Cash Flows, 1969-2030 25
Figure 6: Nigeria, Sample Full Field Economics, Government and Contractor Takes 27
Figure 7: Nigeria, Sample Full Field Economics, Post Tax Cash Flow vs. Gross Revenue 27
Figure 8: Nigeria, Sample Full Field Economics, Project Post Tax Cash Flows At Various Discount Rates 28
Figure 9: West Africa, Country Standings, Upstream Fiscal Attractiveness, July 2010 31
Figure 10: West Africa, Country Standings, Oil Sector Performance, by Reserves-Exploration & Production, July 2010 33
Figure 11: West Africa, Country Standings, Oil Sector Performance, by Production-Consumption & Refining, July 2010 34
Figure 12: West Africa, Country Standings, Exploration Blocks Awarded, July 2010 35
Figure 13: West Africa, Country Standings, Economic Performance, July 2010 37
Figure 14: West Africa, Country Standings, Socio-Political Performance, July 2010 40
Figure 15: Nigeria, Crude Oil Assets Map, 2009 41
Figure 16: Nigeria, Total Gross Crude Oil Production (MMBBLs), 2002-2009 42
Figure 17: Nigeria, Total Gross Crude Oil Production (MMBBLs) by Type, 2002-2009 43
Figure 18: Nigeria, Gross Equity Weighted Crude Oil Production (MMBBLs) by Company, 2002-2009 47
Figure 19: Nigeria, Market Share (%) based on Gross Equity Weighted Crude Oil Production, 2009 48
Figure 20: Nigeria, Number of Oil Discoveries, 2004- 2009 59
Figure 21: Nigeria, Crude Oil Pipeline Length by Company (Km), 2009 66
Figure 22: Nigeria, Total Refining Capacity (MMTPA), 2000- 2013 70
Figure 23: Nigeria, Total Oil and Chemicals Storage Capacity (Thousand M3), 2000- 2013 73
Figure 24: Nigeria, Oil and Chemicals Storage Capacity by Company (Thousand M3), 2000-2013 74