By Ese Ufuoma
The year 2024 has been a landmark period for Nigeria’s oil and gas sector, filled with game-changing discoveries, bold policy reforms, and significant progress in energy transition initiatives. These milestones not only reshaped the domestic energy landscape but also reinforced Nigeria’s role in global energy discussions. Below are accounts of the events and achievements that shaped the sector from January to December 2024.
Launch of the Energy Transition Plan Implementation Framework
The Federal Government of Nigeria kick-started the year with the unveiling of its Energy Transition Plan (ETP) implementation framework. Aimed at achieving net-zero emissions by 2060, the plan included actionable measures to enhance renewable energy integration while maximising gas as a transition fuel. There are plans to attract $10 billion in clean energy investments over the next decade.
Significant Oil Discovery in the Niger Delta
The Nigerian National Petroleum Company Limited (NNPC), in collaboration with a leading private exploration firm, announced a breakthrough discovery in the Niger Delta. Estimated reserves of over 500 million barrels of crude oil were found in the OML 73 field, marking one of the largest discoveries in recent years.
This discovery sparked optimism within the industry, with the potential to boost production output and reinforce Nigeria’s standing as Africa’s top oil producer. The discovery also drew interest from international oil companies (IOCs) seeking exploration partnerships.
Passage of the Downstream Deregulation Act
A major legislative milestone in March was the passage of the Downstream Deregulation Act, which officially deregulated Nigeria’s petroleum downstream sector. The Act removed government subsidies on fuel, allowing market forces to determine fuel prices.
While the policy initially faced resistance from labour unions and civil society, it was lauded by industry stakeholders for creating a level playing field for private investment in refining and distribution. Analysts project this reform could save the government over 4 trillion naira annually and attract much-needed foreign direct investment into the downstream segment.
Groundbreaking of Nigeria’s First Modular Gas-to-Liquid Plant
Nigeria’s first modular Gas-to-Liquid (GTL) plant was launched in Port Harcourt, Rivers State. The plant, a joint venture between the federal government and a consortium of local investors, is designed to convert natural gas into cleaner liquid fuels such as diesel and kerosene.
This initiative is part of Nigeria’s broader strategy to monetise its abundant natural gas reserves and reduce gas flaring, a persistent issue in the oil-rich Niger Delta. The GTL plant is expected to be operational by 2026, with a processing capacity of 30,000 barrels per day.
NAPE and PTDF Collaboration on Exploration Technology
The Nigerian Association of Petroleum Explorationists (NAPE) and the Petroleum Technology Development Fund (PTDF) announced a collaboration to develop refined exploration technologies. The initiative included funding research projects, establishing innovation hubs, and organising capacity-building programs for young professionals.
This collaboration seeks to address declining exploration activities by leveraging advanced geophysical techniques and data analytics, ensuring sustainable resource discovery and production for the future.
NAPE 2024 Annual Conference
The highly anticipated NAPE 2024 Annual Conference was held at the Eko Hotel & Suites in Lagos from November 10 to 14. With the theme “Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth, and Affordability”, the event brought together policymakers, industry leaders, and international experts.
Key discussions revolved around addressing Nigeria’s energy challenges, diversifying revenue streams, and creating synergies between fossil fuels and renewables. The conference concluded with a roadmap for achieving sustainable energy development in Nigeria.
The Nigerian International Energy Summit (NIES)
Held at the Presidential Banquet Hall in Abuja, NIES 2024 convened over 1,000 energy sector stakeholders under the theme, “Navigating the New Energy World Order: Security, Transition, and Finance.” The summit emphasised Nigeria’s role in global energy transitions, focusing on renewable energy integration and fossil fuel optimisation to ensure long-term sustainability.
Reforms in Oil Theft Prevention
September marked a turning point in the fight against oil theft, a challenge that has plagued Nigeria for decades. The federal government deployed advanced aerial surveillance drones and real-time monitoring systems across key oil production regions, significantly reducing illegal bunkering activities.
NNPCL reported a 25% increase in crude oil output following the reforms which restored investor confidence in the sector. This achievement was further bolstered by partnerships with international security firms and local communities.
Nigeria Joins Global Carbon Capture Partnership
Nigeria made history by becoming the first African nation to join a global carbon capture and storage (CCS) initiative led by the International Energy Agency (IEA).
This partnership underscores Nigeria’s commitment to reducing greenhouse gas emissions while maintaining its role as a leading energy producer. The country also announced plans to establish its first CCS pilot project by 2027, a move that could position it as a leader in climate-friendly oil and gas production.
Dangote Refinery Launch
The Dangote Refinery, a $19 billion project with a production capacity of 650,000 barrels per day, officially began operations in January 2024. Located near Lagos, this facility started producing diesel and jet fuel and is set to expand to gasoline. The refinery is pivotal for Nigeria, reducing the need for fuel imports and enhancing energy security. This marks a historic step towards self-sufficiency in petroleum products, as the country had long relied on costly imports despite being a major crude oil producer.
Port Harcourt Refinery Resuscitation
The rehabilitation of the Port Harcourt Refinery saw notable progress in 2024, with some units beginning test runs and limited production. This refinery revival aligns with the government’s broader goal of improving local refining capacity to reduce fuel imports and enhance energy affordability. The project is closely monitored as part of Nigeria’s plan to modernise its existing refineries.
Partnerships and Investments
Global and regional partnerships flourished in 2024, with international oil companies (IOCs) committing to upstream projects in Nigeria. Investments were also directed toward innovative technologies for cleaner and more efficient operations. Key partnerships focused on expanding Nigeria’s LNG capacity to enhance its export capabilities
Overall, 2024 is a testament to Nigeria’s resilience and ingenuity in the face of evolving global energy dynamics. The milestones achieved reflect a sector that is increasingly focused on sustainability, technological innovation, and economic diversification. As we look forward to 2025, the challenge remains to consolidate these gains and ensure that the oil and gas sector continues to drive national development.