Nigeria is the largest oil producer in Africa with proven geology, and long established infrastructure, regulatory and fiscal regimes. Nigeria also possesses one of the largest gas reserves on the continent, the development of which to supply the rapidly evolving and expanding domestic market is an attractive growth opportunity for Seplat.
Prolific hydrocarbon geology
Nigeria’s oil and gas industry represents a compelling value proposition and is attractive, not just to Seplat but the wider industry also, on many levels. It starts below the ground and the prolific hydrocarbon geology of the Niger Delta area, where Nigeria’s oil and gas industry is concentrated. Covering an area of approximately 75,000 km² and with up to 10km sedimentary thickness, the critical factors required for hydrocarbon generation have all combined to great effect in the Niger Delta basin, namely the existence of source rocks with high levels of organic content, high rates of sedimentation and rapid burial to allow hydrocarbon generation and the presence of good quality reservoir rocks and effective trap/seal mechanisms where hydrocarbons have accumulated in vast quantities. Nigeria is estimated to hold remaining recoverable proved reserves of around 37 billion barrels of oil and 179 trillion cubic feet of gas, making it a globally significant source of long-term supply.