Through our dynamic group structure, we will streamline offshore energy delivery upstream, extend our capability efficiently downstream to become a major gas player and lead the way in providing more competitive power solutions. Together, this exceptional platform will allow GMT to make a real difference for clients across the energy value chain, both in Nigeria and around the world.
Working alongside our partners we are classed as an experienced operator of international exploration and production licences, with a primary geographic focus on emerging markets including, Africa and would consider other regions for material opportunities.
As a Group, we have an active strategy to deliver shareholder value through disciplined, exploration and production projects; leveraging the Company’s experience, with an emphasis on using technology and innovation to improve reliability and productivity thereby securing near term cash flow generative opportunities.
We are positioning ourselves to attain a strong balance between exploration, development and production assets, while targeting zero net growth in our operational emissions.
As companies investigate ways to extend the life of their assets to save costs, we expect to see a rise in asset life extension projects beyond 2019. This is on the back of an optimistic 2018/2019 in the industry and there are positive trends predicted for future of the industry.
World Oil analysts have forecast drilling activity across eight major regions is set to increase from 2019 onwards. The activity is set to take place in the biggest oil and gas producers in eight regions of North America excluding the U.S, South America, Western Europe, Eastern Europe/former Soviet Union (FSU), Africa, the Middle East, Far East/South Asia, and South Pacific.
Forecast is that growth in offshore oil and gas drilling will outpace the overall global drilling market. While total global drilling activity— excluding the U.S.—is set to rise by 2.5 per cent this year. The most active offshore drilling areas will include East Canada, Brazil, Norway, Angola, Nigeria, Saudi Arabia, Abu Dhabi, China, and India, according to World Oil.
Drilling in Africa is expected to grow at the fastest pace among all regions, by 8.7 per cent, with Angola and Egypt leading the way. GMT is looking to ride the wave of the increased upstream activity in a sustainable and efficient manner. Working with partners and experienced engineers we are reviewing asset portfolios across Africa and Europe to develop our own asset base, introduce new technologies and embrace the move to Net Zero activities in our fields.
Natural gas, is at last taking centre stage across Africa as countries embrace it as a cheap and sustainable source of energy. In 2017 Africa had proven natural gas reserves of 503.3 trillion cubic feet, according to the International Energy Agency, with West Africa, owning most of the reserves. Nigeria’s gas reserves are thought to be the largest in Africa at 5.2 trillion cubic metres, according to statistics and poised to become one of the largest energy players as it prepares for what it calls a Gas Revolution.
Our focus on gas allows us to play a significant role in the race for gas across Africa, a continent with a reserve base that is comparable to Qatar.
We have bright people that are aggressive about gas exploration; we are prepared to drill wells, which some majors will not touch; we are ready to make significant investments to explore and harness the power of Gas in innovative ways, contributing to the global supply of LNG.
Unlocking Nigeria’s natural gas potential
GMT is making significant progress to contribute to the Federal government’s Gas Revolution Programme by putting in place infrastructure and funding regime to create a world class LNG company, working with our joint venture partners and the Federal Government of Nigeria towards the objective of capturing, storage and transportation on LNG to the world, ending the continuous flaring of associated gas.
We are also exploring opportunities to create distribution networks in states across the country as well as increasing the distribution capacity in states where gas distribution contracts exists.
We don’t see ourselves as competitors in this vast field but enablers towards helping Nigeria maximise the potential of its gas reserves efficiently with minimum impact to the environment - achieving Net Zero emissions.
Developing Gas Infrastructure
GMT is also working with funding partners to commit towards investments to further develop infrastructure along the gas value chain to improve reliability and security of supply, for example, to create a more robust pipeline network.
Contracts, regulatory framework
In order to attract investments and run reliable operations we are working with the regulatory institutions to put in the right commercial and development contracts that will ensure a conducive business environment for our partners and investors. We will do this while working in partnership with the Federal and local government to overcome security challenges in the areas within which we operate. We will engage with local communities, provide training for youth in the region to find employment within the business while supporting the growth of local entrepreneurs.
It remains undisputed that Nigeria requires a transformation of its power sector. GMT Power is committed to building an infrastructure base to help the country make substantial advancements in the sector.
We are well placed to drive the right levels of investments into the country that will accelerate power generation capacity and utilisation; expand power transmission networks and improve the country’s power distribution capabilities.
We believe that Nigeria should target an increase in installed generation capacity by 40 to 45 GW over a ten-year period.
Nigeria has abundant gas reserves of 192 trillion cubic feet (5.4 trillion cubic metres), and gas provides nearly 80 per cent of power generation.
Despite this, power stations have found themselves short of gas due to insufficient pipeline capacity, a lack of pipeline connections and sabotage of pipes.
All this is likely to change:
The Nigerian Gas Processing and Transportation Company (NGPTC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), plans to build the 1,300km-long Trans-Nigeria gas pipeline, according to a report in Oil Review Africa.
To inject finance into the whole power generation sector, the Central Bank of Nigeria has agreed to guarantee payments to be made by the Nigerian Bulk Electricity Trading Plc to gas suppliers.
Also, there are to be major upgrades to the national transmission network.
The Nigerian government has produced a Power Sector Recovery Programme so that by 2020, would have laid enough solar mini-grids to supply power to more than 100,000 homes.
There are plans to nearly double the country’s power generation capacity from just 12,667MW in February 2018 to 22,958MW by 2023, according to African Live Data 2018.
In summary, as of February 2018, Nigeria’s generation capacity consisted of 10,729MW of gas power and 2,358MW of hydropower.
The prediction is that by 2023, gas power will provide 18,095MW, hydropower 3,809MW, solar 779MW, wind 60MW and diesel 215MW. This means that by 2023, gas power generation will remain the dominant source of power, despite investment in expansion of renewables.
GMT is gearing up to become a dominant player in the power sector and contribute towards the power generation forecasts.
We are investing in infrastructure, technical partnership, major collaborations and new technologies to be a reliable supplier to the National grid.