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Natural gas

Nigeria's Ajaokuta-Kano-Kaduna (AKK) Gas Pipeline Project Progresses with Oilserv's Innovative Technology

Strategic Insights

— 1 min read

Nigeria's economic development hinges heavily on harnessing its massive natural gas reserves. With an estimated proven untapped gas reserve of 202 trillion cubic feet (TCF) and the 9th largest reserves globally, Nigeria stands to benefit significantly from exploiting this resource. The Nigerian National Petroleum Company Limited (NNPCL) and Oilserv Group recently announced the successful laying of pipelines across the River Niger, marking a significant milestone in the Ajaokuta-Kano-Kaduna (AKK) gas pipeline project. This achievement is a testament to the innovative technology employed by Oilserv, which has enabled the completion of 85% of the 303-kilometer stretch of the project despite numerous challenges.

Key Takeaways:

  • The AKK gas pipeline project, valued at $2.8 billion, is expected to stimulate an estimated Gross Value Added (GVA) of $18.3 billion annually to the domestic economy.
  • The project is a crucial element of Nigeria's Gas Master Plan, which aims to create a transmission grid connecting the South to the North, enabling the transportation of gas to off-takers in Abuja, Kaduna, and Kano.
  • Oilserv, the lead contractor, utilized Horizontal Directional Drilling (HDD) and microtunneling techniques to cross the River Niger, a feat regarded as a major engineering achievement globally.
  • The company has employed over 2,000 workers and thousands more through vendors, subcontractors, and partners, showcasing its commitment to community engagement and positive relationships.
  • Afreximbank has recognized Oilserv as an "African Champion," solidifying their partnership and commitment to supporting gas-based industrial facilities across Africa.
  • Despite security challenges and hindrances, Oilserv has completed 85% of its 303-kilometer stretch, demonstrating the efficacy of local content policies and the Petroleum Industry Act (PIA) in fostering investor confidence.

Statistics:

  • Estimated proven untapped gas reserve: 202 trillion cubic feet (TCF)
  • Expected Gross Value Added (GVA) per annum: $18.3 billion
  • Length of the AKK gas pipeline: 614 kilometers
  • Contracted length of the pipeline for Oilserv: 303 kilometers
  • Percentage of the pipeline completed: 85%
  • Number of workers employed: over 2,000
  • Regions traversed by the pipeline: Akaojuta in Kogi State to Kano
  • Estimated duration for project completion: Q4 2025

Sources:

  • "Evaluating Nigeria's Gas Value Chain" report by PriceWater House Cooper (PwC)
  • Statement by Engr. Bayo Ojulari, Group Chief Executive Officer, Nigerian National Petroleum Company Limited (NNPCL)
  • Oilserv Group's website and press releases
  • Afreximbank's website and press releases
  • Interview with Dr. Emeka Okwuosa, Chairman/Group Chief Executive Officer, Oilserv Group
  • Interview with Engr. Gbola Adeniyi, AKK project engineer

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