South Korea’s \$100bn U.S. Energy Deal Puts Nigeria’s Oil Exports at Risk

By Diafa Doubra,

Nigeria’s crude oil exports are facing fresh pressure following South Korea’s landmark $100 billion energy agreement with the United States, a move that threatens to weaken Nigeria’s share of the Asian oil market.

The deal, signed during South Korean President Lee Jae-myung’s visit to Washington, cements Seoul’s reliance on U.S. energy. Already the largest Asian importer of American crude, South Korea currently buys an average of 460,000 to 470,000 barrels per day a trade worth about $12–14 billion annually. The new agreement is expected to significantly deepen that dependency.

For Nigeria, the development is troubling. The country has long supplied South Korea with premium grades of crude like Qua Iboe and Bonny Light, which are highly valued for their low sulfur content and ease of refining. However, experts warn that U.S. oil, backed by shorter shipping distances and lower logistics costs, could displace Nigerian crude from the Korean market.

An energy analyst in Lagos described the move as a “red flag” for Nigeria’s oil exports.

“Our traditional markets in Asia are being lost to cheaper, more consistent suppliers. With challenges like oil theft, pipeline vandalism, and low investment at home, Nigeria risks losing its competitive edge,” the analyst noted.

Industry stakeholders are now calling on the federal government to respond with urgency. Proposals include investing in modern refineries, cutting down on export bottlenecks, and ensuring more reliable crude output to compete globally.

As global energy diplomacy continues to shift, Nigeria’s place in the Asian oil market will depend on how quickly it adapts to rising competition from the U.S. and other producers.