Oil majors in Nigeria have hinged their investment decisions on the outcome of the Petroleum Industry Bill (PIB), and other fiscal frameworks by the Federal Government.

According to them, the country did not take any major investment decision in deepwater between 2015 and 2019, despite a number of available potentially viable projects.

The African Energy Chamber (AEC), in its African Energy Outlook 2021, had disclosed that with the $24 billion loss of investments in the oil and gas sector, Nigeria would account for 30 per cent of the total of $80 billion loss of investments that would be recorded in the petroleum industry across Africa.

Speaking during the management session of the virtual Nigerian Association of Petroleum Explorationists (NAPE) 2020 conference, the oil majors, including Shell and Total, noted that noncompetitive fiscal terms, increasing cost, unsettled deep water disputes, and upcoming deep-water lease expiry all contribute to increase the risk for investors and prevent new investments.

The Managing Director, Shell Nigeria Exploration and Production Company, Bayo Ojulari, said investors want to see clear policy direction from the government before raising their stake in the industry.

Read Full Story: https://www.energymixreport.com/oil-majors-in-nigeria-hinge-future-investments-on-pib-outcome-fiscal-framework/

Write a comment:


Your email address will not be published.