Wednesday, March 9, 2011

Nigeria's Oil Industry Fails To Shine

Business Monitor International
9 March 2011

Nigeria's Oil Industry Fails To Shine


Nigeria’s oil sector is in as bad a shape as it has been in years. Uncertainty surrounding the Petroleum Industry Bill (PIB) and a resurgence of violence in the restive Delta region has nearly halted investment in oil and gas exploration in the country. Only one exploration well was drilled in Nigeria in the last two years. This doesn’t necessarily mean that all activity has ceased. Companies have continued drilling appraisal wells and some project development activity continues, but they are not targeting new prospects.

Major international oil companies (IOCs) operating in Nigeria, including Royal Dutch Shell and Total, have said that they are holding back billions of dollars of investment until the PIB passes and they have clarity on the financial and operational climate...

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