ASSESSING THE TOP ELEVEN CHALLENGES FACING THE EXPLORATION AND PRODUCTION INDUSTRY IN NIGERIA: A REVIEW (original) (raw)
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2007
The current state of the upstream petroleum industry in Nigeria portrays an optimistic outlook, ceteris paribus. According to the Oil and Gas Journal (OGJ), Nigeria ranks among the top 10 nations in proven oil and natural gas reserves, worldwide. As of January 1, 2007, the estimated crude oil and natural gas reserves are 36.2 billion barrels and 181.9 trillion cubic feet (TCF). To expand Nigeria’s proven oil reserves to 40.0 billion barrels and increase its production capacity to 4 million barrels per day by 2010, the national government is willing to invest about $9-10 billion annually over the next five years [1]. The upstream oil and gas industry outlook in Nigeria is robust. Nearly 200% of proved reserves produced in Nigeria from 1970-2005 have been replaced by new reserves, indicating that the petroleum business environment in Nigeria compares favorably with the global environment (see Figure 1). The replacement ratio shows the extent to which Nigeria has pushed the reserves cr...
CHALLENGES FACING NIGERIAN LOCAL CONTENT IN OIL AND GAS INDUSTRY
ABSTRACT The petroleum industry in Nigeria is the largest industry and mean generator of Gross Domestic product (GDP) in the West African Nation. Inspite of the huge financial investment made by the Nigerian government in the oil and gas industry of the economy, it has not resulted in significant benefits for most Nigerians. The local content (LC) in the industry is still very low as over 60% of the major activities, e.g exploration, drilling, production, well intervention and service provision remain primarily controlled and managed by multi-national oil companies. Only minor contract have been awarded to local contractors. Several challenges, ranging from infrastructural development, political stability, Good investment climate, project Financing, Transparency, High Educational Standards, Legal Policy, Resource Management, Research & Development, Fiscal Policy, Environmental Policy are some of the factor impeding the set target by the Federal Government to achieve 70% in 2010, its local content drive in the oil and gas industry. This paper identifies the challenges for the ineffective implementation of the Nigeria content policy through the use of Questionnaires and developed a framework that will address holistically the factors needed to promote active participation of Nigerians in oil and gas activities without compromising standards in order to stimulate growth of indigenous capacity. Countries that have achieved success through local content development were also highlighted in this paper. KEYWORDS:LocalContent,Infrastructure,Transparency,Corruption,ProjectFinancing, PoliticalStability
The Critical Success Factors for Marginal Oil Field Development in Nigeria
The purpose of this research was to assess the critical success factors of marginal oil field development in Niger Delta region. There are considerable potential of marginal oil field in Niger Delta region. However, it is sad to know that the development of marginal oil fields is lagging or have not been fully successful, despite policy initiative by the Federal Government of Nigeria. Many of the marginal field operators are battling with the issues of funding, social political, environmental and technical issues. Using data collected through document analysis and survey questionnaires from oil and gas experts and other government agencies, the research identified the success factors for marginal oil field development to include collaboration, infrastructure sharing, Joint ventures and partnerships and implementation of corporate social responsibility by the indigenous fields operating in the region. Technical issues associated with marginal field development and policies issues are addressed. The paper concludes that a policy shift and support to the marginal field operators are needed to enhance the development of marginal oil field in Niger Delta region. It also concludes that a favorable investment climate, the development of support infrastructure like refineries and power, financial institutions, as well as collaboration and integration by the stakeholders is essential for the sustainable development of marginal oil field in Nigeria.
THE INTERNATIONAL SCHOLAR S JOURNAL OF SCIENCE , 2017
In both developed and developing countries, the oil and gas industries are considered to be one of the most significant industries in terms of its impact on health and safety of the working population. Oil and Gas industries are both economically and socially important. However, the oil and gas industries are also recognized to be one of the most hazardous. Evaluation of exploration safety in Midwestern oil and Gas Company limited was carried out in compliance with the Occupational safety and health administration (OSHA) standards through rigorous research possesses that included investigative/inspection using safety parameters as stipulated by Occupational safety and health administration (OSHA) standard, which include but not limited to, training, health and safety workplace inspection, fire protection safety, use and availability of personal protective equipment(PPE), Accident rate and level of safety awareness about the various exploration hazards and their adverse effect on health, safety and environment(HSE). Varying quantitative and qualitative data derived from this research revealed a high level of health, safety and environment (HSE) ethics as evidenced in the incidence of one (1) fire outbreak since its operation began in 2001to date. Steps taken to ensure that the 34 exploration workers (30 males, 4 females) of Midwestern Oil and Gas Company limited uphold high safety ethics include but not limited to: provision of adequate first aid services, provision of standard firefighting equipment, establishment of adequate safety signs and signals, occupational health safety(OHS) class and practical training and presence of skilled and experienced fire fighters. BACKGROUND OF STUDY The discovery of vast reserves of petroleum in the 1950s in the Niger Delta region of Nigeria has made oil an important part of the country"s economy, impacting significantly on both the country"s economic and political life. Despite the huge benefits this industry
CRUDE OIL EXPLORATION AND UNDERDEVELOPMENT IN NIGERIA: A RESOURCE CURSE ANALYSIS
Being rich with crude oil and other numerous natural resource, Nigeria is potentially among the richest countries in the world. Yet, it suffers chronic underdevelopment. Could the Resource Curse theory apply to it? The study examines the resource curse hypothesis of the Nigerian oil rich State. Globally, the country is perceived as structurally disconnected from the abundant natural and human capital resources. The discovery of crude oil in Nigeria provided for its socioeconomic viability and has contributed to recent upsurges of institutional uncertainty and insecurity. The ongoing debate about the deplorable state of human and natural resource development in the Niger Delta region of Nigeria, signifies concomitant threat to the natural environment by oil and gas exploration. This situation has resulted to some forms of excruciating poverty, restiveness, criminality, human rights abuse, and attendant underdevelopment crisis that have been more conspicuous in recent time. It has been argued that the oil producing areas of this region suffer from grave discord, negligence, development politics taint with endemic violence and wanton insecurity. These have continuously threatened the foundation of sustainable livelihood survival of the people. It is argued that the eco-unfriendly activities of the multinatioal corporations in the region has resulted in environmental degradation, and environmental degradation in turn engenders multifarious forms of human and environmental
New oil frontiers: Investors’ guide to the oil sector in Sub-Saharan Africa
2014
Africa is on the move, and so is the flow of oil unearthed on the continent. In recent years, the region has become a hot spot on the global map of oil discoveries, with dozens of investors rushing to tap into the crude wealth which is now estimated at 130 billion barrels. This is still not very much compared to the Middle East, but the recent frenzy clearly shows that Africa has certain virtues that investors worldwide cannot resist. The region is called an oil frontier for a reason, and, like a classic frontier, it remains relatively unexplored and unexploited, with opportunities abounding. The oil industry believes that at least another 100 billion barrels are only waiting to be discovered; to some experts this is only a conservative estimate. In recent years, license-awarding rounds have been announced more frequently, with more acreage to take than anywhere in the world. Oil has been flowing in Africa for decades, but recent events have shifted the petroleum sector’s development trajectory in many ways. Firstly, whereas West African oil used to be the region’s hallmark, now the tables have turned, and with recent oil discoveries in Uganda and Kenya, an oil bonanza is increasingly felt in the East. Having said that, as this report demonstrates, nearly half of Sub-Saharan Africa is now either producing oil or about to start production soon. Secondly, in historical terms it was oil supermajors, such as Shell or ExxonMobil, which set the rules of the game and regarded the region as their own exclusive playground. Today the majors are stepping back – both from upstream and downstream – and numerous “independents” such as Tullow Oil and Anadarko have joined the race, with plenty of projects to go around. Also, indigenous host National Oil Companies (NOC) are lining up to secure a larger share of the pie, and some, such as Sonangol, have become true heavy-weights. The industry itself has become increasingly more diverse in terms of nationality. Chinese, Indian, Malaysian, Brazilian and Russian companies are making inroads into the region in ways which make some Western companies’ efforts look rather pale. Things have changed dramatically on a technological front, as well. Whereas onshore and shallow water production were dominant modes of extraction in the past, now the industry has been constantly pushing frontiers further, with offshore deep and ultra-deep water, tarsands and heavy oil.