Non-passage of PIB, regulations drag about $100b oil projects

With drawbacks in the passage of the Petroleum Industry Bill (PIB), as well as various unfavourable fiscal and regulatory frameworks, stakeholders have estimated $100 billion worth of projects awaiting final investment decisions in Nigeria’s oil and gas sector.

Specifically, the stakeholders identified some of the projects to include, Bonga South-West and Aparo project (225,000bpd); Bonga North (100,000bpd); Bosi (140,000bpd); Bosi Satellite Field Development Phase 2 (80,000bpd); Ude project (110,000bpd); Zabazaba-Etan project (120,000bpd); and Nsiko project (100,000bpd).

If these projects are sanctioned, Nigeria’s crude production would rise above 3mbpd and also aid the nation’s competitiveness during low oil price regime.

For instance, the Principal and Executive Director, Kaptepia Capital, Tosan Omatsola, noted that the identified projects were capable of spurring the economy and generating employment for Nigeria’s teeming youths.

Speaking at a one-day workshop organised by the Nigerian Association of Petroleum Explorationists (NAPE) for oil and gas media professionals in Lagos, yesterday, Omatsola, urged the Federal Government and regulatory agencies to address drawbacks to the growth of investments in the country and also unveil incentives to encourage investors to the sector.

The Co-Founder, Pillar Oil Limited and EMR Limited, Seye Fadahunsi, urged that the sedimentary basins be explored for maximum benefits.

He explained that apart from the Niger-Delta operating in one of the sedimentary basins, there are six sedimentary basins that are not explored, pointing out that the challenge with renewable is still much present, while urging stakeholders in the industry to continually develop and manage the renewable energy sector.

It would be recalled that the Nigerian National Petroleum Corporation (NNPC) had restated its commitment to resume oil search in the Chad Basin as soon as it receives security clearance.

“We will go back there as soon as we receive security clearance. There seems to be some prospects there because the Niger Republic drilled over 600 wells and now they are producing while we have only drilled 23”, NNPC’s GMD said in a statement made available to The Guardian.

Oil search in the Chad Basin was suspended after a team of NNPC Frontier Exploration Services and their consultants from the University of Maiduguri were attacked and some of them abducted on July 25th 2017.