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Tag: FID

Expert seeks passage of regulatory framework for gas development

Expert seeks passage of regulatory framework for gas development

Oil & Gas
The need to harness Nigeria’s gas by tackling some of the barriers, including passing a regulatory framework for the upstream sector and the launch of the Nigerian gas transportation code to further drive gas-based have been stressed. The Managing Director and Chief Executing Officer, Nigeria LNG Limited, Tony Attah, said increasing Nigeria’s presence in the global LNG market, which serves as an opportunity to harness the gas for domestic consumption, has long been discussed by industry stakeholders. He noted that Nigeria is currently faced with challenges such as gas pricing for the domestic market, limited infrastructure for distribution and a commercially-viable market. He said: “The FID for Train 7 and award of its EPC contract is very reassuring, as it renews our hope that ...
‘Many oil projects in Nigeria, others may not see FID this year’

‘Many oil projects in Nigeria, others may not see FID this year’

Oil & Gas
With the impact of the coronavirus compounding oil and gas industry challenges, governments in Nigeria and other African countries have been urged to extend the implementation of Production Sharing Contracts (PSCs), and work program adjustments to boost exploration and ensure the resumption of drilling activities. While the immediate impact on the continent’s biggest oil & gas project is already being felt, the African Energy Chamber (AEC), stated that a much bigger impact will result from the deferral or cancelling of drilling plans. Already, across oil & gas basins, drilling projects are being put back on the shelves or terminated. Final Investment Decision (FID) on Shell’s Bonga South West Aparo project in Nigeria, for which the invitation to tender was released to contractor...
Petroleum sector risks $210 billion cost cuts

Petroleum sector risks $210 billion cost cuts

Oil & Gas
The upstream sector of the oil and gas industry could be hit harder in the current dilemma facing the industry as deeper cuts hovering around $210 billion is being considered in the sector. A global resources consultancy, Wood Mackenzie in a latest report noted that almost all pre-FID projects would be deferred, adding that of the 50+ projects identified with potential to go ahead this year, only 10 have a chance of proceeding, though all are at risk. Wood Mackenzie’s upstream research team, Rob Morris, disclosed that about $110 billion of investment would be deferred across the world, with another $100 billion at risk. “New committed investment could be as low as US$22 billion if only the most advantaged projects progress,” he stated. Morris disclosed that corporate balan...