Oil and Gas Opportunities in Nigeria for local and foreign investors.

 Nigeria is a major oil and gas  giant, with many viable and achievable opportunities in Africa.

 Surveys have shown that upstream, there are investment opportunities in the exploration and production of crude oil and condensates. Also in the mid stream, construction of pipes and transportation of petroleum products are the major opportunities.  Oil Vessel, trailers and pipes are means of transportations.

And in the downstream sector, opportunities exist for the refining, distribution and marketing of petroleum products, by-products and derivatives.

Investors, it was learned, can build depots, service stations and get tankers for retail storage and product distribution.

 A document obtained from the Ministry of Petroleum Resources showed that other opportunities abound in the gas sector for investors interested in producing various products, including liquefied petroleum gas.

This involves the construction of infrastructure and distribution systems at the national level. They indicated that they could invest in the operation of compressed natural gas (CNG), which involved the use of tube trailers to provide gas to consumers who are not near existing gas facilities.

Investors shall invest in the extension of gas as motor fuel, which requires the establishment of service stations and conversion shops to convert motor engines into gasoline and diesel into CNG.

 These liquids are commonly used in their raw form as solvents and feedstocks for the production of chemicals or fractionated into liquefied petroleum gas (LPG), cooking gas and natural gasoline.

 Investing in this segment requires the establishment of NGL extraction facilities to recover NGLs from major gas supply systems.

There are also opportunities for investors interested in building petrochemical plants, particularly because of the proximity of gas, and easy access to ports for the export of finished products and the import of essential inputs are available.

Potential investors who have no interest in direct investment could establish equipment to provide specialized services to major operators.

 The most requested services are geodetic surveys, mapping and field surveys, preparation of drilling sites, construction of access roads and mud piles, supply of cement, chemicals, gravels, bars iron, wood and labour.

They could provide seismic data acquisition and interpretation services, which involve earthquake services and the supply of consumables such as steel cases, recording equipment and spare parts.

New oil and gas (Petroleum) policy.

 Investors seeking to invest in Nigeria's oil industry should have a good understanding of the government's new Petroleum policy, especially as it provides adequate information on the endowments, plans, management and regulation of the oil and gas sector.

It is also important because it focuses not only on oil and gas production, but also on value-added through increased refining. Specifically, the policy stated that Nigeria remains the only Organization of Petroleum Exporting Countries, OPEC member with no effective oil refining capacity. He said that investments in mid-term infrastructure (storage, terminals, transport and processing) lag behind upstream investments.

 The policy revealed that even upstream crude oil export activities have suffered from insecurity, adding that Nigerian production has not risen in line with its potential or peers in the Middle East or Africa. The policy stipulated that the oil sector was dominated by state ownership and dominant market power upstream and downstream, which limited the increased participation of the private sector. He stated that there are tax disincentives for new entrants; a lack of regulatory rigour and lack of governance in profitability. The policy noted that as a result, government control and rent-seeking by the government have limited the growth of self-sustaining industries. "Despite its large energy resources, Nigeria has become insecure in terms of energy and has multiple dependencies on crude oil exports, imports of products, and the hydrocarbon-based electric power industry.

The oil world has fundamentally changed and the old policy is no longer relevant to Nigeria's future. "The price of oil has plummeted and the oil policy team expects it to remain at a median level of $ 45 / b in real terms for the foreseeable future. Worldwide production remains high, combined with large stocks in storage and even in tankers around the world. The reality is that the world is flooded with oil. "There are predictions that the world is now starting to enter a post-oil era.

Growth in oil demand is expected to be slower in the future than it has been in the past, and over the next 20 years oil demand may be in absolute decline.

 "The future of oil producers lies in value-added refining and petrochemicals. The intention of this oil and gas policy is to move Nigeria away from crude oil exports to value-added activities in Petroleum, namely refineries and the petrochemical industries; the expansion of oil in the gas-based industrialization. The long-term vision of Nigerian Petroleum policy is to become a nation where hydrocarbons are used as fuel for national economic growth and not just as a source of revenue.

'' Move the Nigerian economy away from the current situation where crude oil is exported and no other use is made of hydrocarbon opportunities; Oil is not simply exported but refined and processed in Nigeria; Nigeria becomes a regional and international center for refining crude oil; A vision of a diversified industrial nation where Nigeria has important petrochemical industries and other oil industries; Diversify the oil resource base in Nigeria, to ensure security of supply; Operate an oil industry with a clear division of roles between the private and public sectors. »Challenges, perspective Meanwhile, the industry has been paralyzed by many problems, especially increased militancy, low oil prices; revenue decline, budget cuts, suspension of projects and dismissal of workers.

 But hope has not been lost because these and other issues will be discussed at the opening of the Nigeria International Petroleum Summit in Abuja this month.

 There is also strong evidence that Nigeria will attract many investors to help develop the industry, especially as OPEC has given full weight to the Member States in this regard. OPEC said: "Regardless of all the challenges and uncertainties, OPEC member countries continue to invest in additional capacity upstream. '' In addition to the huge capacity maintenance costs faced by member countries, they continue to invest in new projects and strengthen their commitment to the oil and gas market and the security of supply for all countries. "Needless to say, this is only a reflection of the well-known OPEC policy that is clearly spelled out in its Long-Term Strategy and Statute. In the medium term, about 160 projects, with an estimated total cost of $ 156 billion, are being undertaken by OPEC member countries. "