Oil majors delay investment on $23.5b offshore projects

International Oil Companies (IOCs) operating in Nigeria may have devised means to compel the Federal Government into changing its fiscal policy on the Petroleum Industry Governance Bill (PIGB).

The Guardian learnt the IOCs have deliberately put on hold the Final Investment Decision (FID) on five offshore oil and gas projects to make government alter fiscal terms in the new bill deemed unfavourable to deepwater projects.

Already, the FID on the 225,000bpd Bonga Southwest-Aparo project; 120,000bpd Zabazaba-Etan project; 140,000bpd Bosi project; 110,000bpd Uge project and 100,000bpd Nsiko deepwater project has been delayed.

Estimated at over $23.5 billion, the projects were expected to assist the Federal Government achieve a 40 billion-barrel target and daily production of four million barrels per day (bpd).

The Guardian, May 25, 2018

 

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