The Daily Consulting has released an authoritative Report – Where to invest in Nigeria’s oil and gas industry – targeted at guiding investors, potential investors, financiers, consultants, contractors, advisers, policy makers and other stakeholders.
The executive director of the organisation, Mrs. Eyo Nsima, disclosed in a statement that: “Based on popular demand and increasing number of inquiries, Daily Consulting, in collaboration with other stakeholders, has emerged with this Report with the intention of guiding investors and other persons and organisations to stake their resources for maximum returns in the industry.
“The Report, which can be downloaded at: www.thedaily-ng.com is based on surveys, research, interviews and review of available relevant literature, documents vital issues, including the evolution of the nation’s oil and gas industry, current producers, era of low investment, current rig count and new projects.”
She stated that the “focuses on upstream sector, midstream and downstream, gas, petrochemicals, lubricants, specialised services, local content, project 100 and sixty firms to watch, before delving into oil and gas states such as Akwa Ibom, Abia, Anambra, Bayelsa, Cross River, Delta, Edo, Imo, Rivers, Ondo and Lagos.
“The Report also captures issues such as funding, human capital, technology, policies, legislation, democracy, problems and prospect as well as interviews, before concluding that, indeed, Nigeria is the feasible and viable investment destination to be at this time.
“We believe that this Report is the beginning of a very mutually beneficial conversation and look forward to engaging further with you. It is imperative to emphasise that the report is not a feasibility study, meaning that those intending to invest should carry out feasibility studies in their specific areas of interest.
“However, Daily Consulting and its associates in Africa and other continents have the capacity to assist in various ways, including company registration, facilitating of permits and approvals, market surveys, feasibility report, due diligence, country risk analysis, environmental impact assessment, health, safety and environment and community policies, other policies, social investments and crises management and prevention.”
In his foreword to the Report, Dr. Mayowa Afe, President, Oil & Gas Trainers’ Association of Nigeria, OGTAN, stated: “With continuous oil and gas production, the world gasps for increased investments, especially as they are depleting resources, meaning that current reserves could be depleted over time, except new finds are made to meet increasing demand now and in the future.
He quoted the Organisation of Petroleum Exporting Countries, OPEC, which has Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, Islamic Republic of Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirate and Venezuela as stating: “Currently close to 100 million barrels of oil are produced and consumed every day, and over 60 million barrels are exported. Moreover, the importance of oil and the crucial role that it plays globally make it perhaps the most strategic growth engine of the global economy.
“Thus, we need to be realistic about how future energy demand growth, which according to our latest World Oil Outlook is expected to expand by a robust 33per cent by 2040, can be achieved in a sustainable way. This needs to balance the needs of people in relation to their social welfare – with energy poverty still a blight on the lives of billions of people – the economy and the environment.
“Oil-related investments across the upstream, midstream and downstream are estimated at around $11 trillion in the period to 2040. We also need to recall that exploration and production spending fell by an enormous 27per cent in both 2015 and 2016, and only increased by 8per cent in both 2017 and 2018. This only adds to the worry that if our industry is concerned about policies that detrimentally impact oil and investments, with talk of stranded assets and declining values of oil; then we have a potentially dangerous scenario, one that could increase volatility significantly and lead to a future energy shortfall.”
The OGTAN President stated: “From all indications, meeting anticipated shortfall would call for the active involvement of many stakeholders, including operators, financiers, contractors and even nations, that need to understand as well as work with accurate reports and data.
“It is against this backdrop that this report – Where to invest in Nigeria’s oil and gas industry – focusing on areas such as evolution, oil and gas producers, era of low investment, current rig count, new projects, investment opportunities, Local content, Project 100, oil and non-oil states, policies, legislation, democracy, problems and prospect is very timely.
“Consequently, it is my pleasure to recommend the report, which also documents an interview with energy investment analyst, before providing relevant links to stakeholders, particularly investors and potential investors interested in Nigeria’s oil and gas industry, as a reliable companion.”