Shell intends to invest c.$15 billion in Oil and Gas projects in Nigeria   

8 April 2019 : According to media sources, Nosa Okunbor, Managing Director of Shell Petroleum Development Company (SPDC) has said that the Energy giant plans to invest c.$15 billion in Oil & Gas projects in Nigeria over the next five years. Whilst a bulk of this investment is set to come in oil projects (deep offshore, shallow water, swamp and land water terrain), the company is also looking to ramp up its investment in gas infrastructure. Specifically, SPDC has taken a final investment decision on the Assa North Ohaji gas project, which at peak production is expected to generate 300 million scf/day. The gas will be processed at SPDC JV’s processing facility and distributed through the Obiafu-Obrikom-Oben pipeline network. Using Nigeria’s rig count as a metric for tracking investments in the upstream, analysts note that the level of oil and gas investments plummeted between 2014 and 2016, with the rig count hitting a multi-year low of 4 in 2016. This was consequent to falling oil prices and Niger Delta militants’ attacks on the Trans Forcados Pipeline (TFP) during the two-year period. However, as oil prices began to rebound in 2017 alongside the restoration of the TFP, Nigeria’s rig count consequently showed improvement, averaging 9 and 13 in FY’17 and FY’18 respectively. 

Reporting for EasyKobo on Monday , 08 April 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited

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