Daily Trust: 2015: Nigeria’s oil, gas future looks gloomy

Tougher times await Nigeria’s oil and gas industry in 2015 as uncertainties trail what is likely to be a closely fought presidential election in February as well as concerns over the non-passage of the PIB in addition to oil prices dwindling further.

Oil production and prices remain the cornerstone of the Nigerian economy. Now prices are falling and a sustained fall in oil prices in 2015 portend profound challenges for especially indigenous oil and gas companies in the country.

Several rounds of divestments which are anticipated to be concluded in 2015 present a significant year for indigenous oil firms to dominate the industry, through acquisition of these relinquished assets.

Well before the current oil price slide, Shell, Total, Eni and Chevron sought to dispose of assets from Nigerian onshore, which is plagued by industrial scale oil theft, insecurity and spills. Government’s policy since 2010 has been to increase the role played by local firms, both in operating oil blocks and trading, with the aim of ending decades of control over the industry by foreign majors.
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