• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 8 days America should go after China but it should be done in a wise way.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Nigeria Looks to Attract Investments by Cutting Costs for Oil Firms

Nigeria is reducing the costs for oil companies willing to sign new production contracts as OPEC’s largest African producer looks to attract firms in its oil and gas industry again, the head of the oil regulator told Bloomberg in an interview published on Wednesday.  

Nigeria plans to replace the so-called signature bonuses that companies owe to the government at the signing of contracts with lump sums for production, Gbenga Komolafe, chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said.

Lower costs and tackling delays in licensing would be a “paradigm shift” in the Nigerian oil and gas industry, Komolafe told Bloomberg.

Companies bidding in the next licensing round, which is expected shortly, will

“see that Nigeria is ready to do business differently,” the CEO of the upstream regulator added.

Nigeria has struggled in recent years to boost its oil and gas production and has consistently failed to produce to its quota under the OPEC+ agreement. The combination of pipeline vandalism and oil theft with a lack of investment in capacity has made Nigeria the biggest laggard in crude oil production in the OPEC+ alliance.

Since President Bola Tinubu took office in May 2023, he has pledged to boost oil and gas production and make the sector attractive for international oil companies again.

Shell sees $6 billion worth of oil and gas investment opportunities in Nigeria, the country’s presidency said earlier this month, following a meeting of senior executives of the supermajor with Nigerian officials. 

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, and the top executives of Shell’s Nigerian unit, Shell Nigeria PLC, held talks in early December with Nigerian President Tinubu in Abuja.

According to presidential spokesperson Ajuri Ngelale, Shell has identified a $5 billion investment opportunity in Nigeria’s offshore oil exploration and production and has said it would invest another $1 billion within 10 years to ramp up natural gas production in Nigeria for domestic supplies and exports.


By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News