There are indications that the continued low oil price and uncertain regulatory environment have further destabilized operations in Nigeria’s oil and gas industry, Vanguard reports.
Investigations showed that the situation was fuelled by many problems, especially a significant drop in projects, contracts and bank lending. Mazi Bank-Anthony Okoroafor, chairman of Petroleum Technology Association of Nigeria (PETAN), disclosed in an interview that: ‘’the last two years have been challenging for the oil and gas industry. We have seen the price of crude oil crash. Within two years, we have seen projects deferred and cancelled. We have witnessed slow oil and gas activities. We have also seen banks afraid of lending money to sector players.”
“For operators, this is limiting their ability to continue exploration and development activities which starves service companies of jobs. Rig count is low, well intervention and well completion activities are low. There is increasing pressure to reduce and control costs,” he added. He also said that: ‘’There are no activities. The oil and gas industry is dying. Service industries that have built capacities and capabilities are laying off workers. There is also the problem of insecurity. The delay in the passing of the Petroleum Industry Bill, has also made Nigeria to lose lots of projects to other countries.”