Is Nigeria’s Oil Infrastructure Deficit Holding Her Back?
Great opportunities are abound for both operators and investors in the sector.
In dealing with the sector’s infrastructure challenges, there are suggestions by critical stakeholders who have conducted studies on how the industry can navigate out of the shortfall. The upstream segment will have a new management system put in place with robust gas fiscal terms, while incentives will be available for the small fields
“With a few supply bottlenecks removed, and a decisive solution to the unrest in the Niger Delta region, adequate gas infrastructure could be the catalyst for economic growth; new businesses will emerge, jobs will be created and millions of people will be out of poverty”
In the midstream, refining and petrochemical industries will be provided with incentives similar to those in the gas utilisation, process- ing and infrastructure sub-sectors. In the case of downstream, full deregulation of petroleum products in the domestic market and market-based gas pricing will be the order of the day after the transition phase. “Infrastructure in all the major energy sub-sectors require attention while existing institutional frameworks need to be reviewed to bring their operations in line with interna-tional best practices,” the National Technical Working Group on energy sector stated.
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