FINANCE & ECONOMICS

Oil Exploration: Who Pays the Price?

It is estimated that Nigeria needs over $20 billion in new financing to ramp up crude oil production to 2.5 million barrels per day (bpd).

Various funding options have failed Nigeria’s oil and gas industry. The Joint Venture (JV), adopted in 1973, failed as a result of the government’s inability to meet up with its increasing cash call obligations through the Nigerian National Petroleum Corporation (NNPC).

SHARE

Share on facebook
Share on twitter
Share on whatsapp

Net payment from oil production to the Federation Account is expected to peak to about $18 billion by year 2020.

Despite efforts by government to close the funding gap, the challenges persisted with significant impact on production and growth of the industry. It is estimated that Nigeria needs over $20 billion in new financing to ramp up crude oil production to 2.5 million barrels per day (bpd).

Nestoil News | Energy News | Oil and Gas News | Nestoil Group

Nestoil News

Please enter your email address in the field below to get the latest edition of Nestoil News