Globally, about 99 new gas projects and 112 new oil projects are expected to start production this year, a renowned industry research body, Globadata, has said. Latest report from the think-tank however disclosed that oil firms may take investment decisions on projects that would yield return in space of about four years instead of long term projects. These projects estimated to cost around $100 billion, and expected to boost Nigeria’s production by as much as 875,000bpd, and revenue by about $1.5 billion had been in the pipeline amidst brewing tension and dwindling investment in fossil fuels. While Nigeria is similarly known for long project cycle, Globaldata noted that investors would prioritise faster returns with shorter cycle investments, as the industry moves away from giant developments. Last year, in a move that took the industry by surprise with the whole process taking only 26 days, Nigeria had signed a new Deep Offshore and Inland Basin Production Sharing Contract (PSC) Act, into law, expecting the development to create additional revenue for the government.

Source: The Guardian January 30, 2020 04:30 UTC