Oil and gas investment in Nigeria has fallen to a record low, a new report by Renaissance Capital Limited revealed. The Russia-based investment bank said that the under-investment and chronic infrastructure issues plaguing the country’s oil sector manifested in a multi-decade production low of less than 1.5 million barrels of oil per day in December 2021. “Nigeria’s oil sector is facing an unprecedented level of under-investment, with declines reflecting a near halt of upstream investment across all terrains since the pandemic’s outbreak,” it stated. The report said, “Nigeria’s onshore oil sector is probably one of the most challenging operationally in the industry, with issues such as local opposition, oil spills, militant activity, crude evacuation constraints and logistical bottlenecks. “Navigating Nigeria’s onshore oil sector requires strong know-how and indigenous partners, qualities and connections which only a handful of companies possess, thereby raising high barriers to entry for new entrants,” it added.

Source: The Guardian February 20, 2022 02:48 UTC