NIGERIA Invest in 2012-13 - Newsdesk Media

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82 oil, gas and minerals The deal would have given CNOOC reserves of six billion boe – around one-sixth of Nigeria’s total reserves. The government said an initial offer was “unacceptable”, but added: “Your interest in all the listed blocks will be considered if your revised offer is favourable.” The Petroleum Industry Bill and onshore As mentioned above, the major disincentive to invest in Nigeria’s oil industry in recent times has been the long-delayed PIB, which includes a new tax framework for oil projects. The plans have been a particular deterrent to deepwater oil projects where the rates of return will drop sharply. It has had less effect in interest on onshore oil as the terms will be little changed and actually improved Nigeria’s four refineries have been running at an average of around 40 per cent of capacity over the past decade, compared to a global expectation of around 90 per cent for smaller onshore oil projects. The government take for 100 million bbl fields is currently high and will remain very similar, but the take for a 20 million bbl onshore field will drop from around 95 per cent to 77 per cent. “Under current JV [joint venture] terms, the extremely high government share is among the highest in the world and is a significant disincentive to new investment. Under the PIB terms, the government share is progressive and generally lower from smaller fields and should enhance the economic viability of these fields,” said analysts Wood Mackenzie. However, after four years of debate, the PIB is still stalled as vested interests try to protect themselves from its changes. This has resulted in major investors being unwilling to commit money to Nigeria until a final solution is in place. “While most politicians publicly call for widespread industry reform, few have done more than pay lip service to the invest in nigeria 2012-13 idea. Long accustomed to windfall profits and the discretionary allocation of assets, Nigeria’s politicians have continually placed personal interests ahead of reform, resulting in deliberate delays and obstruction,” analyst Ergo cautions. Exactly how the PIB will play out is almost impossible to forecast, while the future for Nigeria’s onshore oil fields looks much more assured. What is less assured is the future of the oil refineries. Nigeria may be one of the largest crude producers and exporters in the world, but it has to import the majority of its refined products. Boosting refineries’ output Nigeria’s four refineries have been running at an average of around 40 per cent of capacity over the past decade, compared to a global expectation of around 90 per cent. According to data from NNPC, the worst-performing year was 2007, when they ran at a meagre 12 per cent. Theoretically, plans are under way for an additional 750,000 b/d to be added to the existing refining capacity of 455,000 b/d. China State Construction Engineering Corporation has said it will build three new refineries. A Memorandum of Understanding has been signed in a deal said to be worth $23 billion. However, there have been many similar promises in the past that have failed to turn into reality. While joint ventures are important in developing Nigeria’s own abilities, they are also significant in a country in which personal connections can be crucial. As alluded to earlier, the days when many of the most sought-after contracts were awarded more because of friendship and political necessity are hopefully retreating, but the Nigerian system is most easily manoeuvred with local knowledge and support. There is likely to be a swathe of new acreage up for sale once the PIB has been passed. Major oil companies, including Exxon and Chevron, are rumoured to be waiting to offer some of their own onshore interests, and the government is promising a new licensing round. Petrofac is only one of a series of oil and gas service companies now forging links with indigenous firms to meet local content requirements that were often given little consideration in the past, but are now becoming a necessity. It remains unclear exactly how stringently the NOGICDA will be implemented, as little heed has been
Crude oil exports by destination, 2010 South Africa 3% Spain 5% Germany 3% France 3% Netherlands 4% Other Europe 5% Other Asia 3% India 14% Brazil 8% Source: Global Trade Atlas, APEX (Lloyd’s), FACTS Global Energy, EIA) Other Africa 3% Australia 1% United States 43% Canada 2% Thousands barrels/day Oil exports, current prices in US$ 120 100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 $84.17 $23.092 $18.93 $16.98 $65 $56.4 $48.08 $35.73 $26.52 2006 2007 2008 Total production, barrel/day 3000 2500 2000 2,169.135 2,261.416 2000 2001 2002 2003 2004 2,630.86 2,331.696 2,278.592 2,123.323 2005 2009 2,442.25 2,352.756 2006 2007 2008 2010 oil, gas and minerals 83 $108.21 2009 $54.78 $71.64 2011 2,168.552 2,211.423 $91.84 2012 $106.14 $100.9 2013 Predictions 2014 $96.58 2015 Source: IMF Source: US Energy Information Administration invest in nigeria 2012-13
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Invest in NIGERIA 2012-13 Published
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Mubadala is an investment and devel
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Invest in NIGERIA 2012-13 Editor La
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Trade Facilitation/Development Init
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Contents Forewords 16 21 The Policy
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44 Promoting free and fair election
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120 Industrial Infrastructure 124 1
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16 FOREWORD Goodluck Ebele Jonathan
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Ahmadu Bello University, Zaria, Nig
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since 1989 Rotary kiln incinerators
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Pushing boundaries An emerging lead
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24 the policy agenda Realising Nige
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Foreign policy and the investment e
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28 the policy agenda prospects of l
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www.nosakgroup.com Corporate Offi c
Page 32 and 33: 32 the policy agenda Democracy and
Page 34 and 35: Sustainable business, social repons
Page 36 and 37: 36 the policy agenda There is no do
Page 38 and 39: 38 the policy agenda Working to ach
Page 40 and 41: 40 the policy agenda they had sexua
Page 42 and 43: 42 the policy agenda “The improve
Page 44 and 45: 44 the policy agenda Promoting free
Page 46 and 47: 46 the policy agenda The April 2011
Page 48 and 49: 48 the economy and finance Nigeria
Page 50 and 51: Murphy Shipping…………Bridging
Page 52 and 53: 52 the economy and finance has been
Page 54 and 55: Since 1994, Nigeria Inter-Bank Sett
Page 56 and 57: 56 the economy and finance Facts an
Page 58: 58 the economy and finance petroleu
Page 61 and 62: Driving growth through Mobile Money
Page 63 and 64: elevating the country to the upper
Page 65 and 66: Zenith Bank plc Zenith Bank was est
Page 67 and 68: the economy and finance 67 Public r
Page 69 and 70: Improving Nigeria’s electricity n
Page 71 and 72: supply of electricity, though, will
Page 73 and 74: oil, gas and minerals 73 Nigeria’
Page 75 and 76: aBc Human development consultants l
Page 77 and 78: oil, gas and minerals 77 The decisi
Page 79 and 80: Empowering Nigeria Seven Energy Int
Page 81: Reliable partner in NIGERIA JASCON
Page 85 and 86: The leading indigenous suppliers of
Page 87 and 88: DrillPet International Limited (DIL
Page 89 and 90: Step on the gas The Nigerian Gas Ma
Page 91 and 92: The original GMP proposed a gas inf
Page 93 and 94: Find out more at www.oriental-er.co
Page 95 and 96: To encourage the participation of l
Page 97 and 98: NEITI: the Nigerian Extractive Indu
Page 99 and 100: Cakasa (Nigeria) Company Limited St
Page 101 and 102: The government has ambitious plans
Page 103 and 104: Potential for growth The Nigerian g
Page 105 and 106: Oil and the Niger Delta Nigeria’s
Page 107 and 108: Shell estimates it has an additiona
Page 109 and 110: High Voltage transmission sending s
Page 111 and 112: Despite being rich in natural resou
Page 113 and 114: HEAD OFFICE POWER GENERATION TRANSM
Page 115 and 116: former university academic addresse
Page 117 and 118: Although efforts to bring electrici
Page 119 and 120: www.ilf.com ILF - Engineering Excel
Page 121 and 122: of one gigawatt coal-fired power pl
Page 123 and 124: © 2012 Caterpillar All Rights Rese
Page 125 and 126: The National Economic Development P
Page 127 and 128: Vehicle imports General cargo Conta
Page 130 and 131: Engineering & Construction STEMCO,
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132 INDUSTRIAL INFRASTRUCTURE Suppo
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134 INDUSTRIAL INFRASTRUCTURE One o
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136 SOCIAL INFRASTRUCTURE Populatio
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138 SOCIAL INFRASTRUCTURE Tackling
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140 SOCIAL INFRASTRUCTURE the chanc
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142 SOCIAL INFRASTRUCTURE Healthcar
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144 SOCIAL INFRASTRUCTURE Obstetric
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146 agriculture and water Growing t
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Electrical, Mechanical, Civil, Wate
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150 agriculture and water sesame an
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Siat Group Investment Company in Tr
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154 agriculture and water The devel
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156 media, tourism aNd culture A ri
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158 media, tourism aNd culture The
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160 MEDIA, TOURISM AND CULTURE A ci
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162 MEDIA, TOURISM AND CULTURE Top
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164 DIRECTORY Government ministries
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166 DIRECTORY Tel: 236 0521, 236 05
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168 DIRECTORY United States of Amer
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170 Index of advertisers Aero .....
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ffordability - innovation eliabilit
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