Outstanding multi-billion dollars oil and gas industry projects threatened

The delay by the Nigerian National Petroleum Corporation (NNPC) to approve some outstanding multi-billion dollars oil and gas industry projects is causing concern in the industry.

It was gathered that the NNPC’s inability to decide on the projects stemmed from the repeated failure to hold its periodic Group Executive Committee (GEC) meetings, where projects of this magnitude are usually reviewed and moved to the board, for endorsement and award.

The projects that would be affected if the NNPC fails to act include the Mobil’s Erha North phase two; the Satellite fields development project, phase two; and Total’s Egina project.

Owing to the delays, some international oil companies (IOCs) have rejected further extension on the negotiations beyond the end of this calendar year with NNPC on the affected projects.

NNPC’s Funding Delays Threaten Nigeria’s 4mbpd Target

The Federal Government’s crude oil growth projections of 4 million barrels per day (mbpd) and reserves of 40 billion barrels may remain a mirage as multi-billion dollar oil and gas projects expected to increase output and create thousands of jobs, are said to have been bungled by the Nigerian National Petroleum Corporation (NNPC).

The projects include ExxonMobil’s Erha North and phase two of the Satellite field development project, Shell’s Bonga Southwest and North-west, the multi-billion dollar Nsikko project, Total’s Egina project and the Funiwa Gas project, some of which had been in the pipeline for more than five years.

The reluctance by the NNPC to commit to the projects has prompted interested investors to pull out, while some of the projects have been abandoned.