June 1, 2021

Expect growth for Nigeria Oil, Gas sector – Kenneth Osadiaye

Expect growth for Nigeria Oil, Gas sector – Kenneth Osadiaye

The CEO Kidiaye Oil and Gas Nigeria Ltd, Kenneth Osadiaye has advised on strategy to mitigate marginal field challenges that investors and operators of marginal oil fields face.
According to Kenneth Osadiaye, the Nigerian oil and gas market is expected to register a CAGR of more than 2% during the forecast period of 2021 – 2026. In addition to the country-wide economic impact of COVID-19, crude producers are faced with a decline in both price and demand for crude, thus, resulting in an oil glut.
In its industry circular as of 30 March 2020, the Department of Petroleum Resources (DPR) stated that it considers the situation occasioned by the COVID-19 pandemic a force majeure and has directed all operators to limit the number of personnel at project sites. This has the potential of leading to a breach of specific contract terms.

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“However, some of the major factors driving the market include increasing investments in the upstream sector and the development of large-scale and modular refineries in the country. Oil and gas production had been hampered in Nigeria in the past few years due to the attack on oil and gas infrastructure by militants.
“Furthermore, oil theft has been one of the major issues faced by the oil and gas market in Nigeria, which resulted in huge losses to operating companies in the country. Such factors are expected to have a negative impact on the market growth during the forecast period.”