International Oil Companies (IOCs) have advised the federal government to prioritise competitive fiscal terms over attractive options in race to improve investment in Nigeria’s oil and gas sector.
This shift in focus, they argue, would make Nigeria’s oil assets more appealing to investors and encourage increased exploration and production activities.
“I hear a lot people say but your country just signed the Petroleum Industry Act. I agree, but its difficult to compete with international competitors for investment with the current fiscals,” Elohor Aiboni, managing director, Shell Nigeria’s Exploration and production company limited said at this year Nigeria’s Oil and Gas event in Abuja.
She added, “The current fiscals will not get us anywhere. Discussion are ongoing but we need to fast track this development”.
Jim Swartz, chairman and managing director of Chevron Nigeria mid~Africa business unit said it’s not enough to have attractive fiscal, it needs to be attractive.
“Deepwater business is a global business; we need to be more competitive not just attractive” Swartz said.
Adesua Dozie, vice-chairman of the Boards of the Companie at ExxonMobil said Nigeria needs predictability and stability of investment over the lifecycle of deepwater projects.
“We need projects that are globally competitive. The major challenge we face as IOCs is taking globally competitive projects to our headquarters,” Dozie said.
More details later…
