FID delay shuts in over 750,000b/d oil production in Nigeria
The delay in reaching Final Investment Decision, FIDs on some critical oil and gas projects has resulted in the shut in of over 750,315 of crude oil production in Nigeria.
Nigeria’s bucket list of oil and gas projects where FID has been delayed include Shell’s Bonga South-West/Aparo (143,274 barrels per day), ExxonMobil’s Bosi (126,784 bpd), Chevron’s Nsiko (95,685 bpd), ExxonMobil’s Owowo West (138,301 bpd), ExxonMobil’s Uge-Orso (99,532bpd), and Nigerian Agip Exploration Limited’s Zabazaba (146,739 bpd).
These projects were announced several years ago.
It will cost Shell a total of $9.7billion to float the Bonga project, ExxonMobil $6.2bn for Bosi, and Chevron $8.2bn to bring Nsiko to a laudable close.
ExxonMobil will need $8.2bn for the Owowo West project, and $6.1bn for Uge-Orso, while Nigerian Agip Exploration Limited had already booked $9.2bn for Zabazaba.
Indications are that promoters of these projects may not take a FID anytime soon owing to low revenue arising from low demand for crude oil on the international market, as well as concern regarding the current fiscal regime in place regarding cost recovery.
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