With the right fiscal framework in the revised Petroleum Industry Bill, PIB, Nigeria is likely to see about $9 billion additional investment in deepwater projects, oil and gas industry players have said.

A document issued by the Oil Producers Trade Section, OPTS, of the Lagos Chamber of Commerce and Industry, LCCI, said the current PIB 2020 does not “improve the investment environment for new project FIDs (final investment decisions) to be taken”.

But, it added that with the right fiscal framework, OPTS could invest $9 billion in Nigeria’s deepwater projects to grow oil and gas development in the country, going forward. The operators are pushing for a competitive PIB as they argued that such could unlock the much-anticipated economic growth in Nigeria.

“With the right fiscal framework, OPTS could invest an additional about $9 billion in deepwater projects to grow oil and gas development in Nigeria with resultant benefits for the nation,” the group said.

According to them, Nigerian projects sanctioned between 2015 and 2019 would bring $3 billion investment over their lifecycle and they represented only about four percent of all expected investments in Africa. They revealed that no major investment decision was taken in the Nigerian deepwater space between 2015 and 2019.

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Source: SweetCrudeReports