| |  Natural Gas Estimates of Nigeria’s proven natural gas reserves, are approximately 104 trillion cubic feet. Nigeria has the tenth largest reserves in the world, approximately 30% of African gas reserves. Much of this is associated gas, as many Nigerian oil fields are saturated, and have primary gas caps. There is presently no dedicated exploration for gas. About 75% of the associated gas is currently flared off, as no domestic gas infrastructure or market exists, while fiscal terms remain unattractive. Growing pressure from environmentalists, has now led to increasing utilisation of the associated gas, and Shell has committed to ending all flaring of associated gas from their fields by the year 2008. This has been embodied in the National Gas Policy. A number of major gas projects are under way, and more are being planned. The largest and most significant of these projects is the Liquefied Natural Gas Project (LNG). The LNG project, with a development budget of approximately $4 billion, is a joint venture with 4 shareholders- NNPC (49%), Shell Gas (25.6%), CLEAG-(an ELF subsidiary)(15%), and Agip (10.4%). Shell are the technical managers to the project. The project is being built at Bonny Island, in Rivers State, and will consist of a 2 train liquefaction plant, a gas treatment system, transmission pipelines, a loading terminal and storage tanks. Initial gas supply will be from non-associated gas reserves. Shell, Elf and Agip are all developing projects which will gather gas from their various fields, and the project is expected to process 750 million cubic feet of gas daily. Other gas projects include the Escravos gas-gathering project developed by Chevron to recover associated gas from its offshore fields. The first phase of the project is completed, and first shipment of liquefied petroleum gas (LPG) was in September 1997. The plant processes 185 million cubic feet of associated gas daily. Engineering studies have recently been contracted for the 2nd phase of the project. Development of a domestic gas market is also being promoted by a new company, Shell Nigeria Gas. Another major project currently underway is the development by a Mobil/NNPC joint venture of the Oso NGL (Natural gas liquids). The Mobil Oso field was commissioned in 1992, and produces 110,000 bbls/day of condensate. Contracts for the 2nd phase NGL plant were awarded in 1995. Reserve estimate for the NGL’s is around 350 million barrels. The project is due for completion at the end of 1998. There are plans for the construction of a Trans West African pipeline to supply natural gas to Benin Republic, Togo, and Ghana. The gas is intended to be used to generate electricity in the three countries, and would require the construction of about 600 kilometres of pipeline. The World Bank has shown interest in providing project finance, and both Shell and Chevron have shown an interest in the project.
Oil a mixed blessing for Nigerian economy ... programmes. Because of this substantial contribution, Nigeria could well be described
as an oil-based mono-cultural economy IntellipharmaCeutics Intelligent Controlled Drug delivery Technologies iNetworks - Internet Application Solutions | | The Nigerian Economy: Peeping Out of the Woods With a Gross National Product, GNP, of some $38 billion, the size of the Nigerian economy is undeniably small. Given a population of 123 million according to World Bank figures, the per capita income comes down to a paltry $310. Not much to get by with, evidently. The country’s infrastructure is down, power supply is epileptic, the roads are chaotic and queues at petrol stations are long-winding, though the country is among the largest producers of crude oil in the world. And yet. Scratch beneath the gloomy surface and the picture is a lot brighter. That goods and services are so terribly made – if at all – turn out to be both curse and opportunity. Curse for the Nigerians who have to trudge through life in such desperate straits, but opportunity for anyone who could produce the goods or services with a modicum of efficiency. Therein lie the vast opportunities and allures of the Nigerian economy. Whole swathes of the economy offer unbelievable opportunities for making good money. According to figures from the International Finance Corporation, IFC, the Nigerian stock market has consistently outperformed returns on investment in emerging markets in the past few years. In the informal sector – where, anyway, most of the economy is – returns are even much greater. "According to figures from the IFC, the Nigerian Stock Market has constantly outperformed returns on investment in emerging markets in the past few years" That things can only get better is indicated by the economic moves of the re-elected civilian government of President Olusegun Obasanjo. After 15 years of rampaging generals who ruled – and ruined – the country, the new government seems to understand what needs to be done, and is making bold moves to do them. Cleaning the mess left behind by years of military pillage won’t be easy, but a credible campaign against corruption is being waged. The refineries are being repaired. The economy is being opened up, and foreign direct investment is starting to pour in. Privatisation of the worst-run state firms is being pursued with relentlessness. This last point bears some emphasis. The current exercise, unlike some that went before it, and unlike in places like Russia, is seen as clean and transparent. There is a frenzy of competition from both local and foreign bidders to buy the companies being sold. Besides the state firms being privatised, new ones, especially foreign ones are on a long queue to explore opportunities in wide areas: Enron in power, Citibank & Standard Chartered Bank in financial services and a whole lot of others in water, agro-allied, construction and, of course the flagship sector of oil and gas. Telecoms and IT need special mention because the country has one of the lowest telephone access per person in the world – less than 4 in every 1000 persons. With serious government commitment to a viable telecoms policy, it is expected that with so many people in need of phone lines, any investment in this area - and indeed many foreign telecoms giants are lining up – would be especially lucrative. These companies bring much needed, but also much profitable services. Above all, they bring a verdict: that the Nigerian economy has future. |
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