PETROLEUM JOINT VENTURE IN UPSTREAM OPERATIONS IN NIGERIA AN ANALYSIS
ABSTRACT
This work considers the issue of Petroleum Joint Venture in Upstream Operations in Nigeria. It examines the factor responsible for participation in marketing the oil resources in Nigeria via the concessionary laws. It is pertinent to note here that, Nigeria’s annualized real GDP growth forecast averaged 7.5% in 2010 and continues to maintain this momentum into 2015 barring any major unforeseen circumstances. Also, oil demand was expected to rise by an estimated 288,000b/d in 2010 to 395,000b/d in 2015, representing 6-7% average annual growth rate. Nigeria’s oil revenue has been on the exponential climb as the prices of crude oil have continued to surge giving the country a range of 55% to 60% over and above the 2011 budget benchmark price of$65. According to the National Bureau of Statistics, revenue from oil exports rose by 46% to $59 billion in 2010 as prices increased and companies raised output on improved security in the Niger Delta. Nigeria earned $196 billion from oil and gas exports in the four years up to 2010 with oil revenue accounting for 80% of government income and 95% of foreign exchange income.
State-owned Nigerian National Petroleum Corporation (NNPC) accounts for more than 50% of oil production and over 40% of gas supply, but a large number of international oil company (IOC) partners contribute to a forecast rise in oil and liquids production from an estimated 2.34 million b/d in 2010 to 2.75 million b/d by 2015 subject to OPEC quotapolicy.
Gas production should reach 59 billion cubic metres by 2015, up from an estimated 35 billion cubic metres in 2010.
In conclusion, it is in the above that, the need to opine on this topic is called for, in other to encourage investment by foreign companies and local for the actualization of the Nigerianization of our products,
CHAPTER ONE INTRODUCTION
- GENERAL BACKGROUND TO THESTUDY
Exploration for petroleum in the territory that came to be known as Nigeria began in 1908. It suffered some interruptions resultant from the first and second world wars. The later part of the second half of the 1940s witnessed the intensification of efforts thereon. This led to the eventual discovery of petroleum in commercial quantities in 1956. Following this, the exploration for, development and production of petroleum (“upstream petroleum operations”) became an integral aspect of economic activities in Nigeria and have since attained and maintain the position of dominance within that context.1 Petroleum is no doubt a predominant source of Nigeria’s revenue and foreign exchange. The petroleum industries in Nigeria are divided into two main segments. The upstream and the down stream sectors. The upstream refers to activities such as exploration, production and delivery to an export terminal of crude oil or gas.
PETROLEUM JOINT VENTURE IN UPSTREAM OPERATIONS IN NIGERIA AN ANALYSIS
