Boston, MA -- (SBWIRE) -- 04/10/2014 -- Nigeria's hydrocarbon sector continues to struggle amid a worsening political and business environment. Most recently, Chevron's decision to move out of the OKLNG project signals that even the large upside potential of the Nigerian gas market is not sufficient to offset the degradation in investor sentiment. The weak output flows in 2012 and 2013 were the consequence of flooding, repeated oil thefts and regulatory uncertainty. We estimate that total oil production for 2013 declined to about 2.4mn barrels per day, and expect production to remain feeble over the coming year. Output should ramp-up more significantly as many large fields come online after 2015, more than offsetting current depletion. Adoption of the Petroleum Industry Bill (PIB), which we do not expect before the Nigerian 2015 election, would be a strong signal for investors that Nigeria's hydrocarbons sector is ready to move forward. Without the adoption of the PIB, further offshore project delays could occur, resulting in a stagnation of Nigerian production.

View Full Report Details and Table of Contents

The main trends and developments we highlight for Nigeria's oil and gas sector are as follows:

- Disturbances and outages due to oil thieves and pipeline attacks have continued throughout 2013, impacting onshore and shallow water oil production throughout 2012 and 2013. Several international oil companies (IOCs) have divested some of their Nigerian assets throughout 2012 and 2013 as a result of this insecurity, such as Shell, Petrobras, Chevron and ConocoPhillips. Shell's November 2013 decision to sell its Nembe Creek Trunkline following losses from crude oil theft and recurrent pipeline attacks point to the seriousness of the situation. These divestments of Nigerian assets are a sign that the country's onshore hydrocarbon sector is becoming increasingly unattractive. .

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Energy research reports at Fast Market Research

You may also be interested in these related reports:

- Gazprom Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- Lightstream Resources Ltd. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- Pioneer Southwest Energy Partners L.P. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- Sure Energy Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- Gran Tierra Energy Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- Comstock Resources, Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- TriOil Resources Limited Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- Crimson Exploration Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- Bonavista Energy Corporation Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- Novus Energy Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013