18.8 C
Los Angeles
Friday, October 4, 2024

Nigeria’s oil sector: Nigeria’s oil sector hit by an exodus of foreign companies

BusinessNigeria’s oil sector: Nigeria’s oil sector hit by an exodus of foreign companies

Nigeria’s oil sector: Negotiators from more than 100 countries are scheduled to wrap up talks at the UN COP28 climate summit today. But clashes over the future of fossil fuels look likely to prolong the debate.

A draft agreement circulated on Monday dropped references to the phaseout of fossil fuels, triggering backlash from countries that accuse Saudi Arabia and other petrostates of thwarting efforts to tackle climate change.

“Clearly there is an emerging proactive fossil coalition,” said one senior EU negotiator after the text was released. Our FT colleagues in Dubai reported the UK government called the draft “disappointing”.

Several negotiators said they expected talks on a final agreement to drag on until Wednesday or Thursday.

The US oil industry appears to be growing more confident that demand for fossil fuels will remain resilient for decades to come with Occidental Petroleum inking a $12bn takeover of CrownRock. The latest in a string of high-profile deals in the sector. The Houston-based company backed by Warren Buffett beat rival bidders to secure CrownRock’s shale assets in the Permian Basin.

But our main item comes from Lagos, Nigeria, where the FT’s west Africa correspondent Aanu Adeoye recently interviewed Africa’s richest man, Aliko Dangote, about his mammoth refinery project which is nearing production after years of delays.

He also writes about the challenges facing Nigeria’s oil industry. Where international companies are fleeing because of a deteriorating investment climate. — Jamie

Who will fill the void foreign oil has created in Nigeria’s energy sector?
After months of speculation, Norwegian oil company Equinor announced late last month. That it had sold its Nigerian entity to a little-known local company Chappal Energies. The end of Equinor’s three-decade association with Africa’s largest oil producer.

Over the past year, a new phenomenon has been happening quietly in Nigeria’s oil industry: the exodus of international oil companies from all or parts of their operations in the country.

See Also :

Source

Check out our other content

Check out other tags:

Most Popular Articles