1. Maximising benefits from oil and gas production in developing countries through local content participation and value addition

$24.00

 

On completion of all coursework components you will be able to:
1.?Critically evaluate the sources, formation, reserves, distribution and lifecycle of oil and gas.
2. Appraise techniques for oil and gas exploration and production.
3. Thoroughly understand the upstream, midstream and downstream operations.
4. Review the risk associated with oil installations and production techniques.
5. Evaluate the global trends and movement in oil and gas markets, timing efficiency and benchmarking in the industry.
10.?Procedure
?
?Write a critical review article on any of the following:

1. Maximising benefits from oil and gas production in developing countries through local content participation and value addition

2. A review of current trends and technologies for monetisation of stranded natural gas resources

3. The role of risk management in managing price volatility in the global oil and gas market.

Description

Nigeria is a resource endowed country. It is the largest producer of crude oil in African and the country is a member of the OPEC.  The oil and gas sector plays an important role in Nigeria’s economy and they are a major pillar of the country’s economy.  They industry is today considered the heartbeat of the economy because it contributes more than three quarters of the country gross domestic product (GDP). However, the major problem with the oil industry in Nigeria is that it is controlled by foreigners and participation of indigenous Nigerians is very minimal. This has lead to some conflicts in oil rich areas where locals are seeking to have a stake in the oil industry. Although this industry spends billions of dollars annually on services, majority the funds go to foreigners (Binniyat, Ugwuadu & Adeoye, 2007).  Only a very little of the services money is left for the Nigerians scramble for.  This has been attributed to low local content, a situation where most of the service contracts are awarded to foreigners. The indigenous firms do not have capacity including required skills, technical expertise, manpower and production capacity to compete with foreign firms. Low local content in Nigeria has been attributed to different factors among them lack of government investment. In addition, although Nigeria is a rich producer and exporter of oil, it does not have refineries and fuel crisis are common in the country.  However, the government has recently taken steps towards improving the local contents with the introduction of Nigeria Oil and Gas Local Content Act 2011. This act is expected to have a major impact on the oil and gas industry by increasing local content and value addition.