OPPORTUNITIES IN THE OIL AND GAS SECTOR
Foreign and domestic investors are being encouraged through improved fiscal incentives in the Nigeria oil and gas sector. In the Upstream and Downstream sectors, the following are some of the areas where there are pressing needs for investors.
(A) UPSTREAM ACTIVITIES
(i) Petroleum Exploration and Exploitation.
(ii) Search for development of local substitute for such items as Medium pressure valve, pumps, shallow drilling equipment, Drilling mud, bits fittings, drilling cements etc.
(iii) Manufacturing of consumable materials in exploration such as explosives, detonators, steel castings, magnetic tapes etc.
(iv) Other areas in the services sector of the upstream are:
1. Construction and Installation
4. Well Services and
5. Transportation Support Services.
(B) DOWNSTREAM ACTIVITIES:
(i) Domestic Production and marketing of Liquefied Petroleum Gas (LPG)
(ii) Manufacturing of LPG cylinders, valves and regulators, installation of filing plants, Retail distribution and development of simple, flexible and much less expensive gas burner to encourage the use of gas instead of wood and other fuels.
(iii) Establishment of processing plants and industries for:
- The production of refined mineral oil, petroleum jelly and grease.
- The manufacture of bituminous based water/damp-proof building materials such as roofing sheets, floor tiles, rubber products, tarpaulin. Building of asphalt storage, packaging and blending plants to handle the product for export.
(iv) Establishment of chemical industries such as distillation units for the production of naphtha and other special boiling point solvents used in plant and other food processing industries.
(v) Establishment of industries for processing Linear Alkyl Benzene, Carbon Black and Polypropylene.
(vi) Development of Phase II (Phase III to join later) of Nigeria’s Petrochemical Programmed.
(vii) Participation in all phases of the Nigeria Gas Industry development programmed from exploration, gathering, production and processing to transmission.
(viii) Establishment of small scale industries to produce chemicals and Solvents, for example Chlorinated methane, Formaldehyde, Acetylene, etc., from natural gas.
(ix) Refining: Opportunities exist for the construction of a refinery in bonded premises with adequate export facilities for dedication to the export market. Companies with the technological know-how can undertake turn-around maintenance of refineries.
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