Opportunity knocks in Nigeria for those with connections and willing to take risks

By Barry Morgan

 21 June 2012 22:59 GMT

SUITORS seeking upstream positions in Nigeria may be leery of entering a market traditionally beset by policy confusion with all efforts to shore up corporate portfolios buffeted by reputational risk at every turn.

Yet huge opportunities are emerging as a result of decisions by the majors to reduce their exposure, largely in response to shareholder pressure to rationalise global holdings.

These companies also elected to escape another round of sustained disruption in Nigeria’s oilpatch following the failure of the government to redress the underlying cause of militant unrest.

Output briefly this year resurged to 2.6 million barrels per day, but the government’s inability — or unwillingness — to take on corruption at the highest levels continues to deter investment.

Larger projects remain on the back-burner as lawmakers…

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