What We Do
The petroleum sector has been a crucial part of Nigeria's economy since crude oil was first discovered in the 1950's. As of 2010, oil and gas exports accounted for more than 98% of export earnings and about 83% of Federal Government revenue. Nigeria's proven oil reserves are estimated at about 35 billion barrels. In mid-2014, its crude oil production was averaging around 2.2 million barrels per day. Natural gas reserves are well over 187 trillion ft³ (2,800 km³), about three times as substantial as the crude oil reserves.
Nearly all the country's primary reserves are concentrated in and around the delta region of the Niger River, but offshore rigs are also prominent in the well-endowed coastal region. Nigeria is one of the few major oil producing nations still capable of increasing its oil output. Multinational Corporations dominated the industry before the 1990s, but local participation has surged since the implementation of the Nigerian Content Directive and the NOGIC act in 2010. Both have successfully promoted the use of Nigerian companies and resources in the award of oil licenses, contracts and projects.
The upstream oil & gas services industry in Nigeria offers significant and sustainable operations for companies supporting the energy sector. These services are a critical part of the overall supply chain that ensures both new discoveries are brought to production and existing fields are kept operating efficiently. It is estimated that the upstream oil & gas industry is worth between $12bn to $15bn per year the majority of which is currently still spent with off-shore contractors. However, this is also starting to change as a consequence of the Nigerian Content Directive and as local companies develop partnerships with International technical affiliates and demonstrate their ability to deliver the requisite services in-country. In many cases, such as for offshore fabrication and subsea manufacturing, the push is for at least 50% local content of the tonnage work done in Nigeria.
Free Zones in Nigeria were established in 1992 for the diversification of the revenue base of the economy, employment generation and encouragement of exports through local production. Locating in a Free Zone in Nigeria offers investors certain advantages, benefits and incentives to facilitate local and international investments.
Since 1992, Nigeria has operated free zones in strategic locations that provide economic efficiencies and advantages to indigenous and international companies, while still actively contributing to economic growth and employment. Free zone benefits are numerous including: a more favourable tax regime, established infrastructures and services, logistics services, port facilities, warehouse stacking areas, marine and subsea parks and equipment and personnel.