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Article: NIGERIA - Exploration.
- Article from:
- APS Review Gas Market Trends
- Article date:
- August 2, 1999
CopyrightCOPYRIGHT 1999 Input Solutions. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Onshore exploration and drilling in Nigeria have declined due to state funding problems in recent years. While deep-water and frontier exploration in Nigeria involves production sharing agreements (PSAs), whereby the foreign operators bear all the costs, the main onshore E&P activities are undertaken by JVs with the state's Nigerian National Petroleum Corp (NNPC). NNPC has to provide the majority of funding in line with its large equity. Funding delays by NNPC and successive budget cuts by the finance ministry have caused the foreign operators to reduce their exploration.
The offshore exploration areas, where licences have already been awarded and additional ...