The inaction of the Nigerian Government with respect to delayed approval for projects in the Benin embayment, is currently stalling investments in the area, and threatening the resolve by the current government to grow its oil reserves.
Investment running into billions of dollars that could have poured into Nigeria’s Benin embayment and the economy is being held back by the perceived unwillingness of the government to step up its game and free up the area to capable indigenous oil and gas firms.
The Benin embayment is part of an extensive basin on the Nigerian coastal line. Also referred to as the Dahomey embayment, it is rich in hydrocarbons, and was left fallow for decades because of lack of investment. The embayment is home to the Aje Field, which is reported to have close to 200 million barrels of oil and multi-TCF gas reserves as well as the Ogo Field, among others.
The policy of government had opened the embayment to investment leading to the activities of Crownwell Petroleum, Panoro Energy and others operating in the area. In recent years, however, inaction by government on approvals for companies has meant that less investment is being made on wells, which have the capacity to significantly buoy Nigeria’s Gross Domestic Product (GDP) and improve the lives of several Nigerians.
Source: The Guardian