Stakeholders in Nigeria’s oil and gas industry were pleased in October, when crude oil price rose from $70.00 to $85.00 per barrel for a reason. The rise in the price of oil was expected to boost investment, and by extension, local content development in the industry through improved funding of projects.
The improved funding was also expected to culminate in award of new contracts and settlement of debts owed local contractors and others in the industry.
But the expectation was short-lived as the price soon dropped to $75.00, before sliding further to the current $59 per barrel. The relatively low price which is partly fuelled by excess supply has started to impact negatively on local content development, especially as operators found it difficult to do major projects and programmes.
Investigation showed that many indigenous operators, including service providers have found it difficult to survive mainly as a result of low patronage by the majors, including the International Oil Companies (IOCs) and independents.