Nigeria’s JV funding down by 40%

Kunle Kalejaye 15 August 2015, Sweetcrude, Lagos – The sharp decline in crude oil prices this year forced the National Petroleum Investment Management Services, NAPIMS, the investment arm of the Nigerian National Petroleum Corporation, NNPC, to slash Joint Venture, JV, projects funding by 40 percent in the first quarter of this year, SweetcrudeReports investigations have shown.

Oil platform offshore UK.

Oil platform

The 40 percent slash in budget has led to the stalling and suspension of several ongoing projects while new opportunities have been deferred or outrightly cancelled.

The budget slash has also led to a significant drop in the Nigerian rig count, from 51 in September 2013 to 27 in June 2015 – a 47 percent reduction.

 The drop in rig count has had a negative effect on the manufacturing and services businesses, affecting such equipment, items and services as drilling fluids and chemicals, drill bits, casing services, and marine vessels to name a few.

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