The considerable decline in crude oil prices has put a significant damper on the demand for the goods and services of the Oil & Gas Servicing Industry from major exploration and production projects. International oil companies have put significant investments on hold across the globe due to uncertainty in the market and reduced profitability of operations. The rise in militant activities has also contributed to the reduced activities in the Oil & Gas Servicing Industry with many indigenous upstream companies that have been actively developing assets having to deal with disruptions due to attacks on facilities in addition to the lower crude oil prices.
The Nigerian Oil & Gas Servicing Industry has great potential to develop but this is highly dependent on the development of the country’s oil & gas upstream industry from where demand for servicing is derived.
The drop in crude oil prices and re-emergence of militancy in the Niger Delta have contributed to the poor financial condition of a large number of indigenous servicing companies with many reporting losses.
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