Success of Nigeria
Nigeria – a country of opportunities
Nigeria is uniquely positioned for success in the coming decades. Over our 18 years of existence, The Chrome Group has remained resolute in blazing the trail in indigenous participation in Nigeria's oil and gas industry, by undertaking projects hitherto exclusively reserved for foreign companies operating in the industry. For more on our Nigerian Content Development, click on the image at right.
As the seventh most-populous country in the world (and the most populous in Africa) it offers a large workforce, and recent economic reforms have sent Nigeria on its way to achieving its potential. The economy is a mixed emerging market, with well-developed legal, financial, transport and communications sectors, based largely in the city of Lagos.
Energy: the future
Nigeria is the eighth-largest oil exporter in the world, and petroleum plays a large role in the economic development of the nation.
With proven oil reserves exceeding 9 billion tons, Nigeria is one of the largest hydrocarbon feedstock producers in Africa, and ranks twelfth place worldwide.
In 2010, Nigeria produced around 2 million barrels of oil a day.
Nigeria is a member of OPEC, the Organization of Petroleum Exporting Countries.
The country relies heavily on its petroleum industry for economic growth – the sector accounts for about 80% of government revenues and provides 95% of foreign exchange.
Oil was first discovered in Nigeria in the 1950s, and Royal Dutch Shell commenced operations in 1958. SPDC, Shell’s joint venture with the Nigeria National Petroleum Corporation (NNPC), accounts for around half of Nigeria’s total oil production. Other oil majors present in the country include Total, Elf, ExxonMobil, ConocoPhillips, Chevron and Eni.
Natural gas reserves account for 5.2 trillion cubic metres, making it the world’s seventh biggest resource.
The country’s contribution to international liquid natural gas supply is large – Nigeria provides 10% of the world’s LNG.
Nigeria’s gas reserves are more than three times greater than its oil reserves, and the government is committed to increasing gas production for domestic supply as well as for export. The Trans-Saharan Gas Pipeline currently in development will enable Nigeria to supply the continent of Europe with gas. Despite its preeminent role in global oil production, the country’s domestic power supply is under-developed, and shortages of electricity have hampered industrial growth.
The government is working to capitalize on its thriving petroleum sector to drive economic growth, while at the same time seeking to leverage its natural resources to ensure sufficient energy supply at home – since there can be no doubt that addressing the power supply problem remains the key stimulus needed to jump-start the country’s economy if it is to be one of the top 20 economies of the world as envisioned in the 2020 blueprint.
Chrome Group is exceptionally well positioned to take advantage of these opportunities, with its key commitments in these sectors.