IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Risk impacts on the economic performance of oil and gas projects in Nigeria

Listed author(s):
  • Olusegun Omole
  • T.A. Borisade
  • Ahmad Muhammad
Registered author(s):

    Despite the risks and uncertainties associated with investment in the petroleum industry, Nigeria remains attractive to foreign investors, due (partly) to the high rate of return on investment, the presence of a prodigious hydrocarbon base and the existence of a reliable legal framework for the protection of such investment. This study attempts to identify the key elements of risks and uncertainties in the Nigerian oil and gas industry and their associated impacts on the economic performance of capital projects, using data obtained from experts in the industry. The study reveals that the reservoir area, the hydrocarbon formation thickness, the porosity, the production drive mechanism and, hence, the recovery factor are the most significant uncertainty factors in oil exploitation. The major economic uncertainties identified include the crude oil price and joint venture cash calls (the latter is currently on the decline, due to the improved Government commitment to its cash call obligations). Copyright 2004 Organization of the Petroleum Exporting Countries.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Organization of the Petroleum Exporting Countries in its journal OPEC Review.

    Volume (Year): 28 (2004)
    Issue (Month): 4 (December)
    Pages: 247-274

    in new window

    Handle: RePEc:bla:opecrv:v:28:y:2004:i:4:p:247-274
    Contact details of provider: Web page:

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bla:opecrv:v:28:y:2004:i:4:p:247-274. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)

    or (Christopher F. Baum)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.