Oil price collapse puts Nigerian deepwater projects at risk

LAGOS, January 21, 2015 – Speaking at the Offshore West Africa 2015 conference on Wednesday, group managing director of the Nigerian National Petroleum Corporation Joseph Dawha said that companies’ cash flow problems as a result of a decline in oil prices are beginning to affect deepwater projects in Nigerian waters.

According to Dawha, three projects will be either be delayed or cancelled. He also pointed, without going into much detail, to a project in Angola and another in Ghana that will suffer delays. Dawha said that the current state of affairs is also impacting on shallow water projects, listing two ventures in Angola, two in Ghana and one in Nigeria that are at risk.

In December 2014, Nigeria was forced to lower its growth forecast for 2015 from 6.4 percent to 5.5 percent, in part because oil accounts for as much as 80 percent of government revenue.

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