Upstream Oil and Gas Industry Market Insights in Nigeria

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The global oil and gas industry has had a rocky start to 2020, having been hit by several challenges – the most significant of which is the effect of the COVID-19 pandemic on crude oil demand supply ,price bench mark and other related issues with an oil-dependent economy, is highly vulnerable to the impact of these external shocks due to the country’s increased dependency on global economies for fiscal revenues, foreign exchange inflows, fiscal deficit funding and capital flows required to sustain the country’s economic activities.

COVID-19 on Nigeria’s Upstream Oil and Gas Market

The COVID-19 pandemic does not only present a severe health crisis for Nigeria, its impact reaches far beyond the health sector to other critical sectors of the country. The country’s upstream oil and gas sector, which provides a significant portion of Government revenue and foreign exchange earnings, is one such critical sector that has felt the ripple effect of the pandemic. Some key impacts of the COVID-19 pandemic to this sector are as follows:

Most Affected lines of Business are:

  • Production and Exploration
  • Geophysical and Seismic
  • Drilling Contractors
  • Deep water Constructions Services
  • FPSO Contractors
  • Offshore logistics and related services

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