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Project Insights

Nigeria’s domestic upstream players face battle to survive

Indigenous firms are suffering from devalued assets amid low commodity prices, making service companies view them as debt risks Indigenous firms are suffering from devalued assets amid low commodity prices, making service companies view them as debt risks.
By Miriam Malek 14 August 2017 Middle East & Africa / Exploration & Production 0 27169
Shell’s Bonga FPSO. IOCs are insulated from the payment problems. (Shell)

Oilfield service companies operating in Nigeria are imposing stricter payment terms, leaving many domestic upstream players  facing a struggle to stay afloat.

Some oilfield service firms are insisting on upfront payment from Nigerian upstream companies to avoid being left out of pocket. Several of them have racked up debts from domestic players because of late payments on works that have already started or been completed, employees from two service firms told Interfax Natural Gas Daily.

“For us, indigenous companies have to pay upfront because of [the risk...