by Marin Katusa, Chief Energy Investment Strategist
Casey Research
Nigeria
has 37 billion barrels of crude oil reserve and is Africa’s largest oil
producer. The country also boasts 187 trillion cubic feet of proven
natural gas reserves, the ninth-largest reserve in the world.
Nigeria has all the right geology for oil and gas. But geology isn’t everything.
The best geology in the world can still be a terrible place to put your money if other risks threaten to steal all of a project’s profits and potential – and country risk can pose precisely that threat.
Think about it this way. In considering any business venture, you need to know several key parameters, such as how much it will cost to establish the operation, how much you will produce, and what percentage of your profits the government will take. In Nigeria, you cannot calculate any of these metrics with confidence because the rules are so complex and corrupt.
Continue Reading at CaseyResearch.com…
Casey Research
Nigeria
has 37 billion barrels of crude oil reserve and is Africa’s largest oil
producer. The country also boasts 187 trillion cubic feet of proven
natural gas reserves, the ninth-largest reserve in the world.Nigeria has all the right geology for oil and gas. But geology isn’t everything.
The best geology in the world can still be a terrible place to put your money if other risks threaten to steal all of a project’s profits and potential – and country risk can pose precisely that threat.
Think about it this way. In considering any business venture, you need to know several key parameters, such as how much it will cost to establish the operation, how much you will produce, and what percentage of your profits the government will take. In Nigeria, you cannot calculate any of these metrics with confidence because the rules are so complex and corrupt.
Continue Reading at CaseyResearch.com…
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