Nigerian Oil Companies Require Foreign Investment

Ambit Energy Corporation pic
Ambit Energy Corporation
Image: ambitenergycorp.com

Ambit Energy Corporation is an international oil and gas company headquartered in Calgary, Canada, with offices in Nigeria. The corporate entities and structure created by Ambit Energy Corporation are designed to fit the goals of the Nigerian government’s indigenization program.

In 1990, the Nigerian government established the Indigenous Concession Program (ICP), which set new rules favoring the awarding of oil rights to local oil companies. Foreign equity holding of marginal fields is limited to 40 percent, and foreign partners face stringent project financing demands.

Nigerian government policies are intended to repatriate the oil and gas industry from foreign ownership and allow local companies to monetize natural resources. However, marginal oil fields of the Niger Delta are often found in challenging terrain that requires advanced oil recovery techniques. This results in oil and gas that is costly to produce and requires extensive technical savvy.

The government is making effort to fast-track the infrastructure and technological and managerial know-how for the country to take advantage of its gas and oil reserves. Recent policies in Nigeria, while limiting foreign operation, still leave room for foreign investment in terms of financing and technical assistance. The government believes that carving out a certain percentage of participation in the industry by local oil companies, combined with Foreign Direct Investment (FDI), will allow local companies to become more competent in their operations.

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How Geoscientists Identify Buried Oil and Gas Reserves

Ambit Energy Corporation pic
Ambit Energy Corporation
Image: ambitenergycorp.com

Headquartered in Canada, Ambit Energy Corporation also maintains offices in the United Kingdom and Nigeria. Ambit Energy Corporation relies on the expertise of geoscientists to carry out its oil and gas explorations.

Geoscientists dedicate their careers to exploring the earth’s natural processes. Many are employed by companies in the oil and gas industry to gather field and laboratory data essential for identifying buried reserves.

To locate trapped oil and gas, geoscientists look for source rock that contains organic matter that has been compressed to emit hydrocarbons and heated to a level causing the release of oil and gas. Source rock made of coal is ideal because it releases the most natural gas. Geoscientists also look for porous and permeable reservoir rock that have a cap rock. A cap rock, such as impermeable clay or salt deposit, has the ability to store hydrocarbons within reservoir rocks. In the same respect, rocks must contain a trap to seal in oil and gas. In identifying these factors, geoscientists can advise exploration companies on exact locations to drill boreholes to extract oils and gases.