This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Oil Exploration In West Africa

By Dave Brown - Exclusive to Oil Investing News

The West African offshore oil and gas industry has a history of exploration of more than 50 years, with international majors and smaller firms having held, and relinquished, licences all along the coast since the British discovered oil in the Niger Delta in the late 1950s. Nigeria and Angola are the largest oil producers in West Africa; however, exploration and development throughout the region is widely dispersed across the countries of Mauritania, Ghana, Ivory Coast, Benin / Togo, Cameroon, Equatorial Guinea, Gabon and Congo.

Interest in Nigerian oil originated in 1914 with an ordinance making any oil and mineral under Nigerian soil legal property of the Crown. By 1938 the colonial government had granted the state-sponsored company, Shell (NYSE: RDS.A) (then known as Shell D'Arcy) monopoly over exploration of all minerals and petroleum throughout the entire colony. Until the late 1950's concessions on exploration and production were exclusively maintained by Shell, then known as Shell-British Petroleum. However, other firms became interested and by the early 1960's ExxonMobil (NYSE: XOM), Texaco, and Gulf had purchased concessions.

The deepwater sector still has a large avenue to expand and develop both in Nigeria and throughout the region. The amount of oil extracted from Nigeria is expected to have expanded its operational scope from 15,000 billion barrels per day in 2003 to 1,270,000 billion barrels per day by the end of this year. Deepwater drilling for oil is especially attractive to oil companies because the Nigerian government has very little share in these activities and it is more difficult for the government to regulate the offshore activities of the companies. Deepwater extraction plants are less predisposed to local militant attacks, seizures due to civil conflicts, and sabotage. This permits more resources and alternatives available to efficiently extract the oil, with less potential for conflict than the operations on land.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs