Exploring Diverse Funding Mechanisms for Oil and Gas Companies in Nigeria: An In-Depth Analysis with Practical Case Studies

Abstract

The petroleum industry is one of the largest, significant, and most complicated global industries in the world. Despite the numerous crises experienced in the oil and gas industry, companies continue to invest money in new projects for the development of hydrocarbon resources. The industry has incredible opportunities yet untapped. However, several factors such as a lack of investment resources hamper the dynamic development of the industry. Sources of financing are needed to solve this problem. Sourcing for funds could be very frustrating, and time-consuming, especially in times of economic recession where bank loans could be at a provocative interest rate. Several studies have explored and recommended conventional and alternative funding options for oil and gas companies in Nigeria, however, no study has comprehensively presented the various alternative funding options with practical examples as applicable in the Nigerian oil and gas industry. This paper conducted a comprehensive review of various funding options available for projects in the hydrocarbon industry with mentions of successful project funding case studies from the Nigerian landscape. By examining case studies of successful funding initiatives by certain oil and gas companies in Nigeria, in-depth studies could be done to identify the key factors contributing to their success. This would serve as a roadmap for other companies, specifically indigenous marginal field operators.