The Niger Delta's political violence, coupled with unresolved issues of joint venture funding and sector reform, are just some of the problems that confront international oil companies (IOCs) that are trying to develop upstream projects. But such is the potential of Nigerian exploration and production (E&P) that key industry players remain committed to the long term. Indeed, during a period of global retrenchment, several of the world's most prominent major companies are bringing new fields on-stream – despite delays that have dogged several much-anticipated projects; rising engineering, equipment and other costs; and unresolved issues about the funding of Nigeria's biggest producers, the joint ventures between Nigerian National Petroleum Corporation (NNPC) and major partners Chevron, Eni, ExxonMobil, Royal Dutch Shell and Total.
Total is typical of the major players that are committed to maintaining their global upstream investment programmes, despite the economic downturn. According to chief executive Christophe de Margerie, cutting investments "would not be only a mistake but also a serious error".
