Strategic Advisory – Nigeria

In Nigeria our client needed to understand why the government was in public, and in private meetings, committed to the rapid development of a USD20 billion partnership to build a new LNG plant, but appeared unable to expedite the process towards a Final Investment Decision. We were able to help explain why the government would not actually support the project, despite indications to the contrary.

 

We were able to speak to industry players, government officials and militant groups to help the client better to understand the realities of the situation on the ground: that in theory the government was committed to the project and could not back out, but that rival oil companies were reluctant to see it proceed and were lobbying accordingly – while militant and community groups were determined to prevent the movement of gas to the proposed site location.

 

As a result, we were able to explain how the government’s actual position differed from its stated position, and that while the project would not formally be cancelled, nor would it go ahead. This analysis helped form a key part of a company and management-defining decision over how to handle and walk back from the project.