BY FESTUS OKOROMADU
The Federal Government said it has gotten commitments from 15 leading international and independent oil and gas companies operating in the country to invest $13.5 billion in the sector within the next 12 months.
The mid-term plan will also ensure that the country’s crude oil production capacity rises to 2.1 million barrels per day (mbpd) by December 2024.
Nigeria’s crude oil production as at July 2023 was put at 1.25mbpd, a figure far less than the 1.8 mbpd OPEC’s approved quota for the country.
The new deal which was announced by the Special Adviser to the President on Energy, Mrs. Olu Verheijen at the weekend is said to have been carried out in collaboration with the Nigerian Upstream Petroleum Regulatory Commission, after a series of strategic engagements.
The participating companies include Chevron, Total, Shell, NAOC, Exxon Mobil, Seplat, Heirs Holdings, Waltersmith, First E&P, among others.
A statement by Mrs. Verheijen said the term objective of the relationship is for the participating firms to invest the total sum of $55.2 billion in the project by 2030.
According to her, the new deal was wrapped up after a series of strategic engagements held between the NUPRC and companies in Lagos and Abuja.
“A key objective of the discussions,” she said, “was to advance a Presidential Initiative aimed at addressing the nation’s revenue emergency whilst contributing to stabilizing Nigeria’s economy.”
She added that, “the results of these talks disclosed significant investment opportunities with an estimated $55.2 billion in investments projected by 2030, of which $13.5 billion is expected to be invested by these companies within twelve (12) months from now.”
Mrs. Verheijen stated that during the consultations, participating operators shared insights into the challenges and barriers affecting their investment strategies and the swift rollout of planned projects.
“Collectively, they also pinpointed key strategies that will ensure the delivery of 2.1 million barrels by December 2024, positioning Nigeria well ahead of President Tinubu’s campaign promise of the 2.6 million barrels by 2027.
“The proposed measures are also expected to cause a 100 percent increase in gas production by 2027, exceeding President Bola Tinubu’s campaign pledge of 20 percent growth in that sector,” she said.
According to her, President Tinubu remains committed to overcoming the challenges facing the oil and gas sector and to restoring the country to an enviable position of the top choice for energy sector investments in Africa.
Commenting on the importance of the new initiative, Mrs. Verheijen said, “We are faced with a revenue crisis which is impacting all Nigerians. To urgently address this, President Bola Tinubu is actively seeking ways to grow revenue and forex to stabilize our economy and currency; and the oil and gas sector remains critical to our ability to do so despite current production levels falling significantly short of our potential.”
She added, “These strategic, high-level engagements with oil and gas producers will help fast-track bold reforms that will unlock investments required to restore and grow Oil and Gas Production in the short, medium, and long term.
President Bola Tinubu is dedicated to enhancing the investment environment in Nigeria, positioning us as the preferred destination in Africa for the energy sector.
“With the conclusion of these consultations, it is anticipated that the USD 13.5 billion in short-term investment components, currently in the pipeline, will pave the way for the delivery of 2.1 million barrels per day production by December 2024, barring any unforeseen challenge.”
