LAGOS, Nigeria (VOICE OF NAIJA)-The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, announced on Monday that approximately $16.6 billion had been invested in Nigeria’s oil and gas sector over the past year.
This announcement was made in Abuja while providing updates on the achievements in the oil sector since President Bola Tinubu assumed office on May 29, 2023.
During an earlier meeting with Olivier Le Peuch, the Chief Executive Officer of Schlumberger Limited, Lokpobiri revealed that the Federal Government would soon finalise a $20 billion deal to boost oil and gas production in Nigeria.
Speaking on efforts to attract investments, the minister said, “One of our main objective has been to create an environment where investments can thrive. For over a decade, the non-passage of the Petroleum Industry Act and inconsistent policies had driven investments away.
“Today, I am pleased to announce that our efforts have rekindled investor confidence in the sector. Notable examples include investments committed to the tune of $5bn and $10bn in deepwater offshore assets; and $1.6bn investment commitment in oil and gas asset acquisition.
READ ALSO: NNPC, Schlumberger Partners To Boost Nigeria’s Oil And Gas Sector
The very high global interest is noted in the ongoing bid round of assets coming online, arising from the recent roadshow activities in the United States and Europe.”
Lokpobiri also noted that Nigeria witnessed increased crude oil production since Tinubu assumed office.
“Our foremost achievement is the significant increase in production. When we took office, production was at approximately 1.1 million barrels per day, including condensates.
“Today, I am proud to report that we have increased our production to approximately 1.7 million barrels per day (inclusive of condensate). This increase is a testament to our relentless efforts to streamline operations and resolve conflict among stakeholders,” the oil minister stated.
Regarding steps taken to increase crude oil production, Lokpobiri mentioned efforts to reactivate redundant oil assets.
He added that there have been ongoing engagements with international oil companies and members of the Independent Petroleum Producers Group to resolve industry disputes and boost production.
Lokpobiri added, “Resolutions of internal joint venture contracts feud between joint venture partners on critical production fields. Engaging local communities with critical assets running through them to protect the assets, all in a bid to decrease oil theft across the country.
“Consolidating existing security framework with private security firms and government security agencies for pipeline surveillance, which led to a sharp decline in crude oil theft and thus increased production for export.”
READ ALSO: Nasarawa Oil Discovery A Boost For Economy- GMD NNPCL
The minister further noted that during this period, “we also experienced the coming on stream of OMLs 13 (Sterling Exploration) and 85 (First E&P), with the respective assets reaching first oil in the development of their licenses.”
Lokpobiri explained that these “assets are expected to produce an average of 20,000 and 40,000 barrels per day respectively,” adding that “this achievement is another testament to the commitment of this administration to optimise production from the nation’s oil and gas assets.”
The Minister of Information and National Orientation, Mohammed Idris, announced during a press briefing in Abuja on Wednesday that the first-anniversary celebration would be a low-key affair, marked by sectoral media briefings by the 47 federal ministers starting on Thursday.
Regarding the $20 billion investments, earlier, while hosting a delegation from Schlumberger Limited, Lokpobiri stated that the Federal Government was poised to finalize a $20 billion deal with investors to enhance oil and gas production in Nigeria.
“We are talking to a lot of the big investors who have always invested big in the country. And I’m not going to tell you the details now, because it is something I want to announce when the deal is finally consummated. Investments of over $20bn are coming. One company alone will invest $10bn.
‘In the last 12 years, no investment took place. And that is why you see our production going down. However, we are committed to reversing that trend. And you can’t reverse that trend without significant investment in drilling,” he stated.
The minister emphasised the importance of the partnership with Schlumberger, noting the firm’s significant impact on Nigeria’s oil and gas industry over the past 71 years.
READ ALSO: NNPCL, E&P Ltd Begin Oil Production At OML 13, Akwa Ibom
Similarly, the CEO of Schlumberger expressed optimism about collaborating with Nigeria to enhance oil and gas investments nationwide.
“We are ready to work with you as partners. We are ready to understand and contribute to the change that you are willing to put in place to facilitate investments, and facilitate a newborn era for the industry in Nigeria,” he stated.