The Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri has revealed that about $16.6 billion investments had been committed to Nigeria’s oil and gas sector in the past one year.
Lokpobiri who made this known in Abuja while providing updates on achievements in the oil sector since President Bola Tinubu assumed office on May 29, 2023, said the investment was achieved because the current administration created an enabling environment.
This is as the minister also revealed that over $20 billion investment was coming to the Nigerian petroleum industry. He said this while addressing the Schlumberger Global chief executive officer (CEO), Olivier Le Peuch, who led a delegation of the company to the ministry in Abuja, on Thursday.
At the ministerial briefing, Lokpobiri said that 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.
“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 pointed out 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.
On steps taken to increase crude oil production, Lokpobiri stated that efforts were made towards revamping redundant oil assets to active status.
He said there were continuous engagements with international oil companies and Independent Petroleum Producers Group members in resolving industrial disputes towards increasing 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.”
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 licences.”
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.”
Meanwhile, while receiving the Schlumberger CEO and his delegation, Lokpobiri said that over $20 billion is coming from different investors, whom he has decided to keep secret until it is time to consummate the project agreements.
His words: “We are also talking to a lot of big investors, who are going to invest big in the country. We are not going to announce until when the deal is finally consummated: Investment of over $20 billion. One company alone will invest $10 billion. The other one will invest $5 billion and like that.”
He noted that one of the companies said there are over 100 wells that it would develop.
“Yesterday, I was talking to a company and the company said they have a 100 well they want to do.”
He informed the delegation that investors that had taken their leave from the country were gradually returning.
The minister noted that production has been declining because there has been no investment in the country in the last five years.
He however said that the present administration is reversing that trend but the reversal is impossible without drilling.
This, he said, is mostly why the government is in need of the partnership of Shrumberger.
Lokpobiri assured the Global CEO, who had said the firm has an over 71 years relationship with Nigeria, that the ministry wanted to sustain the partnership.
He said the country has the mandate to create the best competitive business environment.
He called on other international oil companies to return that there is a new government that is ready to do things differently.
He assured the global community that the present government is determined to create the best environment for investments to return for the benefit of Nigerians and the partners.
Lokpobiri said Nigeria has been in its downtime in the last 12 years but now reversing the trend and there will be consistency of policy in order to get the most needed investment.
He said since his assumption of office, “we have sent messages to the world to say gone are those days when you wake up one morning you have a new policy. You wake up tomorrow, you have a new policy. Next year, have a new policy and investors won’t be able to apply because every investor wants confidence that there will be stability. So Nigeria is committed to bringing that stability that investors need.”
He assured the delegation that Nigeria remains their best partner in the oil and gas industry in Africa despite the emergence of new oil producing countries that are still learning the ropes.
According to him, having worked with Nigeria for over 70 years, it is easy for the firm to predict its policies unlike the new countries.
He said “You can predict what will happen in Nigeria. Some of these new jurisdictions you can’t predict. They are also new. They haven’t done what we have done in 70 years. Always know that you can predict the worst Nigeria can do.”
Speaking, Olivier Le Peuch, said he was flattered by the vote of confidence and trust of the minister in their partnership.
We have been here for over 70 years and we have the opportunity to renew our home.
We are here to assist. We are here to partner. We are here for these investment circles that we can unlock and we will not be tired of putting our own investment. We will be committing to your capacity, with local content, with Nigerian nationals to respond to the opportunity that we start to get in the way of the industry. And we will leverage on the strategic partnership to help accelerate the contributions of NNPC to your vision. So that not only do we serve the international company but also NNPC.
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