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IOCs to invest $20 billion in Nigeria –FG

The Minister of State for Petroleum Resources (Petroleum), Heineken Lokpobiri, announced on Monday that about $16.6 billion in investments had been committed to Nigeria’s oil and gas sector in the past year.

He spoke in Abuja while giving updates on achievements in the petroleum sector since President Bola Tinubu assumed office on May 29, 2023.

Furthermore, during an earlier meeting with Schlumberger Limited CEO Olivier Le Peuch, Lokpobiri revealed that the Federal Government would soon seal a $20 billion deal to boost oil and gas production in Nigeria.

Speaking about what was being done to attract investment, the minister said: “One of our main objectives has been to create an environment where investments can thrive. For more than a decade, the non-passage of the Petroleum Industry Law and inconsistent policies had kept away investments.

“Today I am pleased to announce that our efforts have rekindled investor confidence in the sector. Notable examples include committed investments to the tune of $5 billion and $10 billion in deepwater marine assets; and an investment commitment of $1.6 billion in the acquisition of oil and gas assets.

“Very high global interest is seen in the current bidding round for online assets, arising from recent roadshow activities in the United States and Europe.”

Lokpobiri also noted that Nigeria has witnessed an increase in crude oil production since Tinubu took office.

“Our main achievement is the significant increase in production. When we took over, production was 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 (including condensate). This increase is a testament to our tireless efforts to streamline operations and resolve conflicts between stakeholders,” the Petroleum Minister said.

Regarding measures taken to increase crude oil production, Lokpobiri stated that efforts were made to upgrade redundant oil assets to active status.

He said there were ongoing engagements with international oil companies and members of the Independent Petroleum Producers Group to resolve industry disputes towards increasing production.

Lokpobiri added: “Internal joint venture contract resolutions dispute between joint venture partners in critical production fields. Engage local communities with critical assets passing through them to protect them, all in an attempt to decrease oil theft across the country.

“Consolidate the existing security framework with private security companies and government security agencies for pipeline surveillance, which led to a sharp decrease in crude oil theft and therefore an increase in production for the export”.

The minister further noted that during this period, “we also experienced the coming online of OML 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 this administration’s commitment to optimizing production from the nation’s oil and gas assets.” “.

The PUNCH earlier reported that in commemoration of his first anniversary in office, Tinubu had directed his ministers to present their performance reports to Nigerians.

The Minister of Information and National Guidance, Mohammed Idris, while announcing this at a press conference in Abuja on Wednesday, stated that the low-key first anniversary celebration would be marked by sectoral press conferences by the 47 federal ministers starting on Thursday. .

Investments of 20 billion dollars

Earlier, while hosting a delegation from Schlumberger Limited, Lokpobiri said the Federal Government was set to seal a deal worth $20 billion with investors to boost oil and gas production in Nigeria.

“We are talking to many of the large investors who have always invested heavily in the country. And I’m not going to tell you the details now, because it’s something I want to announce when the deal is finally consummated. Investments of more than $20 billion are coming. A single company will invest 10 billion dollars.

‘In the last 12 years no investment has been made. And that’s why we see our production decrease. However, we are committed to reversing that trend. And you can’t reverse that trend without significant investment in drilling,” he stated.

The minister said the partnership with Schlumberger is important as the company has had an impact on the Nigerian oil and gas industry for the past 71 years.

For his part, the Schlumberger CEO expressed optimism that the company would work with Nigeria to boost oil and gas investments across the country.

“We are ready to work with you as partners. “We are willing to understand and contribute to the change you are willing to implement to facilitate investments and facilitate a new era for the industry in Nigeria,” he stated.

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