The Federal Government has secured investment commitments worth $21 billion from two foreign investor groups seeking to expand their presence in Nigeria’s oil and gas industry.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this on Monday, November 9, at the opening of the 44th annual international conference of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.
According to the minister, one investor group is willing to mobilise $15 billion, while another has committed $6 billion towards investments in the country's petroleum sector.
Start tomorrow informed
Save your place for the morning brief. We’ll start emailing when delivery goes live.
Free. Confirm by email. Unsubscribe anytime.
Lokpobiri said the commitments followed engagements with investors at the recently concluded Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), where Nigeria attracted interest as an alternative investment destination amid geopolitical tensions in the Gulf region.
He explained that concerns over possible disruptions around the Strait of Hormuz had encouraged some investors to consider diversifying their operations into other regions, including Nigeria.
The minister said the government was connecting the foreign investor groups with Nigerian oil and gas companies to facilitate discussions and negotiate commercial terms.
He clarified that the agreements were non-binding memoranda of understanding and that his role was to bring the parties together rather than participate in their commercial negotiations.
Lokpobiri said the investment drive was particularly important as access to financing for oil and gas projects in Africa remained challenging, with some Western financial institutions restricting funding to the sector.
He also highlighted the establishment of the African Energy Bank as part of efforts to address the industry's financing challenges.
According to him, the bank, established through the collaboration of the African Export-Import Bank (Afreximbank) and the African Petroleum Producers' Organisation (APPO), is expected to commence operations in Abuja on January 4, 2027.
Nigeria's oil production rises
The minister also reported improvements in Nigeria's oil production since the administration of President Bola Tinubu took office in 2023.
He said production had increased from approximately one million barrels per day, including condensates, in August 2023 to more than 1.8 million barrels per day.
He attributed the improvement to increased industry activity, noting that the number of active drilling rigs had risen from about 10 to more than 60.
However, Lokpobiri acknowledged that Nigeria had yet to reach its desired production levels and called for more investment in exploration to increase the country's reserves.
He described Nigeria's estimated 37 billion barrels of oil reserves and 215 trillion cubic feet of natural gas deposits as resources that would have limited economic value without sufficient investment to develop and bring them to market.
He also identified the Anambra Basin, Benue Trough and Dahomey Basin as areas requiring increased exploration activities beyond the Niger Delta.
The minister said Nigeria could potentially add another 18 billion barrels to its reserves through deepwater exploration, although the additional resources were yet to be certified.
Minister warns of skills shortage
Lokpobiri also warned that Nigeria's petroleum industry could face a shortage of skilled professionals if efforts were not made to train a new generation of geoscientists and petroleum engineers.
He recalled the closure of an incubation centre in Warri, Delta State, which previously provided practical training for young graduates entering the industry.
He expressed support for NAPE's proposed academy, urging industry operators to support the initiative and strengthen practical training in universities.
The minister said investment in human capital was essential to sustaining the industry's growth and ensuring that Nigerians could benefit from new opportunities created by increased exploration and production.
The conference, themed Unlocking More Barrels, Driving Reserve Growth through Exploration, Local Capabilities and Adaptive Technologies, brought together industry stakeholders to discuss ways of strengthening Nigeria's petroleum sector.
Discussion0