There are more than $48 billion worth of investment opportunities in Nigeria’s oil and gas sector, according to the Nigerian National petroleum Commission, NNPC. And it wants foreign investors to take advantage of those opportunities.
Speaking during the 2019 International Petroleum Week in London, the NNPC’s Group Managing Director, Mr Maikanti Baru, lamented that the many exploration opportunities in Nigeria are currently being undertapped.
The country’s offshore oil and gas discoveries are being explored at a limit of between 1000-1500 metres of debth, he said. In other words, the ability to dig deeper underwater would reveal much more crude and gas that could be tapped.
Meanwhile, Mr Baru disclossed that the NNPC’s Frontier Exploration Service, which is drillling the Komani River 2 Well at the moment, is expected to find as much as 400Bcf of gas.
But beyond that, there is need to test the ultra-deep water depth. And this is why foreign investors are needed to come in and play, the GMD said.
“Beyond these water depths, the new frontiers of the ultra deep waters need to be tested. And that is where we need the investors.”
Adressing the problems
According to Mr Baru, solving the problems plaguing the Nigerian oil and gas industry are necessary prerequisites towards ensuring that it achieves its full potnetials.
Some of these problems range from regulatory uncertainties, to infrastructural deficits, shortage of skilled manpower, absensce of transparency and accountability, etc.
However, Mr Baru stated that the oil and gas industry’s outlook was looking positive despite these challenges.
He said there has been a considerable increase in the capital expenditure (CAPEX) of Africa’s oil and gas sector, even as $194 billion has been earnmarked to be spent on 93 new oil and gas fields on the continent between 2018 and 2025.
“Out of this $194 billion, Nigeria accounts for $48.04 billion (over 24.8%) of the total CAPEX coming into upcoming projects in Africa over 2018 to 2025, with over 20 planned projects.”