Bala Wunti, the Chief Upstream Investment Officer at the NNPC Upstream Investment Management Services (NUIMS) has said that the Bonga, Agbami and other projects are enough evidence to show that Nigeria’s oil and gas industry is ready for Foreign Direct Investments (FDIs).
He said this during a panel session on investments at the just concluded Nigerian Oil and Gas Energy Week which was held in Nigeria’s Federal Capital Territory, Abuja.
According to him, there is an optimistic outlook for Nigeria’s energy sector, particularly in the realm of foreign direct investment.
Wunti mentioned the Ubetta and Prowei projects (owned by Total Energies), the Bonga-North project (owned by SNEPCO), the Agbami gas project (owned by Stardeep), and the Owowo project (owned by Esso Exploration) as indicators of the country’s viability for foreign investments.
According to Wunti, these projects are worth over $18 billion, and they symbolize substantial opportunities for FDIs in the sector.
He stated further that in the next year, between $18 billion and $20 billion in additional foreign direct investments may be injected into Nigeria’s oil and gas sector.
How to capture more investments
Wunti suggested that for Nigeria to effectively capture this projected capital, the country must swiftly align with global discourses on hydrocarbon management and emissions reduction and address issues emanating from the Petroleum Industry Act (PIA).
He highlighted the Host Community Fund, Flare Management and Penalty, as well as the Decommissioning and Abandonment Framework as areas that need focus.
He also advocated for the development of local contracting capacity through a balance of local and international contractors and collective action in project execution.
According to Wunti, co-creation and collaboration are critical to developing clear, stable, secure, and competitive project prospects that will continue to attract robust investment into Nigeria’s oil and gas sector.
Meanwhile, Roger Brown, the Chief Executive Officer at Seplat Energy, who sat on the same panel with Wunti said Nigeria needs to attract funding to develop the country’s upstream oil sector.
He also added that for those investments to come in, the country should establish the following:
- Regulatory reforms
- Fiscal terms restructuring
- Security of the country’s pipeline infrastructure
- Enforcing clarity and separation of powers among regulatory authorities
- Resolution of host community issues
- Improving efficiency and capacity of the Nigerian electricity value chain
What gas companies need to attract investments
As Nigeria looks to expand its gas market, there is a need for more gas investments.
While addressing this during the panel session, Roger Brown, said investors who want to support Nigerian companies for natural gas development, are looking for financially strong companies with a robust balance sheet, low debt, and credible access to international capital markets; stock market listing, and associated need for governance.
He also said that investors prefer dual-listed companies; international accountability and transparency in reporting, particularly as it relates to ESG reporting, with good commitment to sustainability; and good relationships with the government, regulators, and local communities.
