The Minister of State for Petroleum Resources, Heineken Lokpobiri, has stated that the federal government is expecting a substantial investment of $10 billion from an international oil company in deep offshore projects “in the next few weeks.”
During a sectorial ministerial update briefing in Abuja on Thursday, Lokpobiri said that the government is creating a supportive environment for major entities in the oil and gas industry.
He mentioned that the investment will soon be announced by the oil firm, adding that the agreement has been reached between the two parties.
In response to TotalEnergies’ recent decision to invest in Angola over Nigeria, the minister announced that commitments totalling about $15 billion from various international oil companies (IOCs) are expected to be disclosed in the upcoming months.
“We’ve done what a government is expected to do to attract investment. Somebody was telling that TotalEnergies announced $6 billion of proposed investment in Angola. I am happy to announce to you that we have a company that in the next few weeks will announce a $10 billion investment in deep offshore.
“These were companies that left Nigeria because they believe that there were inconsistent policies, the atmosphere wasn’t favorable. These companies are all coming back.
“There is also another company that will invest about $5 billion. These are not stories. But I don’t want to preempt the announcement.
“Let it be that they are the ones that will announce it so that Nigerians will know that Angola cannot compete will Nigeria,” Lokpobiri said.
$20 billion Target for 2024
Additionally, the minister stated that the federal government aims to secure a minimum of $20 billion in 2024.
He emphasized that the most straightforward path for revenue generation lies in the oil and gas sector, and the government is doing everything possible to foster an environment conducive to investments by International Oil Companies (IOCs).
He noted that the government has enacted executive orders to maintain stability in the sector and encourage international investment.
“Our target in 2024, having worked very hard to create an enabling environment, is that we have a minimum of $20 billion in investment this year.
“The only way you can sustain increase in production and generate money that government needs to finance our economy problems is the oil and gas sector. The quickest way to our economy prosperity is the oil and gas sector.
“Every country that has oil prioritize investment in oil. Nigeria cannot be an exception. What we are doing is to see how we can create that investing opportunities for companies to come and invest in Nigeria,” the minister added.
What you should know
Despite being a leading oil-producing nation, Nigeria struggles with investment in the oil and gas sector as most IOCs in the country are plagued with oil theft incidents resulting in vandalism, kidnapping and bursts of oil pipelines.
- In recent times, foreign companies like TotalEnergies and Shell have decided to exit the county’s onshore, citing unfavourable business environment.
- Added to this is the recent pronouncement by the CEO of TotalEnergies, Patrick Pouyanne, that policy inconsistencies propelled the company to choose Angola over Nigeria as an investment destination for a $6 billion energy project.
- With the passage of the Petroleum Industry Act (PIA) and other executive orders enacted by the President, the federal government said it is eyeing the return of IOCs in Africa’s leading oil producer.
