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HomeTop NewsNigerian oil sector attracts $16.6 bln investment under Tinubu administration

Nigerian oil sector attracts $16.6 bln investment under Tinubu administration

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The Nigerian oil and gas sector is experiencing a significant resurgence in investor confidence, according to Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri.

Lokpobiri on Thursday announced a staggering $16.6 billion in investment commitments secured over the past year.

This positive development comes amidst efforts by President Bola Tinubu administration to revitalize the oil industry.

“One of our main objectives has been to create an environment where investments can thrive,” Lokpobiri explained. He attributed past decline in investment to a decade of policy inconsistency and the long-delayed Petroleum Industry Act.

The passage of the Petroleum Industry Act, coupled with the new administration’s focus on fostering a stable investment climate, appears to be paying off. Lokpobiri highlighted specific examples, including a $5 billion commitment to deepwater offshore assets, a $10 billion commitment to similar assets, and a $1.6 billion investment in oil and gas asset acquisition.

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“The very high global interest is noted in the ongoing bid round of assets coming online,” Lokpobiri added, pointing to recent roadshows in the United States and Europe that generated significant investor enthusiasm.

Beyond attracting investment, the Tinubu administration has also overseen a notable increase in crude oil production. “Our foremost achievement is the significant increase in production,” Lokpobiri declared.

He reported a rise from 1.1 million barrels per day (including condensates) to approximately 1.7 million barrels per day under the new leadership. This achievement is attributed to streamlined operations, conflict resolution among stakeholders, and a focus on revitalizing dormant oil assets.

Lokpobiri elaborated on the strategies employed to boost production. These include:

  • Engaging with international oil companies and independent producers to resolve industry disputes.
  • Negotiating internal joint venture contract disputes.
  • Collaborating with local communities to protect pipelines and reduce oil theft.
  • Consolidating security measures through collaboration between private security firms and government agencies.

Additionally, Lokpobiri noted the recent onboarding of OMLs 13 (Sterling Exploration) and 85 (First E&P), both expected to contribute an average of 20,000 and 40,000 barrels per day respectively. These developments underscore the administration’s commitment to optimizing production from Nigeria’s oil and gas resources.

Lokpobiri’s address comes as part of a broader initiative by the Tinubu administration to showcase its performance across various sectors. Ministers from all departments are presenting reports to the public, highlighting their achievements over the past year.

The resurgence of investor confidence and the increase in oil production mark positive signs for the Nigerian oil and gas sector.

The Tinubu administration’s focus on creating a stable and attractive investment environment, coupled with its efforts to streamline operations and resolve industry disputes, appears to be laying the groundwork for a more prosperous future for this critical sector of the Nigerian economy.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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