By Patience Chat Moses
Representatives from Nigeria’s energy sector, during the 2023 African Energy Week (AEW), discussed the country’s energy investment landscape and best financial practices to tap the West African country’s oil and gas resources .
During the session on investing in Nigerian Energies, panelists noted that Nigeria is maximizing the development, exploitation and monetization of its 37 billion barrels of crude and 200 trillion cubic feet of natural gas resources to ensure energy security and socioeconomic development and that the country is filled with vast investment and partnership opportunities across the entire energy value chain.
AEW conference provided a platform for top industry executives to promote the energy investment prospects during the Invest in Nigeria Energies spotlight.
Sponsored by Platform Petroleum Limited, the session was moderated by the Head of West Africa Upstream Content, Mansur Mohammed and sub-Saharan Africa Oil and Gas, Wood Mackenzie.
Commenting on why Nigeria is an appealing energy investment destination, Managing Director Platform Petroleum Limited, Anim Osadebe said that “Nigeria has a lot of proven natural resources which remain untapped despite the country exploiting these resources for the past six decades. We have a growing population which makes the country a huge market to invest in.”
Osadebe added that Nigeria’s access to free markets such as Ghana, the Ivory Coast and other international markets guarantees investors heavy profits.
On best practices to maximize existing opportunities while creating new ones, Commercial Director, Century Group, Anthony Ellis, said there is a need to develop new infrastructure and modernize existing assets. He highlighted the importance of collaboration across the entire value chain adding that “capacity building needs to be prioritized by both the government and investors coming into the country.”
Also, the General Manager, Capacity Building Division at NCDMB, Ama Ikuru, noted that by boosting focus on local content development, Nigeria is unlocking avenues for best energy products and services and for new investments to flock in.
Giving his remarks, the Managing Director, Levene Energy Group, Bayo Adebiyi, said that for Nigeria to attract new investments, players need to invest in the development of the country’s entire resources including oil, gas and solar for energy mix diversification.
“That is why we are investing in gas, energy decarbonization and across the midstream sector to ensure energy is delivered to consumers and that investors secure a return on capital,” he said.
The General Manager of the Company, Yinka Adelodun further added that the midstream sector is necessary to get the upstream right and that investing in just the upstream will lead to counter productivity.
He said this while responding to a question on the importance of diversification in investments in the midstream and not just in the upstream sector.
Yinka noted that if a country is does not develop the midstream, getting the upstream will be difficult as it is the sector that is responsible for making sure products are in the market.
He added that Nigeria has a population of about 200 million people depending on it’s available Natural resources and that there is a need to see that demand is improved upon.
The panel also explored the impact of policies such as the Petroleum Industry Act (PIA) in creating investment opportunities.
A Senior Associate at Clifford Chance, Ope Osinubi, said the PIA is a step in the right direction, adding that the policy has “given clarity to aspiring investors and guaranteeing stability for existing players. Great start, but more needs to be done.”
The Chairman and Managing Director of Chevron Nigeria Limited, Richard Kennedy, noted that Nigeria has a lot of potential with deepwater resources yet to be exploited. “For oil and gas investments to grow and Nigeria to achieve market growth aspirations, deepwater discoveries will play a crucial role. There are a lot of discoveries, we just need the fiscal terms to be improved to unlock the potential,” he said.
Regarding additional changes which the Nigerian government needs to apply to the PIA to enhance the law’s effectiveness in driving energy investments, Adebiyi stated that the policy needs to be leveraged to create separate regulators for the downstream and midstream sector.
Organized by the African Energy Chamber, takes place this week in Cape Town under a mandate to make energy poverty history by 2030.