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Nigeria’s New Oil Frontiers To Attract $48.04bn In 7 Yrs – Baru

The group managing director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, yesterday expressed optimism that the country’s oil and gas industry will continue to attract huge investments.

According to him, under his management, the corporation created a platform for the sector to explore a vast range of investment opportunities.

He said that despite the numerous challenge currently facing the nation’s oil and gas industry, the sector has a huge prospects for investment.

He stated that there is a surge in capital coming into development of new projects in the African continent with Nigeria expected to receive $48.08billion or 24.8 per cent out of $194billion coming into the continent within 7 years period.

Delivering a keynote address at the ongoing 2019 Nigeria Oil and Gas Conference and Exhibition (NOG) in Abuja, Baru assured investors that Nigeria offers and would continue to offer portfolio of promising, high-value projects with healthy returns.

“The Nation’s energy outlook appears very positive even amidst the difficult operating and economic headwinds across the continent. It is also significant to state that out of about $194billion surge in the Capital Expenditure coming into upcoming oil and gas development on the African continent from 2018 to 2025, Nigeria today accounts for $48.04billion (over 24.8%) with other African countries sharing the rest,” he said.

Speaking on what the government has done to attract investment, he said, “We have created a platform in the Oil and Gas sector to explore a vast range of investment opportunities which span the value chain broadly including mergers and acquisition, pseudo equity type transactions, provision of drilling rigs and related services, heavy equipment leasing, seismic acquisition and processing, Reservoir Engineering and Field Development Studies as well as core Engineering Services.”

Expatiating on the areas of investment opportunities, he said, “We are looking at Investment in development and operation of gas processing facilities, pipeline design and construction, refineries rehabilitation, collocated refineries, introduction of condensate refineries, as well as Engineering Design and Associated Services.

“Similarly, in product transportation and storage, there are opportunities in pipe mills and fabrication yards, storage facilities, LPG bottling, storage and distribution facilities.

“For the end-use value chain, we envisage Investments in Power, Petrochemical and Fertilizer plants as well as investments in broad infrastructure.”

He added that the industry needs funding, hence there is need for more collaboration with the capital market.

Dr. Baru however listed some critical factor required to facilitate investment in what he called the new frontiers to include standardization, consolidation, improved engagement with government and investment in human capital development.

In her address, the Permanent Secretary, Ministry of Petroleum Resources, Dr. Folasade Yemi-Esan, noted that the theme of this year’ s conference, “Promoting Investment and Collaboration in Nigeria’s Oil and gas industry,” aptly describes Nigeria’ s current situation of transiting to the next level.

Yemi-Esan who was represented by the director, oil services, Engr. Kamoru Busari described the sector’s transition to involve attractiveness to international Investors and collaborating amongst Industry Stakeholders to spur Economic Development and Growth for the development of our Nation.

In his speech, the Norwegian ambassador to Nigeria, Ambassador Jens-Petter Kjemprud, emphasised the need for Nigeria to develop the sector in a way that it will benefit all the citizens of the country. According to him, Norway owns 1.15 per cent of all share investments in the global capital market.