By Peter Jene
In a landmark announcement, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, revealed that Nigeria’s oil and gas sector has attracted an astounding $16.6 billion in investments over the past year. This remarkable surge in investment comes under the administration of President Bola Tinubu, who assumed office on May 29, 2023.
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Lokpobiri, speaking at a press briefing in Abuja, outlined the significant milestones achieved in the sector, crediting these successes to strategic policy shifts and relentless efforts to create a conducive environment for investors.
Rekindling Investor Confidence
The minister highlighted that one of the administration’s primary objectives was to foster an investment-friendly climate, which had been severely undermined by the long-standing non-passage of the Petroleum Industry Act and inconsistent policies.
“Today, I am pleased to announce that our efforts have rekindled investor confidence in the sector,” Lokpobiri stated. “Notable examples include investments committed to the tune of $5 billion and $10 billion in deepwater offshore assets, and a $1.6 billion investment commitment in oil and gas asset acquisition.”
This resurgence in investor interest is further evidenced by the high global participation in the ongoing bid round of assets, a direct result of recent roadshow activities in the United States and Europe.
Boosting Crude Oil Production
A standout achievement of the Tinubu administration is the notable increase in crude oil production. When President Tinubu took office, Nigeria’s production stood at approximately 1.1 million barrels per day, including condensates.
“Today, I am proud to report that we have increased our production to approximately 1.7 million barrels per day (inclusive of condensate),” Lokpobiri announced. This substantial increase underscores the administration’s relentless efforts to streamline operations and resolve conflicts among stakeholders.
Strategic Initiatives Driving Growth
Lokpobiri detailed several strategic initiatives implemented to achieve these impressive results. Key among them was the revamping of redundant oil assets to active status and continuous engagement with international oil companies and Independent Petroleum Producers Group members to resolve industry disputes and boost production.
“Resolutions of internal joint venture contracts feud between joint venture partners on critical production fields, engaging local communities with critical assets running through them to protect the assets, all in a bid to decrease oil theft across the country,” the minister elaborated.
In addition, the administration consolidated existing security frameworks with private security firms and government security agencies for pipeline surveillance. This collaboration led to a sharp decline in crude oil theft, significantly increasing production for export.
New Oil Fields Come Online
During this transformative period, Nigeria also witnessed the coming on stream of OMLs 13 (Sterling Exploration) and 85 (First E&P), with these assets expected to produce an average of 20,000 and 40,000 barrels per day, respectively.
“These achievements are another testament to the commitment of this administration to optimize production from the nation’s oil and gas assets,” Lokpobiri noted.
Performance Reports from Ministers
As part of the commemoration of his first anniversary in office, President Tinubu has directed his ministers to present their performance reports to Nigerians. The Minister of Information and National Orientation, Mohammed Idris, announced at a press briefing in Abuja that the low-key first-anniversary celebration would feature sectoral media briefings by the 47 federal ministers starting Thursday.
This directive underscores President Tinubu’s commitment to transparency and accountability in governance. Each minister will outline the progress made in their respective sectors, providing Nigerians with a comprehensive overview of the administration’s achievements and future plans.
Creating an Investor-Friendly Environment
Underpinning these successes is the administration’s unwavering focus on creating a stable and attractive environment for investors. Lokpobiri highlighted the significant policy reforms and strategic engagements that have been pivotal in drawing substantial investments into the sector.
“One of our main objectives has been to create an environment where investments can thrive,” Lokpobiri reiterated. The minister attributed the turnaround in investment fortunes to the decisive actions taken to pass the Petroleum Industry Act and the consistent policies that have been implemented since.
Addressing Security Challenges
A major challenge in Nigeria’s oil sector has been security, particularly the rampant issue of oil theft. Lokpobiri pointed out that the administration has made significant strides in addressing these security challenges through collaborative efforts with both private and government security agencies.
“Engaging local communities with critical assets running through them to protect the assets has been crucial in decreasing oil theft across the country,” Lokpobiri explained. This approach has not only protected vital infrastructure but also fostered a sense of ownership and responsibility among local communities.
Future Prospects
Looking ahead, the administration remains focused on sustaining and building upon these achievements. The increased production levels and substantial investment inflows are expected to drive further growth and stability in Nigeria’s oil sector.
Lokpobiri emphasized that the administration’s commitment to optimizing production from the nation’s oil and gas assets is unwavering. “We are committed to ensuring that Nigeria remains an attractive destination for oil and gas investments,” he affirmed.
Conclusion
The significant achievements in Nigeria’s oil sector over the past year underscore the effectiveness of the strategic policy shifts and reforms implemented by the Tinubu administration. The $16.6 billion investment inflow and the substantial increase in crude oil production are testament to the administration’s commitment to revitalizing the sector and positioning Nigeria as a key player in the global oil market.
As Nigeria continues to attract significant investments and boost production, the future looks promising for the country’s oil and gas sector. The Tinubu administration’s focus on transparency, accountability, and strategic engagement with stakeholders will undoubtedly continue to drive growth and stability in the sector, paving the way for sustained economic development.
Peter Jene, Atlantic Post Senior National Correspondent
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