Nigeria's state oil firm wants investors to take part in the development of the nation’s oil sector

Nigeria's state oil firm, the Nigerian National Petroleum Corporation (NNPC) said it has outlined plans to attract private investments, ensure sustainable development and spur growth in the nation’s oil and gas industry.

Dr Maikanti Baru, Group Managing Director of the corporation, stated this while speaking on the theme, “Investment in the Oil and Gas Industry” at the sideline of the 7th International Seminar of the Organisation of the Petroleum Exporting Countries (OPEC) in Vienna, Austria on Thursday, June 21, 2018.

The Nigerian government said it has observed that investment in the oil industry had become imperative in the wake of recent turbulence experienced in oil price cycle, the supply-driven glut in the oil market, world economic growth, uncertainties regarding oil’s future, as well as the fiscal imbalance experienced by OPEC member nations.

In a statement released by Ndu Ughamadu, Group General Manager, Group Public Affairs Division, NNPC, Abuja, Baru said the global oil challenges have also created new wave of opportunities for the corporation because oil is expected to remain the dominant fuel in the energy mix, contributing between 52-53% of the global energy requirement over the next 15 years.

He said NNPC recognised the challenge as well as the opportunity presented by oil demand growth, particularly as an exporter experiencing a surge in local demand.

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He listed some of the measures taken to attract investments by as the state-owned oil firm as:

- Settling all outstanding cash call arrears amounting to $5billion dollars, a development that has restored confidence in the Nigerian oil and gas industry

- The execution of $1bn contractor financing deal with Schlumberger for the development of oil fields in the Niger Delta

- Investment in infrastructure; the tripling of domestic gas supply from 500mmscf/d in 2010 to about 1500mmscf/d currently, as well as completion and commissioning of 600km of new gas pipelines.

“The recently sanctioned $2.8 billion, (AKK) pipeline project is a demonstration of commitment to investing in local gas development," Baru stated.

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Dr Baru said NNPC’s goal to become a net exporter of refined products by the year 2019 was on course as there are ongoing discussions to revamp all the four (4) existing local refineries through utilising private capital in form of a contractor financing model.

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The OPEC and Non-OPEC members are currently meeting in Vienna, Austria, to decide either to increase oil supply or to continue with the production cut agreement reached in 2016.

The Organisation of Petroleum Exporting Countries (OPEC) had in December 2017 capped the output of Nigeria after been exempted from the cuts for month owing to incessant attacks on oil installations in the Niger Delta region.

Nigeria's state oil firm wants investors to take part in the development of the nation’s oil sector

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