·FG has provided policies, incentives -- Special Adviser
The Federal Government, yesterday, wooed foreign investors to increase the nation's oil and gas output and reserves.
According to the Organisation of Petroleum Exporting Countries, OPEC, Nigeria currently produces about 1.3 million bpd, excluding condensate and is also blessed with over 209 trillion standard cubic feet of gas reserves.
However, speaking at the ongoing African Energy Week, AEW, in Cape Town, South Africa, the Minister of State (Oil), Senator Heineken Lokpobiri, said the nation's oil output and reserves would only grow based on increased investment.
He said: "Nigeria has huge resources. We have more than 37 billion barrels of oil reserves and 209 trillion standard cubic feet of gas reserves. We can produce 2.5 million bpd without much effort. We are attracting local and foreign investors now more than before. The investments started coming in after putting in place the nation's Petroleum Industry Act, PIA, a comprehensive legislation targeted at creating a better environment for investors.
"Also, it should be noted that the President Bola Tinubu's administration has gone further to end the long era of petrol subsidy. For several years, Nigeria did not use much of its oil earnings for development because much of its funds were used to subsidise imported Premium Motor Spirit, PMS, also known as petrol. We are happy that the long era of subsidy is gone.
"We are pleased with the coming on stream of the 650,000 bpd Dangote Refinery. We also have other refineries, which are capable of enabling Nigeria to refine over one million bpd. With this level of refining, Nigeria should be able to supply refined petroleum products to West African nations as well as other parts of Africa.
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"However, funding would continue to be very key. This partly explains why we support the establishment of the $5 billion African Energy bank, AEB, which would commence operations in Abuja, Nigeria in February 2025. The bank would enhance the funding of projects. Permit me to explain that the International Oil Companies, IoCs are not leaving Nigeria. They are only leaving onshore and shallow waters to the deep offshore because they believe that indigenous companies have capacity to manage and operate such assets."
FG has provided policies, incentives -- Special Adviser
Similarly, Olu Arowolo Verheijen, Special Adviser on Energy to the President, said the President Bola Tinubu-led administration has provided good policies and incentives to attract and retain investors.
She said: "We have clarified the regulatory roles to create an enabling environment for investments, introduced reforms targeted at reducing high operational costs and project execution timelines, and introduced a clear set of fiscal incentives for Non-Associated Gas and Deep offshore Oil & Gas gas exploration and production. This is the first time that Nigeria is outlining a fiscal framework for deepwater gas since basin exploration commenced in 1991.
"Nigeria's Petroleum Industry Act took twenty years to be passed into law and given Presidential assent, in 2021. We are now building on that foundation with an unprecedented sense of urgency, to completely rewrite the narrative of oil and gas investment in Nigeria. We are already seeing the fruit of our work. Regulatory approvals are being expedited; major upstream investment decisions are being finalized.
