In a significant announcement on Monday, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, revealed that Nigeria has attracted $16.6bn in investments to its oil and gas sector over the past year. This marks a notable resurgence in the industry, bolstered by the administration of President Bola Tinubu since he assumed office on May 29, 2023.
Speaking in Abuja, Lokpobiri detailed the progress made, stating, “One of our main objectives has been to create an environment where investments can thrive. For over a decade, the non-passage of the Petroleum Industry Act and inconsistent policies had driven investments away. Today, I am pleased to announce that our efforts have rekindled investor confidence in the sector.”
Highlighting key investments, he noted commitments of $5bn and $10bn in deepwater offshore assets and $1.6bn in oil and gas asset acquisition. He attributed the surge in global interest to recent promotional roadshows in the United States and Europe.
The minister also underscored a significant increase in crude oil production, rising from approximately 1.1 million barrels per day, including condensates, to about 1.7 million barrels per day. “This increase is a testament to our relentless efforts to streamline operations and resolve conflict among stakeholders,” Lokpobiri stated.
To boost production further, Lokpobiri described efforts to reactivate redundant oil assets and engage in continuous dialogue with international oil companies and local producers. He highlighted the resolution of disputes among joint venture partners and increased collaboration with local communities and security agencies to protect critical infrastructure and reduce oil theft.
Additionally, the minister celebrated the recent operational milestones of OMLs 13 (Sterling Exploration) and 85 (First E&P), each expected to contribute significantly to Nigeria’s daily output. “These achievements demonstrate our commitment to optimising production from the nation’s oil and gas assets,” he said.
During an earlier meeting with Olivier Le Peuch, CEO of Schlumberger Limited, Lokpobiri revealed that the Federal Government is on the brink of finalising a $20bn investment deal to further boost oil and gas production. “We are talking to a lot of the big investors who have always invested heavily in the country. Investments of over $20bn are coming, with one company alone set to invest $10bn,” he disclosed.
The minister’s announcement came as part of a broader directive from President Tinubu for ministers to present their performance reports to mark the administration’s first anniversary. The Minister of Information and National Orientation, Mohammed Idris, confirmed this during a press briefing in Abuja, highlighting the low-key celebrations and sectoral media briefings scheduled for the following days.
Schlumberger’s CEO expressed optimism about the firm’s continued partnership with Nigeria, emphasising their readiness to support the country’s efforts to revitalise the oil and gas sector. “We are ready to work with you as partners and contribute to the changes necessary to facilitate investments and usher in a new era for the industry in Nigeria,” Le Peuch stated.
This renewed focus on investment and collaboration signals a promising future for Nigeria’s oil and gas sector, aiming to transform long-standing challenges into opportunities for growth and stability.