By Michael Eboh

The Federal Government, yesterday, said it has signed Memoranda of Understandings (MoU) with a number of Chinese firms to invest $50 billion in the Nigerian oil and gas industry, to bridge the infrastructure funding gaps in the industry.

File Photo: Crude Oil

The Nigerian National Petroleum Corporation, NNPC,   in a statement in Abuja, listed the companies that are involved in the MoUs   signed by at the ongoing NNPC – China Investors’ Roadshow organized by the Corporation to attract investors in China and the Asian sub region to invest in the Nigerian Oil and Gas sector, to include NORINCO, CINDA, CNOOC, SINOPEC/ADDAX, ICC -NDRC amongst others.

The agreement, the NNPC said was facilitated by the Minister of State for Petroleum Resources and Group Managing Director of NNPC, Mr. Ibe Kachikwu, who is currently visiting China as a Special Envoy of the Nigerian President and who is leading a team of top management of the NNPC and key industry stakeholders to showcase the investment opportunities which abound in the oil and gas value chain in Nigeria to the investors with a view to attracting funding and partnerships that would turn around the sector and place it among the best in the world.

The NNPC further stated that the International Cooperation Commission (ICC) of the National Development and Reform Commission (NDRC) in charge of implementing cooperation between Chinese governments, Foreign Governments and organizations have committed to developing an over-arching master plan for the Nigerian oil and gas sector that will include a detailed feasibility study of current status of existing infrastructure in the industry.

It added that they would also develop bankable projects that would attract Chinese investors on this Government-to-Government platform.

The NNPC said the initiative would move it to a much more profitable and efficient state, adding that the master plan would form the basis of massive inflow of further investment from Chinese companies into the sector.

The NNPC explained that the $50 billion from the Chinese firms is to be spent on investments in oil and gas infrastructure, pipelines, refineries, power, facility refurbishments and upstream.

While speaking during the plenary of a special Investors’ Roundtable which had in attendance over 300 Chinese and Nigerian businessmen and investors with key focus on the Oil and Gas Sector, Kachikwu reiterated that the roadshow was organized as a follow up to the earlier working visit of His Excellency, President Muhammadu Buhari to China in April, 2016.

He commended the efforts and resolve of the President whose steer and support in ensuring that there is a marked transformation of the oil and gas industry has inspired the management to work towards the institutionalizing of focus, accountability, commitment and transparency at the corporation.

He commended the Chinese Government and investors for the show of support which reflects the growing international confidence in Nigeria’s oil and gas sector following major reform which has been overseen under his leadership as both Group Managing Director of NNPC and Minister of State, Petroleum Resources over the last seven months and also the belief in the government and integrity of President Buhari by foreign governments and investors.

Kachikwu maintained that the China Roadshow is the first of many investor roadshows intended for the raising of funds to support the Oil & Gas Infrastructure roadmap, adding that road shows have been slated for India and the Gulf states.