By Michael Eboh
Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, yesterday, disclosed that the Federal Government is seeking investors, both local and foreign, to revamp the dilapidated infrastructure in Nigeria’s oil and gas industry.
Kachikwu, in a Podcast on ‘BigWin 7: International Energy Relations and Coordination,’ also noted that the government’s focus was on investors coming in with equity financing, adding that the investors would be expected to develop a business model acceptable to the country.
He said he had embarked on a strategic visits to International Oil Companies, IOC, aimed at galvanizing support and mobilizing funds for the Nigerian petroleum industry.
“We visited all of them in their headquarters, held meetings and aligned them to a lot of the initiatives we have. Initiatives in terms of gas expansion; initiative in terms of crude oil production stabilization; in terms of a new funding mechanism to deal with the cash call problems that we had and initiative with local content drive.”
Kachikwu noted that these visits helped place Nigeria on the investment table of most chief executive officers globally, adding that when investments are being considered, Nigeria was one of the countries where the chief executives could say they had spoken to the minister and are willing to provide the much-needed support.
He stated: “With all these, what can we do in terms of international collaborations? Quite a bit more. We need to get into the financing corridors and be able to find the funding to develop our infrastructure. As we move from a public sector driven oil sector model, private sector financing is key.
“We need to be able to find investors, who, on the basis of equity investments can come in and massively change some of the dilapidated infrastructure that we see here and create a business model that makes sense for this country.
We will like to see production go up, at cost that makes a lot of sense. We will like to hold conversations with a lot of people and be able to look at the Production Sharing Contract, PSC, terms and get the very best value for this country”.