April 5, 2019

FG, IOCs, indigenous firms create $102bn opportunities for investors in oil, gas

oil & gas

File: Oil

By Udeme Akpan

The Federal Government, International Oil Companies, IOCs and indigenous companies, have created investment opportunities worth $102 billion for investors in Nigeria’s oil and gas industry.

In a document obtained by Vanguard, in Yenogoa, Bayelsa State, yesterday, the Nigerian Content Development and Monitoring Board, NCDMB, disclosed that the future of the industry was bright, especially as it holds many opportunities for investors.

It stated: “The midstream and downstream sector of the industry has investment opportunities worth over $51 billion to support the growth phase of Nigeria. This certainly gives an insight into the future of the sector, which has always been valuable support to the Nigerian economy. Opportunities abound for both operators and investors with around $35.5 billion investment opportunities in gas exploration and production activities, power plants projects, fertilizer plants, virtual pipelines and flare gas commercialisation activities, as well as $16bn investment opportunities in the Free Trade Zone, FTZ infrastructure development and concessions, port infrastructure, Central Gas Processing Facilities, CPF, gas transmission, Liquified Petroleum Gas, LPG plants, real estate development, pipe milling and local fabrication yards among others.”

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Speaking at the ongoing Nigeria Oil and Gas Opportunity Fair, NOGOF, in Yenagoa,  Minister of State for Petroleum Resources, Dr Ibe Kachickwu, urged indigenous operators and investors to work toward benefiting from these and other opportunities.

Kachikwu said while the world was moving from fossil fuels to other environmentally friendly options, Nigeria was yet to take advantage of the opportunities in the industry.

The minister, who urged them to take over and stop playing safe to benefit from the opportunities availed through new trends in the industry, noted that Federal Government had succeeded in ensuring ensure that the cost of the crude was reduced to 23 dollars per barrel from about 32 dollars.

He noted that henceforth, approval for projects in the petroleum industry would be based on the cost of producing oil and gas which he puts at $23 per barrel.

He informed that efforts were on to further ensure the cost was brought down to below $15 per barrel.