August 15, 2019

Chinese investments in Nigeria reach $16bn – NNPC

By Michael Eboh

The Nigerian National Petroleum Corporation, NNPC, Thursday, called on the Chinese government to increase its investment in infrastructural development in the Nigerian petroleum industry, especially as the country’s investments in Nigeria have reached $16 billion.

Mele Kyari, NNPC

Group Managing Director, Mele Kyar

In a statement in Abuja, Group Managing Director of the NNPC, Mallam Mele Kyari, stated that strategic partnership and new investments in the upstream petroleum sector are essential for Nigeria to actualize the nation’s crude oil reserves and three million barrels per day oil production target by 2023.

Kyari, who disclosed this when the Executive Vice President of China National Offshore Oil Corporation, CNOOC, Mr. Lu Yan Ji, paid him a business visit at the NNPC, noted that there was need to improve the nation’s revenue profile through new investments in the Petroleum Sector.

He commended CNOOC for its plan to expand its investment in the Nigerian petroleum industry and assured it of the corporation’s support.
“To have investment of $16bn in Nigeria is clearly an indication of your confidence in us. We have a target to grow production to 3m barrels per day by 2023, to do that, we need partners like you. You can count on us because we have common interest”, the GMD stated.

In his remarks, the CNOOC Vice President, Mr. Lu Yan Ji, said Nigeria was one of his company’s largest investment destination with investment outlay standing at about $16 billion.

He called for NNPC’s support in securing the investments, adding that there was need for both National Oil Corporations to work closely together.
He disclosed that CNOOC currently produces 800,000 barrels per day worldwide with a target to hit 1.2 million barrels per day, adding that Nigeria was one of the targeted places to actualize the target.

CNOOC, the NNPC said, started business in Nigeria in 2005 and currently has interest in Oil Mining Lease (OML) 130 in partnership with NNPC, Total and Petrobras.

In a related development, Mallam Mele Kyari, has tasked members of the Pipelines Professionals Association of Nigeria, PLAN, to come up with appropriate technology to stem the current challenges associated with oil and gas pipelines vandalism.

Kyari threw the challenge while playing host to the executive members of PLAN who paid him a courtesy visit at the NNPC
He noted that security and integrity of pipelines were a big challenge in the industry, and called on all stakeholders to collaborate to arrest the situation.

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“For us, what is of concern is the safety and security of our existing infrastructure, beyond just laying and maintaining the pipelines, their security is an issue for us today, the Association needs to focus on that, and we can ensure greater efficiency. We count on you in that regard because about 70 per cent of pipelines in the country belongs to NNPC”, the GMD stated.

He said that the corporation was working in collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) to optimize the participation of Nigerians in pipeline construction and to get more value from them.