Nigeria Targets $100bn Oil Investment, 3million Barrels/Per day – OPEC

By Molayo Anjorin

The Organization of the Petroleum Exporting Countries (OPEC) has stated that Nigeria stands a chance to attract $100 billion investment in the oil and gas industry as it enters investment cycle.

OPEC Governor for Nigeria, Ademola Adeyemi-Bero disclosed this on Thursday while speaking during a panel session at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission NUPRC in Abuja.

Adeyemi-Bero, who is also the Chief Executive Officer of First E&P, urged the government to empower downstream and upstream industries in order to add value to the local economy and create jobs.

He said: “We are moving from an extractive industry to value retention. So when that $100 billion has been spent, we must make sure it’s felt in Nigeria. Not just in China or Korea or Singapore or Houston. It must be felt here”.

He noted that Nigeria needs to build the capacity of local oil field service companies to participate fully in the projects expected to emerge from the investment cycle.

According to him, Nigerian contractors must have access to the vessels, rigs, equipment and financing to execute major upstream projects instead of allowing international oil firms to dominate the opportunities.

Adeyemi-Bero also warned that investment decisions would make no difference to the industry if the capability was not there to implement the projects well. “We can do the best FDPs, take the best investment decisions. But our execution must be world-class,” he said.

OPEC Governor urged financial institutions to give more funds to oilfield service companies because a lack of funds could cause projects to be delayed and impact on final investment decisions.

In addition Adeyemi-Bero supported Nigeria’s ambitions to increase crude production to three million barrels per day by 2030, adding that it would require a significant flow of large projects in order to achieve the target.

He cited the Bonga Southwest project, which is expected to produce about 180,000 barrels per day, as an indication of the scale of developments needed to reach the target.

His remarks come as the NUPRC drives reforms to unlock new investment, speed up upstream projects, and increase Nigeria’s production and supply of oil and gas.