Uche Usim and Adewale Sanyaolu, Abuja
The Nigerian National Petroleum Corporation (NNPC), says Nigeria will attract N17. 29 trillion ($48.04 billion) of the estimated N69.84 trillion ($194 billion) total oil and gas investment to be made in Africa by 2025.
Dr Maikanti Baru, the outgoing Group Managing Director of the NNPC, disclosed this while addressing the 2019 Nigerian Oil and Gas Conference and Exhibition (NOG) in Abuja with the theme “ Promoting Investment and Collaboration in Nigeria’s Oil and Gas Industry.”
Baru who said Nigeria is presently a leading oil and gas producer in Africa added that, “The nation’s energy outlook appears very positive despite the difficult operating and economic headwinds across the continent.
“It is also significant to state that out of about $194 billion surge in capital expenditure coming into oil and gas development on the African continent from 2018 to 2025, Nigeria currently accounts for 48.04 billion dollars (over 24.8%) with other African countries sharing the balance.
“For Nigeria, therefore, oil and gas remain essential building blocks for our economic growth, particularly as a developing country.
“To encourage the existing players in the industry particularly the traditional JV partners, NNPC undertook to settle all outstanding cash call arrears amounting to five billion dollars in 2015.
“Till date, we have defrayed over $2 billion.
All these efforts are geared towards sustaining investment and renewing investor confidence,’’ he said.
“This year’s NOG offers yet another opportunity for industry players and stakeholders alike to rally and seek workable solutions to issues that confront and challenge the seamless operation of the sector as we seek to expand our footprints and take our beloved industry to the next level.
“Like many of you know, I will be retiring officially from the Corporation on July 7, 2019 by then I would have attained the statutory 60 years retirement age.
“I am therefore super-excited today for the great opportunity afforded me by this year’s edition of the NOG for two reasons.
“The first reason is that it falls perfectly on my twilight days at the NNPC, which interestingly means I have that lifetime chance to say goodbye to many of you whom I have known and interacted with for close to three decades of my career at the Corporation,” Baru said.
He said that Nigeria holds about 2.2 per cent of global oil reserves while its crude oil reserves have grown steadily from about 22 billion barrels in 1999 to 37.5billion barrels in 2018.
The NNPC boss said that Nigeria is the second largest crude oil reserves in Africa after Libya, while its crude oil production currently hovers around 2.2 -2.3 million bocpd.
Meanwhile the Organisation of the Petroleum Exporting Countries (OPEC), and the non-member countries of the organisation (OPEC+) on Tuesday, signed a draft `Charter of Cooperation’ in a bid to further strengthen their partnership. The charter now replaces the `Declaration of Cooperation’, which was reached in December 2016 between the two group
Speaking at the end of the 6th OPEC and non-OPEC Ministerial Meeting in Vienna, Mr Salvador Fernandez, President of the bloc’s Council reaffirmed the continued commitment of member countries to a stable market as stipulated in the cooperation.
“Participating producing countries are committed to promoting the interest of producing nations.
“The efficient, economic and secure supply to consumers and a fair return on invested capital as well as the return of confidence and investment to the oil industry,” Fernandez said.