…$40bn already secured,he affirms
FRANK UZUEGBUNAM,HARRISON EDEH&CYNTHIA EGBOBOH,ABUJA
Ibe Kachikwu, Nigeria’s deputy for Petroleum Resources, on Thursday said Nigeria is targeting about $100 billion in investment in the petroleum sector in order to drive the sector to desired height where it provides maximum contribution to the overall growth of the nation.
Kachikwu stated this while addressing the press shortly after the close of the five-ay Nigeria International Petroleum Summit, which held in Abuja.
He disclosed that already the Federal Government had sealed deals in excess of $40 billion that would start coming in the near future, but said that amount would not be able to adequately drive the needed investment in the nation’s petroleum sector.
“I did mention investment portfolio of about $40 billion and the number is coming from three very unique projects. But my point is that $40 billion is not enough. We need to be targeting about $100 billion in investment in this sector to revive the sector to where it will give you maximum contribution. Those will go into gas infrastructure, pipe projects, replacement of existing dilapidated pipelines among others” he stated.
Kachikwu also assured that all of this plans are in place to ensure local content, through well articulated programmes to achieve incremental local participation in oil and gas projects.
“In fact I have set a timeline for NCMB to set a 10 year plan to plan a total FPSO in Nigeria” he added.
According to him, recently Nigerians for the first time actively participated in the fabrication of huge module, in form of Floating Production Storage and Offloading (FPSO) which was sent to Korea, adding that there are plans to achieve incremental local participation in building of FPSO in future.
He expressed hope to see indigenous companies, which are currently doing 10 per cent in terms of local production, to move to 25 to 30 per cent local production over the next five years.
He stated that the Federal Government is currently exploring more ways of developing its crude for maximum benefits, stressing that ‘exporting crude is like exporting raw materials and is not the way to go’
Earlier, Vice President Yemi Osinbajo, in his closing remarks, noted that this first summit has set the foundation for the achievement of the objectives of its founding fathers, namely to create a hub of Africa’s oil and gas activities of the African continent.
Osinbajo was quick to remind participants of the Federal Government’s determination to introduce legislation that will remove all encumberances to efficient conduct of oil and gas businesses.
According to him, learning from past experience, Nigeria split the omnibus Petroleum Industy Bill into a number of proposed legislations, maybe three in all, some of which have been approved already by the executive council for presentation to the National Assembly for their consideration.
“And we believe that this will be done speedily and already we are seeing signs that a lot of work has been done by the National Assembly”.
The Vice President noted that participation at the event having recorded attendance of over 1,000 delegates, exhibitors and visitors from over 32 countries of Africa and outside the continent shows the desire for greater cooperation amongst the old and the new in the industry among African countries in the league of oil producing states.
“With the largest proven gas reserves in Africa and the seventh largest in the world, with over 38 billion barrels of oil reserves and a daily production in excess of two million barrels, and the continent’s largest concentration of skilled manpower for the oil and gas industry built over 30 years, naturally Nigeria’s experiences can be useful to other African countries.
