Nigeria’s Minister of State for Petroleum, Heineken Lokpobri, boasted on Thursday that the enactment of the Petroleum Industry Act has already started to yield positive dividends by attracting $16.6 billion deepwater offshore assets.
The minister, who spoke in Abuja at the ministerial briefing to mark the one-year anniversary of the President Tinubu’s administration, said that Nigeria’s friendly policies in the last one year had also restored investors’ confidence to invest in the country’s oil and gas industry.
According to the minister the government had also removed the impediments that drove investors away and put in place enabling environment that keeps drawing investors to the country.
Lokpobri boasted: “We recognized numerous impediments to our progress early on, such as: conflicts among partners, divestment issues, inconsistent policies, insecurity, and bureaucratic bottlenecks.
Consequently, over the past nine months our efforts have been dedicated to removing these obstacles, restoring investor confidence, and ensuring an enabling environment for business in the oil and gas sector to thrive.
The investments, according to the minister come from: Engagement on Bonga North and Zabazaba, which is expected to attract investment worth $5bn and $10bn respectively Shell and ENI, both of which would create massive employment along the value chain as well as Coastal Services Solutions Limited $1.6bn investment commitment in oil and gas asset acquisition.
The minister listed improved oil production as a key indicator of the Tinubu’s era, saying that oil production has moved from 1.1 million barrels per day to the current 1.7 million barrels per day, including condensates.
He said, “Today, I am proud to report that we have increased our production to approximately 1.7 million barrels per day (inclusive of condensate). This increase is a testament to our relentless efforts to streamline operations and resolve conflicts among stakeholders.
“Efforts towards revamping redundant oil assets to active status – such as working with NNPC on farming out fields (with production potential) to competent institutions/investors with technical and financial capacity.
The minister also listed continuous engagement with IOCs and Independent Petroleum Producers Group (IPPG) members in resolving industry disputes towards increasing production – SEPLAT and OANDO and the resolution of internal joint venture contracts feud between joint ventures partners on critical productions fields – OPL 245 as some of the achievements of the ministry in the last one year.
Other feats recorded by the ministry are: Engaging local communities with critical assets running through them to protect the assets all in a bid to decrease oil theft in the country, consolidating existing security framework with private security firms and government security agencies for pipeline surveillance, which led to sharp decline in crude oil theft and thus increased production for export.
“During this period, we also experienced the coming on stream of OMLs 13 (Sterling Exploration) and 85 (First E&P), with the respective assets reaching first oil in the development of their licenses. These assets are expected to produce an average of 20,000 and 40,000 barrels per day respectively. This achievement is another testament to the commitment of this administration to optimize production from the nation’s oil and gas assets by providing an enabling environment for existing and prospective investors.
“We have been working diligently to eliminate the bureaucracies and bottlenecks that have stifled investment for over a decade. By resolving conflicting issues and fostering a more consistent policy and business friendly environment, we have made significant strides in attracting and sustaining investments in the sector. This also extends to the extension of oil prospecting licenses to technically and financially capable indigenous and international companies all geared towards increasing production, and providing ministerial consent to companies to divest some of their equity in their assets to companies of proven technical and financial capability.
Lokpobri boasted that the business-friendly efforts of this administration had rekindled investors’ confidence in our oil and gas sector and ensured the return of companies such as industry service providers who had earlier ceased or greatly reduced operations in our shores due to the unfavorable business climate.
“Our efforts have extended to the downstream sector. The recent Christmas holiday period witnessed a festive season without fuel queues, a notable achievement attributed to the concerted efforts of stakeholders, especially the Nigerian National Petroleum Corporation Limited (NNPCL) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
“This is alongside our policy of constant and continued engagement with critical industry stakeholders such as MEMAN and NARTO, IPMAN amongst others to ensure smooth and effective distribution of petroleum products across the nation.
The Minister of Information and National Orientation, Mr. Mohammed Idris, who is coordinating the ministerial briefing, said that the administration of President Bola Tinubu, had taken concrete steps to put things right for the overall benefit of Nigerians in the last one year and was still committed to doing more.
Idris said, “As I noted in my remarks at an event on the Renewed Hope Agenda, last week, I have no doubt that life will get better for the people of Nigeria. We have already started laying that solid and enduring foundation, over the last 12 months.
“Landmark initiatives like the Consumer Credit Corporation, the Nigeria Education Loan Fund, Presidential Initiative on Compressed Natural Gas, the 200 Billion Naira Presidential Grant and Loan Scheme, our Agriculture and Food Security efforts (including the launch of Dry Season Farming, and massive fertilizer distribution), the Renewed Hope Infrastructure Development Fund(RHIDF), Renewed Hope Cities and Estates programme, our reform efforts in the Electricity Sector, and in the area of Taxes and Fiscal Policy, and the negotiations for a befitting new National Minimum Wage—all of these and many more are policies and programs that will directly touch and improve the lives and livelihoods of tens of millions of Nigerians.
“President Tinubu is wholly committed to ensuring that we bring down the cost of living and doing business in Nigeria, we put more money into the pockets of Nigerians, attract more local and foreign investment, and transform our nation’s infrastructure. And we will not pause or relent until we have delivered Truly Renewed Hope to all Nigerians,” the minister said.
