The Federal Government has called on the United Arab Emirates to invest in the renewal and reconstruction of Nigeria’s ageing oil pipelines, some of which have been in operation for over 50 years. This appeal was made on Monday by the Minister of State for Petroleum (Oil), Heineken Lokpobiri, during a meeting in Abuja with a delegation from the UAE led by Ambassador Salem Al Shamsi.
Lokpobiri highlighted the critical need for investment in the country’s pipeline infrastructure. “This country has enormous investment opportunities; our pipelines need renewal. They have been there for over 50 years since Nigeria found oil in commercial quantities in 1956/1958,” he stated. He explained that many of these pipelines have outlived their lifespans and stressed the importance of having efficient evacuation routes to export terminals.
The minister assured the UAE delegation of attractive investment models. “If you come and invest, you will get your money back. For every barrel of crude you transport through your pipes, you will recover your investment by placing mutually agreeable charges,” Lokpobiri explained.
Additionally, Lokpobiri emphasised Nigeria’s significant gas reserves, estimated at over 208 trillion cubic feet, with the potential for much more. “We in Nigeria know that these records are over 20 years old. We can double or triple our gas reserves. So, Nigeria is more of a gas country than even crude,” he said.
He also pointed out that Nigeria’s crude oil reserves, officially at 37 billion barrels, are likely underestimated. “These records are about 20 years old. We believe we should be doing much more in terms of crude deposits,” Lokpobiri noted. He highlighted the government’s commitment to increasing exploration activities and removing bureaucratic hurdles that have historically delayed investments.
The minister also praised the recent operational reforms within the Nigerian National Petroleum Company (NNPC), enabled by the Petroleum Industry Act. “The NNPC is now run as a national oil company aimed at making a profit for shareholders and Nigerians,” he said.
Addressing the UAE delegation, Lokpobiri reassured them of Nigeria’s openness to investment and the strengthening of bilateral relations. “I am happy that the visa issue has been addressed. Nigeria is open for investments, and we are committed to deepening our strategic relationship with the UAE,” he stated.
In a related development, Mele Kyari, Group Chief Executive Officer of NNPC, announced on March 29, 2024, that the company’s extensive petroleum products pipeline network would be replaced within three years. Speaking at the Society of Petroleum Engineers Oloibiri Lecture Series and Energy Forum, Kyari said, “The cheapest way of transporting petroleum products is by pipelines, and that is why our NNPC network of pipelines connects almost all geopolitical zones. However, many of them are at the point where they must be replaced.”
Kyari detailed the commencement of a Build, Operate and Transfer (BOT) process aimed at replacing nearly all of the 5,000km pipeline network over the next three years, ensuring the efficient delivery of products across the country.
