The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, announced on Monday that Nigeria’s oil and gas sector has attracted approximately $16.6bn in investments over the past year. Speaking in Abuja, Lokpobiri highlighted the achievements made since President Bola Tinubu took office on May 29, 2023.
In a significant development, Lokpobiri revealed that the Federal Government is on the verge of finalising a $20bn deal to enhance oil and gas production, following a meeting with Olivier Le Peuch, CEO of Schlumberger Limited.
“Our primary objective has been to foster an environment conducive to investment. For over a decade, the lack of the Petroleum Industry Act and inconsistent policies deterred investors,” Lokpobiri explained. “Today, I am pleased to report that our efforts have revitalised investor confidence. This is evident from committed investments of $5bn and $10bn in deepwater offshore assets, and a $1.6bn investment in oil and gas asset acquisition.”
Lokpobiri also noted the high global interest in the ongoing asset bid rounds, following successful roadshow activities in the United States and Europe.
Since Tinubu’s administration began, there has been a notable increase in crude oil production. “When we assumed office, production was around 1.1 million barrels per day, including condensates. Today, we have increased production to approximately 1.7 million barrels per day,” the minister stated. This rise is attributed to streamlined operations and the resolution of conflicts among stakeholders.
Efforts to boost crude oil production included revitalising inactive oil assets, continuous engagement with international oil companies and the Independent Petroleum Producers Group, and resolving industry disputes. Lokpobiri highlighted the importance of protecting critical assets from local communities to reduce oil theft, and consolidating security measures with private firms and government agencies for pipeline surveillance.
The period also saw the commissioning of OMLs 13 (Sterling Exploration) and 85 (First E&P), with each asset expected to produce 20,000 and 40,000 barrels per day respectively. Lokpobiri emphasised, “This achievement reflects the administration’s commitment to optimising production from Nigeria’s oil and gas assets.”
In a press briefing, the Minister of Information and National Orientation, Mohammed Idris, announced that President Tinubu has directed his ministers to present their performance reports to the public in commemoration of his first year in office. This will begin with sectoral media briefings by the 47 federal ministers.
During his meeting with the Schlumberger delegation, Lokpobiri shared that significant investments are imminent. “We are in discussions with major investors, and I can confirm that investments worth over $20bn are forthcoming. One company alone will invest $10bn,” he stated. This influx of investment is expected to reverse the decline in production seen over the past 12 years, driven by a renewed focus on drilling.
Olivier Le Peuch, CEO of Schlumberger, expressed optimism about the partnership. “We are ready to work with Nigeria to boost oil and gas investments across the country,” he affirmed, noting Schlumberger’s 71-year history in Nigeria’s oil and gas industry.
This announcement signals a new era of growth and revitalisation for Nigeria’s oil sector, driven by significant investments and strategic reforms aimed at enhancing production and investor confidence.
