The Federal Government is expecting investments worth $40 billion in the upstream segment of the oil and gas industry in the next five years, The Nation has learnt.
Minister of State, Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, who spoke with reporters in Abuja at the weekend, said the investments would come through three major deepwater oil fields – Total’s Egina field located in oil mining lease (OML) 130, which will give the country 200,000 barrels per day (bpd).
The investments will bring $16 billion, he added.
Eni’s Zabazaba field, which will be operated by the Nigerian subsidiary, Nigerian Agip Oil Company (NAOC), located in oil prospecting lease (OPL) 245, will bring in $12 billion Shell’s Bonga South West/Aparo (BSWAP), located in OML 118, will bring in $10 billion.
Others are refineries’ rehabilitation, which will bring in about $2.5 billion to $3 billion and pipeline contracts, which will attract investments of about $3 billion, among others.
Kachikwu observed that these projects are important to Nigerian content development, adding that the government targeted $100 billion investments to take the industry to where it supposed to be and make maximum contribution to the economy.
According to the Minister, the government has concluded plans on private investments that will come into the downstream for rehabilitation of existing refineries. Announcement of the deals and commencement of the rehabilitation will be in next month, he added.
He said: “My target is that over the next 10 years, Nigeria will develop a floating production, storage and offloading vessel (FPSO) here locally, also become self-sufficient in its own power provision and over the same period Nigeria will begin to move away from crude oil as it were and to very refined, clean provision of fossils.
“My target is that over the same period investments in the sector will be such that Nigerian companies, entities and shareholders will begin to move from a minuscular 10 per cent today to between 40 per cent and 50 per cent to the real time investors. There are major plans because everywhere you look there are opportunities in the oil sector.
“We have done a lot in the last two years. We launched the 7BigWins and what have we achieved so far? Through a lot of struggles, we have changed the funding mechanism in the upstream sector and that has helped to energise investors in that sector. Previously we were not sure of returns in that sector. Now we are beginning to see projects like Egina, Bonga which its final investment decision (FID) is coming and Zabazaba.
“We expect investments of about $40 billion in the sector over the next five years if we do the right things, set the right models, policies and give the right speed that is essential. That is very key, coming from a country where investments had run away for seven to 10 years.”