Energy security: FG to attract $18bn investments into petroleum sector
From Uche Usim, Abuja
As the quest to achieve energy security hots up, the federal government plans to attract fresh $18 billion investments into the petroleum sector, with greater interest in gas and other cleaner energies.
The Chief Upstream Investment Officer of the NNPC Upstream Investment Management Services (NUIMS), Mr Bala Wunti, made the disclosure in Abuja on Wednesday, at a panel session themed: “The investors perspective: Assessing the attractiveness of Nigeria’s energy sector”, which held on sidelines of the 22nd edition of the NOG Energy week.
According to him, the gigantic investment would be made between now and 2024.
He added that while numerous investment opportunities abound in the oil and gas sector, the federal government seeks to broaden local content and capacity in the upstream industry; to reduce heavy dependence on offshore technology.
While urging all stakeholders to keep faith with the federal government, Wunti revealed that investment opportunities exist in drilling activities, demand for line pipes, and consumables essential for growing production output.
He added that economic and social benefits will accrue to the nation for every incremental barrel of production as the industry is central to the Nigerian economy.
Wunti noted that a solid industry-wide security arrangement was in place, as well as the determination to crash the cost of production.
He that the focus has shifted towards consolidating on gains to raise production and spur growth.
This, he added, represents massive opportunities for all stakeholders, noting that direct and indirect jobs will be created, contractors and suppliers will get busier, and the benefits will transcend beyond the industry to other sectors of the economy.
The panel session was peopled by the Chief Executive Officer of Seplat Roger Brown; the Managing Director of Shell Nigeria Exploration and Production Company Ltd, Elohor Aiboni; Chief Executive Officer of Oilserve Limited, Emeka Okwuosa and the Founding Partner Argentil Capital Partners, Olumide Ofunfowora.
The panel discussed the blights stunting the growth and blocking the nation from harnessing the bounties in the sector.
It also identified the barriers currently dissuading investors from flooding Nigeria’s energy market and they can be dismantled.
The speakers harped on rekindling investor’s confidence, fiscal policies required to attract investment into Nigeria’s energy sector beyond hydrocarbons; and the necessary enablers needed for attracting investment into the upstream sector.
Panelists also discussed the funding options available for non-associated gas production and what impact has the Petroleum Industry Act had on the investors’ appetite.
