Nigeria’s oil sector attracts $26.9bn investment, crude oil forward sales
The Nigeria’s oil sector has attracted over $26.9 billion investment the contracting financing, deep offshore development and crude oil forward sales.
The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, who made this known during the just concluded Offshore Technology Conference in Houston, Texas, said that there is renew vigour in oil investment in Nigeria,
According to him, “each time we go out to raise finance, the appetite is quite good. We had already signed four financing deals on upstream development in support of our cash call exit.
“We are also closing some financing deals on forward sales of the country’s and Nigerian Petroleum Development Company (NPDC) crude oil. In the area of contractor financing, the Ajaokuta-Abuja-Kaduna-Kano, AKK projects have also been awarded. In total, we have raised $3.6 billion (for projects Chetah, Santolina, Falcon and the Schlumberger/First E&P FSA), we are raising $5.5 billion from crude forward sales and $2.8 billion for AKK projects. Just last week, Shell announced an investment inflow of $15 billion in gas and deep offshore developments. This is a clear demonstration of the confidence investors have in the sector.”
He added that from a policy perspective, there are ongoing reforms in the industry in the mold of the Petroleum Industry Bill. “The PIB as it is today has been split into four parts by the National Assembly as follows- the Petroleum Industry Governance Bill (PIGB), the Host Communities, Fiscal Reforms and the Administration Bill. Whilst the Governance Bill has been passed, the other three are at different levels of review.
“Nonetheless, we have assurances from our National Assembly that by early third quarter, 2018 there will be light at the end of the tunnel. Its passage is important to help unlock billions of dollars of investments which have been held up due to the uncertainty of its passage. Permit me to use this opportunity to commend our legislature for their commitment to delivering on this very important national assignment,” he said.
He said that the upward swing in the price of crude oil signifies that good times are here again. “This year’s event is also coming up at a time when we see an upward swing in crude oil prices to the 70s region. I recall that this time last year, we were in the 50s region.
Possibly the good times are here again. We hope it stays,” he added
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