OPEC, APPO promote crude exploration as Tinubu defends subsidy removal 

Despite the dwindling support for investment in fossil fuel and exit of International Oil Companies (IOCs) from Nigeria, the Federal Government has said over $100 billion worth of opportunities are available within the nation’s upstream space.
 
President Bola Tinubu, yesterday, insisted at the ongoing Nigerian International Energy Summit (NIES) in Abuja that the removal of subsidy on Premium Motor Spirit (PMS) has come to stay.
  
He said the decision was for Nigeria’s long-term security and economic prosperity, adding that his administration is dedicated to introducing social intervention initiatives to alleviate the immediate hardships faced by vulnerable groups.

  
Represented by the Minister of Information and Orientation, Mohammed Idris Malagi, the President emphasised that energy security is key to any nation striving for economic stability and development, as it encompasses not only the availability and accessibility of energy resources, but also the resilience of energy infrastructure.
  
He pointed out that petroleum subsidy has, over the years, strained the nation’s economic resources, resulting in inefficiencies and, crucially, impeding investments in essential aspects of energy security.

THIS is even as the Organisation of Petroleum Exporting Countries (OPEC) and African Petroleum Producers Organization (APPO) noted that the continuous exploration of oil and gas remained a viable option for energy security amid climate concerns.
   
While APPO disclosed that the Africa Energy Bank would be decided by next month and take off before June 30 this year, the Federal Government revealed that the OB3 pipeline has been completed and up for commissioning before the end of March.
  
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the Federal Government is pushing to improve the country’s competitiveness to investors locally and internationally.

According to her, when the government assessed the industry along with operators, it discovered about $100 billion worth of investment in the next one decade.
   
Verheijen admitted that regardless of where the investment could be coming from, there is a need for Nigeria to be attractive. She said: “One of the focus areas for this administration is to ensure that the government doesn’t stay in the business of investing capital in a cycle that can’t easily attract private sector capital. We want to make sure that the opportunity sets are just as attractive and rank high in the portfolios of investors.”

Also speaking, Minister of Petroleum (Gas), Ekperipe Ekpo, asserted that the Obiafu/Obrikom/Oben (OB3) pipeline project would be completed by next month, while the 42” 127 kilometres pipeline will supply two billion cubic feet of gas daily.
  
He expressed government’s commitment to ensuring timely completion and successful commissioning of these transformative initiatives.Ekpo stressed that Nigeria’s gas reserves play a vital role in global energy transition, noting that the country should leverage the advantage to become a key player in the entire process, as well as emerging as a regional powerhouse for gas processing and industrialisation.

  
Minister of Petroleum (Oil), Heineken Lokpobiri, lamented that despite the abundance of oil reserves in the country, the development had not translated to economic prosperity.
  
He, therefore, canvassed continuous investment in fossil fuel exploration, while prioritising eco-friendly practices. Recognising the need for financial stability amid the energy transition landscape, Lokpobiri explained that the approach aims to balance economic growth with environmental responsibility.
   
He added that the divestment is being carefully handled to enhance global competitiveness.  Secretary-General of APPO, Dr Omar Farouk Ibrahim, revealed that March 31 is the deadline for a decision on the host country for Africa Energy Bank.
  
He added that seven countries are bidding to be host, while the institution should take off on or before June 30 this year.  OPEC Secretary General, Haitham Al Ghais, said Africa is home to five of the top 30 oil-producing countries with proven oil reserves in the region of 119 billion barrels at the end of 2022.