Nigeria to close $20bn petroleum investments in 2025
* AEB to host AfreximBank’ $13 bn energy finance portfolio
Sopuruchi Onwuka
Significant $20 billion or N34 trillion of new investments are underway in the Nigerian petroleum industry.
The revelation which came from the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, signifies intentions by international energy companies in the country to resume field development projects in the Nigerian deep water region.
Senator Lokpobiri who was speaking at the ministerial session of the Nigerian International Energy Summit (NIES) in Abuja also hinted that the upcoming Africa Energy Bank would host the $13 billion energy finance portfolio of the African Export Import Bank (AfreximBank).
Senator Lokpobiri who boasted that Nigeria has the best environment for international energy investments reiterated that big multinational players that dominate the deep offshore segment of the upstream petroleum industry are in the country for long term.
He did not give details of the expected investments but assured that processes were running to close details of agreements that would lead to final investment decisions (FIDs).
The Oracle Today reports that key international oil companies including Shell, Total, Chevron, Eni and ExxonMobil still hold significant oil reserves they are yet develop in the deep water terrain offshore Niger Delta.
Whereas Shell has reached FID on operated Bobga North deep offshore field, others remain in discussion over terms of production sharing agreements (PSAs).
Resumption of PSA negotiations on deep offshore field developments follow resolution of protracted fiscal disputes that inflicted hiatus on deep water field development for nearly two decades.
Within the period of fiscal impasse, only TotalEnergies pressed on with development of operated Usan and Egina deepwater fields. The company is currently working on offshore Perewei and onshore Ubeta field development projects.
Senator Lokpobiri attributed resumption of big ticket projects in the country to fiscal reforms introduced by President Bola Ahmed Tinubu’s government to ease the business environment for new investments.
He also assured the African petroleum players that the new African Energy Bank (AEB) would roll into operations before the end of next month as scheduled.
He called on African governments and investors to stake funds in AEB to support APPO’s efforts at opening a new funding channel for African petroleum industry.
He said that his ministry was in talks with AfreximBank to transfer a $13 billion energy finance portfolio to boost the capital base of AEB.
Senator Lokpobiri urged African countries to collaborate on fiscal and regulatory harmony in solving the problem of energy poverty in the continent.
