Mohammed Shosanya
Senator Heineken Lokpobiri, the Minister of State Petroleum,says some international oil companies are coming back to Nigeria with massive investments prospects.
He attributed the development to the federal government’s action in rekindling the confidence of the oil investors in the country.
He spoke on Thursday at the Ministerial Sectoral briefings to mark the first anniversary of the President Ahmed Bola Tinubu’s Administration,where he also noted that International Oil Companies IOCs left the country because of lack stability due to absence of legal framework.
He added:”The biggest challenge we have is that we have thousands of idle oil wells that is not exploited. I will give an example, there is one oil block between Rivers and Akwa Ibom, that oil block has 117 oil wells but only 10 are producing the rest are just shot. Why?, no explanation, they are in the hands of somebody who do not have the capacity to put them to use. The PIA gives us the authority to say if you are given license and your are not using it to produce we revoke it and give to somebody who have. Unless you bring out the crude oil deposit in the soil they have no economic gains”
He also disclosed that with prevailing stability brought into the sector by the present government, Nigeria has made huge progress in raising daily crude oil production from 1.5 million barrels per day to 1.7 million barrels per day, adding that the country’s target is hit 2.5 million barrels per day by the end of 2024.
He added:”When we took office, production was at approximately 1.1 million barrels per day, including condensates. Today, I am proud to report that we have increased our production to approximately 1.7 million barrels per day (inclusive of condensate). This increase is a testament to our relentless efforts to streamline operations and resolve conflicts among stakeholders.
“Steps taken to Increase Crude Oil Production include: Efforts towards revamping redundant oil assets to active status Continuous engagement with IOCs and Independent Petroleum Producers Group (IPPG) members in resolving industry disputes towards increasing production.
“The federal government has succeeded in rekindling the confidence of the International Oil Companies such as the Shell, ENI, Slumberger among others.
“There is a company that will announce $10 billion investment in the next two weeks.This were company that left Nigeria because of unfavourable government policies, but following this government’s policies that is competitive globally they are coming back to Nigeria.
“There is also another company that is coming with the investment of $5 billion dollars, I don’t want to preempt the announcement, let them announce it then Nigerians will know that Angola cannot be compared to Nigeria.
In Africa, Nigeria is the main oil and gas producer and will continue to dominate that position.
“Our target this 2024, having worked very hard to create the enabling environment is to ensure that we have minimum of $20 billion investment.
“Nigeria has the lowest investment in the oil and gas sector. The reason why we are not seeing the benefits is because in the last 12 years Nigeria’s capital investment in the industry is the lowest in the world. We have only 5%. Angola has 46%, Mozambique 97%, Korea has 670%, the question you would ask is why did the companies in Nigeria failed to invest. The PIA took longer than normal to come and nobody wants to invest billions of dollars in any clime that is where there is uncertainty.
“But we told them that the PIA is now passed and we have a stable governance structure.Our production target is that by the end of the year through our sustained campaign we would increase crude production to at least 2 million to 2. 5 million barrels per day” Lokpobiri said.
He said,reliable projections show that oil price would be stable from now till five years, hovering between $80 to $90 which is good for the country.
In his opening remarks at the event, Mohammed Idris, the Minister of Information and National Orientation, said that President Bola Tinubu is laying solid foundations to bring down cost of living and make life better for Nigerians.
“Landmark initiatives like the Consumer Credit Corporation, the Nigeria Education Loan Fund, Presidential Initiative on Compressed Natural Gas, the 200 Billion Naira Presidential Grant and Loan Scheme, our Agriculture and Food Security efforts (including the launch of Dry Season Farming, and massive fertilizer distribution), the Renewed Hope Infrastructure Development Fund(RHIDF), Renewed Hope Cities and Estates programme, our reform efforts in the Electricity Sector, and in the area of Taxes and Fiscal Policy, and the negotiations for a befitting new National Minimum Wage – are some of the many policies and programs that will directly touch and improve the lives and livelihoods of tens of millions of Nigerians,” he said.
The Minister at the programme, launched a portal which serves as a centralized source for both local and international audiences, providing reliable and up-to-date information on various aspects of the nation, including the government, the people of Nigeria, their cultural heritage and many more.
“We use this opportunity to launch the Nigerian National Information Portal. Of course, it was in existence before but it has been so badly managed that the Federal Ministry of Information and National Orientation has resuscitated this new portal.
“It is a gateway to all the information you require to know about this government; about Nigeria, people, and our cultures. So, join me in clapping for Nigeria for having this relaunched new National Information Portal,” he said.
The link to the portal is www.nigeria.gov.ng.
In his briefing, Barrister Nyesom Wike, the Minister of the Federal Capital Territory FCT, delayed that President Bola Tinubu has through his ministry restored hope in many ways through concrete reforms and intervention in projects deliverables.
According to him,the civil servants in the FCT could now expire to reach the permanent Secretary cadre or Head of Service due to the reforms brought about by the foresight of the President Tinubu.
He said,in the eight months there would be 3 bus and taxi terminals to enable Commuters free and safe movements, also reduce incidences of one-chance crimes in the FCT.
He said the Abuja Metro rail line has now been completed and that come Monday 27th May 2024, President Tinubu will ride on the Metro line, and then Nigerians would commence usage of the facility by next day.
“Nigerians would be allowed to ride the train free of charge for two months.
“Most of the roads have been rehabilitated and completed. National Assembly rehabilitated, Federal Secretariat, Vice President’s residence awarded over 14 years ago, has been completed. Schools within the metropolis have been given facelift” he said.
The FCT Minister also disclosed that arrangements are underway to deliver 10, 000 houses renewed hope city for poor residents of the city.
