Key operating International Oil Companies (IOCs), in Nigeria are considering investing over $55 billion in various oil and gas activities up to 2030 in a renewed interest in the country’s energy sector.
The commitment follows series of engagement with key government officials, according to the special adviser to the President on Energy, Olu Verheijen.
About $13 billion is billed to be invested by these companies within 12 months from now.
Apart from oil majors like, Shell, TotalEnergies, ExxonMobil, Eni and Chevron, there are also notable independent energy, oil, and gas companies that are keying into the deal.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), along side other agencies met with representatives of 15 oil and gas companies operating in Nigeria where they discussed a strategic approach to advance a Presidential Initiative aimed at addressing the nation’s revenue emergency whilst contributing to stabilizing Nigeria’s economy.
These sessions, held in Lagos and Abuja, were carefully chosen after a detailed review process by NUPRC and the Office of the Special Adviser to the President on Energy.
The indigenous oil firms in the deal include Seplat, Heirs Holdings, Waltersmith, First E&P, among others.
According to Verheijen, “the results of these talks disclosed significant investment opportunities with an estimated $55.2 billion in investments projected by 2030, of which $13.5 billion is expected to be invested by these companies within 12 months from now.
“We are faced with a revenue crisis which is impacting all Nigerians. To urgently address this, President Bola Tinubu is actively seeking ways to grow revenue and forex to stabilize our economy and currency, and the oil and gas sector remains critical to our ability to do so despite current production levels falling significantly short of our potential,” Verheijen said.
During these consultations, participating operators also shared insights into the challenges and barriers affecting their investment strategies and the swift rollout of planned projects.
Collectively, they also pinpointed key strategies that will ensure the delivery of 2.1 million barrels by December 2024, positioning Nigeria well ahead of President Tinubu’s campaign promise of 2.6 million barrels by 2027.
The proposed measures are also expected to cause a 100 per cent increase in gas production by 2027, exceeding President Bola Tinubu’s campaign pledge of 20 per cent growth in that sector.