Despite uncertainty over the regulatory and fiscal framework guiding operations in Nigeria’s oil and gas sector, oil majors are taking bold investment decisions valued at over $20 billion, the Nigerian Content Development and Monitoring Board (NCDMB) has revealed.
Wabote listed the projects, all in the Nigerian deepwater zone, to include Ikike and Preowei oil field developed by France’s Total, ExxonMobil’s Ibot project and the Abo project owned by Nigerian Agip Oil Company (NAOC).
Wabote who spoke on the upcoming Nigerian Oil and Gas Opportunity Fair (NOGOF), said the oil majors were now taking up opportunities offered by review of the decision making processes which had made procedures become easier, thereby making businesses upbeat to in-country investment opportunities.
“Today, as you are aware, SPDC (Shell Petroleum Development Company) took FID on Assa North project. Assa North project was one of those opportunities highlighted during the fair. It has a value of almost $2 billion.
“You also saw NPDC (Nigerian Petroleum Development Company) commissioning a significant project — almost about $200 million — adding value to the oil and gas industry.
“Two years ago, we also shared the Train 7 opportunity by NLNG (Nigerian Liquefied Natural Gas (NLNG). As I speak to you, we’re very optimistic all things being equal that before the end of the year we hope that we take FID on the Train 7 project and with that, we’re looking at almost $5 billion dollars.
“I don’t want to talk about the brownfield opportunities that bring $100 million to a billion dollars that are also ongoing.
“Within the past two years, I can comfortably say that we have pushed opportunities up to about $20 billion into the oil and gas sector through these opportunities that we shared.”
‘Bright future’ for oil investments
Making reference to a resolution of one of the major challenges that stunted growth in the industry, the NCDMB executive secretary projected that oil and gas investments will double in the next two years.
“There have been substantial progress and things are looking up especially with the resolution of some of the cash call challenges that the joint venture operators where facing in the past which in itself stagnated projects and investments in the oil and gas sector,” he said.
“Since that was resolved, a lot of opportunities are springing up in all the joint venture operations that we have.
“So things are looking up, investments are coming, they’re not drying up and I believe that this will only improve.
“In the next two years we also look forward to another $25 billion in the oil and gas sector going by the opportunities that we have identified and want to also share.”