Oil sector attracted $16.6bln investments under Tinubu administration – Lokpobiri

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has announced that about $16.6 billion investments have been committed to Nigeria’s oil and gas sector in the past year.

Lokpobiri stated this on Thursday, while highlighting his ministry’s achievements at the ongoing ministerial sectoral updates in Abuja.

He said the main objectives of his ministry are to create an environment where investments can thrive.

“For over a decade, the non-passage of the Petroleum Industry Act and inconsistent policies had driven investments away.

“Today, I am pleased to announce that our efforts have rekindled investor confidence in the sector.

“Notable examples include investments committed to the tune of $5bn and $10bn in deepwater offshore assets and a $1.6bn investment commitment in oil and gas asset acquisition.

“The very high global interest is noted in the ongoing bid round of assets coming online, arising from the recent roadshow activities in the United States and Europe,” the minister said.

Lokpobiri said that Nigeria has witnessed increased crude oil production since Tinubu assumed office.

He said: “Our foremost achievement is the significant increase in production. 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 conflict among stakeholders.”

On steps taken to increase crude oil production, Lokpobiri said efforts were made towards revamping redundant oil assets to active status.

He also said there were ongoing discussions with international oil companies and Independent Petroleum Producers Group members to resolve industry disputes about increasing production.

“Resolutions of internal joint venture contracts feud between joint venture partners on critical production fields.”

“Engaging local communities with critical assets running through them to protect the assets, all in a bid to decrease oil theft across the country.

“Consolidating existing security frameworks with private security firms and government security agencies for pipeline surveillance led to a sharp decline in crude oil theft and thus increased production for export.”

The minister further noted that during this period, “we also experienced the coming on stream of OMLs 13 (Sterling Exploration) and 85 (First E&P), with the respective assets reaching first oil in the development of their licenses.”

According to Lokpobiri, these assets should produce an average of 20,000 and 40,000 barrels per day, respectively.

“This achievement is another testament to the commitment of this administration to optimise production from the nation’s oil and gas assets.”

He said one of the greatest achievements of the Ministry of Petroleum was sustaining peace in the Niger Delta region, adding that without sustained peace in the region, oil and gas companies cannot operate.