FG Announces $13.5bn Investment Commitments to Boost Oil Output,Targets 2.1m bpd by 2024

24 Sep FG Announces $13.5bn Investment Commitments to Boost Oil Output,Targets 2.1m bpd by 2024

The federal government yesterday announced that it had secured a $13.5 billion investment commitment from International Oil Companies (IOCs) as well as independent producers to boost the country’s crude output in the next 12 months.
The Special Adviser to the President on Energy, Mrs. Olu Verheijen, in a statement posted on the State House’s website, said the partnership was carried out alongside the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Explaining that the engagements, which began recently have now been wrapped up with 15 leading operators, Verheijen noted that the sessions where the multi-billion-dollar pledges were secured were held in Lagos and Abuja.
Nigeria has been unable to meet its Organisation of Petroleum Exporting Countries (OPEC) quota for over 36 months, prompting the group to slash the country’s allocation from over 1.8 million barrels per day to 1.742 million bpd for this year and then to 1.38 million bpd in 2024.

The situation has heavily impacted the liquidity in the foreign exchange market in Nigeria, as the country earns over 90 per cent of its FX from the export of crude oil. Nigeria blames massive oil theft and incessant asset vandalism for the challenge.
But in the latest move to halt the dwindling production, Verheijen pointed out that the conclusions were arrived at after a detailed review process by NUPRC and her office, alongside major operators like Chevron, Total, Shell, NAOC, Exxon Mobil, Seplat, Heirs Holdings, Waltersmith, First E&P, among others.
A key objective of the discussions, she said, was to advance a presidential initiative aimed at addressing the nation’s revenue emergency while contributing to stabilising Nigeria’s economy.

“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.
“During these consultations, participating operators 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 per day by December 2024, positioning Nigeria well ahead of President Tinubu’s campaign promise of the 2.6 million barrels by 2027,” Verheijen stated.