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FG drives local, foreign investments in oil sector

By BusinessNews Staff on January 5, 2014

The Federal Government has indicated its willingness to drive indigenous and foreign investments into the country’s oil and gas sector following frameworks set up in 2013.

This, according to government sources, is targeted at ensuring that investment potential of the sector is fully tapped into, owing to the growing global competitiveness of the energy business.

In this light, the Group Managing Director, Nigerian National Petroleum Corporation, Mr. Andrew Yakubu, recently called on Nigeria’s new Ambassadors-designate to work hard towards attracting more Foreign Direct Investment into the country, especially in the nation’s oil and gas sector.

“As the nation’s number one representatives abroad, you deserve to know the activities of the NNPC so as to disseminate the right information at your various missions especially in the area of attracting Foreign Direct Investment,” the GMD said.

He added that the doors of the NNPC would always be opened so to enable the Corporation share valuable information that will boost the nation’s revenue in the entire hydrocarbon value-chain of the country.

The Federal Government, in 2013, also opened the second oil marginal fields licensing round aimed at deepening the participation of indigenous oil companies in the upstream sector of the oil and gas industry.

The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, who declared the bid round open, stated that it is designed to boost the participation of Nigerian indigenous companies in the upstream and to generally increase exploration and production activities in the oil and gas sector to the benefit of Nigerians and the Nigerian economy.

Giving details of the licensing round, Alison-Madueke stated that a total of 31 fields are on offer with sixteen of them located onshore, while the remaining fifteen were in the continental shelf.

The Minister who said the Federal Government is committed to transparency in the bid process also encouraged companies indicating interest in the assets to form consortia that would enable them leverage upon each other’s strengths.

“Over the next two weeks, the Department of Petroleum Resources will undertake a road show to different parts of the country about the program. This will be followed by a three and a half-month of competitive bidding process in line with the Federal Government’s commitment to openness and transparency in the conduct of business activities in the country,” Alison-Madueke said.

Giving an update on the last marginal fields bid round which held in 2001, the Minister disclosed that of the24 fields that were allocated to 31 indigenous oil companies in that exercise, eight were already producing while the others were at various stages of development.

Alison-Madueke noted that the marginal field operators who currently account for about one per cent of the nation’s production have also recorded huge discoveries in excess of 100 million barrels to the nation’s reserve base, adding that of the eight assets that have so far been divested by the International Oil Companiess, at least four are held by active marginal field operators, who have continued to demonstrate remarkable technical ability in operating significantly larger assets.

“In their operations, the companies have addressed corporate social responsibility as a critical element, by providing for stakeholder participation as part of their success factors,” she said.

[Punch]

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