NCDMB: Nigeria’s Oil Sector to Record $25bn Investment in Two Years

Peter Uzoho and Regina Ogwuche

Next two years promises to be bright for operators in the Nigerian oil and gas industry with an investment opportunities of $25 billion underway, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote, has said.

Addressing journalists in Lagos yesterday, Wabote revealed that within the past two years, the NCDMB had pushed investment opportunities worth about $20 billion into the Nigeria oil and gas industry, some of which, according to him, resulted to high profile projects.

He said the achievements and opportunities recorded in the sector were captured in the Compendium of Nigerian Content Opportunities in the Oil and Gas Industry, which would be shared to stakeholders at the fair to guide the strategy of investors as they make investment decisions in the sector.

“So, within the past two years, I can comfortably say that we have pushed opportunities to up to about $20 billion into the oil and gas sector, through these opportunities that we share. And I think, also in the next two years, we also look forward to another $25 billion in the oil and gas sector going by the opportunities we have identified that we want to also share,” Wabote said.

He said there had been substantial progress in the oil and gas sector, especially with the resolution of some of the cash-call challenges faced by the joint venture operators.

“Since that was resolved a lot of opportunities are springing up in all the joint venture operations that we have. I am sure, the other day, you also saw NPDC commissioning a significant project almost about $200 million, also adding value to the oil and gas industry.

“We also know that Total is also looking at their Prowel project, which will come on stream. They will also take FID on it within the next couple of months, and that in itself, is significant. Two years ago, we also shared the Train 7 opportunity by NLNG. As I speak to you, we are very optimistic that all things being equal before the end of the year, we hope that we will take FID on the Train 7 project; that, you are looking at almost $5 billion. So, things are looking up; investments are coming, they are not drying up, and I believe that this will only improve.”

Wabote who also highlighted some of the projects without high local content impact, said the SPDC had taken Final Investment Decision (FID) on Asa North Project, which he said worth $2 billion in terms of value addition.

According to him, Total will take FID on the $2 billion Ikike Project within the next couple of weeks, noting that Exxon Mobil will also take FID on the $1billion Iboe Project same period.

He added: “We also highlighted the potentials in the Bonga South West/Aparo (BSWA) deepwater project of SNEPCO. I am happy to tell you that the tenders have been issued, and you are looking at an opportunity of almost $10 billion that is coming into the country. We then highlighted the Nigerian Agip Oil Company (NAOC) Abo project, which they have taken FID on – Abo is ongoing. You are looking at about $1.5 billion. I don’t want to talk about the brand field opportunities that bring $100 million to a billion dollars that are also ongoing.”