Nigeria, S’Arabia Seal Deal on Technical Exchange, Technology Transfer in Oil Sector

Emmanuel Addeh in Abuja

The Nigerian government and the Kingdom of Saudi Arabia have signed a deal to boost technical cooperation and technology transfer between both nations  in the oil and gas sector.

Describing it as a significant stride, a statement from the Ministry of Petroleum stated that the deal will help in advancing the mutual interests of the two major oil-producing countries.

The statement signed by Nneamaka Okafor, Special Adviser, Media and Communications to the Minister of State, Petroleum (Oil), Senator Heineken Lokpobiri, said the minister represented Nigeria at the event, while the Energy Minister of Saudi Arabia, Prince Abdulaziz bin Salman, signed on the country’s behalf.

The Memorandum of Understanding (MoU), Lokpobiri said, underscored the gravity of the crucial national assignment, aligning with the ministry’s overarching objective of elevating production standards and technological advancements within Nigeria’s energy sector.

“The MoU, a testament to the shared commitment to fostering cooperation, aims to establish a robust framework for collaboration between the two nations in the oil and gas sector.

“Prince Abdulaziz bin Salman, signing on behalf of the Kingdom of Saudi Arabia, expressed optimism about the far-reaching impacts the strategic alliance would have on both countries’ energy landscapes.

“The key purpose of the MoU is to promote collaboration, information exchange and technology transfer, thereby creating a conducive environment for a mutually beneficial partnership,” the statement added.

One of the primary benefits anticipated from the agreement, it stressed, is the facilitation of technological exchanges which will in turn boost Nigeria’s oil and gas output.

“With Saudi Arabia boasting advanced technologies in oil and gas exploration and production, Nigeria stands to gain significantly from this knowledge transfer.

“The exchange of technical expertise is poised to elevate the efficiency and effectiveness of Nigeria’s energy operations, ultimately contributing to increased production levels and global competitiveness.

“Moreover, the MoU is expected to attract substantial foreign direct investment into Nigeria’s oil and gas sector. Saudi Arabia, being a key player in the global energy market, holds the potential to channel significant investments into Nigeria.

“This will thereby stimulating economic growth, job creation and infrastructural development. This influx of capital will not only bolster the petroleum industry, but also have a cascading effect on various sectors of the economy, contributing to Nigeria’s overall economic prosperity,” the ministry said.

The cooperative framework outlined in the MoU, it added, extends beyond technological collaboration and financial investments.

According to the ministry, it encompasses joint research and development initiatives, knowledge-sharing platforms and capacity-building programmes.