FG expects new oil projects amid $42bn deals

Minister of State for Petroleum, Timipre Sylva

The Federal Government has said it is bullish that many oil and gas projects will commence in the country, following the signing of over $42bn worth of investment agreement recently by various Nigerian entities.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, said at the ongoing 10th Practical Nigeria Content Forum organised by the Nigerian Content Development and Monitoring Board in Yenagoa, Bayelsa State.

He said, “Government expects that with the Petroleum Industry Act now in place and supported by the enabling structures to ease doing business, new Final Investment Decisions should begin to happen rapidly in the Nigerian oil and gas industry.

“With over $42bn worth of investment agreement signed by various Nigerian entities at the just concluded Intra African Trade Fair in South Africa, there is strong optimism that so many new projects would soon commence in the Nigerian oil and gas industry.”

According to him, the country needs new projects in the industry to increase its production, grow national revenues, engage the local supply chain, create more employment for Nigerians and promote national security.

Sylva said, “The Federal Government is committed to support and promote investments in gas as Nigeria’s transition fuel. This is the basis for Nigeria’s Decade of Gas Initiative, launched by President Muhammadu Buhari in March 2021.

“This initiative feeds and helps our ministry to materialise extant gas policies in our ministry like the National Gas Expansion Programme, the Gas Network Code and Flares Commercialisation Programme.”

The minister commended the NCDMB for catalysing key investments in the gas sector across the country in furtherance of Federal Government’s strategic focus in gas development and utilisation.

He said the Ministry of Petroleum would continue to provide the agency with every necessary support to deliver on these important gas projects.

“We are convinced that these gas projects, including the ongoing AKK project, would create huge opportunities for local companies in the gas value chain, as well as create thousands of jobs to reduce unemployment in Nigeria,” he added.

The Executive Secretary, NCDMB, Mr Simbi Wabote, said the PIA had further reinforced the role of the agency in the industry, adding, “We are poised to fully utilise the opportunity provided to derive maximum benefit for our country.”

He said the agency had continued to work towards achieving 70 per cent Nigerian content level in the oil and gas industry by the year 2027.

He said, “So far, we have expanded the size of funds for the Nigerian Content Intervention Fund from $200m to $400m, with $350m from NCDMB and $50m from NEXIM Bank.

“Additional products for working capital and loans for women in oil and gas were also introduced. NEXIM Bank has completed processing of the loan approval for the first set of beneficiaries of the funds under their management.”

FG expects new oil projects amid $42bn deals

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