In a significant move aimed at revitalizing Nigeria’s aging oil infrastructure and fostering closer economic ties, the Federal Government of Nigeria has extended an invitation to the United Arab Emirates (UAE) to invest in the renewal and reconstruction of the nation’s oil pipelines.
These pipelines, exceeding 50 years old, have reached the end of their operational lifespan, necessitating urgent attention and investment to maintain Nigeria’s oil production capabilities. This initiative underscores the government’s commitment to modernizing the country’s oil industry and attracting foreign direct investment (FDI).
The request was made during a meeting in Abuja, where Nigeria’s Minister of State for Petroleum (Oil), Heineken Lokpobiri, hosted a delegation led by the UAE Ambassador to Nigeria, Salem Al Shamsi.
“This country has enormous investment opportunities; our pipelines need renewal. They have been there for over 50 years since Nigeria found oil in commercial quantities in 1956/1958. It is an opportunity that we are looking up to potential investors from the UAE to come and invest here and recover their money through those investments.”
Heineken Lokpobiri, Minister of State for Petroleum (Oil)
Mr. Lokpobiri also discussed Nigeria’s vast gas reserves, noting that the country’s 208 trillion cubic feet of gas, recorded over 20 years ago, could be significantly higher today. He asserted that Nigeria is more of a gas country than an oil country, with crude reserves believed to be much higher than the currently stated 37 billion barrels.
The minister proposed a mutually beneficial investment model to the UAE delegation. “If you come and invest, you will get your money. As you transport the crude, you’ll take it. Proportionately, you’ll recover your investments by placing mutually agreeable charges for any barrel of crude transported through your pipes,” he explained.
Mr. Lokpobiri underscored the government’s commitment to resuming drilling campaigns to ensure more discoveries and maintain momentum.
The Minister further stressed the importance of eliminating bureaucratic hurdles that have historically delayed investments, pointing to the recent changes brought by the Petroleum Industry Act, which reformed the Nigerian National Petroleum Company (NNPC) to operate as a profit-driven national oil company.
Mr. Lokpobiri assured the UAE delegation of Nigeria’s openness to investments and commitment to strengthening strategic relationships with the UAE. He expressed satisfaction that the visa issues between the two countries had been addressed, facilitating smoother collaboration.
Highlighting the synergy between Nigeria and the UAE in oil exploration, Mr. Lokpobiri remarked, “We are on the same page concerning oil exploration. We can explore oil and gas in a greener, cleaner, and more sustainable way. Abandoning it is not a solution.”
“The new COP chairman is from the UAE, which plays an important role in climate issues. Nigeria is committed to the Paris Agreement, but we must also emphasize the necessity of fossil fuels for Africa’s development. We aim to build strategic partnerships to finance our transition to greener energy.”
Ambassador Al Shamsi echoed Lokpobiri’s sentiments, assuring that the UAE values its longstanding relationship with Nigeria. “The relationship between our countries has lasted for more than 50 years. We are serious about addressing the concerns raised and improving the situation,” Ambassador Al Shamsi stated.
In March, NNPC Group Chief Executive Officer Mele Kyari announced plans to replace the company’s 5,000 km petroleum products pipeline network within three years.
Speaking at the Society of Petroleum Engineers Oloibiri Lecture Series and Energy Forum, Kyari emphasized the efficiency of pipelines for transporting petroleum products and outlined a Build, Operate, and Transfer (BOT) process to upgrade the network.
As Nigeria continues to navigate its energy future, partnerships with international investors like the UAE will be crucial in modernizing its oil infrastructure and sustaining economic growth.
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