Nigeria’s oil investment to hit $20bn in 2019 – NCDMB

Despite uncertainty over the regulatory and fiscal framework guiding operations in Nigeria’s oil and gas sector, oil majors are taking bold investment decisions valued at over $20 billion, the Nigerian Content Development and Monitoring Board (NCDMB) has revealed.

Simbi Wabote, executive secretary of the NCDMB, said at a press conference  that over the next few months, International Oil Companies (IOC) through their local subsidiaries, would be taking final investment decisions (FID) on eight new projects that would impact on Nigeria’s oil reserves and production.

Wabote listed the projects, all in the Nigerian deepwater zone, to include Ikike and Preowei oil field developed by France’s Total, ExxonMobil’s Ibot project and the Abo project owned by Nigerian Agip Oil Company (NAOC).

Wabote who spoke on the upcoming Nigerian Oil and Gas Opportunity Fair (NOGOF), said the oil majors were now taking up opportunities offered by review of the decision making processes which had made procedures become easier, thereby making businesses upbeat to in-country investment opportunities.

“Today, as you are aware, SPDC (Shell Petroleum Development Company) took FID on Assa North project. Assa North project was one of those opportunities highlighted during the fair. It has a value of almost $2 billion.

“You also saw NPDC (Nigerian Petroleum Development Company) commissioning a significant project — almost about $200 million — adding value to the oil and gas industry.

“Two years ago, we also shared the Train 7 opportunity by NLNG (Nigerian Liquefied Natural Gas (NLNG). As I speak to you, we’re very optimistic all things being equal that before the end of the year we hope that we take FID on the Train 7 project and with that, we’re looking at almost $5 billion dollars.

“I don’t want to talk about the brownfield opportunities that bring $100 million to a billion dollars that are also ongoing.

“Within the past two years, I can comfortably say that we have pushed opportunities up to about $20 billion into the oil and gas sector through these opportunities that we shared,” She said