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Investment requests by IOCs now in excess of $15bn

Investment requests by multinational oil firms seeking to invest in Nigeria’s oil and gas sector are currently in excess of $15bn.

This is the revelation of the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, adding that fresh plans are on to deploy technology that would track and account for every molecule of crude oil produced in Nigeria by 2019

Rolling out feats so far achieved in the past two years, deliveries of the present and key expectations for the future, Kachikwu, said new fiscal policies in the oil sector would expand government’s income by $9bn in the long term.

Explaining more on the crude oil tracking technology, he said the government was working out measures that would ensure that it monitored every molecule of crude oil and refined products.

According to the minister, “We are putting together an IT platform that will enable us to do this; we are working with the DPR (Department of Petroleum Resources) and hopefully by 2019, the issue of whether we could not account for our crude will no longer occur”.

“We are planning our marginal fields’ rounds and we are planning our inland basins rounds. It is going to be a transparent process to bring people to get us more oil. The rules are going to be out soon once they are approved by the President.

He added further that “We were able to exit the joint venture cash call. Still a bit of things to be ironed out there, but for the first time, multinationals began to have belief in their need to invest in the country. The amount of investment requests we are seeing from joint venture cash call members is today in excess of $14bn-$15bn, which is for the purpose of projects like Zabazaba, Bonga extension programmes and all that”.

“Multinationals are beginning to have confidence that this system is working. We delivered an open NNPC, a lot of work still needs to be done there.

“We are going to be rolling out our fiscal policies, which are now waiting FEC approval. Those fiscal policies will expand income in the short term over $2bn a year to the Federal Government; but on a long term, over $9bn,” Kachukwu disclosed.

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