Attracting Energy Investment into Nigeria

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With over 36 billion barrels of oil and 200 trillion cubic feet of natural gas, Nigeria has proven to be one of the largest energy sectors in Africa, attracting significant levels of investment and preventing project development across the entire energy value chain. However, with the tightening of global capital expenditures due to the covid19 epidemic trends and international financial trends are shifting from fossil fuels to renewable resources, African hydrocarbon players like Nigeria have found themselves competing for investments.

Speech during Nigeria’s Spotlight Session at African Energy Week (AEW) 2021, Nigerian key players discussed how the country has positioned itself as an attractive investment destination in 2021 and beyond.

Panelists included Dr. Adapo Odulaja, Governor Ofek For Nigeria, and SA-IER, Nigeria Oil Resources Office; Akinwole Omoboriowo II, CEO, Genesis energy; Cola Karim, CEO and CEO, Shoreline Energy International; O’Connell Williams, CEO, QSL-GP; Heine Melkevik, former CEO of Aquinor Nigeria and currently CEO of Business Development, Alta Trading UK Limited; And Lowell Musa, Energy Analyst at Nigeria National Petroleum Corporation.

Through full sector reorganization, and by leveraging advanced legislation and national energy policies to accelerate investment aftercovid-19, Nigeria has a good return on investment. In particular, through the passage of the Oil Industry Bill (start) On July 1, 2021, Nigeria has taken significant steps to increase oil and gas production while improving the attractiveness of the international investment sector. Which includes 16 Nigerian oil laws outlining the framework for oil activities, start Ensures an environment enables investors backed by a transparent and strengthened regulatory framework. At a time when the global energy sector is particularly competitive for foreign capital, the demise of the start Used to elevate Nigeria as an energy leader on the world stage.

“The reality is that Nigeria and Africa need more investment in oil and gas. The transition is good because you will invest in more renewable energy, but in order to industrialize you have to invest in oil and gas. It is a gradual and repetitive process. What will happen now is that “You have to take some risk, because it’s a long-term game. The opportunities in Nigeria, from upstream to midstream downstream are too great to ignore,” Malkvik stated.

In the meantime, with the enactment of the Oil Industry Act (PIA), Nigeria has carried out a complete overhaul of the administrative, regulatory and fiscal regime in the energy sector, while rebuilding key oil institutions in order to streamline processes and drive the expansion of the country’s oil and gas industry. As the country faces challenges of declining oil production from mature fields, coupled with the reduced climate of capital spending it has brought covid-19 Plague, e PIA Aims to increase the attractiveness of the foreign investment sector, while ensuring a market-driven regulatory environment that will accelerate developments in the country’s industry.

“Oil and gas are 90% of Nigeria’s foreign exchange rate. When you talk about rating and importance regarding the Government of Nigeria, it is the industry. Now with the PIA, The world knows it’s open to business. “What we have seen is that the level of involvement is stronger and the value proposition is becoming clearer in the markets,” Karim said.

“It’s not that PIA There will be a Gamechanger, it’s already a Gamechanger and the game is already changing. In the coming weeks everyone will see it. “A lot of investors and people who want to invest in the industry already look critical and are more interested in it,” Odulaja stated.

“God PIA Demonstrated a clear regulatory framework. For any interested applicant, if you apply for a license, e PIA Provides clear requirements and a time frame in which you must get an answer. Immediately after the transition e PIA, An application has been placed. In the PIA There was a section to combine NNPC Within 6 months and it is done within a month. This is a journey. It is a transitional journey and the government is focused, “Musa stated.

With a regulatory environment that emphasizes stability and transparency, the country is expected to see an influx of foreign capital and the participation of international companies. In addition to driving local industry growth, e start and PIA Both set a remarkably high standard for other resource-intensive countries looking to expand their energy sectors and attract investment.

In addition to modern regulatory frameworks, Nigeria has turned to national energy programs to accelerate development across the country. It should be noted that during the Gas Decade Initiative – a national strategy aimed at placing gas at the forefront of the country’s energy agenda – Nigeria is making significant progress to stimulate investment and spur development. The Gas Decade initiative was launched in conjunction with the national gas expansion program in the country, according to which large-scale projects have been developed across the country. Projects including $ 2.8 billion, 614 km Ajaokuta-Kaduna-Kano (AKK) A pipeline connecting the eastern, western and northern regions of the country, as well as the $ 10 billion construction in Nigeria LNG Train 7 was all driven by the country’s gas policy.

“We have made huge progress. Statistics show that we make less than 10% flares, so we are very successful. Before the PIA We already had a policy to reduce flare-ups. Obviously, we can not completely reduce flares except under PIA There is a clear direction and policy, “Williams said.

“Investing in any country is a serious effort. The law exists now, but it is a work in progress. My encouragement is that the law has passed, there is enough capital in the country. There are many hot spots and there are more opportunities than problems. The government has created this wonderful environment for Nigerians to thrive in energy space. “We continue to emphasize that gas is good, gas will allow Africa to recover. We need to think about our grandchildren and make plans for them,” Omoboriowo II stated.

Distributed by APO Group on behalf of Energy Capital & Power.

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