Senator Heineken Lokpobiri, Minister of State for (Oil)
…NIES signifies importance of connecting global investors to opportunities within Africa’s vast energy landscape.
…Nigeria meets OPEC quota and currently producing approximately 1.8 million bpd.
-Felix Douglas
“This gathering is not just another conference but a powerful declaration of our commitment to leveraging Africa’s enormous energy potential to meet global energy demands while driving sustainable growth across the continent.”
These were the words of Senator Heineken Lokpobiri, Minister of State, Petroleum Resources (Oil), at the opening ceremony of Nigerian International Energy Summit (NIES).
Lokpobiri stated that the theme of this year’s summit, “Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential,” proves the pivotal role that Africa, and indeed Nigeria, plays in shaping the future of global energy. The theme also highlights critical need to bridge geographical, economic, and technological gaps to unlock Africa’s energy potential.
The Minister said NIES signifies the importance of connecting global investors to opportunities within Africa’s vast energy landscape. This theme is timely, as the world faces an urgent need to diversify energy sources, ensure energy security and foster collaboration in meeting global demand.
For Nigeria, the summit represents an opportunity to demonstrate leadership in driving energy solutions that benefit the continent and contribute to the stability of the global energy market.
“As the largest oil producer in Africa and a key player in the global energy market, Nigeria has remained unwavering in its commitment to energy development. Over the past two years, the oil industry in Nigeria has undergone significant transformation marked by historic milestones and progressive reforms aimed at ensuring energy security, enhancing domestic refining capacity, attracting investments, and optimising revenue generation.”
Lokpobiri explained that Nigeria has witnessed an increase in oil production of which for the first time in years, the country met OPEC quota, and “if you add condensates, we are currently producing approximately 1.8 million barrels per day. While this marks significant progress from where we began, the efforts of this administration recognise that we are still far from where we aspire to be.”
The country has also witnessed successful granting of ministerial consent for several significant acquisitions of international oil company (IOC) assets by indigenous companies.
According to Lokpobiri, Oando Petroleum and Natural Gas Company Limited secured approval to acquire a full equity stake in Nigerian Agip Oil Company (NAOC) from Italy’s ENI. Chappal Energies, through its project vehicle Odinmim, obtained consent to acquire Equinor Nigeria’s assets, including an interest in OML 128 and a stake in the Agbami Oil Field operated by Chevron.
Additionally, Seplat Energy received ministerial approval and finalized its acquisition of Mobil Producing Nigeria Unlimited (MPNU), a subsidiary of ExxonMobil.
“All these transactions had faced significant setbacks before our administration. However, under the decisive leadership of President Bola Ahmed Tinubu, we have successfully completed them, thereby expanding the footprint of indigenous players in our oil and gas sector. So far, their increasing production levels are already signalling a promising future. These approvals and acquisitions signify a strategic shift, with indigenous companies increasingly taking over assets from IOCs to enhance local participation and boost production in Nigeria’s oil and gas industry.”
Some major investments have been made by operators in the petroleum sector. One notable example is the final investment decision by Shell Nigeria Limited to invest 5 Billion Dollars in Bonga North, the Minister added.
Lokpobiri stated further that Africa’s unleveraged oil and gas reserves are ripe for exploration. In Nigeria, significant strides have been made to attract investment in exploration and production.
The country has begun the process of another bid round to redistribute fallow fields. However, the era of holding onto wells without going to work is over. “We are enforcing the drill or drop rule stipulated in the Petroleum Industry Act (PIA).
The investment-friendly policies of President Tinubu executive order has reduced contracting cycles, implemented sustainable practices that promote regulatory transparency and improved investors’ confidence, provided better fiscals and other incentives that has made Nigerian petroleum industry, leading investment destination in Africa, the Minister said.
Lokpobiri noted that the administration has prioritised critical infrastructure projects to enhance crude oil transportation, reduce bottlenecks, and increase evacuation capacity. Similarly, collaborative efforts have been made to address pipeline security issues, ensuring that crude oil theft and vandalism are significantly reduced.
These efforts have already yielded positive results, with production levels rising steadily. The country’s ambitious target is to increase production to 3 million barrels per day before the end of 2025, thus ensuring greater revenue generation and a more secure energy sector.
The Minister emphasised on Africa’s reliance on fuel imports which underlines urgent need for refining capacity. Hence Nigeria has completely deregulated the downstream sector. “The rehabilitation of our state-owned refineries and the operationalisation of private-owned refineries, modular refineries, is our resolve to strengthen our downstream capabilities and meet Nigeria’s domestic demand while exporting refined products to global markets.”
This addresses fuel scarcity, creates thousands of jobs, and stimulates local industries, making Nigeria a refining hub for Africa.
Lokpobiri stated further that deliberate engagement has been embarked on with host communities in line with the PIA, which provides for host communities’ initiatives. Industry players have better relations with their host communities. Efforts are being targeted to address specific concerns of the host communities, as the sustainability of these communities is as important as the production of oil and gas.
He disclosed that the Nigerian Content Development and Monitoring Board (NCDMB) has launched initiatives that ensures investments translate into jobs, skills transfer, and economic empowerment.
Lokpobiri spoke on the establishment of African Energy Bank. The African Energy Bank championed through the partnership of African Petroleum Producers Organization (APPO) and the African Export-Import Bank (Afreximbank) will enable African nations to set their agenda for energy development, ensuring that the continent’s resources are used to benefit its people.
The energy market in Africa is vast and sufficient to cater for energy needs. Therefore, the bank will position the continent to unlock its full energy potential, strengthen regional integration by pooling resources and expertise, attract global investors by providing clarity and stability in financing and operate as a pan-African institution that reflects the collective energy aspirations of the continent.
Comment here