- The IOCs will invest approximately $13 billion within 12 months from now.
- The indigenous oil firms in the deal include Seplat, Heirs Holdings, Waltersmith, and First E&P.
Major International Oil Companies (IOCs) in Nigeria are considering an investment of over $55 billion in various oil and gas activities. The IOCs plan to invest up to 2030 in a renewed interest in the country’s energy sector. According to the special adviser to the President on Energy, Olu Verheijen, the commitment follows a series of engagements with key government officials. About $13 billion is billed to be invested by these companies within 12 months from now.
Besides oil majors like Shell, TotalEnergies, ExxonMobil, Eni and Chevron, other notable independent energy, oil, and gas companies are also keying into the deal. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other agencies met with representatives of 15 oil and gas companies operating in Nigeria. During the meeting, they discussed a strategic approach to advance a Presidential Initiative to address the nation’s revenue emergency whilst contributing to stabilising Nigeria’s economy. These sessions, held in Lagos and Abuja, were carefully chosen after a detailed review process by NUPRC and the Office of the Special Adviser to the President on Energy.
The indigenous oil firms in the deal include Seplat, Heirs Holdings, Waltersmith, and First E&P, among others. Verheijen noted that the results of these talks disclosed significant investment opportunities. The investments target an estimated $55.2 billion in investments projected by 2030. Of this amount, these companies would invest $13.5 billion within 12 months from now. “We are faced with a revenue crisis which is impacting all Nigerians. To urgently address this, President Bola Tinubu is actively seeking ways to grow revenue and forex to stabilise our economy and currency. The oil and gas sector remains critical to our ability to do so despite current production levels falling significantly short of our potential,” he added.
During these consultations, participating operators also shared insights into the challenges and barriers affecting their investment strategies and the swift rollout of planned projects. They collectively identified key strategies to ensure the delivery of 2.1 million barrels by December 2024. According to the operators, this would position Nigeria well ahead of President Tinubu’s campaign promise of 2.6 million barrels by 2027. The proposed measures are also expected to cause a 100 per cent increase in gas production by 2027, exceeding President Bola Tinubu’s campaign pledge of 20 per cent growth in that sector.