BREAKING NEWS, Oil & Gas
IN its bid to woo investors, the Nigerian National Petroleum Corporation, NNPC, has unveiled multi-billion dollar investment opportunities in the Nigerian oil and gas sector.
Maikanti Kacalla Baru, group managing director of the corporation, unveiled these opportunities before international investors at the ongoing Offshore Technology Conference, OTC, taking place in Houston, Texas, United States on Tuesday, May 2.
In an address titled “Global Energy Dynamics: Challenges and Opportunities in the Nigerian Oil and Gas Sector”, Baru, who was represented by Saidu Mohammed, the Chief Operating Officer, Gas & Power, said the move was to emplace the NNPC on the path of profitability.
“By coming here to the OTC, we are not only looking out for potential investors, we are looking at partners that will deploy their cutting-edge technology that will enable us achieve the goals we have set up for ourselves,” he told participants at the conference.
These opportunities, according to Baru, could be divided into five distinct areas across the oil and gas value chain viz: upstream oil and gas development, gas infrastructure and power plants, refineries, downstream as well as ventures and new businesses.
He said within the upstream segment, NNPC plans to increase its oil reserve base to 40billion oil barrels reserves by 2020, adding that based on its upstream growth plan, NNPC would raise about US$13-US$16.5billion over the next five years.
Under the gas infrastructure and power plants, there are investment opportunities to the tune of $9-$11billion in the oil and gas sector, Baru told investors at the conference.
“For the refineries, our plan is to rehabilitate, and revamp our existing four (4) refineries. On successful rehabilitation and revamp, our plan is to upgrade their combined nameplate capacity from 445,000 barrels per day to 700,000 barrels per day within the next few years. We would require investments of between $5-$6billion,” he noted.
Explaining that the NNPC was mindful of the need to construct new refineries, Baru said the big picture was to transit from a net crude oil exporter to a net petroleum product exporter as more value and opportunities abound in the latter.
In the Downstream segment, there are opportunities in the construction of new crude and product pipelines, pumping station upgrades, revamp of LPG plants, construction of new LPG storage tanks, filling stations, and equipment supply.
“The provision of coastal vessels and tugboats and other ancillary support services are equally areas that would yield high return on investment. We would require investments of about $3billion in this area,” he added.
In the Ventures and New Business Segment, the Corporation said opportunities exist for establishment of pipe mills, equipment leasing, Rigs, FPSOs, and operations and maintenance services.
Others in this aspect are construction of gas storage/Compressed Natural Gas, CNG, and Liquefied Petroleum Gas, LPG, fillings as well as development of multi-specialist hospitals.
According to him, oil and gas resources will still be relevant in the global energy mix for a very long time to come as inferred from the global demand and supply forecasts.
“The Nigerian Petroleum Industry remains by far the largest & most vibrant in Sub-Saharan Africa with lots of potentials, especially in the deep water and untapped gas resources and refining. We invite you all to come and participate in this process,” Dr. Baru concluded.
— May 3, 2017 @ 18:15 GMT
Tags:
