Nigeria is maximizing the development, exploitation and monetization of its 37 billion barrels of crude and 200 trillion cubic feet of natural gas resources to ensure energy security and socioeconomic development. As a result, the country is filled with vast investment and partnership opportunities across the entire energy value chain.
The African Energy Week (AEW) conference provided a platform for top industry executives to promote the energy investment prospects during the Invest in Nigeria Energies spotlight.
Sponsored by Platform Petroleum Limited, the session was moderated by Mansur Mohammed, Head of West Africa Upstream Content, sub-Saharan Africa Oil and Gas, Wood Mackenzie.
Commenting on why Nigeria is an appealing energy investment destination, Anim Osadebe John, Managing Director Platform Petroleum Limited, said “Nigeria has a lot of proven natural resources which remain untapped despite the country exploiting these resources for the past six decades. We have a growing population which makes the country a huge market to invest in.”
John added that Nigeria’s access to free markets such as Ghana, the Ivory Coast and other international markets guarantees investors heavy profits.
On best practices to maximize existing opportunities while creating new ones, Anthony Ellis, Commercial Director, Century Group said there is a need to develop new infrastructure and modernize existing assets. Ellis highlighted the importance of collaboration across the entire value chain. He said “capacity building needs to be prioritized by the both the government and investors coming into the country.”
Ama Ikuru, General Manager, Capacity Building Division, NCDMB noted that by boosting focus on local content development, Nigeria is unlocking avenues for best energy products and services and for new investments to flock in.
Bayo Adebiyi, Managing Director, Levene Energy Group said for Nigeria to attract new investments, players need to invest in the development of the country’s entire resources including oil, gas and solar for energy mix diversification.
“That is why we are investing in gas, energy decarbonization and across the midstream sector to ensure energy is delivered to consumers and that investors secure return on capital,” he said.
The panel also explored the impact of policies such as the Petroleum Industry Act (PIA) in creating investment opportunities.
Ope Osinubi, Senior Associate at Clifford Chance, said the PIA is a step in the right direction, adding that the policy has “given clarity to aspiring investors and guaranteeing stability for existing players. Great start, but more needs to be done.”
Richard Kennedy, Chairman and Managing Director, Chevron Nigeria Limited, noted that Nigeria has a lot of potential with deepwater resources yet to be exploited. “For oil and gas investments to grow and Nigeria to achieve market growth aspirations, deepwater discoveries will play a crucial role. There are a lot of discoveries, we just need the fiscal terms to be improved to unlock the potential,” he said.
Regarding additional changes which the Nigerian government need to apply to the PIA to enhance the law’s effectiveness in driving energy investments, Adebiyi stated that the policy needs to be leveraged to create separate regulators for the downstream and midstream sector.
Organized by the African Energy Chamber, #AEW2023 takes place this week in Cape Town under a mandate to make energy poverty history by 2030. Keep following www.AECWeek.com for more exciting information and updates about Africa’s premier energy event.
Distributed by APO Group on behalf of African Energy Chamber.
