Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, Wednesday, disclosed that the federal is seeking investors, both indigenous and foreign, to revamp dilapidated infrastructure in Nigeria’s oil and gas industry.
Kachikwu, during a Podcast on ‘BigWin 7: International Energy Relations and Coordination,’ also noted that the government’s focus was on investors coming in with equity financing, adding that the investors would be expected to develop a business model that creates sense for the country. This he explained, necessitated his strategic visits to International Oil Companies, IOC, with the aim of galvanizing support and mobilizing funds for the Nigerian petroleum industry.
He said, “I began strategic visits to the IOCs and therefore the reason was simple: If we do all we would like , in terms of the policy drives, in terms of the necessity to extend production, in terms of the necessity to extend infrastructure; but an outsized amount of these funds comes from abroad. “We visited all of them in their headquarters, held meetings and aligned them to tons of the initiatives we've . Initiatives in terms of gas expansion; initiative in terms of petroleum production stabilization; in terms of a replacement funding mechanism to affect the cash call problems that we had and initiative with local content drive.”
Kachikwu noted that these travels and one-on-ones helped placed Nigeria on the investment table of most chief executive officers globally, adding that when investments are being considered, Nigeria was one among the countries where the chief executive could say that they had spoken to the minister and are willing to supply the much-needed support. He said, “With of these , what can we neutralize terms of international collaborations? quite bit more. we'd like to urge into the financing corridors and be ready to find the funding to develop our infrastructure. As we move from a public sector driven oil sector model, private sector financing is vital .
“We got to be ready to find investors, who on the idea of equity investments can are available and massively change a number of the dilapidated infrastructure that we see here and make a business model that creates sense for this country. we'll wish to see production go up, at cost that creates tons of sense. we'll wish to hold conversations with tons of individuals and be ready to check out the assembly Sharing Contract, PSC, terms and obtain the absolute best value for this country.”
Kachikwu added that the federal reassessed its membership of the Gas Exporting Countries Forum, GECF, which enabled it to align a number of Nigeria’s gas policies, allowing it to bring out a number of the international best standards and to start to draw in very solid investment into this sector. “One of the fallouts of this is often the choice of the Nigerian LNG Limited now to require it 7th train and thus , increase substantially, the gas production in Nigeria; move Nigeria to about the second or third largest gas exporter within the world. that's a considerable move and it's an enormous amount of investment and large amount of investors’ confidence during this country,” he noted.
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