Nigeria needs $40b for oil infrastructure
No less than $40 billion would be required to fix infrastructural problems in the oil and gas sector, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said
The Minister, who spoke in the latest bulletin of the Organisation of Petroleum Exporting Countries (OPEC), said the money would be spent on fixing the infrastructural gap in the midstream and upstream segments of the oil and gas sector, adding that with this the industry would return to optimal level.
He said of the amount, the country would spend $10 billion (N3.05 trillion) in the next three years to increase crude oil production from 2.2 million barrels per day (bpd) to three million bpd.
Kachikwu said: “Nigeria’s normal production level is about 2.2 million bpd and the government would like to raise it to three million barrels per day. Just to get the fields online and cap them will require an average of about $10 billion per year in investments over the next three to four years.”
He said international oil companies (IOCs) such as Shell and Agip had made some commitments in this regard to improve activities in the sector.
He stated that there were also some dedicated projects in the Bonga oil field, noting that Italy’s Agip planned to spend about $10 billion, while Royal Dutch Shell hoped to spend $10 to $11 billion on the field.
“We are fairly close to identifying dedicated investments upstream. Downstream is a challenge. We need to invest in our refineries. We need to do pipelines,” he added.
Source: The Nation