The Federal Government of Nigeria has called on the United Arab Emirates (UAE) to invest in the renovation and reconstruction of the country's aging oil pipelines, which are over 50 years old. This appeal was made by the Minister of State for Petroleum, Heineken Lokpobiri, during a meeting with a delegation from the UAE led by Ambassador Salem Al Shamsi.
Lokpobiri emphasized the need for the UAE to invest in Nigeria's oil sector, citing the enormous investment opportunities available. He noted that the country's pipelines, built around the time oil was first discovered in commercial quantities in 1956/1958, have outlived their lifespan and require urgent renewal.
The minister proposed an attractive investment model, where investors from the UAE can recover their investments by transporting crude oil through their pipelines and charging mutually agreeable fees. He also highlighted Nigeria's vast gas reserves, estimated at over 208 trillion cubic feet, and the potential for even more discoveries.
Lokpobiri expressed confidence in the country's crude oil reserves, estimated at 37 billion barrels, and emphasized the need for continued drilling campaigns to sustain momentum and make new discoveries. He assured the UAE delegation that Nigeria is open for investments and committed to deepening its strategic relationship with the UAE.
The minister also acknowledged the challenges posed by bureaucracy and expressed the government's efforts to eliminate delays and liberalize the investment process. He cited the introduction of the Petroleum Industry Act, which has transformed the NNPC into a national oil company focused on profit-making for shareholders and Nigerians.
Lokpobiri emphasized the huge investment opportunities in Nigeria's oil and gas sector, including LPG and CNG, and encouraged the UAE to leverage its membership in OPEC to work together as partners. He acknowledged Nigeria's limited foreign exchange reserves but highlighted the UAE's significant resources, which could be invested in Nigeria and recovered by investors.
Overall, the meeting signaled a renewed commitment to cooperation between Nigeria and the UAE in the oil and gas sector, with potential benefits for both nations.
