Jerome Onoja Okojokwu-Idu

The Bayelsa State Government is offering incentives to attract investors in the gas value chain by making land acquisition easy and seamless as well as providing support on a project by project basis.
The Governor of the state, Senator Douye Diri, disclosed this at the Annual Sub-Saharan African Conference 2022 and Energy and Africa Leadership Forum, which was held in Houston, Texas United States with the theme, “Advancing Innovation and Technology in the Energy Value Chain.”
Diri who spoke on, “Advancing Innovation and Technology in the Utilisation of Abundant Gas Resources for the Promotion of Industrial Development in Bayelsa State”, said that the state is taking the necessary steps to align with its strategic development plan to develop a gas-based industrial economy by promoting its vast gas reserves for partnerships and collaboration.

Nigeria as of January has about 209 trillion cubic feet of proven gas reserves. With the changing energy landscape, gas will be a key energy resource on the back of the energy transition. Diri said that “the Nigerian domestic gas utilisation opportunities are tremendous and therefore shall require innovative technical know-how, highly skilled engineers, technicians and craftsmen to develop and sustainably drive the gamut of values associated with it.”

The history of commercial exploitation of hydrocarbons began in Bayelsa over 60 years ago. The governor said that the state has continued to be the hub of the oil and gas industry in Nigeria and accounts for over 40 per cent of the country’s proven gas reserves, making it a natural destination for all oil and gas-related businesses.
“Consequently, in inviting investors to Bayelsa State, it is my fervent hope that you will equally commit to not only generating employment and creating wealth to prosper the state in particular and Nigeria in general but also enhance the capabilities of the local talent through the creation of a pool of highly skilled and specialised personnel that will serve the local economy and can be available for export to meet the most challenging demands of the international market,” he stated.

“the Nigerian domestic gas utilisation opportunities are tremendous and therefore shall require innovative technical know-how, highly skilled engineers, technicians and craftsmen to develop and sustainably drive the gamut of values associated with it.”

In addition to the various incentives Bayelsan Government is contemplating, Diri assured prospective investors of the commitment and the willingness of his government to consider their suggestions about what they would wish the government to do to make the state an even more attractive investment destination.
Highlighting investment opportunities in the gas economy of the state, Diri said that the Bayelsan Government created the Bayelsa Oil Company Limited (BOCL) to engage in the upstream, downstream, midstream and service sectors of the oil and gas industry in Nigeria.
According to him, the company warehouses one of the critical assets of the state government in OPL 240, which is located in shallow waters offshore in Delta State — on a PSC basis. He informed that the asset value of OPL 240 is estimated at  240mbbls proven reserve,  73mbbls recoverable reserve, while the projected daily rate of production at initial startup is 10,000bbls/d. He noted that this is projected to give profitable returns to any investor that partners with the state to manage the asset.

“Consequently, in inviting investors to Bayelsa State, it is my fervent hope that you will equally commit to not only generating employment and creating wealth to prosper the state in particular and Nigeria in general but also enhance the capabilities of the local talent through the creation of a pool of highly skilled and specialised personnel that will serve the local economy and can be available for export to meet the most challenging demands of the international market,” he stated.

“Another interesting record is that Nigeria’s first sub-national initiative to utilise gas to independently provide power was executed through gas turbines from the Kolo Creek flow stations at Imiringi in Bayelsa State, which supplies 40 megawatts of electricity. This development is an early testament, demonstrating the state’s desire to utilise the available gas resources to meet its power needs. With the country rated as the largest economy in Africa and a population of over 200 million, the investment opportunities in energy to unlock the development potential of the state and the entire natural gas value chain are unprecedented. We will heartily welcome you to be part of this expansion,” the governor said.
“A landmark project that should be of attraction due to its geographical coordinates and natural depth is the Agge Deep Seaport, which is of critical importance to the economic fortunes of the state and Nigeria in general. With a natural draft of 13 metres (arguably the deepest in Nigeria) and situated within a Free Trade Zone, the location provides a unique opportunity for the oil and gas and other industries to both import into and export from Nigeria. It is envisioned that the Deep Seaport will provide a logistics base for the maritime industries and a gateway for export to the regional and international markets. We seek development partners to grow this segment.
“A further huge investment vacancy is at Brass Island, which already enjoys an Oil and Gas Free Zone status.  The Oil and Gas Free Zone Authority Act 1996 grants fiscal and other incentives opportunities for interested investors in the Oil and Gas value chain. It hosts the Brass Fertilizer pioneer Greenfield Methanol Project valued at $3.2 billion, with a production capacity of 10,000 metric tonnes per day. It is the single largest private sector investment in the Niger Delta region. Bayelsa State as the project host has collaborated with the exponents of this project from 2016 to date and issued the Certificate of Occupancy for the 595 hectares of land for the project site in 2017.  This is an indicator of the conducive environment for investment in our state, which should excite discerning investors. The project will employ a minimum of 30,000 of our youths from the very onset.”
He listed other investments opportunities to include the state’s 50-hectare Eco-Industrial Park (EIP) located at Gbarantoru within an emerging industrial axis of the $4bn Shell Petroleum Development Company (SPDC) Gbarain-Ubie Central Gas Processing Facility currently producing 1.25 Billion Standard Cubic Feet of Gas (bscf) to the Nigerian Liquified Natural Gas Terminal at Bonny in Rivers State and about 70,000 barrels of oil per day; as well as the Rungas Company Limited’s gas cylinder manufacturing company with a capacity to produce 1 million gas cylinders per annum.
“We look forward to partnering with and hosting gas processing facilities that will fill these cylinders and provide other logistics support,” Diri added

With the country rated as the largest economy in Africa and a population of over 200 million, the investment opportunities in energy to unlock the development potential of the state and the entire natural gas value chain are unprecedented.