NIES Provides Platform for Collaboration, Strategic Partnerships for Industry Stakeholders – Lokpobiri
The Nigerian International Energy Summit (NIES) has once again proven to be a vital platform for collaboration and strategic partnerships among industry stakeholders, according to Senator Heineken Lokpobiri, Minister of State, Petroleum Resources (Oil). The Minister made this assertion during the opening ceremony of the summit, emphasizing the importance of connecting global investors to opportunities within Africa’s vast energy landscape.
Highlighting the theme of this year’s summit, “Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential,” Lokpobiri noted that the summit underscores Africa’s pivotal role in shaping the future of global energy. He stressed the need to bridge geographical, economic, and technological gaps to unlock the continent’s energy potential.
“This gathering is not just another conference but a powerful declaration of our commitment to leveraging Africa’s enormous energy potential to meet global energy demands while driving sustainable growth across the continent,” Lokpobiri stated.
Nigeria’s Rising Oil Production
The Minister disclosed that Nigeria has made significant progress in oil production, meeting its OPEC quota for the first time in years. He revealed that the country is currently producing approximately 1.8 million barrels per day (bpd) including condensates, marking a substantial improvement.
While acknowledging that the country is still far from its desired production target, Lokpobiri credited the success to the transformative policies of the current administration under President Bola Ahmed Tinubu. He highlighted the government’s efforts in granting ministerial consents for acquisitions of international oil company (IOC) assets by indigenous companies, such as Oando Petroleum’s acquisition of Nigerian Agip Oil Company (NAOC) and Seplat Energy’s acquisition of Mobil Producing Nigeria Unlimited (MPNU).
“These approvals and acquisitions signify a strategic shift, with indigenous companies increasingly taking over assets from IOCs to enhance local participation and boost production in Nigeria’s oil and gas industry,” he said.
Major Investments and Exploration Initiatives
Lokpobiri also announced significant investments in the sector, including Shell Nigeria Limited’s $5 billion investment in the Bonga North project. He reiterated the government’s commitment to enforcing the “drill or drop” rule outlined in the Petroleum Industry Act (PIA) to ensure that oil fields are actively explored.
The Minister pointed out that the administration’s investment-friendly policies have reduced contracting cycles, promoted regulatory transparency, and improved investor confidence, positioning Nigeria as a leading investment destination in Africa.
Refining Capacity and Infrastructure Development
Recognizing Africa’s reliance on fuel imports, Lokpobiri disclosed that Nigeria has completely deregulated the downstream sector and is rehabilitating state-owned refineries. The operationalization of private and modular refineries is aimed at strengthening domestic refining capacity, creating jobs, and transforming Nigeria into a refining hub for Africa.
Additionally, the government has prioritized infrastructure projects to enhance crude oil transportation and address pipeline security issues, significantly reducing crude oil theft and vandalism.
Local Content Development and Host Community Engagement
The Minister emphasized the importance of host community engagement in line with the PIA, stating that industry players are now fostering better relations with their host communities. The Nigerian Content Development and Monitoring Board (NCDMB) has also launched initiatives to ensure investments translate into jobs, skills transfer, and economic empowerment.
African Energy Bank Initiative
Lokpobiri commended the establishment of the African Energy Bank through the partnership of the African Petroleum Producers Organization (APPO) and the African Export-Import Bank (Afreximbank). The bank aims to finance energy projects across the continent, unlocking Africa’s full energy potential and attracting global investors.
The summit’s discussions and strategic collaborations are expected to position Nigeria and Africa at the forefront of the global energy market, driving sustainable growth and development across the continent.
