Nigeria Seeks UAE Investment in Oil & Gas Pipeline Projects
FG requests that the UAE fund Nigeria's pipeline infrastructure for gas and oil
Nigeria's oil and gas pipeline infrastructure needs investment from the United Arab Emirates (UAE), according to Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil).
In an interview on Monday, May 20, Lokpobiri stated that the purpose of the visit was to promote increased collaboration and reciprocal advantages in the energy industry with Salem Al Shamsi, the UAE Ambassador to Nigeria, and his group.
According to Lokpobiri, Nigeria has become a desirable destination for investors due to the Petroleum Industry Act (PIA), which guarantees a profitable and secure business environment.
Nigeria presents substantial investment potential, he underlined, saying, “Our pipelines need renewal. The pipelines have been there for over 50 years. Nigeria found oil in commercial quantity in 1956/58. From then till now, it's almost 70 years and most of those pipelines were built around that time, so they have already outlived their lifespan,” he said.
“Even if you have the capacity to produce, you need to evacuate to the terminals where you could export.
“So, it's an opportunity we are actually looking up to for potential investors from the UAE to come and invest and recover their money through those investments.”
Nigeria needs to be producing more than 37 billion barrels of crude oil, according to Lokpobiri, who also noted that the current government has placed a strong emphasis on the necessity of starting drilling operations again in order to enable new discoveries.
The minister also emphasized Nigeria's determination to raise its oil output. Although Nigeria is not rushing to move away from oil, he pointed out that the nation is actively trying to increase its production capacity.
The minister highlighted the benefits of the Petroleum Industry Act (PIA), noting that it has transformed the oil and gas sector and provides a robust legal framework that ensures attractive returns on investments, fostering a conducive business environment.
Additionally, Lokpobiri expressed gratitude for the recent bilateral agreement that reinstated the issuing of visas for Nigerian nationals, crediting President Bola Tinubu's tireless work for making this necessary service possible.
He underlined that, considering the volume of travel between Nigeria and the UAE, the reintroduction of visa services is important.
Al Shamsi stated that technical teams from the ministry and the UAE Embassy would need to work together to identify possible areas of cooperation and partnership between the two countries.
He also mentioned how much more cooperation between the two nations would be beneficial.
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