Federal Government Urges UAE to Invest in Nigeria’s Aging Oil Pipelines

YEPS
4 Min Read

The Federal Government on Monday called on the United Arab Emirates to invest in the renewal and reconstruction of Nigeria’s aging oil pipelines, some of which are over 50 years old.

In a meeting held in Abuja, Minister of State for Petroleum (Oil), Heineken Lokpobiri, hosted a delegation from the UAE led by Ambassador Salem Al Shamsi. Lokpobiri highlighted the critical need for investment to update the oil infrastructure, emphasizing that many of the pipelines, built around the time of Nigeria’s first commercial oil discovery in the late 1950s, have outlived their lifespans.

“This country has enormous investment opportunities,” Lokpobiri stated. “Our pipelines need renewal. They have been there for over 50 years. Even if we can produce oil, we need to evacuate it to the terminals for export. This presents a significant opportunity for potential investors from the UAE to invest here and recover their money through those investments.”

IN OTHER NEWS  Enhance School Security, Urges NSCDC Chief to Officials

Lokpobiri assured that the investment models would be very attractive, explaining, “Part of what we are proposing is that if you invest, you will get your money back. As you transport the crude, you’ll recover your investment through mutually agreeable charges.”

- Advertisement -

Lokpobiri also underscored Nigeria’s substantial gas reserves, which he believes could be doubled or tripled from the current 208 trillion cubic feet with further exploration. “Nigeria is more of a gas country than even crude,” he asserted, adding that the country’s crude reserves are likely much larger than the reported 37 billion barrels.

He emphasized the government’s commitment to reducing bureaucratic hurdles that have historically delayed investments and highlighted the transformation of the NNPC into a profit-driven national oil company.

IN OTHER NEWS  FG plans to disburse youth unemployment benefits and establish a consumer credit program

Lokpobiri assured the UAE delegation that Nigeria is open for investments and committed to strengthening strategic relationships, noting the recent resolution of visa issues between the two countries. He stressed the importance of continued cooperation through OPEC and highlighted the vast investment opportunities in Nigeria’s oil and gas sector.

On his part, Ambassador Al Shamsi reaffirmed the longstanding relationship between Nigeria and the UAE and expressed his country’s willingness to address the concerns raised by Lokpobiri. “We are very serious about improving the situation,” Al Shamsi stated.

In related news, the Group Chief Executive Officer of the Nigerian National Petroleum Company, Mele Kyari, announced plans to replace the over 5,000km petroleum products pipeline network within three years. Speaking at the 2024 Society of Petroleum Engineers Oloibiri Lecture Series and Energy Forum, Kyari emphasized the cost-efficiency of pipeline transportation and outlined a Build, Operate, and Transfer (BOT) process for the pipeline replacement.

- Advertisement -

Lokpobiri also reiterated that Nigeria and the UAE are aligned on the continued exploration of oil and gas, advocating for greener and more sustainable methods rather than abandoning fossil fuels. He highlighted the importance of generating investment to finance the energy transition, particularly for African nations.

IN OTHER NEWS  FG Prohibits Money Ritual and Smoking Depictions in Nollywood Films

The meeting concluded with both parties expressing a commitment to ongoing collaboration to meet the energy needs of Nigeria and the UAE, fostering stronger economic ties and mutual benefits.

Share This Article
Avatar photo
By YEPS
Follow:
YEPS is your go-to digital news platform that satisfy the interests of it's readers.
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *