Nigeria Requires Over $10bn Investments For Gas Development-DPR

The Department of Petroleum Resources, has said that in ensuring a sustainable level of production in the Nigeria oil and gas sector, over $10bn investments would be required for developments in deep offshore, inland and frontier basins, as well as for gas infrastructure and gas-based industrial development.

The Director, DPR, Sarki Auwalu, said in a statement that the Nigerian indigenous oil companies are making significant steps in expanding domestic refining, gas supply and gas-based industrialisation.

The Director, however emphasised the need to build credible and competent indigenous capacity in the industry that would compete favourably with international counterparts.

He added that deliberate policies that promote indigenous capacity should be continued for overall economic stability.

He said, “Part of government’s efforts in this regard is the ongoing marginal field bid round which is aimed at deepening indigenous participation in exploration and production.

“It is expected that with the imminent conclusion of the award process, the share of indigenous companies in reserves and production will improve as the fields are developed.

“The need to strengthen the Nigeria oil and gas sector is both compelling and imperative.

“And I dare say that, under the focused leadership of President Muhammadu Buhari and the Minister of State, Petroleum Resources, Chief Timipre Sylva, the key fundamentals for industry growth is being emplaced.”

Speaking on the Petroleum Industry Bill which has been transmitted to the National Assembly, he said that the law will enhance clarity in legislative, regulatory, fiscal and administrative framework.

He added, “By the same token, the regulatory institution should be structured to streamline roles, prevent duplication and promote consolidation which will engender regulatory clarity and ease of doing business.

“Further, the overall industry financial position must necessarily improve for sustainability.”

He said efforts of government had resulted in the recent closure of landmark deals and major capital projects such as the NLNG Train 7 and the Ajaokuta- Kaduna- Kano pipeline.

ENDS