The Minister of State for Petroleum Resources, Heineken Lokpobiri has pointed out that the majority of Nigeria’s oil Pipeline Infrastructure was built approximately 70 years ago when the country just discovered oil. He stated that these facilities have surpassed their intended lifetimes. Lokpobiri who mentioned this when he received Mr. Salem Al Shamsi, the Ambassador of the United Arab Emirates (UAE) and his delegates in his office in Abuja, emphasized the importance of attracting investments in the oil and gas sector for enhancing infrastructural development in Nigeria.
During the visit, he highlighted the goal of strengthening ties between Nigeria and the UAE to foster greater cooperation and benefits for both countries in the energy field. He emphasized the positive impact of the Petroleum Industry Act (PIA) in providing a robust legal framework that guarantees profitable investments and has brought significant changes to the oil and gas sector. Lokpobiri noted that the PIA creates a stable and profitable Investment atmosphere, making Nigeria an attractive choice for Investors. We are dedicated to increasing our oil production in Nigeria, he added.
Priority now is to attract more investments in the sector.
Nigeria is reaching out to UAE investors, encouraging them to consider Nigeria as a top choice for investment. With a hospitable business environment and extensive crude reserves, there is great potential for growth. The priority now is to attract more investments in order to secure the necessary funds for our economic transition. He reiterated that the majority of the pipelines were constructed during the period when Nigeria discovered oil in significant quantities in 1956/58, making them obsolete due to surpassing their intended lifespan.
Pipelines and its related infrastructure are essential components of the industry, which serve as crucial routes for moving hydrocarbons from production sites to different locations like storage facilities, distribution centres, and Export terminals. These networks are key in providing energy to homes, businesses, and factories, as well as playing a significant part in boosting foreign currency earnings for countries that produce these resources. Investing in pipeline assets demands a significant amount of capital as a result of the expensive nature of engineering, building, upkeep, and monitoring.
Continued collaboration beneficial for both countries.
He mentioned that the country is eagerly anticipating potential investors from the UAE to not only invest but also make profits from these investments. In contrast, Al Shamsi shared his positive outlook on Nigeria’s energy industry and praised the initiatives to create a welcoming environment for investment. He suggested that a meeting should be arranged between the technical teams of the Ministry and the UAE Embassy to explore opportunities for collaboration. Highlighting the significance of partnership exploration between the two nations, Al Shamsi reiterated that continued collaboration would be mutually beneficial for both countries.
Despite its status as a top oil producer, Nigeria faces challenges in meeting its Organization of the Petroleum Exporting Countries (OPEC) quota due to various factors like Oil Theft, lack of investment, and inadequate infrastructure in the industry. Lokpobiri recently linked the lower crude oil output in the first quarter to problems with the Trans-Niger pipeline and maintenance work carried out by certain oil firms. President Bola Tinubu has recently approved a series of executive orders aimed at increasing investments and enhancing efficiency in the oil industry, which has experienced substantial disinvestment by International Oil Companies (IOCs) in recent years.
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In addition to the fact that the majority of the pipelines have outlived their lifespan, they are being plagued by incidents of vandalism and theft. Nigeria’s existing oil and gas pipeline network includes the Azuzuama-Tebidaba Oil Pipeline linking Azuzuama in Southern Ijaw, Bayelsa State to Tebidaba in Bayelsa state. The Bonny-Port Harcourt Refinery Pipeline travels from Bonny to Port Harcourt Refinery in Rivers State. Another pipeline, the Tebidaba-Brass Oil Pipeline, connects Tebidaba to Brass in Bayelsa state. Additionally, the Escravos-Warri-Kaduna Pipeline links Escravos port to oil refineries in Warri and Kaduna.
