The financially strained Nigerian government is urgently seeking swift investments in the oil and gas sector, particularly from major companies, which have declined in recent years due to various fiscal, legal, and social challenges, along with widespread oil theft in the Niger Delta.

President Tinubu’s primary objective, evident in these crucial industry discussions, is to achieve oil production of 2.1 million barrels per day by December 2024 and 2.6 million bpd by 2027, the latter being a commitment made during the recent presidential election. Considering that oil production in August averaged 1.18 million bpd, excluding 230,000 bpd of condensate output, this is an ambitious target.

The proposed initiatives are anticipated to result in a 100% increase in gas production by 2027, surpassing the president’s commitment to a 20% growth in that sector.

This was made known by the Special Adviser to the President on Energy, Olu Verheijen, in her goodwill message at the 2023 Annual Dinner of the Independent Petroleum Producers Group (IPPG), along with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and 15 prominent companies operating in Nigeria. These sessions, held in Lagos and Abuja, were thoughtfully selected following a thorough evaluation process by NUPRC and Verheijen’s office. Noteworthy participants in these meetings included ExxonMobil, Shell, Chevron, TotalEnergies, Eni, Seplat, Heirs Holdings, Waltersmith, and First E&P.

Commenting on these discussions, Verheijen said: “We are faced with a revenue crisis which is impacting all Nigerians. To urgently address this, President Bola Tinubu is actively seeking ways to grow revenue and foreign exchange to stabilise our economy and currency.”

She said: “The oil and gas sector remains critical to our ability to do so despite current production levels falling significantly short of our potential.”

According to Verheijen: “These strategic, high-level engagements with oil and gas producers will help fast-track bold reforms that will unlock investments required to restore and grow oil and gas production in the short, medium and long term.” She further explained that president Tinubu wants to position Nigeria “as the preferred destination in Africa for the energy sector”.

Verheijen stated, “My office has since started work on key areas of reform to spur the growth of the energy sector, which would also positively impact the livelihood of the average Nigerian and small businesses. Recently, the president approved the Import Duty Waiver aimed at increasing the utilisation and supply of gas in the domestic market. This waiver covers the importation of all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), as well as machinery, equipment and spare parts into the Nigerian market for the utilisation of Nigerian gas.”

Meanwhile, NNPC and the Nigerian Content Development & Monitoring Board (NCDMB) have entered into a memorandum of understanding with international oil companies to shorten contracting cycles to a maximum of 180 working days. This MOU aligns with the provisions outlined in the Petroleum Industry Act (PIA). Shell, ExxonMobil, Chevron, TotalEnergies, and Eni have all committed to and expressed their support for the MoU, which, if implemented, would enhance the business environment, reduce expenses, and enhance operational efficiencies.