Naija don rise to top three for deepwater Oil Projects

President Bola Tinubu government don talk say Naija deepwater oil projects dey give beta returns now, wey don carry di country from di lowest quartile among 13 countries wey dem index to di top three position.

Di Special Adviser to di President on Energy, Olu Verheijen, for im keynote address on Friday for one Executive Session wey Energy Institute and di National Association of Petroleum Explorationists (NAPE) organize.

Highlight say Naija don change from no get fiscal framework for deepwater gas to don establish one for di first time for im history.

A copy of di address wey dem give newsmen for Abuja show say Verheijen talk say dis achievements come from plenty reforms wey happen for di oil and gas sector wey President Bola Tinubu’s administration carry out, wey aim to make am beta for business and help dem operate well.

According to am, di reforms sabi wetin dey hold dem back and focus on real projects wey dey inside di investment pipeline.

“In April dis year, dem don reach FID for di Ubeta Non-Associated Gas project, wey be half-a-billion dollar project.”

“Di Ubeta field dem discover am for 1965 and e don finally open to bring beta life for plenty Naija pipo and businesses,” she talk.

Verheijen also talk say Naija dey ready to collect 90 billion dollars wey dey available for worldwide deepwater projects by IOCs wey don dey operate for di country.”

Access 20 percent of dis go plenty enough to bring five major deepwater projects come on-stream, unlock 1.3 billion barrels of oil equivalent (boe).

“We dey prepare for our first FID for greenfield deepwater development since di last one (Egina) for 2013.”

“Going into 2025, we expect di investment momentum go quicken, show say President Tinubu’s energy reform agenda na truly revolutionary. Our challenges dey addressable, and fixable.”

“All dis new investment go get big impact for Naijan economy.”

“Di foreign exchange wey go enter go help with exchange rate management and macroeconomic stability.”

“Local economy go benefit from di increase spending for construction and hiring; skill-building and technology transfer go happen.”

“Importantly, as dem dey develop di industry infrastructure, each new investment go make sure say di next projects fit happen for lower cost and with di guarantee of beta returns dey go create one virtuous cycle of new investments,” she add.

Di Special Adviser talk say di time wey dem choose for di session dey very important as Naija dey try to bring more energy investment to boost im economic growth.

She still talk say energy, for all di different ways e dey, na big way to create beta job wey go pay well, help industrialization, and drive innovation.

And make sure say Naija and di whole African continent go dey prosper for long time.

“We no fit succeed without you, without listening to you and taking your feedback.”

“As we dey try attract money, we also wan work closely with partners wey truly believe say we fit keep our promises and make sure say di reform no go lose steam,” she add.

Di monthly market outlook from di organization don change di global oil demand growth forecast down for both 2024 and 2025 as analysts dey worry say worse days fit come since Donald Trump don win as U.S. president.

OPEC dey expect say demand go increase by 1.82 million bpd for 2024, down from di previous estimate of 1.93 million bpd.

Similarly, di 2025 forecast don reduce to 1.54 million bpd from di earlier estimate of 1.64 million bpd.

Di Guardian don report say Naija fit no produce about 138 million barrels of crude oil wey worth $10.73 billion for 2024.

Even as President Bola Tinubu don set Naija N28 trillion 2024 budget on top oil and gas outlook wey no dey realistic and wey don fail for di last 10 years.

Di Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, don talk say plus condensate.

Naija oil production don move to about 1.7 million, figure wey dey match data from Naija Upstream Petroleum Regulatory Commission (NUPRC).

Usually, condensate lighter hydrocarbons dey often exclude from OPEC production calculation no dey change di lower production figure wey OPEC dey report, wey focus only on crude oil.

OPEC don talk say di adjustment for oil output na because of slow economic growth for major oil-consuming countries.

Like China and United States, wey don face plenty challenges like high inflation and geopolitical tension.

Lower demand growth fit affect oil price, dey put more fiscal pressure for oil-dependent economies like Naija.

OPEC total crude oil output average 26.53 million bpd for October 2024, e show say e don increase by 466,000 bpd from September.

Libya na di country wey lead dis increase for production, as dem dey enjoy relative stability for dem oil fields, wey don dey face some wahala for recent years.

But, di increase for OPEC production fit cause global oversupply wahala, especially if demand growth continue to slow down like dem don project.

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