FG Targets Fresh $20bn Oil and Gas Deal to Boost Production

The Federal Government of Nigeria is poised to secure a $20 billion investment deal aimed at revitalizing the nation’s oil and gas sector, according to Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil).

This announcement was made during a courtesy visit by Schlumberger’s (SLB) global Chief Executive Officer, Olivier Le Peuch, to Abuja on Thursday.

Lokpobiri emphasized that Nigeria has experienced a significant decline in oil and gas production due to a lack of investments in recent years. He revealed that discussions are underway with major investors, with one company alone committing $10 billion to the sector.

“We are in talks with several significant investors who have historically made substantial investments in Nigeria. I can’t divulge the details just yet, but rest assured, the deal will be officially announced once it’s finalized,” Lokpobiri stated. He highlighted President Bola Tinubu’s commitment to unlocking the full potential of Nigeria’s oil and gas resources, aiming to harness the benefits of the country’s vast deposits.

The minister assured that the government is dedicated to creating an enabling environment for investors, emphasizing that the Tinubu administration is focused on fostering a business-friendly climate to attract investments. “We aim to invite not only Schlumberger but other international service companies to return. There’s a new sheriff in town, determined to do things differently,” he added.

Lokpobiri also underscored the longstanding relationship between Nigeria and Schlumberger, noting the company’s significant contributions to the oil and gas industry over the past 71 years. “As a government, we are committed to continuing this 71-year partnership. If you have been married for 71 years, you don’t divorce and let the relationship die,” he remarked, referring to Schlumberger’s role since oil was discovered in commercial quantities in Oloibiri, Niger Delta, in 1958.

Olivier Le Peuch expressed optimism about working with Nigeria to enhance oil and gas investments, committing to strengthen the partnership and pave the way for greater success. “We are ready to work with you as partners and contribute to the changes you aim to implement, facilitating a new era of oil and gas investment in the country,” Le Peuch affirmed.