NIGERIA Invest in 2012-13 - Newsdesk Media

Shell estimates it has an additional $40 billion of deepwater
schemes lined up in Nigeria.
Other deals include Nigeria Liquefied Natural Gas
Company’s $1 billion-plus purchase of six LNG carrier ships,
while Total and Afren both announced new oil discoveries in
the latter part of 2011. Perhaps the biggest test, however,
is NNPC’s mammoth $8 billion Brass LNG project. The
NNPC-led scheme enjoys strong international backing from
ConocoPhillips, Eni, Total, LNG Japan, Bayelsa State
Government, ITOCHU and Sempra Sahara LNG and has a draft
financing structure in place. Japanese agencies JBIC and NEXI
are reported to be involved in the project, which boosts the
likelihood of attracting further international investment.
Landmark deals
A second landmark deal is the proposed $20 billion
trans-Saharan pipeline, led by NNPC and Sonatrach.
The project – which is in assessment phase – is for a
4,127-kilometre pipeline running from Nigeria potentially
OIL, GAS AND MINERALS 107
Nigeria’s Liquefied Natural Gas Company
has purchased six new LNG carrier ships
to Spain, for which Nigerian president Goodluck Jonathan has
already proposed private investment.
Even so, the government is keen to diversify its revenue
stream and extend beyond the reliance on oil. For example,
there is the Nigeria Gas Master Plan reform package, intended
to encourage investment in gas, as well as programmes to
revive other historic exports, such as agricultural products,
rubber, palm oil and coal. The key point is that this will
not come at the expense of oil.
“Oil remains a very important sector in Nigeria and will
continue to be given attention, however the oil sector will only
reduce in importance once other sectors reach relatively
advanced stages in terms of their contributions towards
employment, GDP and economic growth,” says Mgbenwelu.
Although the Nigerian oil industry may be going
through a tempestuous period, once the subsidy issue
has abated and new regulations are in place the sector
will enhance and sustain its importance to the long-term
prosperity of the country. ■
INvESt IN NIGERIA 2012-13