Nigeria requires N3.05tr to increase oil production

The Minister of State for Petroleum Resources, Ibe Kachikwu has said Nigeria’s oil and gas industry would require $10 billion (N3.05 trillion) over the next three years to increase crude oil production from 2.2 million barrels per day (bpd) to 3 million bpd.
The minister who made this disclosure in the current Organisation of the Petroleum Exporting Countries (OPEC) Bulletin, said investment is needed to maintain essential work.

According to Kachikwu, “Nigeria’s normal production level is about 2.2m bpd and government would like to raise it to 3m bpd, adding that Just to get the fields online and cap them will require an average of about $10 billion per year in investments over the next three to four years.

he added There are also some dedicated projects in the Bonga oil field, , noting that Italy’s Agip plans to spend about $10 billion, while Royal Dutch Shell is hoping to spend $10 to $11billion on the field.

Kachikwu also commented on refining direct purchase agreements, which were introduced last year, as well as associated crude-for-product exchanges, stating that refineries are not working well, and are only producing about 10 to15 per cent of the country’s requirements, with most products being imported.

THE GUARDIAN NEWSPAPER

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