Sign in Subscribe
Banks (Finance)

Nigeria Seeks Investment in Upstream Sector as LNG Capacity Increases Globally

Strategic Insights

— 1 min read

The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has called on the Bank of America to prioritize investment in Nigeria's upstream sector. Komolafe said that funding remains a challenge for companies seeking to scale up oil production in Nigeria, despite the country's rich hydrocarbon resources. He noted that the Petroleum Industry Act (PIA) 2021 requires the commission to promote an enabling environment for investments in the upstream petroleum operations.

In a meeting with the Managing Director and Head of Investment Banking Sub-Saharan Africa, Bank of America, Mr. Chuba Ezenwa, Komolafe emphasized the need for investment in the upstream sector to optimize production and create jobs. Ezenwa expressed support for the commission's efforts, citing the increase in oil production under Komolafe's leadership as a positive development.

Key Takeaways:

  • The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is seeking investment from the Bank of America to support the growth of the upstream sector in Nigeria.
  • Funding remains a significant challenge for companies seeking to scale up oil production in Nigeria, despite the country's rich hydrocarbon resources.
  • The Petroleum Industry Act (PIA) 2021 requires the commission to promote an enabling environment for investments in the upstream petroleum operations.
  • The commission is seeking to create an enabling environment for investments in the upstream sector, including optimizing production and creating jobs.
  • The Bank of America has expressed support for the commission's efforts, citing the increase in oil production under Komolafe's leadership as a positive development.
  • Nigeria is expected to add new Liquefied Natural Gas (LNG) export capacity, with around 300 billion cubic meters per year expected to be added worldwide by 2030.

Statistics:

  • 300 billion cubic meters per year of new LNG capacity is expected to be added worldwide by 2030.
  • 7% of Asia's thermal coal demand is equivalent to the increase in LNG supply by 2030.
  • 55 billion cubic meters of piped gas trade is expected to decline between 2024 and 2030.
  • 210 trillion cubic feet of gas is estimated to be present in Nigeria.

Sources:

  • A statement by the Head, Media and Strategic Communication of the NUPRC, Eniola Akinkuotu.
  • The Petroleum Industry Act (PIA) 2021.
  • A report by the International Energy Agency (IEA), "Gas 2025: Analysis and Forecasts to 2030".
  • The International Energy Agency (IEA) website.
  • The Bank of America website.
  • The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) website.

Read more