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Nigeria plans $ 15bn annual investment in oil sector from 2015
In a bid to inject massive funds into the development of the oil sector,
the federal government has announced that it plans to invest $15bn
(N1.8tn) yearly on the oil sector as from 2015.
Making this declaration in Riyadh, the Saudi Arabian capital where he
was attending the 3rd Summit of Heads of State of the Organization of
Petroleum Exporting Countries, OPEC, the minister of state for
petroleum, Dr Odein Ajumogobia, said Nigeria was committed to massive
investment in the oil sector.
The Nigerian oil minister clarified that only the 2007 oil block auction
is affected in the ongoing review, stressing that the 2006 and other oil
block auctions are not affected by the exercise. Ajumogobia also
revealed that Nigeria is working towards raising its annual oil
production level to 4 mm bpd effective from the year 2010.
Explaining why the Umaru Musa Yar'Adua-led government resolved to review
the award of oil blocks made in the twilight of Obasanjo's regime, he
said the new regime is "concerned about the rule of law" and due process
in whatever it does.
The minister revealed further that many of the joint venture contracts
(JVCs) between the Nigerian government and its partners are almost due
for renewal. Other reasons for the ongoing review, according to
Ajumogobia include, among others, the hike in crude oil price in the
international market.
According to the minister, "When some of the agreements were drawn up
the price of oil was $22; now it's above $ 94."
The oil block auction carried out by President Olusegun Obasanjo, a few
weeks to the end of his administration, generated a heated controversy,
with some companies, especially the multinationals alleging lack of
transparency in the whole exercise. Specifically, the multinational oil
companies involved in prospecting in Nigeria had petitioned the Yar'Adua
Presidency, calling for revocation of the whole bid exercise carried out
in May this year, few days to the exit of Obasanjo from the corridors of
power.
The former president was accused by some of the companies of unduly
favoring his cronies like Aliko Dangote and Femi Otedola whose companies
benefited from the auction.
Dr Ajumogobia also raised Nigeria's concern about the rising price of
crude in the international market, insisting that it was not in the
country's interest in the long run. He assured the world of the
readiness of the present administration to resolve the problems of
restiveness in the Niger Delta region, emphasizing that the issue is of
national priority to the Yar'Adua government.
He said that the government attaches high premium in resolving the
crisis in the Niger Delta.
The choice of Vice President Goodluck Jonathan to supervise ongoing
efforts to address the matter, according to the minister, is a clear
signal of government's commitment to the resolution of the crises
burdening the oil rich zone.
Some of the measures adopted, he said, include the stakeholders' forum
which, according to him, has provided a sense of participation and
belonging to the people of the region.
