The Federal Government, on Monday, May 20, 2024, while hosting the UAE delegation led by the United Arab Emirates Ambassador to Nigeria, Salem Al Shamsi, urged the United Arab Emirates to invest in the renewal and reconstruction of Nigeria’s more than 50-year-old oil pipelines.
During the hosting, it appears that both the Nigerian federal government and the UAE are on the same page regarding the oil exploration plan and the regular drilling of crude oil, regardless of the call for a halt in some quarters.
During the hosting, the Minister of State for Petroleum (Oil), Heineken Lokpobiri, said, “This country has enormous investment opportunities. Our pipelines need renewal. They have been there for over 50 years since Nigeria found oil in commercial quantities in 1956/1958.
It has been almost 70 years since then, and most of those pipelines were built around that time and have already outlived their lifespans. Even if you can produce, you must evacuate to the terminals where you would export.
However, the minister assured his guests of a high return on investment. He said, “Part of what we are proposing is that if you come and invest, you will get your money, for as you transport the crude, you’ll take it. Proportionately, you’ll recover your investments; for any barrel of crude you transport through your pipes, you have to recover your investment by placing mutually agreeable charges,”
Lokpobiri stated that Nigeria will continue to partner with the UAE to leverage the Nigerian oil market, which is suitable for investment in LPG, CNG, or the entire oil and gas value chain.
He recalled that Nigeria needs more financial capacity to invest in the oil sector while the UAE has what it takes to bring investors to Nigeria.
In response, the UAE ambassador expressed his excitement and assured that he would work closely with Nigeria to ensure everything went as planned.
