Nigeria’s deepwater oil projects achieve top-tier global returns – Presidency

Nigeria’s deepwater oil projects now rank among the top three globally in terms of competitive returns, climbing from the bottom quartile of 13 indexed countries, according to the Presidency.

Mrs. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, made the announcement during a keynote address at an Executive Session of the Energy Institute and the National Association of Petroleum Explorationists (NAPE).

In a statement released on Friday in Abuja, Verheijen highlighted that Nigeria has, for the first time in its history, established a fiscal framework for deepwater gas.

This achievement, she noted, was a result of comprehensive oil and gas sector reforms spearheaded by the Tinubu administration.

“These reforms have significantly enhanced fiscal attractiveness and the ease of doing business, targeting actual bottlenecks and real investment projects in the pipeline,” Verheijen explained.

“In April this year, FID was reached on the Ubeta Non-Associated Gas project, a half-a- billion dollar project.

“The Ubeta field was discovered in 1965 and has finally been unlocked to deliver prosperity of multitudes of Nigerian lives and businesses,” she said.

Verheijen also disclosed that Nigeria is positioned to tap into 90 billion dollar in financing available for deepwater projects around the world.

“Accessing 20 per cent of this, will be more than enough to bring five major deepwater projects on-stream, unlocking 1.3 billion barrels of oil equivalent (boe).

“Going into 2025, we expect the investment momentum to quicken, proving beyond any doubt, that President Tinubu’s energy reform agenda is truly revolutionary. Our challenges are addressable, and fixable.

She added: “All these new investments will have major implications for the Nigerian economy.

“The foreign exchange inflows will help with exchange rate management and macroeconomic stability; local economies will benefit from the increased spending on construction and hiring; skill-building and technology transfer will take place.

“Importantly, with the industry infrastructure being developed, each new investment will ensure that subsequent projects are possible at lower costs and with the guarantee of greater returns – creating a virtuous cycle of new investments”