Nigeria has extended a call to the United Arab Emirates (UAE) for strategic investment.
The Federal Government of Nigeria said there is a need for the renewal and reconstruction of its more than 50-year-old oil pipelines.
Minister of State for Petroleum (Oil), Heineken Lokpobiri, reiterated Nigeria’s vast investment opportunities during discussions held in Abuja with a visiting delegation from the UAE, led by Ambassador Salem Al Shamsi.
The discussions centered on the mutual interests of both nations in the energy sector, particularly in oil exploration and infrastructure development.
Lokpobiri emphasized the critical role of pipelines in transporting crude oil to export terminals, underlining their indispensable significance despite the advancements in alternative transportation methods.
He highlighted the outdated nature of Nigeria’s current pipeline network, most of which was established around the time of Nigeria’s initial oil discoveries in the late 1950s.
Acknowledging the enormity of the investment required, Lokpobiri assured potential UAE investors of attractive investment models.
He outlined a proposal where investors could recover their investments proportionately as crude oil is transported through the pipelines, thereby incentivizing their involvement in the modernization efforts.
Nigeria boasts abundant natural gas reserves, estimated at over 208 trillion cubic feet, positioning the nation as a significant player in the global energy landscape.
Lokpobiri emphasized the potential for further exploration and development in both gas and crude oil sectors, signaling Nigeria’s commitment to maximizing its energy resources.
The recent meeting also delved into the broader context of oil exploration and climate concerns. Lokpobiri reiterated Nigeria’s commitment to the Paris Agreement while emphasizing the importance of a balanced approach to energy production and transition.
He emphasized the need for strategic partnerships to facilitate the financing of Nigeria’s energy transition, highlighting the UAE’s potential role in this endeavor.
Responding to Nigeria’s call, Ambassador Al Shamsi expressed the UAE’s willingness to collaborate with Nigeria in addressing the challenges facing the oil and gas sector.
He affirmed the longstanding relationship between the two nations, spanning over 50 years, and reiterated the UAE’s commitment to supporting Nigeria’s developmental aspirations.
As Nigeria embarks on its journey to modernize its oil infrastructure, partnerships with countries like the UAE are poised to play a pivotal role in realizing its energy ambitions.
The call for investment signals Nigeria’s proactive stance in addressing its infrastructural challenges while leveraging its rich energy resources for sustainable development.
