Nigeria is seeking $40bn to $50bn investment in oil projects with the commencement of a major road show in China, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has said.
Kachikwu, in an interview with Bloomberg Television in Beijing monitored by our correspondents, said the country had signed a potential deal for $8.5bn of investment with China North Industries Group Corporation.
“We’re looking to raise about $40bn to $50bn, which covers the infrastructure gap that we see in Nigeria. The need for new resources is very key; we do not have those resources. Going to places like China, which has a huge capacity to put money in the oil sector, is very helpful,” he stated.
The minister said the nation’s crude oil output rose to as much as 1.9 million barrels per day as of Saturday, adding that output should rise to 2.2 million bpd next month if repairs of the Forcados pipeline were completed.
Kachikwu said, “From January to April this year, we were producing an average of 1.9 million bpd, which is basically within the threshold of 2.2 million bpd that we budgeted for the year.
“But obviously, in May and June, we suffered a lot of militant attacks, which took us down from about 2.2 million bpd to 1.3 million bpd. We managed to have begun to lead conversation with the militants; a lot of engagement is taking place on the authorisation of President Muhammadu Buhari.
“We have been able to get production up back to about 1.9 million bpd as of two days ago. By the time the Forcados line is repaired in July, we should be able to come back to expected production ceiling for this year of 2.2 million bpd.”
He said the country also considered further increase in oil production to enable it cover the gap created by the supply disruptions experienced in May and June.
“Things are looking up. Engagements are trending positively. We have been able to make inroads into those conversations. But what is more important is the need to continue that momentum and to look to long-term solution for the Niger Delta crisis that continues to create the militancy difficulty that we have,” Kachikwu added.