NNPC  targets $16.5bn in five years

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The Group Managing Director of the Nigerian National Petroleum Corporation(GMD NNPC), Dr. Maikanti Kacalla Baru, has stated that the corporation has set the goal  of raising about $13-$16.5 billion over the next five years.

 The GMD who was represented by the Chief Operating Officer, Gas and Power of the corporation, Engineer  Saidu Mohammed,  at the ongoing Offshore Technology Conference in an address titled “Global Energy Dynamics: Challenges and Opportunities in the Nigerian Oil and Gas Sector”,  said that this forms a part of  five  distinct areas of business interests being put forward by the corporation for  investments.

 He explained that the investment areas cut  across the oil and gas value chain  which are upstream oil and gas development, gas infrastructure and power plants, refineries, downstream as well as ventures and new businesses.

Dr Baru, informed   that within the upstream segment, NNPC plans to increase its oil reserve base to 40 billion oil barrels reserves by 2020, adding that based on its upstream growth plan, NNPC would raise about Under the gas infrastructure and power plants, there are investment opportunities to the tune of $9-$11 billion in the oil and gas sector, Baru told investors at the conference.

He noted that, “For the refineries, our plan is to rehabilitate and revamp our existing four (4) refineries. On successful rehabilitation and revamp, our plan is to upgrade their combined nameplate capacity from 445,000 barrels per day to 700,000 barrels per day within the next few years. We would require investments of between $5-$6 billion.”

Explaining that the NNPC was mindful of the need to construct new refineries, Baru said the big picture was to transit from a net crude oil exporter to a net petroleum product exporter as more value and opportunities abound in the latter.

In the Downstream segment, there are opportunities in the construction of new crude and product pipelines, pumping station upgrades, revamp of LPG plants, construction of new LPG storage tanks, filling stations, and equipment supply.

“The provision of coastal vessels and tugboats and other ancillary support services are equally areas that would yield a high return on investment. We would require investments of about $3billion in this area,” he added.

In the Ventures and New Business Segment, the Corporation said opportunities exist for the establishment of pipe mills, equipment leasing (Rigs, FPSOs) and operations & maintenance services.

Others in this aspect are the construction of gas storage/Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) fillings as well as the development of multi-specialist hospitals.

According to him, oil and gas resources will still be relevant in the global energy mix for a very long time to come as inferred from the global demand and supply forecasts.

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