Nigeria’s government is seeking investment from the United Arab Emirates (UAE) to renew its aging network of oil pipelines, some of which are over 50 years old, Investorsking reported on Tuesday, May 21, 2024.
The Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri met with a delegation from the UAE, led by Ambassador Salem Al Shamsi, in Abuja this week. Discussions focused on opportunities for collaboration in Nigeria’s energy sector, particularly oil exploration and infrastructure development.
Lokpobiri stressed the importance of pipelines in transporting crude oil to export terminals, despite advancements in alternative methods. He noted that most of Nigeria’s pipelines were built in the late 1950s, around the time the country first discovered oil.
Acknowledging the significant investment needed, Lokpobiri proposed a model where investors could recoup their costs as crude oil is transported through the pipelines. This proposal aims to incentivize participation in the modernization efforts.
Nigeria holds vast natural gas reserves, estimated at over 208 trillion cubic feet, solidifying its position as a major player in the global energy market. In an effort to woe investors, Lokpobiri highlighted the potential for further exploration and development in both the gas and oil sectors, underscoring Nigeria’s commitment to maximizing its energy resources.
The meeting also addressed the balance between oil exploration and climate concerns. Lokpobiri reaffirmed Nigeria’s commitment to the Paris Agreement while advocating for a measured approach to energy production and transition. He emphasized the need for strategic partnerships to finance Nigeria’s energy transition, highlighting the UAE’s potential role.
Ambassador Al Shamsi expressed the UAE’s willingness to collaborate with Nigeria to address challenges in the oil and gas sector. He emphasized the long-standing relationship between the two countries and the UAE’s commitment to supporting Nigeria’s development goals.
As Nigeria seeks to modernize its oil infrastructure, partnerships like this one with the UAE are seen as crucial to achieving its energy ambitions. The call for investment reflects Nigeria’s proactive approach to tackling infrastructure challenges and leveraging its energy resources for long-term development.