Nigerian oil sector gulped $ 39.2 bn in last eight years

Feb 12, 2008 01:00 AM

Minister of State for Energy (Petroleum) Odein Ajumogobia (SAN) said that about $ 39.2 bn was allocated to develop the nation's oil and gas industry in the last eight years. He spoke in Abuja on a position paper, "Reflections on the Nigerian Oil and Gas Industry", at a two-day conference to mark 50 years of commercial oil production in Nigeria.
This is coming on a day Vice President Goodluck Jonathan offered fresh insights on how to bring an end to the troubled Niger Delta, saying its resolution lies in a systematic, holistic approach in the overall interest of the communities and all Nigerians who depend on it for sustenance.

Delta State Governor, Dr Emmanuel Uduaghan, in his presentation, said the way to ensure sustainable stability in the region and guarantee uninterrupted production in the oil and gas industry was through massive infrastructural and community development. Noting that the oil and gas sector is highly capital intensive, Ajumogobia said that for instance, its budgetary allocation from the Federal Government between 1999 and 2007 averaged $ 4.9 bn per year.
"With this level of investment and the quota restriction by OPEC, Nigeria exports on the average about 2.14 mm bpd. Nigeria has an aggressive production capacity expansion plan that targets a robust portfolio of supply development plans from 2007 to 2010. That will grow capacity from about 3 mm bpd currently to 4 mm bpd," he said.

Ajumogobia said that the sector contributed about 90 % of government's revenue and 95 % of the country's foreign exchange earnings. According to him, an estimated annual spending of about $ 15 bn and $ 20 bn is anticipated, going forward in Nigeria's exploration and production sector on capacity growth and exploration.
"This puts Nigeria in the forefront among OPEC peer countries in terms of capacity growth investments".

Source / This Day
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