Lagos — Managing Director, Aiteo Eastern E&P Company Limited, Mr. Victor Okoronkwo has restated the company’s support towards working with Nigeria to achieve it 3 million barrels per day crude oil production, likewise its 40 billion barrels reserves.
In a statement on Tuesday, Mr. Okoronkwo said the firm is poised and is working assiduously towards significant contribution to this goal.
According to him, the imperatives for achieving the target will be predicated on amongst other factors; creating a stable operating environment as well as establishing robust regulatory and fiscal frameworks.
He said key energy industry reforms will be critical in boosting investor confidence and attracting otherwise elusive investments into Nigeria.
“To put our current reality into perspective, in 2018 while the Foreign Direct Investment to Africa rose 11% to $46 billion, the FDI to Nigeria shrunk 43% to $2 billion whilst Ghana received $3 billion (ref. world investment report 2019). This is in contrast to the vast hydrocarbon resource base Nigeria is blessed with (largest oil and gas reserves in Africa)”, he said.
He pled with the government, to ponder on burning industry issues with a view to articulating holistic solutions, which according to him, is the bedrock upon which the survival of Nigeria.
Overall, he said with the continued reliance and high demand for oil and gas, prices for these commodities will remain exposed to geopolitical events, climate considerations, and in this age of disruptions, black swan events like the Sept 2019 bombing of the Saudi oil facilities and the current coronavirus outbreak still poses challenges to the industry.
He explained that it cannot be over emphasized the pivotal role oil and gas play in the Nigerian economy contributing an estimated 56.8% of National revenue and about 88% of foreign exchange earnings.
“Nigeria is therefore not isolated from the current wave of global energy transition. The energy transition has largely been driven by three key factors namely Environmental, Technological advancements and National Policy Realignments”.
“Climate change is a serious issue that has gained ascendance in shaping global policy discussions with respect to actualizing less carbon-intensive scenarios. However, given the diverse applications of hydrocarbon and hydrocarbon derivatives in support of human civilization and industrialization, fossils will continue to play a dominant role in the global energy mix in the foreseeable future”, he said.