30 November 2011, Sweetcrude, LAGOS – Investments in Nigeria’s oil and gas exploration in 2011 might reach $45 billion dollars (N67 trillion) by December, according to the Nigerian Association of Petroleum Explorationists (NAPE).
NAPE president, Mr Jide Ojo, stated this at the ongoing 29th Annual International Conference and Exhibitions of the association with theme: “Perspectives on Growing Hydrocarbon Reserves in the Next Decade”.
According to him, the investment would be approximately $35 billion dollars (N5.25 trillion) higher than that of 2010, adding that the industry was able to recover from the economic depression of 2009.
He said: “The projected increase in spending will provide opportunities for sustainable growth in the oil and gas sector.
“It will also lead to increase in the gas base supply as well as investment in infrastructure that will facilitate increase in the domestic consumption,” Ojo called on the government to encourage investors through legislation for a sustainable gas base growth in 2012.
“It is expected that reserves and production decline from existing fields will continue to drive the leading oil and gas companies to formulate new strategies and technologies.
“The production instability was due to disruptions as operators shift focus from declining mature fields in Western countries to less predictable regions,” he said.
The NAPE president also said that the anticipated disruptions in oil and gas would contribute to higher oil prices, stressing that there had been renewed search for alternative energy sources due to high oil prices and environmental concerns.