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OPEC cautions FG on oil projection



OPEC cautions FG on oil projection


Nigeria discourages investors from withdrawing their investments and leaving the country

The Organisation of Petroleum Exporting Countries (OPEC) has cautioned Nigeria against increase in oil demand projection even as the Federal Government, last weekend flaunted “bullish” Return on Investment (RoIs) for international oil companies (IOCs).   

Speaking through its Secretaary General, Mohammed Barkindo, the group also warned investors against expecting oil to hit peak demand before 2040.

OPEC’s predictions, Barkindo said in  a document extracted from an Abu Dhabi conference, did not see oil demand reaching high soon.

According to the OPEC chief, an increase in global population would lead to more people living without access to electricity, cooking gas or heating.

“These parameters suggest there will not be peak oil demand before this time 2040,” he said.

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, however, said that oil companies in Nigeria get 25 to 40 per cent returns on investment despite challenges in the oil and gas sector.

Describing the returns as “bullish,” the minister said that oil investors are discouraged to withdraw their investments and leave Nigeria, stressing that regardless of challenges with issues such as security, militancy, transparency and governance, Nigeria is still an attractive business environment for serious investors.

“…It is the assets that are important, and Nigeria is truly blessed with very vast resources that are waiting to be explored.

“Historically, yes we have struggled with transparency issues, governance issues and all that. But that is something over the last two years we have been very bullish in correcting,” he said.

“Returns on investments in Nigeria are absolutely bullish and that is why most oil companies focus on Nigeria despite all the difficulties with securities, militancy, transparency, and governance issues. The returns are very bullish with 25 to 40 per cent category.”

The minister explained that in the past two years, the government has been making efforts to build a conducive business environment for investors in the oil and gas sector, which, according to him, have yielded positive results.

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