On Monday, Fox Petroleum Group announced that for the next three years, it will fund $7.5 billion into the Nigerian National Petroleum Company Limited (NNPCL) to boost oil production in the upstream, mainstream, and downstream sectors of the NNPCL.
Yomi Sola Falana, Business Representative of Fox Petroleum Group, signed the announcement. He stated that the investment into NNPCL by Fox Petroleum Group was in line with the “confidence instilled in the current administration of President Bola Ahmed Tinubu through his demonstrable action to increase Nigeria’s oil and gas production and reserves, boost federation’s revenue, create jobs for teeming millions of the country’s population, and contribute to the development of host communities.”
Fox Petroleum Group believes that the $7.5 billion funding to the NNPCL would assist the company's growth blueprint, which aligns with the recently published Petroleum Industry Act (PIA).
However, more details of the $7.5 billion funding will be announced after a closed-door meeting with President Tinubu. Fox Petroleum Group added that the move aligns with the company's goal to invest, acquire, and operate energy-producing assets in Nigeria.
Yomi Sola Falana said that he sees the development as a positive outcome of good governance, making Nigeria an attractive destination for foreign investors.
The Chairman of the Group, Ajay Kumar, also highlighted that details of the funding will be revealed to the public after a closed-door meeting with President Tinubu, who is also the Minister of Petroleum Resources.
A Look at Nigeria’s Oil Production in the Past Years
Following the meeting with OPEC recently, Nigeria's oil production quota has been fixed to 1.5 million barrels per day. The nation has a high hope that it will surpass the benchmark soon despite the hike in crude oil theft in the Niger Delta region.Ms. Olu Verheijen, the Special Adviser to President Tinubu on energy, has revealed the federal government plans to address poverty and tackle the issues of insecurity in the Niger Delta region to increase upstream oil investments, which has made Nigeria in the past suffer low oil production levels in recent years.
In 2000, Nigeria produced over 2.15 million barrels of crude oil per day, followed by 2001 oil production output of 2.26 million barrels per day.
The country started experiencing reduced production in 2002 as it went down to 2.08 million barrels daily. In 2003 and 2004, oil production was over 2.23 million barrels per day, followed by a record high in 2005 with a total of 2.52 million barrels per day.
However, the production level lasted briefly as it steadily declined from 2006 to 2016, settling at 1.89 million barrels per day. However, there was a slight improvement in 2017 and 2018, with 1.9 million barrels per day and 2 million barrels per day, respectively.
But in 2022, Nigeria's Crude oil production fell to 1.45 mbpd, and the worst happened in August of the same year as the country managed to produce only 972,000 barrels per day due to the rise in crude oil theft.
Read more: https://www.investingport.com/fox-petroleum-group-invests-75-billion-into-the-nnpcl/