Nigeria Needs $100 Billion in Oil and Gas Investments To Meet Production Target

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                     Nigeria requires $100 billion in oil and gas investments to meet its ambitious oil production target by 2020, The Guardian reported. The Society of Petroleum Engineers, Nigeria Council, said this level of funds is needed to sustain growth in the country to reach its goal of producing 4 million barrels of oil per day during this target year.
On the SPE site, Bernard Oboarekpe, chairman of SPE Nigeria, wrote the council will concentrate on optimizing the value of oil and gas in Nigeria. Oboarekpe urged the Nigerian government and domestic oil and gas industry to focus on improving exploration and production efforts to meet increasing demand for electricity.
The International Energy Agency forecasts overall power generation in Africa to increase from its current level of 17 percent to 25 percent by 2040. The agency noted gas prices in Nigeria have increased to nearly $3 per million British thermal units, up from $1 per Mbtu three years ago. Gas prices are expected to rise as officials predict consumption of domestic gas to generate electricity will see higher levels.

Nigeria predicts oil prices per barrel will increase to $78 next year from $77.5 in 2014, Reuters reported. While prices may rise, oil production may see decreases. Government officials forecast oil production will drop from 2.38 million barrels per day in 2014 to 2.27 million bpd in 2015.

To boost oil and gas production in Nigeria, operators in the country may seek to obtain funding from foreign investors.

"Indigenous oil and gas players should be encouraged by government, through the creation of an enabling fiscal, regulatory, and administrative framework for easier access to foreign capital, to aid their development," Oboarekpe said.

The chairman also suggested that countries in Africa should invest in infrastructure development in preparation for future energy crises.