• Wednesday, April 17, 2024
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FG signs pact with Saudi Arabia to boost petroleum sector growth

FG targets $17bn GDP, 2.3m jobs in oil, gas sector

In a bid to strengthen bilateral ties and attract foreign direct investments, the Federal Government of Nigeria has signed a Memorandum of Understanding with the Government of the Kingdom of Saudi Arabia, to drive technological advancements within Nigeria’s energy sector.

According to a statement issued on Thursday, by Nneamaka Okafor, special assistant to Heineken Lokpobiri, the minister for state Petroleum Resources (Oil) on communication, the MoU aligns with the ministry’s overarching objective of elevating production standards and to drive technological advancements within Nigeria’s energy sector.

Representing the Nigerian government, Heineken Lokpobiri, signed the MOU with the Saudi Arabia team led by the energy minister, Abdulaziz bin Salman in Saudi Arabia.

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For him, the MoU, is a testament to the shared commitment to fostering cooperation, aims to establish a robust framework for collaboration between the two nations in the oil and gas sector.

“One of the primary benefits anticipated from this landmark agreement is the facilitation of technological exchange. With Saudi Arabia boasting advanced technologies in oil and gas exploration and production, Nigeria stands to gain significantly from this knowledge transfer. The exchange of technical expertise is poised to elevate the efficiency and effectiveness of Nigeria’s energy operations, ultimately contributing to increased production levels and global competitiveness.

“Moreover, the MoU is expected to attract substantial foreign direct investment into Nigeria’s oil and gas sector. Saudi Arabia, being a key player in the global energy market, holds the potential to channel significant investments into Nigeria, thereby stimulating economic growth, job creation and infrastructural development. This influx of capital will not only bolster the petroleum industry but also have a cascading effect on various sectors of the economy, contributing to Nigeria’s overall economic prosperity,” he said.

Okafor explained that the cooperative framework outlined in the MoU extends beyond technological collaboration and financial investments. He said that it encompasses joint research and development initiatives, knowledge-sharing platforms and capacity-building programs.

“This holistic approach aims to empower local talents within Nigeria’s energy sector, fostering a self-sustaining environment where indigenous expertise plays a pivotal role in shaping the nation’s energy future.

“Furthermore, the MoU outlines a commitment to environmental sustainability and responsible resource management. Both nations have agreed to work together on adopting and implementing best practices in environmental conservation, ensuring that oil and gas activities are conducted in an eco-friendly manner. This reflects a shared vision for a greener and more sustainable energy industry, aligning with global efforts to address climate change and promote cleaner energy alternatives.”

Read also: Why Nigeria must focus on harnessing oil, gas resources— Petroleum producers

For the people of Nigeria, he said the MoU holds the promise of a brighter and more prosperous future as the anticipated increase in production levels will not only secure a more reliable energy supply but also contribute to reducing dependency on imports. This, in turn, is expected to stabilize fuel prices and enhance energy security, providing tangible benefits to Nigerian households and businesses alike.

He further noted that the infusion of foreign direct investment is poised to create job opportunities and stimulate economic growth. “The development of new infrastructure and the expansion of existing facilities will not only enhance the efficiency of the oil and gas sector but also contribute to the overall modernization of Nigeria’s economic landscape. As the energy sector thrives, its positive impacts will be felt across various industries, catalyzing a ripple effect that transcends the confines of the petroleum sector.