Nigeria Appeals to UAE For Investment in Ageing Oil Pipelines
The Nigerian government has called on the United Arab Emirates to invest in the renewal and reconstruction of its more than 50-year-old oil pipelines, highlighting that these critical infrastructures have exceeded their operational lifespans.
Heineken Lokpobiri, Minister of State for Petroleum, made the appeal in Abuja on Monday during a meeting with a UAE delegation led by the United Arab Emirates Ambassador to Nigeria, Salem Al Shamsi. Lokpobiri emphasised the urgency of the investment, noting the strategic importance of the pipelines to Nigeria’s oil export capabilities.
“This country has enormous investment opportunities; our pipelines need renewal. They have been there for over 50 years since Nigeria found oil in commercial quantities in 1956/1958,” Lokpobiri stated. “From then till now, it is almost 70 years, and most of those pipelines were built around that time and have already outlived their lifespans. Even if you can produce, you need to evacuate to the terminals where you would export.”
Lokpobiri assured potential investors from the UAE of attractive investment models, explaining that they would recover their investments through the transportation of crude oil. “For any barrel of crude you transport through your pipes, you have to recover your investment by placing mutually agreeable charges,” he said.
The minister also highlighted Nigeria’s significant gas reserves, asserting that the country’s gas potential far exceeds its oil reserves. “Nigeria has over 208 trillion cubic feet of gas. We in Nigeria know that these records are over 20 years. We can double or triple our gas reserves,” he said. “Even our crude reserves, I’m very confident that the 37 billion barrels we are talking about are also records of about 20 years.”
Lokpobiri acknowledged bureaucratic delays in past investments but noted that the government was working to streamline processes. He highlighted the changes brought about by the Petroleum Industry Act, which aims to transform the Nigerian National Petroleum Company (NNPC) into a profit-driven national oil company.
“We want to assure the UAE that Nigeria is open for investments, and we are committed to deepening our very strategic relationship with the UAE,” Lokpobiri said, adding that the two countries would continue to collaborate within the framework of OPEC.
The call for investment comes amid broader plans to overhaul Nigeria’s extensive but ageing pipeline network. Mele Kyari, Group Chief Executive Officer of the NNPC, recently announced a three-year plan to replace over 5,000km of petroleum product pipelines. Speaking at the 2024 Society of Petroleum Engineers Oloibiri Lecture Series and Energy Forum in Abuja, Kyari underscored the economic necessity of pipeline transportation for petroleum products.
“The cheapest way of transporting petroleum products is by pipelines,” Kyari stated. “We have commenced a Build, Operate and Transfer process where nearly all the pipelines will be replaced over a period of three years. As we do this, we are also reinforcing the ability of the current network to deliver products to our locations.”
The government’s appeal to the UAE reflects a broader strategy to attract foreign investment to modernise Nigeria’s oil infrastructure and enhance its capacity to meet both domestic and international demands.
