As Nigeria targets fresh investment across its energy value chain, Olu Verheijen, Nigerian President Bola Tinubu’s Special Advisor on Energy, has joined the African Energy Week (AEW): Invest in African Energy conference as a speaker. Taking place November 4-8, 2024, in Cape Town, the event serves as a premier platform for global investors and project developers to connect with African projects and companies. Verheijen’s participation aligns with the country’s ambitions to drive exploration and production, as government targets a $10 billion investment pipeline in the oil and gas sector.
Earlier this week, Verheijen announced that the Ubeta Upstream Gas Project has taken off, with the project achieving FID in June 2024. Developed by the Nigerian National Petroleum Company and energy major TotalEnergies, the $550 million project seeks to unlock 350 million standard cubic feet of gas per day once fully operational. The project is just one being developed with the aim of enhancing the country’s oil and gas production capacity. At AEW: Invest in African Energy 2024, Verheijen is expected to share further insight into this project pipeline as well as the reforms driving large-scale investments across the country.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit http://www.aecweek.com for more information about this exciting event.
As Special Advisor for Energy, Verheijen works closely with the government, regulators and energy companies to ensure the right policies are in place to advance energy projects in Nigeria. In recent years, Nigeria has prioritized the implementation of policies that do just that, with a view to promoting gas monetization and the development of untapped oilfields. The Petroleum Industry Act (PIA) – signed into law in 2021 – forms the base of Nigeria’s proactive regulatory landscape and features measures that enhance the country’s competitive as an oil and gas investment destination. Targeting four million barrels per day, Nigeria’s PIA incentivizes new exploration by streamlining license procedures, simplifying processes and extending the duration of third-party contracts from three to five years.
Beyond the PIA, Nigeria is leveraging reforms to stimulate new investment across the gas and energy sectors. In the natural gas sector, Verheijen has emphasized that reforms implemented since 2023 have focused on improving energy security, attracting capital while deepening collaboration with strategic partners. Specifically, reforms in the gas-to-power sector aim to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts. Five new executive orders have been issued by President Tinubu to support reforms. These orders provide fiscal incentives and reduce the cost and time of finalizing and implementing contracts. With these, the country aims to develop and expand its gas infrastructure, supporting the development of new concessions while unlocking billions of dollars of new investment.
With over 200 trillion cubic feet of proven gas reserves, Nigeria is well positioned to increase its production capacity. Reforms aim to drive investment across the entire gas value chain, integrating upstream developments with downstream initiatives. At present, government is focused on deregulating the downstream sector while bringing new fields online to support refining efforts. The country’s largest refining facility – the 650,000 barrel per day Dangote refinery – came online in late-2023. While feedstock challenges have impacted operations, recent reforms are poised to bolster supplies. In addition to the Ubeta project, President Tinubu launched three new gas projects in 2024 that will increase the country’s gas supply by 25%. These include the expanded AHL Gas Processing Plant; the ANOH Gas Processing Plant; and the ANOH to Obiafu-Obrikom-Oben Custody Transfer Metering Stations Gas Pipeline.
“Nigeria has the potential to become a major global gas player if reforms can be implemented effectively. With the PIA and subsequent oil and gas policies, the country is making strides towards improving the enabling environment for foreign investment, and the results are already showing. Major gas projects promise new opportunities for enhanced supply, setting the stage for a new era of energy security,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber.
With nearly 20 years’ experience in the natural gas and renewable energy sectors, Verheijen plays an instrumental part in coordinating with the Nigerian government to expand the country’s energy market. In addition to serving as Special Advisory for Energy, she is the Managing Director of consultancy firm Latimer Energy, advising clients on value optimization with regards to energy acquisition, development and management. During AEW: Invest in African Energy, Verheijen will unpack the implications of reform, potential investments opportunities in the country and recent project developments.
