The Minister of State, Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has urged Saudi Arabia oil firm, Aramco, to invest in Nigeria’s refineries.
Speaking with Bloomberg Daybreak: Americas at the Ryhr in Saudi Arabia, he said he was discussing with Minister of Energy Industry and Mineral Resources of the Kingdom of Saudi Arabia, Khalid Al Falih to secure his country’s investment in Liquified Natural Gas (LNG).
Kachikwu said he took a tour on the Saudi’s industrial citizen that had just been built, the most famous one, for possible cooperation.
He said: “We are looking at the cooperation at multi-levels. Refinery, for example, we are asking for investments for some of our refineries. We are looking some potential in terms of LNG investment.
“We took some tour on industrial citizens. We need to take a tour on some of their industrial citizens . We are looking for some strange deals in terms of DSDP program to see how they can participate and bring products into the country.”
On the energy market, he said in case that the prevailing market reality of lower volume endures, the Organisation of Petroleum Exporting Countries (OPEC) would discuss it in its next meetings in June because it would not take its decision overnight.
Kachikwu said OPEC would also know what to do in terms of a tighter market since there were issues of duration and volumes arising from the waiver that were granted.
The minister, who said he would love oil prices to rise above $100 per barrel, noted that higher prices always come with some concern about volume as some countries like the US Shale would become a big issue.
“We want to have a balance. Once it is about $70, once it passes that, it becomes unsustainable,” he said.
He said the country has been 75 per cent compliant with the directive of the organisation on production volume.
Kachikwu said: “In the event that the trend continues on lower level of volume and tighter markets, OPEC would know what to do.”
The minister said that Nigeria prefers longer term of six months waiver to shorter one because of the unpredictable issues with shorter term.
“There is duration all issue. And there is volume issue. We always prefer longer term because shorter terms are unpredictable,” Kachikwu said.