Nigeria Needs $110Bn to Boost Oil Production

Nigeria needs some $110 billion to grow its oil production by 50 percent by 2020, less than eight years from now according to a senior official of Mobil Producing Nigeria, a subsidiary of ExxonMobil Corporation has said.

Andrew Ejayeriese, general manager, Operations Technical Geoscience, Mobil Producing Nigeria, said without the magnitude of such investment, the nation's production would shrink by 40 percent.

He spoke at the presentation of ExxonMobil Outlook in Lagos and added that "Without investments, the industry will not replace declining production, let alone grow. Clearly, a tragedy for a country blessed with such a significant hydrocarbon endowment."

He expressed his company's support to the restructuring objectives that is committed to providing industry's input to the evolution.

According to him, part of this support is his company's payment of $4.9 billion annually as royalties and taxes to the federal government.

The multinational oil company also contributes $7.9 billion annually of government's equity revenue and maintains a workforce of 6,000 staff, 91 percent of whom are Nigerians.

He said the company has keyed into the Nigerian content development initiative geared to enable Nigerians have sense of belonging in the industry.

"Our company is working proactively to achieve and exceed the federal government's target on Nigerian content development.

"We believe that this will reduce costs and continue to ensure the long term availability and viability of in-country goods and services," he said.