The Nigerian Minister of State for Petroleum Resources, Emmanuel Kachikwu (photo), has revealed that the country needs from $40 billion to $50 billion in investment in oil projects as its crude output was increased to about 1.9 Mmbpd two days ago.

According to the Minister, Nigeria entered into a potential agreement for $8.5 billion of investment with China North Industries Group Corp. With this, the country’s crude output is expected to increase to 2.2 million bpd by July if the renovation works on the pipeline are completed.

“We’re looking to raise about $40 to $50 billion. Going to places like China, which have a huge capacity to put money in the oil sector, is very helpful,” Kachikwu said.

The prices of crude oil in the global market which has been falling by more than half since mid-2014, have forced the hands of some of the world’s largest drillers to search for investment in order to maintain and increase output.

Several attacks this year by militants in the Niger Delta region have cut down Nigeria’s oil production to 1.3 million bpd from 2.2 million bpd and made the country lose its place as Africa’s top producer.

As of two days ago, Nigeria’s output was between 1.8 million bpd and 1.9 million bpd and crude prices may end the year between $50 and $55, Kachikwu told World Oil.

Anita Fatunji