According to Nigerian newspaper THISDAY, the federal government (FG) of Nigeria lost USD 40 billion in oil investments. The government facilitated licensing rounds of about 77 oil blocks won by both local and foreign companies.All except one of the 77 oil blocks had yet to be brought into production. These oil leases were issued in the oil licensing rounds conducted by the FG from 2005 to 2007. The winning bidders had promised to invest USD 40 billion to construct power plants, a rail system, refineries and other downstream infrastructures as part of the deal.
Nigerian Director of the Department of Petroleum Resources George Osahon said the failure of the investors to put the 76 blocks into production also prevented the government from meeting its crude oil reserve target of 40 billion barrels.The delay also hampered the government's efforts to produce daily production target of four million barrels per day.
Osahon said the operators were unable to put the blocks into production because of technical, parnership and security issues. He also said the operators faced limited capacity and financing. He said that the Nigerian government would not revoke the blocks but stressed that these challenges had to be addressed.
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