Nigeria to invest $1.8 BN in Grenada oil hopes!

By: Staff Writer

November 5, 2024

Nigerian oil firm Oceangate Oil and Gas Engineering chief executive officer Aisha Achimugu said Global Petroleum Group (GPG) to develop oil and gas resources in offshore blocks near Grenada.

Grenada is now set to become a major energy hub with the launch of one of the Caribbean’s largest oil and gas ventures.

Disclosing this in a statement on Saturday, Achimugu stated that this transformative partnership aims to develop Grenada’s significant hydrocarbon reserves, paving the way for the island nation to emerge as a major energy hub in the Caribbean and beyond.

“We are thrilled to enter this partnership with Global Petroleum Group, which will bring substantial economic benefits and energy resources to Grenada.

“This venture underscores Oceangate’s commitment to investing in sustainable energy solutions that drive economic prosperity while respecting environmental standards. We believe this project will lay the foundation for future economic collaborations between Africa and the Caribbean,” she said.

“With a vision to fuel long-term economic growth and sustainable development, this ambitious project promises not only to elevate Grenada’s energy production capabilities but also to foster job creation, infrastructure development, and technology transfer within the local economy.

Prime Minister Dickon Mitchell has not said anything on the potential of the partnership for Grenada.

Since 2008, GPG has conducted explorations in Grenada’s offshore blocks, but proven hydrocarbon reserves have not yet been fully quantified. Recent discoveries, particularly at the Nutmeg-2 well, suggest significant potential. Oceangate’s involvement could accelerate the assessment and potential production of these resources.

The agreement between Oceangate and GPG involves a production-sharing arrangement with the Grenadian government for 38 years, covering approximately 7,500 square kilometers of offshore zones. This project could stimulate the local economy by attracting investments in essential support infrastructure.

Nigeria aims to diversify its markets for refined products, especially with the start-up of the Dangote refinery, which, with its capacity of 650,000 barrels per day, is one of the largest in Africa. This refinery, located in Nigeria, recently hosted Grenadian Prime Minister Dickon Mitchell to discuss potential partnerships in the energy sector, as well as in cement and fertilizers.

Nigeria’s interest in Grenada is part of a broader strategy to enhance its international outlets and foster economic alliances with Caribbean nations, which have historically depended on imports of refined petroleum products.

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