LONDON: The Middle East ⁠conflict shows why Gulf oil and gas producers should regard Nigeria as a partner, not a rival, ‌to help diversify supply during crises, Foreign Minister Yusuf Tuggar told Reuters.

The remarks come as war in Iran disrupts shipments through the ​Strait of Hormuz, a corridor for about a fifth of global supply, forcing exporters to halt shipments and triggering price spikes.

Nigeria's untapped ​reserves ​offer Gulf states an alternative source of crude and gas at a time when global flows are vulnerable and demand for hydrocarbons is set to remain strong for years, Tuggar said.

"It's in line with ⁠what we've always advocated – that countries which might otherwise consider us competitors should partner with us and invest so they can diversify their market share, working with us," he said.

 

NIGERIA HAS LIFTED TOTAL OUTPUT TO ABUT 1.7 MILLION BPD

Nigeria, long hampered by underinvestment, theft and pipeline vandalism, has lifted total output to about 1.7 million barrels ​per day from ‌1.4 million when President ⁠Bola Tinubu took office ⁠in 2023 and could grow further with new capital for fields and pipelines, Tuggar added.

Some analysts say U.S. and Israeli ​strikes on Iran, and Tehran's attacks on Gulf states, could prompt the region ‌to defer African bets, but Tuggar said the opposite could also prove true.

"It ⁠could make them want to work with countries like Nigeria that are rich in gas and oil … to diversify market share for the benefit of both countries, or they could hold back."

Nigeria and the United Arab Emirates signed a pact in January, the Comprehensive Economic Partnership Agreement, that Abuja says should unlock trade and investment.

Qatar-linked investors have also announced plans for investment in gas in Nigeria, though timelines remain unclear.

 

ANALYSTS FLAG LONG APPROVAL CYCLES, EXECUTION RISKS

Analysts caution that headline investment promises often face long approval cycles and execution risks in Nigeria.

Tuggar said Nigeria has felt the pain of costlier oil because it imports large volumes of ‌refined products, lifting transport and food prices, especially during the Muslim fasting month ⁠of Ramadan, when consumption typically rises.

But he said Nigeria was better placed ​to withstand longer-term shocks as domestic refining expands.

The privately owned Dangote refinery says it is operating at name plate capacity of 650,000 barrels per day, enough to meet domestic needs.

Oil will stay "relevant for many years to come," Tuggar added.

"At the ​moment the world ‌consumes about 105 to 106 million barrels per day. I don't see that ⁠changing much anytime soon, so we need to ​work together so we have enough hydrocarbons available." (Reporting by David Lewis; Editing by Clarence Fernandez)