Malaysian oil giant, Giant Oil and Gas Ltd (GOG), has signed sales and purchase agreement with its Nigerian counterpart, Royal Investment Ltd, to invest billions of dollars in Nigerian oil sector.
The the signing ceremony which took place in Abuja on Tuesday, involves the President of GOG, who signed for his company, and Mr. Jariuz Tebeda signed on behalf Royal Investment.
The deal is for the arrangement of millions of barrels of Bonny Light Crude Oil from Nigerian National Petroleum Corporation (NNPC).
Those who witnessed the ceremony include CEO of Prime Trading Singapore, Mr. Koh Seng Lee and the CEO of Giant Goodness Limited, Mr. Goodness Inemesit Akpan, who also doubles as the mandate to the buyer.
With the signing of the agreement, GOG is expected to provide the seller with verifiable proof of funds from a prime bank and its Nigerian partner will work to secure the product legitimately from NNPC.
The Nigerian upstream sector is mainly for multinationals and big investors such as Giant Oil and Gas Limited who has the money and the expertise to invest.
Despite the world’s crave for the adoption of alternative renewable energy resources, oil still remains the number one, because almost all vehicles and machines use either PMS (Petrol) or AGO (Diesel).
Experts believe the demand for petroleum products would not end anytime soon, as the concept of renewable energy would take decades to materialize.