• Sunday, June 16, 2024
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IPPG-OPTS engages National Assembly on Nigeria’s oil production crisis

Oil glut on horizon as non-OPEC supply surges, IEA warns

The Independent Petroleum Producers Group (IPPG) and Oil Producers Trade Section (OPTS) have engaged with the National Assembly in a bid to stabilise the nation’s fluctuating oil production volume.

This initiative came to the fore at the capacity building workshop organised by the two groups for members of the National Assembly in a renewed effort to combat crude oil theft, enhance security in the Niger Delta region, and tackle other challenges plaguing the country’s oil and gas sector.

During the engagement held in Abuja recently, Godswill Akpabio, senate president, expressed lawmakers’ commitment to addressing sector challenges while lamenting the lack of judicious use of oil sector windfalls.

Read also: Crude production decline dims local refining hopes

Represented by Etang Williams, chairman of the Senate Committee on Upstream Petroleum, Akpabio said there is a need to increase the nation’s daily oil production to 1.8 million barrels.

Rick Kennedy, chairman of the OPTS said there is the need for knowledge sharing to facilitate decision-making and foster collaboration with the National Assembly.

“Our goal is to make Nigeria the destination of choice once again for investors in the oil and gas sector. The OPTS and IPPG are willing to work with the National Assembly to realise this dream”, Kennedy said.

Abdulrazaq Isa, chairman of IPPG, listed investor uncertainty, global energy transition, and insecurity in the Niger Delta as challenges faced by the sector.

Read also: IPPG, Oil experts outline reform priorities for new administration

He said there is an urgent need to ramp up oil and gas production to bolster the nation’s revenue and achieve macroeconomic stability.

Isa however outlined areas of priorities to include amending critical aspects of the PIA to establish a robust regulatory framework, enhancing industry competitiveness to attract funding, improving security in the Niger Delta, and developing a value-creating midstream and downstream sector to boost GDP and job creation.

Also, petroleum producers urged the Federal Government to settle the $1.3 billion debt owed to gas producers, adding that this payment would stimulate growth, create new opportunities, and enhance the nation’s GDP and power generation capacity.

Despite the enactment of the Petroleum Industry Act (PIA) two years ago, investor uncertainty still hampers industry investments and revenue generation. As a result, industry players urged the National Assembly to consider reviewing the PIA 2021 to address these concerns.