• Saturday, March 02, 2024
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Amending PIA, expediting divestments, key to Nigeria’s oil boom, producers say

Amending PIA, expediting divestments, key to Nigeria’s oil boom, producers say

Nigeria’s petroleum producers are pushing for key changes to the Petroleum Industry Act (PIA) and a swift acceleration of divestment processes, declaring these steps crucial to unlocking a long-awaited oil boom in the country.

Speaking at the 2023 Annual Dinner held at Metropolitan Club, Lagos, Abdulrazaq Isa, chairman of the Independent Petroleum Producers Group (IPPG) said that attracting the level of investment required to fully optimise the country’s production base will require focus on some key priorities in the short to medium term.

“The key priority areas include amending critical aspects of the Petroleum Industry Act (PIA) to strengthen the regulatory framework and competitiveness of the fiscal regime; enhancing security across the Niger Delta; expediting the conclusion of ongoing International Oil companies’ (IOCs) divestments; sustaining the implementation of the “Decade of Gas” policy and holistically addressing inherent inefficiencies within our industry which have driven costs to astronomical levels,” Isa said.

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Despite the challenges, the IPPG’s chairman is optimistic about the industry’s future. He emphasized the non-negotiable goal of achieving production targets by the turn of the decade and called for collaboration with the government and other stakeholders to optimize growth opportunities, emphasizing the importance of sustained advocacy efforts in 2024.

“Based on the vast hydrocarbon resources at our disposal and the ongoing global decarbonisation drive, achieving production targets of 4mmb/d of oil and 12 bcf/d of gas by the turn of the decade should be non-negotiable,” Isa stated.

Heineken Lokpobiri, minister of state for petroleum resources (Oil) while assuring all stakeholders in the petroleum sector that they do not need to see him to get things done, appealed to IPPG members to support President Tinubu’s quest to achieve 2 million bpd target.

“IPPG is a critical institution for Nigeria’s energy future. We will prioritize IPPG members who have proven oil assets during the next marginal field bid rounds,” Lokpobiri said.

In her special goodwill message at the event, Olu Verheijen, special adviser to the president on energy, revealed that President Tinubu has approved an Import Duty Waiver to promote the utilization and supply of gas in the domestic market, covering equipment related to Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG). She also shared insights from her recent stakeholder engagements.

“From my engagements with leading international and independent oil and gas companies operating in Nigeria, there are massive investment opportunities for the energy sector, estimated at $55.2 billion projected by 2030, of which $13.5 billion is expected to be invested by these companies in 12 months”, Verheijen said.

In his brief remarks, Babajide Sanwo-Olu, the governor of Lagos state assured IPPG of the state government’s commitment to supporting them in their endeavours especially as their progress will ultimately create a positive impact and rub off on the progress of the state.

Read also: FG signs pact with Saudi Arabia to boost petroleum sector growth

Noimot Salako-Oyedele, the deputy governor of Ogun State who represented Dapo Abiodun, governor of Ogun state said despite the global call for energy transition from fossil fuel to cleaner resources, there are indications that oil and gas will remain relevant in Nigeria and other countries for a much longer time.

The 2023 IPPG Annual Dinner had key government officials and influential industry stakeholders in attendance.