• Sunday, June 23, 2024
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IPPG, Oil experts outline reform priorities for new administration

IPPG charts path to a sustainable future for independent producers

The Independent Petroleum Producers Group (IPPG) has declared the group’s commitment to the development and growth of Nigeria’s oil and gas sector, in alignment with the visionary goals of the new administration led by President Bola Ahmed Tinubu.

In his speech at the 2023 NOG Week in Abuja, Abdulrazaq Isa (OFR), the IPPG Chairman, represented by Layi Fatona, commended the new administration for its bold and progressive steps taken within the first 40 days in office.

“There is need for a laser-focused delivery of key priorities to unlock Nigeria’s energy potential, fuel economic growth, diversify the economy, and enhance energy security sustainably”, IPPG stated.

The priority areas highlighted by the IPPG include; establishment of a strong governance framework to guide the implementation of the Petroleum Industry Act (PIA) and facilitate systemic interaction and performance across the industry. The aim is to ensure the overall delivery of the objectives, intent, and deliverables of the reforms.

Another priority area is strengthening security in the Niger Delta to safeguard and stabilize the operating environment, stem crude theft, and enable seamless access to turn around oil and gas production declines, thereby unlocking growth in the short to medium term.

IPPG called for the establishment of value-creating midstream and downstream sectors which remains vital to catalyse and rapidly industrialize the Nigerian economy.

“The “Decade of Gas” policy and the Petroleum Industry Act (PIA) provide foundations for building integrated plans and roadmaps to realize sustained value from these subsectors”, the group stated.

The group also called for enhancing the competitiveness of Nigeria’s oil and gas industry through a strong, enabling, independent single regulator to address the challenges faced due to regulatory bifurcation to contribute to strengthening the industry’s competitiveness.

Another key priority area the IPPG identified is for the government to expedite the conclusion of ongoing IOC divestments as “further delays in concluding the ongoing divestments by international oil companies (IOCs) have negative consequences such as production decline, loss of facility integrity, muted investments, and weak stewardship”.

The IPPG emphasized that the next 6 – 18 months is critical in determining the future of Nigeria’s oil and gas industry for “establishing a solid foundation for a secured energy future, ensuring energy availability, affordability, and sustainability for all Nigerians”.

Also, on the sideline of the NOG Week, IPPG hosted, first of its kind, a Business Roundtable where notable industry stakeholders convened to proffer pragmatic solution on the convergence of policy formulation, execution and investor confidence in the Nigerian energy sector.

Speaking also at the event, Gabriel Aduda, permanent secretary and Ministry of Petroleum Resources, said there is a need for enhanced readiness for the energy transition journey in terms of funding, capacity, etc.

“If the world is really serious about energy transition, we must be ready to fund the process and the entire value chain in order to reap the benefits,” he said.