BusinessDay
Nigeria's leading finance and market intelligence news report.

‘Govt should review oil and gas policies for ease of doing business’

 

The Federal Government has been advised to review some of the policies in oil and gas industry so as to enhance the ease of doing business in the sector.
Doing business have become extremely challenging in the country with all the red tapes that investors have to overcome in the course of carrying out their business transactions.
Things that investors pay for have increased significantly. This is starting from meeting the conditions NIPEX have put in place to getting licenses from the Department of Petroleum Resources (DPR) to paying for safety and standards.
The policies in respect of the above mentioned obligations, investors say need to be reviewed and streamed lined as they claimed there are so many things they are paying money for in the industry yet there is no businesses.
They therefore advised the government to do some reviews at the policy levels so that the constraints on ease of doing business in oil and gas industry would be eliminated.
Ese Avanoma, group managing BRADE Group, One the investors that expressed his view about the problems being faced by investors spoke to BusinessDay on the sideline of the just completed Nigeria International Petroleum Summit (NIPS).
He stated that Local content needs to be better, strengthen and supported while duplicated policies should be looked at and be reviewed by the government.
The government he explained must see how it can reduce the bureaucratic bottlenecks in the industry which have really increased.
The BRADE Group boss who said his six companies operate across Nigeria, Ghana and Uganda doing drilling and completion operations, explained that oil and gas wells drilling are core areas of the group operations. The group also focuses on heavy duty equipment used for these jobs, such as oil Pipes and line Pipes. In addition, it is looking at the adaptation of a new technologies in the industry that would reduce the cost of crude oil production.
Most recently, the group went into the production of chemicals as well.
“So in summary we are into drilling and completion of oil and gas well, heavy equipment to service the oil industry, manufacture of chemicals and new technology adaptation in Nigeria,” he said.
Speaking further on the adaptation of new technology in industry, he said, the oil and gas industry has undergone some major reviews in recent past which have negative and positive impacts, stating however that cost has been the major driver of many changes in the industry.

“As you must have noticed the oil industry have undergone major review in the past few years, cost is one of the major drivers, we use to have a barrel of crude oil costing $100, today, it cannot be anywhere higher than $60 per barrel. We will bring in new technologies and adapt them to the Nigeria environment to see how they can reduce the cost of producing a barrel of oil here”.

He said the cost of producing oil is so high in the country explaining that such new technologies will change the way things are done traditionally for better results.

Olusola Bello

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