• Wednesday, February 21, 2024
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IOCs divestment, energy transition to open opportunities for players – IPPG

IOCs divestment, energy transition to open opportunities for players – IPPG

Global energy transition and divestment of onshore and shallow water assets by International Oil Companies (IOCs) have been identified as factors that would open new opportunities for indigenous players, according to Abdulrazaq Isa, chairman of the Independent Petroleum Producers Group (IPPG).

Isa also said that implementing the Petroleum Industry Act (PIA) and the Decade of Gas Initiative will also present exciting opportunities for the industry’s transformative shift.

Speaking at the just concluded 12th edition of the Practical Nigerian Content (PNC) Forum held in Yenagoa, Bayelsa State, Isa expressed optimism for the industry’s long-term growth and pointed out the need for efficiency and optimisation of hydrocarbon assets for socio-economic transformation.

He emphasised the need to address the industry’s capacity gaps, infrastructural inadequacy, and capital deficiency.

Read also: Nigeria’s onshore oil output dips as IOCs hold sway in offshore

“It is clear that the government’s effort in deepening local content in the Nigerian oil and gas industry is yielding dividends and this effort must be sustained with greater focus placed on bridging inherent capacity gaps”, Isa said.

According to Isa, the acceleration of in-country capacity utilisation, reduction of capital flight, and in-country retention of a significant portion of industry spend will no doubt continue to expand the participation of indigenous companies across the industry value chain.

He however called for a reevaluation of the human capital development training requirements and modifications to ensure the industry remains globally competitive.

Commending the Nigerian Content Development and Monitoring Board (NCDMB) for convening the event, he highlighted the pivotal role of the Practical Nigerian Content Forum in deepening Nigerian Content and fostering industry collaboration.

Read also: Senate Minority Whip calls out IOCs for degrading Nigeria’s oil rich region

Isa commended NCDMB for achieving a 54 percent Nigerian Content level, adding that the agency is on track to exceed the 70 percent target by 2027.

He acknowledged the impactful tenure of Simbi Wabote, the outgoing executive secretary of NCDMB, whose unwavering commitment contributed to industry growth.

“NCDMB’s proactive business enabling role can be seen in the successful 5,000 barrels per day Waltersmith Modular Refinery in Ibigwe which commenced operations in November 2020, delivered its first dividend payment to NCDMB, and paid off a significant portion of its project financing,” he added.