FG to compel oil companies to contribute to PTDF

The Federal Government has said it will compel oil and gas companies to pay part of their training budget to the Petroleum Technology Development Fund (PTDF).

The decision comes as it has failed to release all statutory monies to fund the activities of PTDF which has led to the scaling down of its operations.

Tayo Alasoadura, chairman Senate Committee on Petroleum Upstream, who disclosed this on Tuesday in Abuja at the First PTDF Oil Exploration Production Companies Summit, explained that poor funding was hampering the operation of PTDF.

According to him, the failure of government to release PTDF monies has “invariably led to the scaling down of the operations of PTDF while it seeks to harness yields from other investments to continue its training programmes which remains the bedrock of its activities.

“Infact, we in the legislature are thinking that we may have to pass a law to ask the respective oil producing organizations (government and private owned) to contribute a certain percentage of their training budget as statutory to PTDF.

“…because what we have now is voluntary but we want to make it compulsory that such monies should be released to PTDF. This summit principally aims at exploring the diverse opportunities following the intent and purposes of Section 1 (c) of the PTDF Act of 1964 and to further address the deficit in the funding of the fund occasioned by the non-constituent releases of the statutory reserve with the CBN, so as to ensure sustained additional funding to complement the expanding programmes and projects of the PTDF”.

Speaking earlier, Ibe Kachikwu,  Minister of State for Petroleum Resources, acknowledged that inadequate funding was negatively impacting on the activities of PTDF.

The minister who was represented by the permanent secretary in the ministry, Jamila Shu’ara, however explained that the government has advised PTDF to be more strategic in its effort to generate additional funding for its operations.

Kachikwu noted that PTDF has trained over 4,000 graduate and post graduate scholars in the best institutions all over the world, stressing that the role of the fund in closing manpower gaps and supporting technological advancement in Nigeria cannot be over emphasized.

He however pointed out that “as we move into a phase of global challenges in the oil sector we will all have to do more to reinvent our strategies for collective good of our nation”.

He noted that the summit was a strategic approach by the fund to collaborate with industry players on the need for a more sustainable approach to funding and other activities.

“The negative impact on Nigeria’s receipts from activities of the sector necessitated government’s advise to PTDF management to develop a sustainable strategy for achieving the fund’s mandate.

“You are all aware that signature bonuses from Bidding Rounds which is the major source of PTDF’s revenue have not been forth coming since 2007. The recent developments in the global economy, especially in the hydrocarbon industry gives developing nations like Nigeria, a lot of lessons as it challenges nations to new technologies and initiatives that would enhance the outcome of relevant research and development activities”, he added.

Kachikwu explained further that PTDF has in the past invested in building capacity, but going forward has to “build strategic partnerships to enable industry players find a platform to address new challenges, expectations and prospects in the use of hydrocarbons and in the utilization of other renewable sources of energy which impacts the support systems that fund capacity development”.

Also speaking, Ahmed Galadima Aminu, acting executive secretary of PTDF, said there is a need for efficient and effective collaboration between the fund and industry players.

Aminu assured the oil companies that PTDF is committed to achieving its mandate for the growth of the sector and the country at large.