More than two years after the Petroleum Industry Act (PIA) 2021 was passed, operators in the nation’s oil and gas industry say its impact is not yet felt, as investor uncertainty, a core element of the reforms, still persists.
Giving an overview of the current state of the industry, in Abuja, yesterday, chairman, of the Independent Petroleum Producers Group (IPPG), Mr. Abdulrazaq Isa, noted that despite the enactment of the PIA, bottlenecks still exist and continue to stifle the growth of the industry and prevent much needed capital flow into the sector to enable it meet the industry’s growth aspirations.
Speaking during a Capacity Building Workshop for the members of the National Assembly organised by the IPPG, in partnership with OPTS, Mr Isa called for amendment of critical aspects of the PIA primarily to among others: Establish a strong regulatory and governance framework to guide the effective implementation of the PIA and ensure the intended benefits of the industry-wide reforms are realised; Enhance the competitiveness of the industry in order to attract the level of funding required to fully optimise our vast hydrocarbon resources for today and future generations.
The IPPG chairman also stressed the need to improve security across the Niger Delta to safeguard and build a conducive operating environment to stem crude theft and sustainably address the unprecedented production decline witnessed in recent years.
In addition, he said the establishment of a value-creating midstream and downstream sector to catalyse and rapidly industrialise the Nigerian economy thus significantly growing GDP and boosting job creation is highly imperative.
“It has been two years since the enactment of the PIA and this landmark legislation continues to transform the Nigerian oil and gas industry and has laid a solid foundation for its growth and development.
However, investor uncertainty, a core element of the ongoing reforms, persists and this is further exacerbated by the global energy transition drive and the insecurity in the Niger Delta with the resultant effect being a significant drop in the nation’s production output.
“Consequently, Nigeria suffers untold collapse in revenue accruable
from its vast hydrocarbon resources. It has therefore become imperative for us as an industry to ensure the immediate ramping up of oil and gas production to shore up the nation’s revenue base and generate the much needed foreign exchange for the attainment of macroeconomic stability, Isa stated.
He said the industry will continue to work closely with the National Assembly in this regard to foster collaborations that would improve the operations of the oil and gas industry.
Also speaking, chairman of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry, Mr Rick Kennedy, said the half day workshop will help to focus on key challenges currently facing the industry leading to dwindling production and low investment in the sector and what is required to resolve these issues.
Kennedy, who is also the managing director of Chevron, hoped the programme will better equip the lawmakers on how to best support the industry and hopefully clear up some misperceptions about the industry.
“Our goal is to make Nigeria the destination of choice once again for investors in the oil and gas sector. The OPTS and IPPG are willing to work with you to realise this dream, Kennedy said.
The OPTS is made up of 28 members comprising international and indigenous oil companies and collectively account for approximately 90 per cent of Nigeria’s crude oil production.
On his part, the Senate president, Senator Godswill Akpabio, commended the two groups for growing Nigeria’s crude oil output to 1.35 million barrels per day, in September, which was 14 per cent higher than the previous month and the highest figure since the year began.
Senator Akpabio, who was represented by the chairman, Senate Committee on Upstream Petroleum, Senator Etang Williams, noted that this was achieved due to the concentrated and determined effort the federal government yielded the dividend.
According to him, with this, Nigeria is hopeful that with careful planning and execution, it can meet the OPEC quota 1.8 million barrels per day.
