IPPG Sees Great Opportunities In Global Energy Transition, IOCs’ Divestment

The chairman of Independent Petroleum Producers Group (IPPG), Mr. Abdulrazaq Isa, has said, the global energy transition, the Petroleum Industry Act (PIA), divestments by International Oil Companies (IOCs), and the Decade of Gas Initiative has presented indigenous players with exciting opportunities for the industry’s transformative shift.

According to the IPPG chairman, “the ongoing global energy transition drive as well as the widespread reforms across the domestic landscape – notably the implementation of the PIA, the ongoing divestment of onshore and shallow water assets by the IOCs and the Decade of Gas Initiative means exciting times are on the horizon for the industry bringing with it immense opportunities for growth.”

Speaking at just concluded 12th edition of the Practical Nigerian Content (PNC) Forum held in Yenagoa, Bayelsa State, Isa underscored the importance of efficiency and optimisation of hydrocarbon assets for socio-economic transformation. He emphasised the need to address capacity gaps, infrastructural inadequacy, and capital deficiency in the industry.

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

While expressing optimism for the long-term growth of the industry, Isa said: “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 the indigenous companies across the industry value chain and create linkages to the wider economy”.

The IPPG Chairman urged a reevaluation of the Human Capital Development training requirements and advocated for modifications to ensure the industry remains globally competitive and sustainable.

The chairman highlighted the pivotal role of the Practical Nigerian Content Forum in showcasing successes in deepening Nigerian Content and fostering industry collaboration.

He commended the Nigerian Content Development and Monitoring Board (NCDMB) for convening the event, emphasizing the natural synergy between NCDMB and IPPG, representing 29 indigenous Exploration and Production companies.

Isa commended NCDMB for achieving a 54 per cent Nigerian Content level adding that the agency is on track to exceed the 70 per cent target by 2027, and acknowledged the impactful tenure of Engr. Simbi Wabote, the past Executive Secretary of NCDMB, whose unwavering commitment contributed to industry growth.

He also spoke about NCDMB proactive business enabling role with collaboration on the phenomenally successful 5,000 barrels per day Waltersmith Modular Refinery in Ibigwe which commenced operations in November 2020.

“Today, the refinery has delivered its first dividend payment to NCDMB, paid off a significant portion of its project financing and commenced an expansion phase designed to double refinery’s capacity to 10,000 barrels per day in the next eighteen months”.

In line with its commitment to the growth of Nigeria Content, IPPG has served as principal sponsor of the PNC forum for two consecutive years now and the have also pledged for continued partnership with NCDMB in order to strengthen in-country capacity and increase Nigerian Content for the benefit of the industry and the nation.