The Independent Petroleum Producers Group (IPPG), has called for review of critical aspects of the Petroleum Industry Act (PIA) to strengthen the regulatory framework and competitiveness of the fiscal regime.
The amendment, the group believes will enhance security across the Niger Delta and expedite the conclusion of ongoing International Oil companies’ (IOCs) divestments as well as sustain the implementation of the “Decade of
Gas” policy and holistically addressing inherent inefficiencies within the industry.
The IPPG further said that the group’s immediate concern as a matter of urgent industry priority is the creation of a conducive and enabling business environment to enhance the competitiveness of the industry.
Speaking at the 2023 Annual Dinner held in Lagos, chairman of IPPG, Abdulrazaq Isa, said that attracting the level of investment required to fully optimise the country’s production base will require focus on some key priorities in the short to medium term.
“The key priority areas include amending critical aspects of the Petroleum Industry Act (PIA) to strengthen the regulatory framework and competitiveness of the fiscal regime; enhancing security across the Niger Delta; expediting the conclusion of ongoing International Oil companies’ (IOCs) divestments; sustaining the implementation of the “Decade of Gas” policy and holistically addressing inherent inefficiencies within our industry which has driven costs to astronomical levels”, Isa said.
Despite the challenges, the IPPG chairman is optimistic about the industry’s future. He emphasised the non-negotiable goal of achieving production targets by the turn of the decade and called for collaboration with the government and other stakeholders to optimise growth opportunities, emphasising the importance of sustained advocacy efforts in 2024.
“Based on the vast hydrocarbon resources at our disposal and the ongoing global decarbonisation drive, achieving production targets of 4mmb/d of oil and 12 bcf/d of gas by the turn of the decade should be non-negotiable”, Isa stated.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, while assuring all stakeholders in the petroleum sector that they do not need to see him personally to get things done, appealed to IPPG members to support President Tinubu’s quest to achieve the 2 million bpd target.
“IPPG is a critical institution for Nigeria’s energy future. We will prioritise IPPG members who have proven oil assets during the next marginal field bid rounds,” Lokpobiri said.
In her special goodwill message at the event, Olu Verheijen, Special Adviser to the President on Energy, revealed that President Tinubu has approved an Import Duty Waiver to promote the utilisation and supply of gas in the domestic market, covering equipment related to Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG).
She also shared insights from her recent stakeholder engagements.
“From my engagements with leading international and independent oil and gas companies operating in Nigeria, there are massive investment opportunities for the energy sector, estimated at $55.2 billion projected by 2030, of which $13.5 billion is expected to be invested by these companies in 12 months’ time”, Verheijen said.
In his brief remarks, the governor of Lagos State, Babajide Sanwo-Olu, assured IPPG of the state government’s commitment to support them in their endeavours especially as their progress will ultimately create positive impact and rub off on the progress of the state.
Engr. Noimot Salako-Oyedele, the deputy governor of Ogun State who represented Governor Dapo Abiodun of Ogun State, said that despite the global call for energy transition from fossil fuel to cleaner resources, there are indications that oil and gas will remain relevant in Nigeria and other countries for a much longer time.
The 2023 IPPG Annual Dinner had key government officials and influential industry stakeholders in attendance.
