‘Indigenous Oil Producers To Upscale Production Capacity Next Year’

The Independent Petroleum Producers Group (IPPG) has said that its members have developed capacity and new investment strategies would support its growth initiatives in 2023.

The group said it will continue to partner with relevant industry stakeholders towards the growth and development of the Nigerian oil and gas industry.

This was disclosed by the chairman of the IPPG, Mr. Abdulrazaq Isa (OFR), during the Group’s 2022 Annual Dinner held in Lagos.

“The Nigerian oil and gas industry has evolved over the last two years with the enactment of the Petroleum Industry Act, large IOC divestment announcements, and Nigeria’s commitment to 2060 net-zero aspirations. This means that a holistic re-positioning of our industry has become necessary”, Isa said.

He also commended the two industry regulators, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), for their diligent implementation of the Petroleum Industry Act (PIA) and their adopted approach of engaging all stakeholders in this regards.

The IPPG Chairman stated that “the year 2023 promises to be a very important year for our industry; not only will our dear country be witnessing a political transition come May 2023, but we shall begin to see numerous changes across the entire oil and gas value chain”.

He said that the tangible effects of the PIA implementation, conclusion of this IOC divestment phase and the emerging dominance of the indigenous players across onshore and shallow water space; implementation of the decade of gas policy; and the expected deregulation of the downstream sector, will all jointly set the tone and direction for Nigeria’s oil and gas industry in the years to come.

The Group restated that it has an important role to play going forward and are best placed to ensure the optimal development of Nigeria’s hydrocarbon resources as its members have demonstrated financial and technical capability to develop the country’s hydrocarbon resources, with proven appetite for supporting the Government’s energy security vision through building a broader value-adding midstream and downstream businesses.

“It is therefore imperative that our advocacy effort in 2023 should be focused on creating collective support and deliberate collaboration with the Government, Industry Regulators and Nigerian Financial institutions, working in concert, to optimise the numerous growth opportunities available across the industry”, Isa said.

He reiterated that the Group’s priority as an industry, in the short to medium term, “must be to rapidly exploit our hydrocarbon assets for the socio-economic transformation of our country. To this end, IPPG will continue to work closely with the Government to achieve all its aspirations for the industry which is primarily centred on energy availability, affordability and security for all Nigerians now and in the coming years”.

The guest speaker at the dinner, Mr. Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company PLC, in his presentation; “The Outlook for Financing the Energy Sector in Nigeria in the Light of the Energy Transition” remarked on the funding challenges confronting the industry, outlook for the industry in terms of financing and insights on how to ensure sustainable financing solutions for the development of the nation’s hydrocarbon resources are defined.

Since the establishment of IPPG in 2015, the Group has achieved remarkable growth and remained focused on working with stakeholders for the development of the oil and gas industry for the benefit of the country. IPPG is a twenty-seven-member association of Nigerian indigenous upstream Exploration and Production companies that constructively engages government and other industry stakeholders on issues affecting the industry with a view to realising a sustainable petroleum industry and maximise its contribution to the socio-economic development of Nigeria.