The Independent Petroleum Producers Group (IPPG) has called for a review of critical aspects of the Petroleum Industry Act (PIA) 2021 to strengthen the regulatory framework and competitiveness of the fiscal regime and by implication, attract more investments into the hydrocarbon resources industry.
Specifically, the group believes that the amendment of some provisions of the Act will enhance security across the Niger Delta and facilitate timely 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.
In addition to the amendment of the enabling Act, the group also expressed concern on the urgent need for government to prioritize the creation of enabling business environment to enhance the competitiveness of the industry.
Speaking at the 2023 Annual Dinner in Lagos, the Chairman of IPPG, Mr. 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.
He said: “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.”
Despite the challenges, the IPPG Chairman said he was optimistic about the industry’s future, stressing 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 optimize growth opportunities, emphasizing the importance of sustained advocacy efforts in 2024.
The industry leader pointed out that 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.
In his Keynote Address at the event, the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, while assuring all stakeholders in the petroleum sector that they do not need see him personally to get things done, appealed to IPPG members to support President Tinubu’s quest to achieve 2 million bpd target.
He described IPPG as a critical institution for Nigeria’s energy future and expressed the readiness of the government to prioritize the needs of IPPG members with proven oil assets during the next marginal field bid rounds.
In her special goodwill message at the event, Special Adviser to the President on Energy, Mrs. Olu Verheijen, hinted that the President had approved an Import Duty Waiver to promote the utilization and supply of gas in the domestic market, covering equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), and shared insights from the recent stakeholder engagements by the government.
She said: “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.”
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 endeavors especially as their progress will ultimately create positive impact and rub off on the progress of the state.
Similarly, Governor of Ogun State, Prince Dapo Abiodun, who was represented by the Deputy Governor, Engr. Noimot Salako-Oyedele, said that despite the global call for energy transition from fossil fuel to cleaner resources, there were indications that oil and gas would remain relevant in Nigeria and other countries for a much longer time.
