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Amending the PIA and other regulations are critical to increasing Nigeria’s crude oil production — IPPG
The Governor of Lagos State, His Excellency, Babajide Sanwo-Olu also present at the event 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.
Mr. Abdulrazaq Isa, Chairman of the Independent Petroleum Producers Group (IPPG), has stated that attracting the amount of investment required to fully optimize the country’s production base will necessitate a focus on some important goals in the near to medium term.
Speaking at the 2023 Annual Dinner held recently in Lagos, Isa stated “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”.
He emphasized 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.
“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”, he added.
Also speaking, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, appealed to IPPG members to support President Tinubu’s quest to achieve 2 million bpd target.
“IPPG is a critical institution for Nigeria’s energy future.We will prioritize IPPG members who have proven oil assets during the next marginal field bid rounds,” he added.
On her part, Special Adviser to the President on Energy, Mrs. Olu Verheijen, revealed that President Tinubu has 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 Liquified Petroleum Gas (LPG). She 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”, she added.
The Governor of Lagos State, His Excellency, Babajide Sanwo-Olu also present at the event 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.
