The Department of Petroleum Resources (DPR) has listed 5 ways to fortify the Nigerian oil and gas sector for economic stability and growth.
The 5 broad areas needed to strengthen the sector include legal, institutional, financial, in-sector diversification and indigenous capacity.
This was made known by the Director/Chief Executive Officer of DPR, Mr Sarki Auwalu, while presenting a keynote address at the 20th Nigeria oil and gas conference with the theme, “Fortifying the Nigerian oil and gas sector for Economic Stability,” in Abuja on Tuesday.
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What the DPR Chief Executive Officer is saying
Auwalu said the DPR would remain committed to the development of the oil and gas sector for economic growth and development.
The DPR boss said, “For us in the DPR, we contemplate five broad areas in which the industry needs to support the nation for economic growth and stability.
The areas are legal, institutional, financial, in-sector diversification and indigenous capacity.
And I have to say that with the focused leadership of President Muhammadu Buhari and the Minister of State for Petroleum Resources, Chief Timipre Sylva, the key fundamental issues on growth are being addressed.’’
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According to him, under the legal front, the long-awaited Petroleum Industry Bill (PIB) that has been passed will enhance clarity in legislative, regulatory, fiscal and administrative frameworks.
He said that evolving commercial institutions would be strengthened for efficiency, prudent management, financial stewardship and operational management.
“At the same vein, the regulatory institutions should be strengthened to streamline roles, prevent duplication and promote ambition that will promote regulatory clarity in rules of doing business.
The overall industry financial provision must be improved for sustainability to protect the oil and gas production level,” he stated.
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Auwalu noted that millions of dollars were required for investment in infrastructure in the deep offshore, inland basin, frontier basins, marginal field development and gas infrastructure, among others adding that investments in the NLNG train 7, AKK gas pipeline project, among others were an indication of an improved business model in the country.
He noted that a stable and legal fiscal operation was critical for improved investment in businesses in Nigeria.
Auwalu added, ”We have confidence that with the passage of the PIB, existing operators and second-generation International Oil Companies will have the reason to consolidate their business in the country.
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In a related sense, the concept of in-sector diversification must take on to add impetus to economic stability and growth.’’
He noted that a lot of things are involved in economic diversification adding that the industry must look inwards to drive value for growth and stability.
In case you missed it
It can be recalled that the Senate and the House of Representatives recently passed the Petroleum Industry Bill (PIB) which seeks to introduce far-reaching reforms in the Nigerian oil and gas industry. It was first presented to the National Assembly in 2008.
The Bill which was first presented to the National Assembly in 2018, aims at establishing good governance, best practices, and ease of doing business in the industry by clarifying roles and responsibilities of officials and institutions, enable frontier exploration, mandate improved environmental compliance, and transform NNPC into a commercially viable enterprise.
