The federal authorities has challenged Indigenous Petroleum Producers Group (IPPG) to reap the benefits of the continuing divestments by Worldwide Oil Corporations (IOCs) to considerably enhance their investments in oil and fuel property in Nigeria.
Talking as chairman and particular visitors, on the Nigerian Affiliation of Petroleum Explorationists (NAPE) divestment workshop Thursday, in Lagos, Minister of State Petroleum Assets Chief Timipre Sylva stated IPPG ought to see the divestments by IOC in oil and fuel property in Nigeria as alternative to step in to fill the gaps within the sector.
The workshop has as its theme The Massive Sale: Alternatives within the Nigerian Oil & Gasoline Trade from asset divestments.
Based on him “The Indigenous Petroleum Producers Group (IPPG) and different potential buyers, ought to subsequently understand the IOCs’ divestments in a number of the upstream property as alternatives, quite than a threats, to turn into extra concerned within the growth of the Nigerian upstream petroleum sector”.
He urged IPPG members to try to maneuver their current contribution “in manufacturing and reserves to at the very least 50%, from about 30% for crude oil and 20% for fuel manufacturing, in addition to 40% and 32% for oil and fuel reserves, respectively”.
Sylva stated the passage and signing into regulation of the Petroleum Trade Act in 2021 (PIA) has cleared the trail of each attainable impediment that will have hitherto hindered funding within the oil and fuel sector.
Sylva traced divestment in Nigeria’s upstream oil and fuel sector by IOCs to 2006 including that it elevated in 2010 primarily because of the hostile setting arising from the menace of crude oil theft.
“This, no doubt, made some IOCs to re-balance their portfolios to reap the benefits of the incentives for offshore oil and fuel growth below the Deep Offshore and Inland Basin Manufacturing Sharing Contract Act and PIA, and to keep away from host neighborhood points associated with onshore and shallow water leases and licenses,” he stated.