The Independent Petroleum Producers Group (IPPG) and Oil Producers Trade Section (OPTS) have urged the implementation of robust measures to address challenges leading to the decline in oil production in Nigeria. One of the key issues they highlighted is the settlement of a $1.3 billion debt owed to gas producers. These concerns were raised during discussions with the National Assembly as part of efforts to stabilize Nigeria’s fluctuating oil production,leadership reports.
The $1.3 billion debt owed to gas producers was identified as a major obstacle discouraging investment and hindering industry growth. This collaborative initiative was showcased at a capacity-building workshop organized by the two operator groups in the country’s upstream sector for members of the National Assembly. The workshop aimed to combat crude oil theft, enhance security in the Niger Delta region, and address other challenges affecting the oil and gas sector.
During the gathering in Abuja, Senate President Godswill Akpabio, represented by the Chairman of the Senate Committee on Upstream Petroleum, Etang Williams, expressed the lawmakers’ commitment to addressing sector challenges. He lamented the lack of judicious utilization of oil sector windfalls and emphasized the need to increase the nation’s daily oil production to 1.8 million barrels.
Rick Kennedy, Chairman of the Oil Producers Trade Section (OPTS), underscored the importance of information and knowledge sharing to facilitate informed decision-making and collaboration with the National Assembly. Kennedy stated the goal of making Nigeria the preferred destination for investors in the oil and gas sector and expressed the willingness of OPTS and IPPG to work with the National Assembly to achieve this objective.
Despite the enactment of the Petroleum Industry Act (PIA) two years ago, investor uncertainty continues to impede industry investments and revenue generation. Industry players called on the National Assembly to consider reviewing the PIA 2021 to address these concerns.
Abdulrazaq Isa, Chairman of IPPG, highlighted persistent challenges faced by the sector, including investor uncertainty, global energy transition, and insecurity in the Niger Delta. He emphasized the urgent need to ramp up oil and gas production to bolster the nation’s revenue and achieve macroeconomic stability. Isa outlined key priorities, including amending critical aspects of the PIA to establish a robust regulatory framework, enhancing industry competitiveness to attract funding, improving security in the Niger Delta, and developing a value-creating midstream and downstream sector to boost GDP and job creation.
Petroleum producers also urged the federal government to settle the $1.3 billion debt owed to gas producers, stressing that this payment would stimulate industry growth, create new opportunities, and enhance the nation’s Gross Domestic Product (GDP) and power generation capacity. Participants at the roundtable, including members of the hydrocarbon-related committees of the Nigeria National Assembly, IPPG, and IOCs, expressed willingness to collaborate in establishing a competitive fiscal framework that encourages investment and unlocks the sector’s development potential.