Determined to attain its 2.5 million barrels per day (mbpd) crude oil production output target by 2027, the federal government yesterday challenged International Oil Companies (IOCs) operating in the country to take decisive and concrete steps to ramp up their oil production capacity.
Making the charge while speaking at a panel session at the ongoing 9th edition of the Nigerian International Energy Summit (NIES), the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the performance of the petroleum industry is basically tied to the success of upstream operators, especially as the country’s economy remains largely dependent on foreign exchange earnings from the sector.
Besides, he noted that the government has created an enabling environment for oil companies to operate effectively; therefore, they should not be an excuse not to meet the target...READ FULL; FROM THE SOURCE.
“I have always maintained that the success of the oil and gas industry is largely dependent on the success of the upstream. From upstream to midstream and downstream, everything is connected. If we do not produce crude oil, there will be nothing to refine and nothing to distribute. Therefore, the success of the petroleum sector begins with the success of the upstream.
“I am also happy with the team I have had the privilege to work with, a community of committed professionals.”
From the government’s standpoint, it is important to state clearly that there is no discrimination between indigenous producers and other operators.
“You are all companies operating in the same Nigerian space, under the same law. The Petroleum Industry Act (PIA) does not differentiate between local and foreign companies. While you may operate at different scales, you are governed by the same regulations. Our expectation, therefore, is that we will continue to work together, collaborate, and strengthen the upstream sector for the benefit of all Nigerians,” Lokpobiri said.
He assured that of government’s continued support for the industry through reforms, tax incentives and regulatory adjustments aimed at unlocking the sector’s full potential.
“We have provided extensive incentives to unlock the sector’s potential through reforms, tax reliefs and regulatory changes. Now is the time for industry players to reciprocate by investing, producing and delivering results,” he said, adding that Nigeria’s success in the upstream sector would have positive spillover effects across Africa, while failure would negatively impact the continent’s midstream and downstream segments.
