The Federal Government has said engagements with leading international and independent oil and gas companies in Nigeria have identified projected massive investment opportunities for the energy sector estimated at $55.2 billion by 2030.
Special Adviser to the President on Energy, Mrs. Olu Verheijen, stated this in her goodwill message at the 2023 Annual Dinner of the Independent Petroleum Producers Group(IPPG) held in Lagos at the weekend.
Verheijen, explained that of the $55.2 billion projected investments, $13.5 billion is expected to come from these companies over the next 12 months.
She disclosed that President Bola Tinubu, recently approved an import duty waiver to promote the utilisation and supply of gas in the domestic market, covering equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).
Eaelier in his opening remarks, the President of Independent Petroleum Producers Group (IPPG), Mr. Abdulrazaq Isa, said that the group’s immediate concern as a matter of urgent industry priority was the creation of a conducive and enabling business environment to enhance the competitiveness of the industry.
He added that attracting the level of investment required to fully optimise the country’s production base will require focus on some key priorities in the short to medium term.
“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”, Isa said.
Despite the challenges, the IPPG Chairman was optimistic about the industry’s future. He expressed 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 optimise growth opportunities, emphasising 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 4mb/d of oil and 12 bcf/d of gas by the turn of the decade should be non-negotiable”, Isa stated.
Minister of State for Petroleum Resources (Oil), Mr. Heineken Lokpobiri, while assuring all stakeholders in the petroleum sector that they do not need see him personally to get things done, 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,” Lokpobiri said.
In his brief remarks, the Governor of Lagos State, Mr. Babajide Sanwo-Olu, 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.
Deputy Governor of Ogun State, Noimot Salako-Oyedele, who represented Governor Dapo Abiodun, said that despite the global call for energy transition from fossil fuel to cleaner resources, there are indications that oil and gas will remain relevant in Nigeria and other countries for a much longer time.
The 2023 IPPG Annual Dinner had key government officials and influential industry stakeholders in attendance.
SOURCE: THIS SUN
