The Department of Petroleum Resources(DPR) has listed five ways to fortify the Nigerian oil and gas sector for economic stability and growth.
The Director and Chief Executive Officer of DPR, Mr Sarki Auwalu, made the suggestion while presenting a keynote address themed: “Fortifying the Nigeria oil and gas sector for Economic Stability” at the 20th Nigeria oil and gas conference, in Abuja on Tuesday.
Auwalu said the DPR would remain committed to the development of oil and gas sector for economic growth and development.
“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, “he said.
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 said.
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.
He added 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.
”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.
“In a related sense, the concept of in sector diversification must take on to add impetus to economic stability and growth,” Auwalu added.
He noted that economic diversification entails many things adding that the industry must look inwards to drive value for growth and stability.
Commenting on gas, he said that Nigeria must work hard to ensure it witnessed all the benefits of huge gas deposit in the country.
”We need to benchmark our country with the other Organisation of the Petroleum Exporting Countries, espcially with their contributions to the Gross Domestic Product. We know that most of them are far in their contributions than us.
“Gas is everywhere and using it as a transition fuel, we must use it to add value, create wealth and buildindigenous capacity, “he said.