The Independent Petroleum Producers Group (IPPG) and Oil Producers Trade Section (OPTS) have jointly urged for decisive measures to address the issues contributing to the decline in oil production in Nigeria. Key among the concerns is the settlement of a $1.3 billion debt owed to gas producers, a matter discussed during their engagement with the National Assembly to stabilize Nigeria’s fluctuating oil production.
The collaboration was showcased at a capacity-building workshop organized by both groups in the 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 challenges within the country’s oil and gas sector.
During the meeting in Abuja, Senate President Godswill Akpabio, represented by the Chairman, Senate Committee on Upstream Petroleum, Etang Williams, assured the lawmakers’ commitment to addressing sector challenges. Akpabio emphasized the importance of judiciously utilizing oil sector windfalls and 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), highlighted the significance of information and knowledge sharing for informed decision-making and collaboration with the National Assembly. Kennedy expressed the OPTS and IPPG’s willingness to work with the National Assembly to make Nigeria the preferred destination for investors in the oil and gas sector.
Despite the enactment of the Petroleum Industry Act (PIA) two years ago, concerns about investor uncertainty persist, hindering industry investments and revenue generation. Industry players urged the National Assembly to review the PIA 2021 to address these issues.
Chairman of IPPG, Abdulrazaq Isa, emphasized the urgent need to address challenges such as investor uncertainty, global energy transition, and insecurity in the Niger Delta. Isa outlined priorities, including amending critical aspects of the PIA for a robust regulatory framework, improving security in the Niger Delta, and developing a value-creating midstream and downstream sector to boost GDP and job creation.
Furthermore, petroleum producers called on the federal government to settle the $1.3 billion debt owed to gas producers, citing the potential for this payment to stimulate industry growth, create opportunities, and enhance the nation’s GDP and power generation capacity. Participants at the roundtable, including members of hydrocarbon-related committees of the Nigeria National Assembly, IPPG, and International Oil Companies (IOCs), expressed their willingness to collaborate in establishing a competitive fiscal framework that encourages investment and unlocks the sector’s development potential.