Although the federal government reiterates its commitment to curb the theft of crude in the country while improving the cultivated area, the Independent Petroleum Producers Group (IPPG) has denounced the massive increase in crude oil thefts from its assets, a situation which he described as threatening his investments of more than $ 10 billion in the country.
Group chairman Abdulrasaq Isa, speaking at an engagement meeting with Nigeria’s Upstream Petroleum Regulatory Commission, NUPRC, in Lagos, revealed that in addition to producing around 252,000 barrels of oil per day and 650 million standard cubic feet of gas per day, the group would be responsible for 100 percent of the refining capacity of 1.2 million barrels per day in the near future.
According to Isa, local players remain in the best position to ensure a steady flow of additional investment in the added value of existing assets, having spent more than $ 11 billion on asset acquisitions and $ 13 billion on capital expenditures. .
Isa, who is also the chairman of the board of directors of Waltersmith Petroman Oil Limited, revealed that operators’ investments remain challenged by cases of crude theft.
The president said that to respond to the trend, it is necessary to strengthen the security of facilities and strategic assets in the region, while a major offensive against the crude oil thieves is reinvigorated.
In addition, he suggested executing a private sector-led pipeline security initiative and deploying surveillance technology, such as drone technology to identify illegal crude flying points.
He also called for continued engagement with regulators in formulating industry regulations and the inclusion of IPPG members in the Petroleum Industry Law, PIA, Implementation Steering Committee and a holistic approach in the efficient and timely implementation of the PIA.
NUPRC Commission Director General Gbenga Komolafe acknowledged concerns about the theft of crude in the industry, but said the government was taking serious action to address it.
Komolafe said a strong security network would be woven around the oil installations to reduce the incidence, and that community engagement, as stipulated in the law, would be rigorously pursued to achieve peace in host communities. .
He called on producers to ensure the timely payment of royalties, as foreseen by the PIA, as this is the first load line.
He said the government would continue to develop initiatives that would help create an enabling environment for investment to thrive in the sector.
Indeed, IPPG and NUPRC stakeholders have ensured that the enactment of the Petroleum Industry Act 2021 would ensure that the focus and effective implementation of PIAs are not eroded and that this would improve fiscal conditions for the competitive energy sector capable of adequately balancing government and investor returns.
Industry experts have suggested that the implementation of the PIA will depend on the significant expansion of government capacity and its role in technical and commercial regulation, saying that the duration of the implementation of the PIA will take 12-18. month.
Isa explained that there is a new culture in the regulatory business that would put in place effective regulations, so that it would lead the operating processes.
Speaking on the role of indigenous E&P actors, IPPG said indigenous people are committed to supplying gas to the domestic market to fill the demand gap, and members currently contribute about 50 percent of the needs. gas supply in the country and undertake to further increase this supply capacity.
Regarding energy transition and national energy security, Isa noted that operators fully align themselves with the government’s Gas Decade initiative, as it seeks to use the country’s abundant gas resources to fuel the economy. and resolve the underlying issues.