DPR targets 5% reduction cost of production for operators
Expressing concerns over the high cost of production for businesses especially stakeholders in the oil and gas business, the Department of Petroleum Resources (DPR), has announced plans to reduce the cost of production incurred by operators in the industry by five per cent next year.
The Director, DPR, Sarki Auwalu, represented by the Deputy Director, Upstream, Monitoring and Regulations, Enorense Amadasu, at a stakeholders’ workshop, said the Minister of State for Petroleum Resources, Timipre Silva, has given a mandate to the Department and other regulatory bodies to reduce the cost of production in Nigeria.
Auwalu was yesterday, appointed as the substantive Director of the DPR by President Muhammadu Buhari. He is a chemical engineer, and he joined the services of DPR in 1998, as a Principal chemical engineer.
He added that going forward; the Department would be working with stakeholders in the industry to achieve the present administration’s mandate to grow production of crude oil, which currently stands at 2.2 million barrels per day (mbpd) to 3mbpd in 2020.
In his words, “We are also working with stakeholders to come out with whatever it is that would improve exploration activities in the country so that we will continue to grow our reserves while also boosting our production capacity.”
He added: “We will also be having constant engagement with all stakeholders to key into government’s initiatives. We still have exploration activities going on, but it might not be at a level we expect. The essence of today’s gathering is to engage the industry on all the programmes we have embarked on for the past one year while also seeking partnerships with stakeholders in the industry to buy into the initiative we have carried in the past one year.”
According to him, the Department has in the past one year engaged in a series of initiatives, which he said has increased the level of efficiency and transparency to change the dynamics of the industry in terms of processing, automation, and digitisation.
“The DPR as a regulatory body of the oil and gas industry can account for every molecule that is produced in this country, both at the wellhead, the filling stations and at the terminals and that is one of the things the stakeholders meeting will be showcasing. Next year, the first quarter to be precise, we will be organising a production accounting workshop for all stakeholders in the country. The essence is to show everybody how we account and take a proper record of every molecule produced and exported out of this country,” he said.
He said the recent guidelines launched are to guide all stakeholders in the industry, bring in more efficiency and transparency and reducing turnaround time of processes and operations in the sector.
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