Amending PIA key to boosting oil production, says IPPG

Independent Petroleum Producers Group (IPPG) has said that amending Petroleum Industry Act (PIA), enhancing security, expediting divestments are key to ramping up Nigeria’s crude oil production.

IPPG also said that priority should given to the creation of a conducive and enabling business environment to ensure competitiveness in the industry.
Speaking at the 2023 Annual Dinner held at Metropolitan Club, Lagos, Chairman of IPPG, Mr Abdulrazaq Isa, 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 challenges, the IPPG chairman expressed optimism about the industry’s future, stressing goal of achieving production targets by the turn of the decade and called for collaboration with government and other stakeholders to optimise growth opportunities, emphasising the importance of sustained advocacy efforts in 2024.

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, while assuring stakeholders that they would not need to see him personally to get things done, appealed to IPPG members to support President Tinubu’s quest to achieve two million bpd target.

In her goodwill message at the event, Special Adviser to the President on Energy, Mrs Olu Verheijen, revealed that President Tinubu has 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 Liquified Petroleum Gas (LPG). She also shared insights from her recent stakeholder engagements.

In his remarks, the Governor of Lagos State, Babajide Sanwo-Olu, assured IPPG of the state government’s commitment to supporting their endeavours, 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.