By Teddy Nwanunobi
The Department of Petroleum Resources (DPR) has hinted at its plan to strengthen the oil and gas industry, as well as ensure the sustainability of the industry.
According to the Director/Chief Executive Officer, Engr. Sarki Auwalu, the DPR will, in the coming weeks, unveil a collaborative strategy called Maximum Economic Recovery (MER) to that effect.
Auwalu, dropped the hint in Abuja, disclosed that the strategy would articulate key delivery programmes to guarantee stability, growth, and development of the industry, in line with the Federal Government’s aspirations.
“As part of our mandate to strengthen (the) industry, and ensure sustainability, the Department will be unveiling an industry collaborative strategy for Maximum Economic Recovery (MER) for Nigeria’s oil and gas sector within the next weeks.
“This strategy will articulate key delivery programmes to guarantee stability, growth, and development of the industry, in line with government aspirations, whilst leveraging the National Oil and Gas Excellence Centre (NOGEC) commissioned by Mr. President in January this year as the techno-economic resource centre to drive industry safety, value, and cost efficiency.
“As a department, the DPR will continue to foster collaboration, influence, facilitate, enable and promote industry growth, all for economic growth and in overriding national interest,” Auwalu said.
Auwalu further stated that the DPR would contemplate five broad areas where the nation’s oil and gas industry needs fortification to support national economic stability and growth.
The Director, who listed the five broad areas to include: legal, institutional, financial, in-sector diversification, and indigenous capacity, stated that, with the focused leadership of President Muhammadu Buhari, and the “steers” of the Minister of State for Petroleum Resources, Chief Timipre Sylva, the key fundamentals for industry growth were being emplaced.
Auwalu said on the legal front, the long-awaited Petroleum Industry Bill (PIB) has just been concurrently passed by both chambers of the National Assembly and awaits harmonisation.
He added that it was envisaged that the president would assent to the bill that enhances clarity in legislative, regulatory, fiscal, and administrative framework.
“It is expected that the evolving commercial institution would be strengthened for efficiency, prudent management, financial stewardship, and operational excellence.
“By the same token, the regulatory institution should be structured to streamline roles, prevent duplication and promote consolidation which will engender regulatory clarity and ease of doing business,” he added.
He maintained that the overall industry financial position must necessarily improve for sustainability.
In addition, Auwalu said the oil and gas production levels, tens of billions of dollars of additional investments were required for developments in deep offshore, inland and frontier basins, marginal field development as well as for gas infrastructure and gas-based industrial development.