…5% Reduction in cost of Crude Production
-By Kenny Folarin
The Minister of State for Petroleum Resources, Chief Timipre Sylva has said that the ministry will increase crude oil production to three million barrels per day (bdp) as well as reduce the cost of same by a least five per cent among others.
The minister disclosed this in Yenogoa on Tuesday at the 9th Practical Content Forum organised by CWC Africa in partnership with the Nigerian Content Development & Monitoring Board (NCDMB).
Chief Sylva also disclosed that the ministry will eradicate smuggling of Premium Motor Spirit (PMS) across the Nigerian borders and also ensure the completion of gas flare commercialization programme.
Regarding the Petroleum Industry Bill (PIB), he noted that he will ensure the passage is achieved, including increase of the domestic refining capacity and implementation of the amended Deep Offshore and Inland Basin Production Sharing Contract Act.
According to the minister, the key outcome of all these priority areas underscores job creation and poverty reduction, which are the cardinal aspirations of the Next Level Agenda of President Muhammadu Buhari’s Government.
Speaking on the theme of the Forum – “Leveraging Local Expertise for Market Growth & Expansion,’’ he said that the Forum has consistently provided a platform for policy shapers, captains of industry and major stakeholders across the entire Oil and Gas Value Chain, to convene and discuss at the highest level with a view to finding solutions to the most important issues surrounding Nigerian content implementation.
Furthermore, Chief Sylva added, it provides the opportunity to discuss the keys to unlocking the industry’s potential through effective Nigerian content development and implementation.
While commending NCDMB, Chief Sylva said “the Practical Nigerian Content (PNC) Forum has consistently reached it foundational objectives and I want to sincerely commend the Management and Staff of NCDMB for making it such a high value event, where oil industry stakeholders gather annually to review the successes, opportunities and challenges of local content implementation in the Industry.”
The minister noted that while policy makers support and encourage the patronage of local contractors, it must be emphasized that the local vendors have an obligation to deliver premium services and support the Federal Government’s avowed strategy of using local content to drive down the cost of crude oil production and increase the contribution of the oil sector to the Gross Domestic Product (GDP) and guarantee the security of oil production.
“We must not allow local content to become an excuse for cost over runs, slippages in project delivery schedule or shoddy jobs.
“As key stakeholders in the oil and gas industry, we must be aware that the entire country is looking up to our sector for increased revenue earnings to fund annual budgets and develop critical infrastructure.
“We must all be genuinely concerned that our cost per barrel of crude oil is one of the highest among OPEC countries. While we can easily reel out reasons for this anomaly, the reality is that this high cost of production often erodes our net revenue from crude oil sales and depletes the resources meant for development.
“We must therefore take practical steps to ensure that we curtail the various elements that contribute to the high cost of production,” Chief Sylva revealed.
He thereby assured partners and stakeholders of his commitment to the promotion of a fair and robust business environment for private sectors participation and growth.