PIB will guarantee robust upstream fiscal framework — Sylva

  The Minister of State for Petroleum Resources, Chief Timipre Sylva, says the Petroleum Industry Bill (PIB) currently before the National Assembly will guarantee a robust petroleum upstream framework for development.

Sylva made this known at the 2021 Society of Petroleum Engineers Oloibiri Lecture Series and Energy Forum (SPEOLEF) in Abuja, on Thursday.

The theme of the lecture is “Operational Excellence and Portfoilio Optimisation, way forward for the oil and gas Industry Post COVID-19’’.

“You are all aware that the PIB is before the National Assembly and when passed into law will not only guarantee a robust upstream fiscal framework beneficial to both government and investors but will also unlock several midstream gas opportunities.

“This will further enhance the domestic gas utilisation,’’ he said

According to him, the framework will base on core principles of clarity, dynamism, neutrality, open access and fiscal rules of general application.

Represented by his Chief of Staff, Mr Moses Olamide, the minister advised stakeholders to position themselves for the full implementation of the bill when passed into law for its benefits.

“There is no denial that COVID-19 had impact on the global economy.

“The negative effect affected the crude oil prices in 2020 and made it imperative for Nigeria to strike strategic survival measures to ensure economic sustainability and job security.

“Remember, as an industry, we have survived several hard times.

“Therefore, it is not strange now to undertake a strategic shift to ensure Operational excellence in the Nigerian oil and gas industry.

He said that the Federal government was willing and ready to play its part to ensure the growth of the sector.

He commended the council of the SPE for organising the lectures series and the role they play for the growth of the oil and gas sector.

In his Keynote address on Industry Operations, Malam Mele  Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), said that operational excellence remained key for the growth of the sector.

Represented by Mr Tombomieye Adokiye, the Chief Operating Officer, Upstream, Kyari said that the growth in the industry had escalated the operating cost drivers which included human resources logistics, security, and direct operational maintenance, among others

According to him, the cost drivers became a major source of concern to stakeholders.

He added that the reasons for the escalation were attributed to global factors.

He said that the global pandemic had affected crude oil production of demand and supply chain adding that the long term effect touched on cost of production and thus a huge management risk for operators.

He said that with the push for energy transition the industry had been pushed to reduce operational cost for the future growth of the sector.

He said that the NNPC was repositioning itself to transit to energy company in line with the global drive for energy transition in the sector.

“In Nigeria we are focusing in increasing domestic gas utilisation and maturing hydrocarbon reserves to generate revenue for the nation, although we are curtailed by the OPEC cuts.

“NNPC is also determined to increase market shares to guarantee energy security, investment in petrochemicals and fertilizer, promote the use of Compressed Natural gas (CNG), and increase domestic refining capacity in the country,’’ he added.