Sunday Okobi
The Independent Petroleum Producers Group (IPPG) has endorsed the recent Executive Orders signed by President Bola Tinubu, which the government says is aimed at revitalising investment in the Nigerian oil and gas sector and positioning the country as Africa’s premier investment destination within the energy sector.
IPPG is a 28-member association of indigenous exploration and production companies committed to the advancement and sustainability of the Nigerian oil and gas industry.
It advocates policies that support the growth and development of the sector, ensuring Nigeria’s position as a leading energy provider globally.
The organisation in statement issued yesterday noted that Tinubu’s policy directives include the introduction of value adding fiscal incentives for investments in upstream non-associated gas developments, midstream infrastructure, and deepwater assets.
It stated that the orders also streamlined the industry’s contracting process, and sought to reform local content practices.
“All of these measures are pivotal to the future of the industry and have in fact been recommended by the industry for many years. We are encouraged to see swift progress within a relatively short period of time,”the group stated.
It listed reduced project cost; faster project execution timelines; reduction of waste, and multiple layers of middlemen in project contracting processes; increased number of gas projects reaching Final Investment Decisions (FIDs) as some of the ways it will impact the sector.
It listed others as: Increased gas processing and gas distribution capacity, as gas infrastructure investments grow as well as increased gas supply for domestic use, including power, cooking gas, among others, and for export.
“IPPG stands ready to collaborate with the government and all stakeholders to ensure the successful implementation of these directives. We believe these reforms will attract more investments to our sector, accelerate project completions, and ultimately contribute to the prosperity of all Nigerians,” the top oil industry players stated.
It added that the global oil and gas industry continues to contend with limited availability of capital, and uncertainty as to the evolution of future demand.
In the past, it argued that Nigeria often unintentionally compounded these challenges and delayed investment by inserting the government between willing private sector counter-parties.
“This is recently evident in the delayed approval of recent International Oil Companies (IOCs) divestments, the stalled progress in taking Final Investment Decisions (FIDs) in the outstanding upstream deepwater projects as well as gas resource and infrastructural development projects.
“Tinubu’s policies suggest a new direction that prioritises Nigeria’s strategic interests, ensures that we can harness our vast gas resources effectively and recognises the role of the private sector in driving growth,” the IPPG said.
According to the group, the executive orders are credible impetus required to re-launch the growth of production and revenue from the oil and gas industry.
It noted that the orders also mark a significant milestone in Nigeria’s journey towards achieving its shared goal of energy security and economic stability.
