Independent Petroleum Producers Group Calls on the FG to Review the IPA

The Independent Petroleum Producers Group (IPPG) said that it is calling on the Federal Government to review some critical aspects of the Petroleum Industry Act (PIA) so as to strengthen the regulatory framework and competitiveness of the fiscal regime.

The group believes that the amendment will reform security across the Niger Delta and encourage investors into the oil and gas industry.

The IPPG further said that the group’s immediate concern as a matter of urgent industry priority is the creation of a conducive and enabling business environment to enhance the competitiveness of the industry.

Discussing more on this issue, the Chairman of IPPG, Abdulrazaq Isa while gracing the 2023 Annual Dinner held in Lagos said that amending the Petroleum Industry Act will optimize the country's production base within a short time.

He said,

• 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.

The Chairman said that he will not allow the challenges experienced in the oil sector stop him from seeing what the future holds. He talked about the non-negotiable goal of achieving production targets by the turn of the decade and called for collaboration with the government and other stakeholders to optimize growth opportunities, emphasizing the importance of sustained advocacy efforts in 2024, LEADERSHIP report.

He added,

• Based on the vast hydrocarbon resources at our disposal and the ongoing global decarbonisation drive, achieving production targets of 4mmb/d of oil and 12 bcf/d of gas by the turn of the decade should be non-negotiable.

Also speaking at the event, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, inspired stakeholders as he urged them to do the right thing even if he is not physically in touch with them. He also told IPPG members to support President Tinubu's goal of hitting 2 million barrels a day of crude oil.

He said,

• PPG is a critical institution for Nigeria’s energy future. We will prioritize IPPG members who have proven oil assets during the next marginal field bid rounds.

Also, the Special Adviser to the President on Energy, Olu Verheijen said that President has approved an Import Duty Waiver to promote the utilization and supply of gas in the domestic market, covering equipment related to Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG).

She said,

From my engagements with leading international and independent oil and gas companies operating in Nigeria, there are massive investment opportunities for the energy sector, estimated at $55.2 billion projected by 2030, of which $13.5 billion is expected to be invested by these companies in 12 months’ time.