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The Director, Department of Petroleum Resources (DPR), Mr Sarki Auwalu,has emphasized the need for Nigeria to ensure utilisation of its vast oil and gas resources for national development with a view to rewriting its history and reverse the resource curse syndrome which had plagued the country for decades .
He gave the admonition at the Second Quarter, 2021 Business Dinner of The Petroleum Club Lagos sponsored by A. A Holdings, where he said that Nigeria had the population advantage and was geographically positioned to be a dominant player in the regional oil and gas market.
He disclosed that the target of the government was to increase its oil reserves to 40 billion barrels and grow gas reserves to 220TCF by 2030,adding that it also planned to increase production capacity to three million barrels per day.
He said:“This is achievable with the ongoing rehabilitation of the nation’s refineries, the coming on stream of the Dangote Refinery and other modular refineries that are under construction.None of the West African countries have a refinery producing Premium Motor Spirit and this presents a great opportunity for us.We can take over the market and it is a future we are looking forward to”.
He reaffirmed the commitment of the DPR to boost production in the nation’s oil reserves,adding that of 7,000 reservoirs in the country, operators in the oil and gas industry are currently utilising only 1,300 reservoirs.
He said plans are also ongoing to improve the business environment for oil and gas investments to ensure investors get returns on their investments.
“We cannot have 7000 reservoirs and we are only producing from 1300. We cannot afford to stay with a 40 per cent recovery factor. We are also optimising the production to ensure that investors get a return on their investments while also reducing the cost of production.For the midstream, our focus is to achieve refinery revolution under the decade of gas. We have to shift from a resource cost to a resource use industry and for us to migrate. We have to create the need and satisfy the need and that is the essence of the decade of gas.”
He explained that the focus on development of the nation’s gas resources would help transform Nigeria to a gas-based economy which would create employment opportunities for the populace.
Auwalu said the passage of the Petroleum Industry Bill (PIB) was needed to drive these initiatives so as to provide clarity in legal framework, institutional alignment and improved investment climate.
He said:”When we issue a license to create investments, we want that license to make investors profitable and with the new law, this is what we are set to achieve which is getting a good investment climate. If the oil and gas business is private sector-driven, you already know the future is assured. All the uncertainties that would come would be addressed by the bill”.
He added that government would continue to partner with the private sector to achieve its vision for the oil and gas industry.
In his remarks, Dr Layi Fatona, President, Petroleum Club Lagos, said the association was a think-tank of persons who had played a key role in the petroleum industry and are desirous of improving its contribution to the economy.
Fatona said the COVID-19 pandemic and the global energy transition had made it imperative for Nigeria to make use of its vast petroleum resources within the shortest possible time for national development.
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