.As OPEC lauds industry reform
President Muhammadu Buhari, yesterday, said the Petroleum Industry Act (PIA), will help Nigeria benefit from rising oil prices, following the escalation of tensions between Russia and Ukraine.
The President argued that “With the PIA in place, there should be no excuses. The enabling investment environment which has been the bane of the industry has been taken care of by provisions in the PIA.”
He added that “There is now a level of certainty for the regulatory, administrative and fiscal framework and the legitimate grievances of host communities most impacted by activities of the industry have been addressed by the Act.”
The President, who said this at the opening of the 5th Nigeria International Energy Summit (NIES) 2022, in Abuja, said for this reason, his administration quickly scrapped the existing legislation to implement the provisions of the PIA.
Buhari, represented by the Minister of State for Petroleum Resources, Timipre Sylva, noted that the oil prices, which rose above $100barrel last week, for the first time since September 2014, is a great opportunity for Nigeria, seeing as it is turning the tide from a negative level in 2020.
Transition fuel
The President also informed the summit that Nigeria has adopted gas as its transition fuel, as the world moves towards cleaner sources of energy.
He said this informed the government’s Decade of Gas initiative, which aims to transform Nigeria into a gas-based industrialised nation through enhanced and accelerated gas revolution.
He continued: “We will ensure further optimal exploitation and utilisation of the country’s vast natural gas resources.
“Given the country’s potential of about 600 trillion cubic feet, natural gas has the enormous potential to diversify and grow Nigeria’s economy.
“We are fully aware that energy transition raises the bar in terms of environmental, social and governance demands.
“We do not have to panic. We are already building blocks and bricks that will ensure seamless energy transition as the country joins in the race for net-zero carbon emission.”
We do not have to panic. We are already building blocks and bricks that will ensure seamless energy transition as the country joins in the race for net-zero carbon emission.
Necessary reform
Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) has lauded President Buhari on his continued support for Nigeria’s energy industry, which took a massive leap with the enactment of the PIA 2021.
OPEC Secretary-General, Dr Mohammad Barkindo, who made the commendation yesterday, said: “This long-awaited legislation for the oil and gas sector is bringing about the necessary reform designed to strengthen institutions, solidify regulatory and fiscal frameworks and attract the much-needed investment in a sustainable manner.”
He noted that the theme of the summit, “Revitalizing the Industry, Future Fuels and Energy Transition,” came at a pivotal moment in the history of the industry, as it encapsulates perfectly the highly challenging and multidimensional dynamics of today’s global energy industry.
Furthermore, he said it was extremely important that a major event of this nature was taking place on the continent, as African countries had historically assumed strong, proactive leadership roles in OPEC.
He added that the strong bonds between OPEC and Africa reflected the critical role that the great continent, with its young, vibrant and talented population, would play in the future of the energy industry.
