The Federal Ministry of Petroleum Resources and key stakeholders in Nigeria’s Oil and Gas Industry have emphasised the importance of fully implementing the 2021 Petroleum Industry Act (PIA) to promote economic development. During a one-day stakeholder meeting in Abuja, participants reiterated the urgency of this initiative and explored ways the PIA could stimulate Investment within the industry. Ambassador Nicholas Ella, the Permanent Secretary at the Ministry of Petroleum Resources, emphasised the law’s capability to enhance transparency, efficiency, and Sustainability in the nation’s oil and gas sector.
Mohammed Abubakar, the Director of the Midstream and Downstream department, conveyed Ella’s message while reflecting on the notable milestone marked by the PIA Legislation in 2021. He emphasised that the legislation provides clearer guidelines and consistency in financial systems, making the investment environment more attractive to domestic and foreign investors. Conversations focused on the potential of the PIA to stimulate a revival in oil output, extending beyond mere legal parameters. Ella pointed out that in 2023, the region’s oil production experienced a resurgence, with an average output of 1.4 million barrels daily in the third quarter.
Practical strategies are essential to fully optimise the PIA’s benefits.
He pointed out that this increase was fueled by the enhanced operational environment created by the PIA and the federal government’s ongoing initiatives to combat Oil Theft and Pipeline vandalism. Against this progress backdrop, Ella stressed the necessity of concentrating on practical approaches to optimise the PIA’s advantages. He emphasised that with the act’s comprehensive implementation, the nation is strategically poised to become a leader in energy investments across Africa, draw international capital, and sustain its vital global presence.
Ahmed Galadima, the Executive Secretary of the Petroleum Technology Development Fund (PTDF), mentioned the importance of synchronising PTDF’s projects with the PIA. Speaking through Mohammed Abdulrahman, the Deputy General Manager of PTDF’s Education and Training Department, Galadima disclosed that the fund is committed to enhancing human capital and advancing research. Their initiatives are centred on enhancing technological advancements and strengthening institutions, which are crucial for transitioning towards a gas-centred economy. He further emphasised that the PTDF is dedicated to maximising the nation’s advantages from its hydrocarbon resources, especially in alignment with the government’s energy transition plans.
A strategic plan was created to enhance collaborations with various firms.
Galadima revealed that the PTDF has developed a strategic plan to expand collaborations with foreign educational institutions, oil firms, and global organisations. He clarified that this effort aims to facilitate skill acquisition, enhance capacity development, and incorporate advanced technologies into oil and gas operations, thereby improving the industry’s value chain. The conversation also touched on the increasing importance of advancements in gas technology and Renewable Energy sources. Galadima pointed out that the PTDF is working to establish research centres focused on gas innovations and renewable energy progress. He elaborated that these efforts would assist the nation in achieving its international obligations regarding energy transition and the objectives outlined by the Global Energy Planning Targets.
Speaking at the event, Dr. Mohammed Shehu, Chairman of VG Energy, addressed the importance of harnessing technology to tackle oil theft and improve government revenue. Shehu emphasised how technological innovations are reshaping the oil and gas sector. He recommended that the region implement advanced pipeline monitoring and surveillance solutions and adopt Blockchain technology to manage the supply chain. Furthermore, he pointed out how the Internet of Things (IoT) and Artificial Intelligence (AI) could improve the industry’s processes.
Related Article: Senate vows to end Cabal in the oil industry
Emphasising the urgency of technological solutions, Gideon Obande from Young Innovators of Nigeria (YIN) stressed the nation’s need to accurately determine its daily crude oil output. He contended that reliable data is essential for monitoring illicit crude extraction and preventing oil theft. Obande advocated for a comprehensive strategy to tackle these logistical issues, ensuring precise tracking and management of production. Moving forward, Ambassador Ella introduced the investment compendium for oil and gas. This publication is intended to act as a thorough resource for prospective investors, detailing the region’s oil and gas initiatives and the different benefits offered in the sector.