The Permanent Secretary, Ministry of Petroleum Resources, Dr. Nasir Sani-Gwarzo, has said that Nigeria is on course in its alignment with the global quest to transit to cleaner energy for the sustainable future.
Sani-Gwarzo, also said that in addition to producing liquid hydrocarbons, the country is using her abundant gas resources as a bridge fuel between the fossil of today and the renewable energy of tomorrow, thus, the National declaration of 2021 – 2030 as “Decade of Gas” after the successful launching of National Gas Expansion Programme (NGEP) in 2020.
Speaking at the Nigeria Oil and Gas Outlook 2021, in Lagos, the Permanent Secretary, elaborated on the opportunities provided by the Petroleum Industry Act, PIA and other policies of Government that are aimed at attracting investments across the oil and gas value chain.
He applauded organisers of the event which brings together Oil & Gas Industry leaders to advance new ideas, insight and solutions to the challenges facing the future of energy, the environment, climate change and create opportunities for the future generations.
This year’s Nigeria Oil and Gas Outlook is themed: “Achieving Energy Security; the Engine for Secured Economic Growth”
He explained that the new law provides opportunity for purposeful investment into the development of Oil and Gas Resources by providing clear and simple fiscal terms that would guarantee reasonable investors margin.
“One central theme that runs through the Nigeria Oil and Gas Sector today is the importance of implementation of the PIA on public finances, oil and gas production, fiscal regime for international oil companies, transparency in the petroleum sector and indeed the entire sections of the proposed law.
“We couldn’t agree more. Effective implementation is at the heart of this Act and remains the route through which value will be unlocked into the Nigerian economy.” the Permanent Secretary stated.
He also noted that the PIA aims to incentivize optimality and cost-efficiency and cost-effectiveness in oil production, adding thst different levers such as the cost-price ratio, the replacement of the investment tax allowances and investment tax credits (which encourage gold plating) with production allowances which reward incremental production have been instituted.
These measures are in addition to industry-wide initiatives already rolled out by Government which focus on cost reduction and enablers in this regard.
Nigeria, he assured will continue to promote policies and investment cooperation with other countries and the global institution in various areas of the oil and gas industry.