Chevron demands business enhancing regulation
Sopuruchi Onwuka
American multinational oil company, Chevron, has called on government to deploy the Petroleum Industry Act (PIA) 2021 in promoting fiscal and regulatory arrangements that would make the domestic operating environment more congenial for commercial investments.
Chairman and Managing Director of Chevron Nigeria Limited, Mr. Rick Kennedy, emphasized the need for a new phase of operating environment that is ruled by a sound regulatory regime, pointing out that a good legal framework is necessary for aligning the Nigeria’s oil and gas industry into diversified and sustainable energy sector.
Rick Kennedy whose industry remarks were delivered by the company’s Manager in charge of Communication, Mr. Victor Anyaegbudike, at the Strategic International Conference of the Association of Energy Correspondents of Nigeria (NAEC) in Lagos stated a competitive environment to produce energy that is affordable, reliable and ever cleaner to enable human progress is needed for Nigeria to sustain economic growth and raise the quality of life for millions of people.
Mr Kennedy pointed out that whereas Nigeria holds enormous potentials for growing and diversifying its energy resources, the country must adopt measures to secure greater space and relevance in the market place, evolve a robust domestic industry that provides opportunity for its young vibrant workforce and position for emerging changes in energy forms.
According to him ‘’The passage and signing into law of the Petroleum Industry Act (“PIA”) is a major milestone in the reform of Nigeria’s oil and gas industry geared towards attracting investment and growth.’’
‘’Chevron recognizes the opportunity which the PIA represents, and we fully support the necessary collaboration between the regulators, the Nigerian National Petroleum Company Limited and stakeholders in the industry that will enable the success of the Nigerian oil and gas industry.
“As we advance in the PIA implementation, we believe that natural gas is an important fuel, which will play a critical role as the world seeks to lower its overall carbon footprint. Recently, Nigeria launched its ‘Decade of Gas’ initiative, under the theme ‘Towards a gas-powered economy by 2030,’ that will work with the National Gas Expansion Program in increasing gas production,” he noted.
He said that CNL supports this key step towards helping utilize Nigeria’s vast natural gas resources for the benefit of the nation. He explained that the company has reduced routine gas flaring by 95% in the past 10 years and remains the highest supplier of high-quality gas to the domestic market among the international oil companies (IOCs).
Mr Kennedy restated Chevron’s commitment towards enhanced gas utilization in Nigerian industrial, agriculture and power sectors through existing and new Gas Sale and Aggregation Agreements (GSAAs) with Egbin Power Plc, Olorunsogo Generation Company Limited, and Dangote Fertilizer Limited.
He said that Chevron remains committed to supporting programmes by professional bodies such as NAEC and the wider sphere of the journalism profession in Nigeria.
‘’We pioneered the Advanced Writing and Reporting Skills (AWARES) programme implemented in partnership with the Pan Atlantic University, Lagos. This programme has benefitted about 120 journalists since its inception in 2014. I encourage NAEC members to continue to demonstrate the ethos of your profession and ensure objectivity in reporting on the oil and gas industry in Nigeria. ‘’
He added that ’’Chevron has been making significant investments in Nigeria for over 60 years. We believe that the future of energy is lower carbon and that with the right policies and regulatory framework, the enormous potential of Nigeria’s oil and gas industry can yield even greater benefits while enabling the transition to affordable, reliable, secure and ever-cleaner sources of energy.”
