Energy Sector Challenges : Oando tasks FG, stakeholders  for immediate action

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 Executive Director of Oando PLC and Chief Operating Officer (COO) Oando energy Resources, Dr Ainoje Irune has expressed deep concerns regarding the state of the sector, emphasising the need for prompt action.

Irune, who stressed that the sector is in an emergency state, called for an end to yearly deliberations on the same challenges, emphasizing the necessity for a more immediate and focused action to address the industry challenges.

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Dr Irune who made the call during a plenary session at the ongoing 7th edition of Nigerian International Energy Summit (NIES) on the theme: ‘Innovation,Collaboration and Resilience: Empowering Independent Producers in the Dynamic Energy Era’ said the call reflects a growing consensus on the urgency for practical measures to navigate the complexities facing the sector.

Highlighting the urgency of the situation, Oando underscores that the time for deliberations has passed and that immediate action is imperative. The call to halt yearly discussions signals a plea for a more dynamic and responsive approach, with a focus on tangible solutions that can mitigate the pressing issues affecting the sector

“The entire oil and gas sector is in a state of emergency, we can dance around the issues, talk about an approach but we have to act now. The last time I was on the stage I spoke about being impatient about developing our oil and gas sector and creating value for people. Today we face as simple as a currency escalation and the one single industry that can provide the buffer and the foundation to support is ours,” he said.

He emphasized that the primary responsibility lies with everyone, whether as business owners or government regulators, acknowledging that the current challenges should have been addressed two decades ago. He highlighted the urgency of confronting issues currently grappling with, as history will document this era, and it is essential for everyone to contribute positively and leave a commendable legacy.

Speaking on local value creation, he explained that when there are assets transitioning to independent local producers, it ensures value control.

He emphasized that long term issues lack quick solutions, and he believes that one of the major contemporary challenges is the foundational aspect. While acknowledging the Petroleum Industry Act (PIA) as a solid starting point for development, he pointed out that they have procrastinated for two decades, hence, consequently, find themselves encountering obstacles in nearly every aspect of the law.

He remarked that the key lies in the operating philosophy, highlighting a situation where, despite a substantial investment in the asset, they lack control as operators possess a significant influence in the operating footprint, as these assets decline, the substantial operational infrastructure still requires maintenance. Consequently, one finds themselves managing a considerable cost base against a backdrop of low production volume and the situation demands thoughtful consideration and adjustments in operational philosophy and approaches.

He further mentioned that there is a need for decisive action. It is essential to elevate their efforts and commit to addressing various aspects promptly. He suggested the idea of setting a higher standard for oneself, where, for instance, all conceptual matters, approvals, and challenges related to procurement and supply chain delays and bureaucracy are dealt with in a concentrated effort within a stipulated time.

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