Growth Target: Petroleum players demand less distraction from lawmakers
- Lokpobiri pledges 2 mbd by December
Sopuruchi Onwuka
For the petroleum players to assist the present administration of the federal government meet its mandate of increasing the nation’s oil output by a million barrels per day in the immediate term, the lawmakers need to end the culture to dabbling into frivolous investigation of operations of the industry.
Minister of State for Petroleum Resources in charge of Oil, Senator Heineken Lokpobiri, who made the observation at the ongoing Nigerian Oil and Gas (NOG) Energy Week in Abuja, charged the federal lawmakers to stop pulling operators off their sites to answer frivolous summons in Abuja.
The Oracle Today reports that the government is running low cash flow on its 2025 fiscal projections which is premised on daily average oil production of 2.06 million barrels per day (mbd). The budget was based on expected production surge as government poured out a number of policy and tax incentives to ginger players into staking greater investments in production.
However, oil production growth have been very slow since the activation of the budget as delayed divestment approvals spill into delays in new site entry programmes. Besides, other above ground issues of security and vandalism remain substantially unaddressed.
“We can succeed when we work together to be strong enough to deliver,” minister charged players attending the conference.
Senator Lokpobiri who noted moderate production growth rate to about 1.745 million barrels per day (mbd)of oil also appealed to regulators to improve the ease of doing business in the industry and enable players resume production activities at a growing number of dormant oilfields in the country.
He said the industry was making efforts to increase oil output from current 1.745 mbd to 2.0 mbd by the end of the year. He appealed to the National Assembly to stop summing oil executives frivolous investigations that, according to him, leave long lasting negative impacts on investments.
The minister made it clear that it has become important to rebuild and boost investor confidence in the industry after a long period of apathy. He stated that the investments are crucial to realizing the country’s full petroleum industry potentials.
He called on industry stakeholders to collaborate with the government to resolve challenges of security, infrastructure, and regulatory uncertainties which, according to him, have continued to hinder production growth.
He called on local companies to lead the charge in rebuilding production capacity, stressing that government is “committed to creating an enabling environment where Nigerian companies can thrive and play leading roles, not just as service providers but also as asset owners.”
He charged players to continue to adapt, innovate and remain competitive in the evolving global energy landscape.
