DPR rolls out key roadmap to grow oil, gas industry

By Uthman Salami

The Department of PetroleumResources (DPR) has reeled out five critical strategies to develop the Nigerian oil and gas sector for economic stability and growth.

The Director and Chief Executive Officer, DPR, Mr Sarki Auwalu, made this disclosure during the presentation of keynote address at the 20th Nigeria oil and gas conference in Abuja.

Auwalu described the Department’s commitment to the development of oil and gas sector for economic growth and development as remaining unchanged.

He said, “For us in the DPR, we contemplate five broad areas in which the industry needs to support the nation for economic growth and stability.

“The areas are legal, institutional, financial, in-sector diversification and indigenous capacity.”

And added that “I have to say that with the focused leadership of President Muhammadu Buhari and the Minister of State for Petroleum Resources, Chief Timipre Sylva, the key fundamental issues on growth are being addressed.”

According to him, the long-awaited Petroleum Industry Bill (PIB) which was recently passed by the National Assembly would enhance clarity in legislative, regulatory, fiscal and administrative frameworks.

He said that evolving commercial institutions would be strengthened for efficiency, prudent management, financial stewardship and operational management.

In his words, “In the same vein, the regulatory institutions should be strengthened to streamline roles, prevent duplication and promote ambition that will promote regulatory clarity in rules of doing business.

“The overall industry financial provision must be improved for sustainability to protect the oil and gas production level.”

The DPR boss emphasised that millions of dollars are required for investment in infrastructure in the deep offshore, inland basin, frontier basins, marginal field development and gas infrastructure, among others.

He noted that investments in the NLNG train 7, AKK gas pipeline project, among others are an indication of an improved business model in the country.

Auwalu stressed that a stable and legal fiscal operation is critical for improved investment in businesses in Nigeria.

According to him, “We have confidence that with the passage of the PIB, existing operators and second generation International Oil Companies will have the reason to consolidate their business in the country.

“In a related sense, the concept of in-sector diversification must take on to add impetus to economic stability and growth.”

He further emphasised that economic diversification entails many things adding that the industry must look inwards to drive value for growth and stability.

On the issue of gas, he said that Nigeria must work hard to ensure it witnesses all the benefits of huge gas deposits in the country.

He concluded that “We need to benchmark our country with the other Organisation of the Petroleum Exporting Countries, espcially with their contributions to the Gross Domestic Product. We know that most of them are far in their contributions than us.

“Gas is everywhere and using it as a transition fuel, we must use it to add value, create wealth and build indigenous capacity.”