PENGASSAN calls for immediate reforms in oil and gas sector
By Esther Agbo
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called for urgent reforms in the country’s oil and gas industry, citing concerns over energy security, crude oil theft, and the nation’s energy transition efforts.
This was highlighted in a release by PENGASSAN President, Comrade Festus Osifo, and PENGASSAN General Secretary, Comrade Lumumba I. Okugbawa, at the conclusion of the 3rd edition of the PENGASSAN Energy and Labour Summit (PEALS 2024), which took place from August 21-23 at the Transcorp Hilton Hotel in Abuja.
The summit, which attracted stakeholders from across the oil and gas sector, focused on the future of the industry under the theme: “The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment, and Crude Oil Theft.”
The release stressed the need for urgent action to safeguard Nigeria’s energy infrastructure and ensure the sustainability of the country’s oil and gas resources. Osifo addressed the issue of crude oil theft, which has severely impacted Nigeria’s oil production and revenue generation.
“Just before COVID-19 struck, Nigeria was producing about 2.2 million barrels of crude oil per day. This fetched enormous resources to the Government and provided some level of job guarantees for our members. Over the years, there has been crude oil theft in the Nigeria Oil and Gas industry; but this has been heightened since 2020/2021 till date.
“This menace has eaten deep into the National crude oil production that saw its abysmal all-time low-level production to sub 700,000 barrels per day in 2022,” the statement noted, urging the Federal Government to deploy advanced technologies like AI-powered surveillance systems, including drones, smart sensors, and blockchain integration, to curb the menace.
Part of the summit also focused on the country’s energy mix and the need for a sustainable transition to greener energy sources. Okugbawa highlighted the importance of striking a balance between exploiting Nigeria’s hydrocarbon resources and embracing renewable energy to enhance Nigeria’s energy security.
“Nigeria currently depends mainly on fossil fuel as its primary energy source; as the world transitions to greener energy, the implementation of the Nigeria Energy Transition Plan was examined. The Summit concluded that nothing much has been done to enhance Nigeria’s energy mix. This becomes imperative as global financing of fossil fuel-related energy becomes challenging,” the statement emphasised.
The summit also stressed the importance of enhancing Nigeria’s gas infrastructure as part of its energy transition. Participants reviewed the progress of the Nigeria Gas Master Plan (NGMP), noting the increasing domestic consumption of gas but pointing out significant implementation challenges.
The summit recommended further development of the country’s gas transportation network and urged the government to incentivize investments in compressed natural gas (CNG).
PENGASSAN further urged the government to take a more proactive role in securing oil and gas installations, arguing that the responsibility should not fall on investors alone. The summit proposed re-engineering Nigeria’s security architecture, with Osifo calling for the deployment of naval vessels to safeguard critical infrastructures.
On energy security, the summit made several recommendations, including ramping up the operational efficiency of Nigeria’s four refineries. PENGASSAN suggested that the Federal Government divest majority shareholdings in the refineries, reducing its stake to 49 percent and allowing core investors to take control, as seen with the Nigeria LNG model.
“Ramping up efforts to make the Nation’s four refineries work; once operational, the Government should divest majority shareholdings and own at most 49 percent of the shareholding in the four refineries.
“Core investors will be brought in to take the 51 percent as applicable in NLNG. The Federal Government should increase its shareholding stake in Dangote’s Refinery from the current 7 percent to at least 45 percent. This will ensure further energy assurance and security for the citizens,” the release stated.
The summit ended with a call for collaborative efforts from all stakeholders, including government agencies, industry regulators, and trade unions, to implement the various recommendations. The next edition of the PENGASSAN Energy and Labour Summit is scheduled for August 2025.
The release concluded by underscoring the importance of continuous learning and upskilling in the oil and gas sector, particularly in light of advancements in artificial intelligence.
“The Summit looked deeply into the impact of Artificial Intelligence in the future of the oil and gas industry and how to leverage AI advancements that could lead to significant economic benefits, increase investor confidence, enhance operational efficiency, increase productivity and safeguard the country’s resources and revenue.
“To be prepared for this transformation, there must be upskilling and reskilling of the workforce, through innovative research, focused on sustainability and strengthening of industry collaboration that will promote a culture of continuous learning,” the statement emphasised.
