Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has outlined a strategic vision for petroleum industry transformation in Nigeria.
Lokpobiri presented the vision while addressing a gathering of the Oil Producers Trade Section (a group by the five oil giants operating in Nigeria) at the Cross Industry Group (CIG) meeting in Istanbul, Turkey.
Presenting a strategic plan to navigate the challenges and opportunities within Nigeria’s petroleum industry, the minister underscored the sector’s central role in Nigeria’s economy, which he said provides around 85 per cent of government revenue and serves also as a vital source of foreign exchange.
He said as the global landscape shifts towards cleaner energy, there is a need for Nigeria’s oil and gas sector to remain resilient, competitive, and profitable.
A statement signed by the SA Media and Communication to the Minister, Nneamaka Okafor, Lokpobiri, outlined Nigeria’s dual approach to ensuring the future of its petroleum industry by focusing on maximising crude oil production and adapting to a cleaner energy transition.
The minister, according to the media aide, affirmed the government’s commitment to addressing operational bottlenecks and upgrading infrastructure while highlighting the government’s measures aimed at streamlining operations, particularly upstream activities, so as to remain competitive in a fluctuating global market and recognising the urgency of cost reduction.
He highlighted government measures aimed at streamlining operations, particularly upstream activities, to remain competitive in a fluctuating global market.
“In the short term, our focus remains on increasing revenue from crude oil production. A significant part of the government’s vision involves balancing energy demands with environmental considerations.
“The world is moving towards cleaner energy, and Nigeria must be part of that transition. The government has prioritised natural gas as a cleaner alternative while actively exploring renewable energy options to diversify Nigeria’s energy mix,” the minister said.
While acknowledging the persistent security challenges in the Niger Delta, the minister briefed the gathering about the ongoing efforts to protect Nigeria’s oil infrastructure through enhanced security measures, which include increased military support, particularly from the Nigerian Navy and Joint Task Force (JTF), combined with community engagement and economic empowerment initiatives to combat pipeline vandalism and oil theft.
The minister also highlighted the comprehensive package of reforms and incentives to revitalise Nigeria’s oil and gas sector, which is aimed to attract greater investment and stimulate economic growth.
“Key elements include the VAT Modification Order 2024 and the Tax Incentives Order for deep offshore oil and gas production, offering fiscal benefits to companies involved in the sector. In addition, directives focus on reducing contracting costs and timelines, mandating that the procurement cycle be streamlined to six months, enhancing efficiency for investors,” Lokpobiri stated.
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