The of Ministry of Petroleum Resources yesterday confirmed that the Draft National Oil Policy which seeks to restructure the Nigerian National Petroleum Corporation (NNPC) and the entire oil sector will be presented to the Federal Executive Council (FEC) next week for further consideration and action.
This was disclosed by Mr. Gbite Adeniji, senior Technical Adviser to the Minister of State for Petroleum Resources at an ongoing two-day stakeholders’ consultation on the draft National Gas Policy and National Oil Policy in Abuja.
Adeniji said the final document, when issued, would be binding on all, including government, operators, investors and other key stakeholders.
He also disclosed that a new policy document addressing fiscal issues in the oil sector would soon be drawn up and presented to stakeholders.
The National Oil Policy include proposals to enshrine transparency in contract, procurement and issuing oil licences among other critical issues left out in previous oil laws.
Speaking on the draft policies, the Head, Operations, Oando Marketing, Temidayo Adeboye, recommended for a total privatization of the country’s refineries, depots and pipelines to make them efficient.
On his own part, Clay Neff, chairman of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI) stated that it was important for any new policy to address issues of security, oil theft, lengthy contract approval cycle and overlapping regulatory authorities.
Neff, who was represented by Mr. Bayo Ojulari, Managing Director, Shell Nigeria Exploration and Production Company (SNEPCO), said it would be very difficult for any upstream oil company to heed government’s call to venture into the downstream sector because it is not viable.
He said, “We cannot be running a business that is not viable and be talking about expansion. If all the issues we have been talking about are addressed, then we will venture to downstream business.”
In his contribution to the debate, Mr. Ademola Ademola-Bero, chairman, Indigenous Petroleum Producers Association of Nigeria, said the new policy should focus on creating an economy that is not dependent on crude oil and which would provide the needed fuel to drive industrialisation and economic diversification of the country.
Ademola-Bero, who is also the chief executive officer of First E&P Nigeria, also disclosed that the policy must make sure that Nigeria produces more than 4 million barrels of crude oil per day.
