From Adanna Nnamani, Abuja
The federal government has vowed to activate provisions in the Petroleum Industry Act (PIA) that will compel oil companies to either develop or farm out idle assets, as part of efforts to boost production and attract fresh investments into Nigeria’s energy sector.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, gave the assurance during an inspection of the NNPC/Chevron Nigeria Limited (CNL) Joint Venture Escravos Gas-to-Liquids (EGTL) facility in Delta State.
According to a statement issued by his spokesperson, Nneamaka Okafor, the minister said the government was determined to sustain investment-friendly policies and incentives, noting that undeveloped oil blocks should not lie dormant for decades.
googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-1718806029429-0’); });
“Since we assumed office, things have changed. Our obligation as government is to provide an environment that is globally competitive to allow you to expand what you are already doing. My duty is to encourage you to expand your investment in the country. We can only grow sustainable production if we have investments. As government, ours is to give you the best incentives that will enable sustainable growth. The time has come for us to develop all available blocks. Where you are not ready to develop, it’s better to farm out to partners rather than wait 20 or 30 years,” Lokpobiri stated.
Commending the NNPC/CNL JV for its operational excellence, the minister encouraged other operators to follow suit, stressing that Nigeria must remain an attractive destination for global oil and gas capital expenditure.
Chevron Nigeria Limited’s General Manager for the NNPC/Chevron JV, Mr Segun Kuteyi, expressed optimism about the company’s future in Nigeria and hailed the minister’s commitment to collaboration.
“The future is really bright for Chevron in Nigeria and our partnership with the country. We are excited that you are the first minister to come here; it shows how serious the current administration is. We are proudly the only international company operating around the shore area. Your consistency is exemplary, and we commit to collaborating with you to drive the administration’s agenda,” Kuteyi said.
Chevron Chairman/MD, Mr Jim Schwartz, also lauded the enabling provisions of the PIA and the government’s investment drive, noting that the company still has significant resources to develop in Nigeria after 60 years of operations.
The post FG moves to unlock idle oil assets, pledges incentives for investors appeared first on The Sun Nigeria.
Leave a comment