The Minister of State for Petroleum Resources, Mr Timipre Sylva, has reiterated federal government’s commitment to ensure that the country’s four refineries function optimally.
Fielding questions from journalists Thursday in Abuja the former Bayelsa state governor said the ministry intends to surmount the issues of bureaucracy that has been affecting the ministry.
He said that the federal government plans to undertake operations and management contract for experts to be brought in to manage the refineries effectively and cut down on all unnecessary costs.
Also speaking on the petroleum Industry Bill (PIB), Slyva said the Bill will be passed before May, this year, revealing that the team working on the PIB was at the final stage of harmonisation of all the existing versions from 2000 to date (2009, 2012, and 2018) with consideration to the concerns raised by industry players.
He said the harmonisation would help to create an enabling environment for investors as well as appropriate government take in all the oil and gas value chain, revealing that the PIB would be passed as a single bill, but would likely accommodate two regulators for the sector.
Sylva said that special focus would be placed on the Midstream and Downstream sectors and that two regulators were being considered for the industry, even as he said that open access for oil and gas transportation will be fully enhanced and that government would come up with more robust fiscal provision, acreage management and drilling-or-drop programme for the upstream sector.
The minister also said that the government plans to conduct bid rounds for new acreages in the petroleum industry, noting, however, that non-passage of the PIB was delaying the conduct of the rounds, adding that the decision of the government to delay the award of new acreages until after the passage of the PIB was because the bill would ensure a clearer fiscal environment and also eliminate the stagnation in the industry.
He said: “We are hoping to involve the original equipment manufacturers. A lot of money has been invested in the refineries without good results. The reason is that the owners of the technology were not involved as people who have no idea of the equipment were brought in. The other issue is at the management level. Refineries could not be effectively managed by government because of bureaucracy. If a seal breaks, by the time you get GMD and FEC to approve repairs, the situation will worsen.
“Also, counting on the current harmony between the executive and legislative arms of government, we are optimistic that both the Petroleum Industry Governance, Administration and Host Communities Bill on one hand and Petroleum Industry Fiscal Bill on the other will be passed within the first anniversary of this administration. In fact, we are hoping that it will be passed before May.
“The Midstream and Downstream sectors will particularly open enormous opportunities to local investors and consequently create massive job opportunities in the country. For example, investments will be available in pipeline engineering design, procurement & construction, terminal operations, pipe mills, fabrication of pressure vessels, storage facilities, and pipe transportation among others. We are not only going to retain investors, multitudes will join the leagues of high-value operators.”
