New oil, gas policy out soon – FG

Stories by Benjamin Umuteme

Abuja

In a bid to put the oil and gas sector on the forefront, the federal government has concluded plans to roll out a new national policy for the sector.
Speaking in Uyo, Akwa Ibom at the National Council on Hydrocarbon meeting, Minister of State for Petroleum Resources, Ibe Kachikwu said the new policy will create market-driven oil and gas industry, maximise the production and processing of hydrocarbons, and move the country away from oil as a source of income to oil as a fuel for economic growth.
The Petroleum Industry Bill (PIB) which is presently before the National Assembly is yet to see the light of the day despite several assurance to expedite passage of the controversial Bill.
According to the Minister, the policy will also minimise environmental pollution and manage the balance between depleting oil resources versus renewable energy.
In addition, Dr. Kachukwu said, the policy will give fillip to the country’s economy, extend gas penetration in the domestic market in order to facilitate the growth of the electric power, agricultural, and industrial sectors, as well as end and commercialise gas flaring and address environmental issues, and provide enabling environment for increased private sector participation in the gas sector.
“All studies conducted on the Nigeria petroleum sector since 1999 are settled on the issue that the role of Government in the oil and gas sector needs to be better clarified whilst the policy, regulatory and commercial institutions need to be given a refocused mandate to ensure better sector governance, transparency of regulations and operations, accountability of the institutions, and removal of opaqueness around the industry,” the minister said.
Dr. Kachikwu said the new policy will, among other things, enhance fiscal neutrality, create a fiscal basis that will encourage investments and market developments while promoting competitiveness and cost efficiency for the benefit of both government and the industry operators.
He said, “Hitherto, the Nigerian downstream infrastructure has been solely financed by the government because of the social and economic impact, high investment requirements and long gestation period.
“Due to competing needs for government resources from other public sector services, most oil and gas infrastructure development projects should be financed and managed through private sector participation.
“It is in the light of this that comprehensive reforms are ongoing to fast-track the development of private sector-led downstream infrastructure for effective competition and efficient service delivery,” the minister said.

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