Expand crude oil drilling, production, expert tells government

Basil Ogbuanu, national president, Nigerian Association of LPG Marketers, has urged the Federal Government to boost the nation’s oil production by expanding the crude oil exploration and drilling activities.

Ogbuanu made the appeal on Monday in an interview with the News Agency of Nigeria in Lagos.

He said the operation of the nation’s four refineries had made it imperative for government to go beyond the current crude oil production of 2.3 million barrel per day.

According to him, the low production and output makes it difficult for the government to generate enough revenue for socioeconomic development.

“Available data has showed that the country’s crude production has been less than 2.5mpd, while the global oil downturn persists. It is in view of this development that we advised the government to jack up oil production by engaging in more drilling and exploration activities,’’ he said.

The LPG marketers’ boss said that the need to boost oil production became necessary to reduce the impact of global oil recession on Nigeria.

“There is urgent need for government to improve daily oil production through drilling of more oil wells. The oil in the Gulf of Guinea holds more prospects for Nigeria.

However, the need to optimise the potentials in the nation’s oil and gas industry by drilling more wells would go a long way in boosting production.

“It is better for Nigeria to drill more oil wells during a down cycle period than a booming period. This is the only way Nigeria can have more to sell and make more money during recession,’’ he said.

Ogbuanu said that the non-passage of the Petroleum Industry Bill (PIB) devastated operators in the nation’s petroleum industry, following the freezing of major investments in the sector for about a decade.

“There are too many contending issues that are lumped into one piece of legislation, including issues that were never in dispute; issues that we didn’t need to revisit.

“The protracted lull in the industry follows constant changes to bill. The changes are a product of unending disagreements over fiscal policy and structural recommendations in the bill.

“As the bill lingers in the legislative chambers, uncertainty hangs in the business environment, making investors freeze decisions that would have translated into activities that create vibrancy in the industry.

“What is stopping the industry from moving forward is the uncertainty created by the possibility of a new legislation that is not clearly understood,” he said.

He said the uncertainties make it impossible for numerous operators to take investment risk in the nation’s oil and gas industry.