Expert tasks government on incentives for efficient gas production in Nigeria

The federal government has been urged to put in place incentives to encourage local and international investments in the entire gas value chain to harness the potential of the nation’s enormous gas reserves.

Dada Thomas, an oil and gas expert and chief executive officer of Frontier Oil Limited, a leading indigenous oil and gas exploration and production company, said this was critical in developing the gas production industry so as to fuel the nation’s power sector reforms and other critical sectors for economic growth.

Speaking at a forum for marginal field and indigenous operators, organised by the Department of Petroleum Resources (DPR) in Lagos last week, Thomas stressed the need to establish a win-win situation that incentivises investments in domestic gas projects and promote a willing buyer-willing seller market driven pricing regime. This, according to him, will create a gas to consumer value chain that will benefit all.

“The federal government should also explore opportunities in the gas sector which could help improve the economy and employment in the country by encouraging local value addition,” he said.

“The benefits in gas exploration and production are enormous. With gas, we can create more jobs, build more infrastructure and schools and improve the lives of the average Nigerian. Clear gas development policies can help boost the economy, power generation and improve the standard of living for Nigerians.”

Thomas, in his presentation on the ‘Challenges of Developing Marginal Gas Field and Indigenous Operators in Nigeria,’ also advised marginal field operators to take the lead role in helping to advocate their issues and challenges in other to encourage such regulators such as DPR to continually champion the favourable review of policies and fiscal terms necessary for increased development of the sector. With over 36 years of experience in the oil and gas industry, Thomas serves as the CEO of Frontier Oil Ltd. In partnership with Septa Energy and Accugas, Frontier Oil Limited emerged as the first indigenous operator to develop a non-associated gas field and project of this magnitude in sub-Sahara Africa.

Speaking on the project, Thomas said: “We are currently in the process of commissioning our biggest project yet which is the Uquo Gas Facility located in Esit Eket LGA in Akwa Ibom State, built in partnership with Septa Energy and Accugas.

By: FEMI ASU