Investment in local refining capacity growth option for Oil/ gas industry – experts
Industry stakeholders in the oil and gas sector have reiterated the need for government to as a matter of urgency fast track the development of local refining capacity through building Greenfield refineries, salvaging existing refineries and put in place an aggressive development framework for modular refineries to grow the downstream sector.
According to them, there is the need to put in place a process that would encourage investment in local refineries which would help boost the much needed local production capacity.
Chijioke Mama, CEO/Founder of EnergyDatar, a Lagos-based advisory firm is of the view that all efforts should be summoned by government through the right policy to encourage investors as this will boost refining capacity and help the existing refineries producing optimally.
Ibe Kachikwu, minister of state for petroleum resources had stated that government policy interventions were intended to facilitate the upgrading of existing refineries and build modular refineries through private partnership model to ensure domestic self-sufficiency; Institute transparency and efficiency at all levels of operations in the oil and gas sector.
Kachikwu observed that through the 7 BigWins roadmap the federal government is focusing and committing to take unprecedented steps and making dramatic policy shifts in this sector to grow, deepen and open up the business and opportunities in Nigeria’s Oil and Gas Sector.
According to him, “Our policy intervention would positively impact the local refineries; open investment opportunities for private sector with a clear division of roles between private and public sectors; end importation of petroleum products and address environmental issues.
Industry watchers are optimistic that this renewed efforts by the government to ensure the creation of a market driven oil and gas industry and its promised to minimise the environmental footprint of oil exploration and production is a welcome development.
They observed that with the right measures Nigeria stands to gain from right policies that would improved the operations of refineries, ensure security of supply adding that this would further ensure sufficiency of petroleum products in the domestic market .
Government renewed vigour to address outstanding issue that inhibited investment in building refineries such security and regulation among other things is a welcome development said Mike Onyekonwu, an oil and gas resources person with Laser Engineering and Resources Consultants Limited.
Onyekonwu noted that a transparently and professionally run oil and gas industry with minimal government interference no doubt will see investment activities.
According to him, “Government and investors would derive optimal benefit from a transparently run industry. It is ideal that Nigerian should be empowered to participate in the industry and government create investment friendly environment to attract investors”.
KELECHI EWUZIE