The Senate President, Ahmad Lawan has pushed for a cost reduction in the production of crude oil by International Oil Companies operating in Nigeria.
Senator Lawan said the new Petroleum Industry Bill presently before the National Assembly would accommodate provisions to ensure such reduction when the bill is eventually considered and passed.
The Senate President made this known when a delegation of Oil Producers Trade Section (OPTS) paid him a visit at the National Assembly on Thursday.
“The cost of production in Nigeria is a major concern in the oil industry. My colleagues in the committees that are oil and gas related know better. But from the little I understand, when Saudi Arabia maybe spends $5 dollars (USD) to produce a barrel, we spend about $30 dollars (USD) to produce the barrel in some cases.
“The time has come for us to ensure that the cost of production is beaten down to a more meaningful and profitable production cost,” he stated.
Interest of international investors
Stressing the importance of the PIB towards the advancement of Nigeria’s economy, the Senate President assured them that the bill would accommodate the interest of international investors operating in the country.
Senator Lawan, however, bemoaned the low influx of business investors to Nigeria, a development which he attributed to the absence of a legal framework which the Petroleum Industry Bill seeks to address.
The leader of the Oil Producers Trade Section (OPTS) delegation, Mike Sangster (Total), said the purpose of the visit was to engage the National Assembly on ways to modify the Petroleum Industry Bill to ensure its success when passed and signed into law.
While extending the delegation’s support to the ongoing effort to provide a legal framework for the oil and gas industry in Nigeria, Sangster prevailed on the National Assembly to accommodate provisions in the PIB that would protect the existing investments of foreign investors.
“On behalf of all of the industry and my colleagues, I want to say that we duly support the government’s effort to drive through the Petroleum Industry Bill. We think it is really important that there’s an updated framework for the industry,” he stated.
Mercy Chukwudiebere
