PETAN Chairman advocates enforcement of Local Content Act to prioritize local contractors in divested assets
Oredola Adeola
The Federal Government has established the Petroleum Industry Stakeholders Forum (PISF) as a platform for periodic engagement to review industry status, drive policy formulation and implementation, and ensure a competitive, dispute-free investment environment in compliance with the provision of the Petroleum Industry Act (PIA) 2021.
Sen. Heineken Lokpobiri, Minister of State (Oil) coordinated the inaugural meeting of the Petroleum Industry Stakeholders Consultative Forum (PISF) in Abuja on Thursday.
Engr. Ahmed Farouk, Authority Chief Executive, speaking in his address delivered at the inaugural meeting emphasised that the NMDPRA has demonstrated commitment to this tenet by establishing stakeholder consultation platforms where market situations, operational matters and issues affecting stakeholders are dissected, discussed and in-depth recommendations are made.
According to him, Initiating the Industry Forum, a commendable initiative by the Ministers of State for Petroleum Resources, aligns with President Bola Tinubu’s administration’s efforts to drive business growth and attract crucial investments to the sector.
Engr. Ahmed therefore reiterated the commitment of the NMDPRA to facilitate business growth in the industry, ensure consumer protection, promotion of gas development and evolution of a competitive market environment.
He assured that the Authority would also continue to engage in constructive stakeholder engagements and support the initiatives of the Ministry of Petroleum resources towards the realization of the aspirations of President Tinubu for the Industry.
He explained that over the years, the NMDPRA has taken deliberate and proactive actions to protect and grow the industry, in line with the aspirations and provisions of the PIA 2021.
The ACE further said, “We have taken necessary steps to ensure the evolution of an open, competitive and contestable market in the product supply chain. The full price deregulation of petroleum products market has enabled the creation of a level playing field which fosters healthy competition and enables investment opportunities.
“In the same vein, the reform has occasioned adequate supply and distribution of petroleum products in the country, with consumers enjoying competitive prices and value-added services.
“The National Energy security has been further enhanced with multiple sources of supply. For the first time in many years, the country witnessed the end-of-year festivities and the beginning of a new year without any supply disruption or product shortages that
may have led to fuel queues.
“The contribution of domestic refineries to national energy supply requirements and participation of other Oil Marketing Companies (OMCs) in product supply has been enhanced.
“Equally, the emerging competitive market environment, downswing in international market price, appreciation in Naira and multiple sources of supply, continue to encourage steady stability in pump price of petroleum products nationwide.
“To further support the development of West African refined fuel market, the NMDPRA is partnering with the S&P Global Commodity Insights to organize a workshop targeted at creating a robust platform for regional collaborations among oil industry regulators, policy formulation, creation of a trading hub in West Africa and a more transparent West African pricing assessment and benchmarking,” Ahmed said.
He further explained that Nigeria is steadily reemerging as a major petroleum products supply hub.
He also noted that the biggest single train refinery in the world, the Dangote Refinery, the four NNPCL refineries are gradually being restreamed to ramp up production, our modular refineries are upscaling both in capacities, utilization and in numbers.
“With these, Nigeria is already a net exporter of some petroleum products with the target of all petroleum commodities, while the NMDPRA will continue to facilitate this aspiration to become reality,” the ACE said.
Engr. Ahmed has therefore assured the commitment to implement the PISF initiative, adding that the Authority will be guided by the provisions of the PIA, related to the functions and responsibilities of the institutions governing the sector and the need for efficiency and sustainable growth in the sector.
Engr. Wole Ogunsanya, Chairman of the Petroleum Technology Association of Nigeria (PETAN), urged the Ministry to uphold Section 3.3 of the Local Content Act 2010 by prioritizing local contractors in divested assets during the inauguration of the PISF.
He also called on the Federal Government to establish a National Policy on Oil and Gas Production Volumes, targeting 2 million barrels per day for both local consumption and exports to ensure sustainability.
