Lokpobiri Moves to Resolve Issues with Domestic Crude Oil Supply, Engages Producers
· Says Nigeria winning war against oil theft, sabotage
Emmanuel Addeh in Abuja
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, yesterday, moved to resolve recent issues with supply of crude oil to local petroleum refiners in the country.
Lokpobiri said during a meeting in Abuja with oil producers, industry regulators, and other stakeholders that the gathering was meant to put to rest any differences existing among the players in the value chain.
Although he did not delve into the issues, the minister stressed that most of the outstanding areas of conflict had been sorted out, except two areas for which a committee, led by Permanent Secretary in the ministry, Nicholas Ella, had been set up to resolve in days.
He stated, “There seems to be some misunderstanding, as it were, of a regulation made by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). That has to do with domestic oil supply, and as part of our policy here in the ministry, when we see a seeming misunderstanding, we try to resolve it.
“So that is why we are here today to discuss the issues raised by both the Oil Producers Trade Section (OPTS) members, who are the international oil companies, and the Independent Petroleum Producers Group (IPPG) members, who are the indigenous oil companies.
“Right now, we’ve been able to agree, except for one or two areas. So what we have resolved is that there should be a small committee to be headed by the permanent secretary to look at the matter between Monday and Tuesday.”
Lokpobiri expressed the commitment of the concerned parties towards resolving the pending issues, stressing that the ministry would continue to ensure a conducive environment for all players.
He said, “Contrary to whatever opinion anyone might have, when it comes to business, we’re all committed to ensuring that we support the industry. We’re also committed to ensuring that we create the best environment and open up opportunities to allow business operations in the oil and gas sector to continue.
“That is the essence of the meeting. And that is why since we were appointed, that has been our policy choice, that whatever issues exist, we sit down and resolve them.
“Those issues are very fundamental issues that have been agreed, and all of them are committed. All the companies in Nigeria are committed to ensuring that we meet that part of the Petroleum Industry Act (PIA) that has to do with domestic oil supply obligation.”
Lokpobiri, at another event, maintained that the country was winning the war against oil theft and pipeline vandalism. He said the development was reflecting in the increase in oil output.
Speaking when he paid an inspection visit to Amal Tech Limited factory in Idu, Abuja, the minister stated that the government was determined to curb oil theft in the country.
He said, “Everybody knows that oil theft is one of the biggest economic problems that we have. And we are battling them. When I became minister, we were doing, daily, about one million barrels per day (bpd), but today we are doing 1.7 million bpd, inclusive of condensate.
“So, we are winning the war. We are not where we want to be. But, certainly, it’s a tremendous improvement as far as the issue of oil theft is concerned. We will continue to battle until we get to two million bpd to 2.5 million bpd.”
After touring the facility, Lokpobiri stressed that despite starting out with the manufacturing of a device to monitor smoke and gas leaks, the company had expanded to develop other devices, like electricity meters and pipeline surveillance systems.
“We are committed to working with them; committed to strengthening our partnership with them, so that together we will be able to reduce the level of oil theft to the barest minimum,” he added.
He reiterated the federal government’s dedication to supporting and strengthening local industries, highlighting their crucial role in driving economic growth and development.
Lokpobiri stated, “Your innovative solutions are creating jobs, adding value to the economy, and making a significant impact across multiple sectors. We are committed to strengthening our partnership with you and supporting your growth. We recognise the importance of your work in achieving our objectives, particularly in reducing pipeline infractions and increasing local production capacity.”
In his remarks, Chief Executive Officer of Amal Tech Limited, Shehu Abdullahi, expressed his appreciation to the federal government, and stated that the firm’s innovative activities would save the government funds.
