The Petroleum Club Lagos hosted the distinguished Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, as the guest speaker at its Second Quarter Dinner. The event, held on Monday, April 15, 2024, at the Metropolitan Club in Lagos, Nigeria, brought together key oil and gas industry stakeholders for an insightful discussion on the theme, “Funding our Way out of the Current Crisis: Looking up to the Oil and Gas Industry”
Senator Lokpobiri noted that the mandate of President Bola Ahmed Tinubu is to ramp up production in the oil and gas sector. He emphasized the importance of resolving challenges within the industry to facilitate increased production, citing the potential addition of 480,000 barrels through the resolution of the Seplat-ExxonMobil imbroglio.
Addressing the impact of subsidy cessation in Nigeria, Senator Lokpobiri said the ripple effect was felt across other West African countries. He underscored the opportunities for international oil and gas companies to invest and divest in Nigeria at will.
According to the Minister, the government is eager for the refineries in Port Harcourt, Warri, and Kaduna to become operational, and the Dangote refinery would also join forces with them to enhance the industry’s value chain.
Senator Lokpobiri advocated for the formation of consortia among oil and gas companies to raise funds and emphasized the need for homegrown solutions to Nigeria’s energy challenges. There are opportunities in both shallow and deep offshore and it needs to be harnessed to enhance the economic fortunes of the country.
Furthermore, Senator Lokpobiri addressed concerns regarding the performance of the Nigerian Content Development and Monitoring Board (NCDMB), citing bad investments in the past up amounting to $190 million USD. He said, “Government agencies must be accountable to the contributions of the oil and gas sector to the projects that will be financed.
He emphasized the need to improve Nigeria’s CAPEX in the oil and gas sector and enhance the reservoir replacement ratio which is currently low.
In addressing regulatory matters, Senator Lokpobiri proposed reducing signature bonuses to encourage increased investment in the oil and gas industry. He emphasized that there would be timelines for license renewal processes so that people would not take the reduction for granted.
During the event, stakeholders charged the Minister to ensure gender inclusivity within the ministry, parastatals, and agencies, highlighting the absence of women in top leadership positions. Also, the Minister was urged to facilitate the return of 11 oil well licenses revoked during the previous administration.
Distinguished guests in attendance included former Minister of Petroleum, Chief Donald Dick Etiebet, and Chairman of Guaranty Trust Holding Company, Mr. Hezekiah Sola Oyinlola, among other industry stalwarts.
The Second Quarter Dinner of The Petroleum Club Lagos provided a platform for robust discussions and strategic insights aimed at shaping the future of Nigeria’s oil and gas industry.
