Tinubu’s Executive Orders Will Boost Nigerian Oil, Gas Industry – IPPG

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In recent developments, the Independent Petroleum Producers Group (IPPG) has endorsed the new Executive Orders signed by President Bola Ahmed Tinubu GCFR. The new Order is aimed at revitalising investment in the oil and gas sector, and presenting Nigeria as Africa’s premier investment location within the energy sector.

The group said in a statement signed on its behalf by the Chairman, Abdulrazaq Isa, that President Tinubu’s policy directives, are the introduction of value adding fiscal incentives for investments in upstream non-associated gas (“NAG”) developments, midstream infrastructure, and deepwater assets.

The Order will also streamline the industry’s contracting process, and help to reform local content practices. These measures are without a doubt, pivotal to the future of the industry, and have in-fact been recommended by the industry over the years.

“We are encouraged to see swift progress within a relatively short period of time. We believe these actions will directly result in the following benefits for Nigeria, and the oil and gas industry: Reduced project cost, faster project execution timelines, Reduction of waste, and multiple layers of middlemen in project contracting processes, Increased number of gas projects reaching Final Investment Decision (FID), Increased gas processing and gas distribution capacity, as gas infrastructure investments grow, and Increased gas supply for domestic use (including power, cooking gas, etc.),and for export.

“We believe these reforms will attract more investments into our sector, accelerate project completions, and ultimately, contribute to the prosperity of all Nigerians.”

Prio to this time, Nigeria has witnessed challenges and delayed investment by inserting the government between willing private sector counter-parties, and the global oil and gas industry has continued to contend with limited availability of capital, as well as uncertainty because of future evolution demand.

This is evident in the delayed approval of the IOC to sell off existing businesses that are performing below expectations, the stalled progress in taking FID in the outstanding upstream Deepwater projects, and the gas resource & infrastructural development projects.

“President Tinubu’s policies suggest a new direction that prioritises Nigeria’s strategic interests, ensures that we can harness our vast gas resources effectively and recognises the role of the private sector in driving growth.

“These Executive Orders are credible impetus required to re-launch the growth of production and revenue from the oil and gas industry, and marks a significant milestone in our journey towards achieving our shared goal of energy security and economic stability for all Nigerians,” IPPG concluded.

 

 

 

 

 

 

 

 

 

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