Nigeria’s oil sector challenges require legal framework – NNPC boss

The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, has said that the oil and gas sector is fraught with challenges arising from the Covid-19 pandemic, especially in the cost of producing crude oil.

Kyari disclosed this on Monday, while speaking at the fourth Nigeria International Petroleum Summit, themed ‘From Crises to Opportunities, New Approaches’.

According to him, some of the challenges faced need a legal framework to resolve it permanently, hence the need for the passage of the Petroleum Industry Bill.

“Cost is everything; there is a need for us to reduce cost of production, the best time is now and we are working with all stakeholders to make this work.

“Security is another problem, and we are making effort to contain it but more is needed; we are happy that the Federal Government is making sure that the challenges are resolved,” the NNPC boss said.

Kyari also noted the need for stakeholders in the industry to collaborate.

“This crisis is an opportunity to do many things together differently to achieve greater results,” he added.

Meanwhile, the Speaker of the House of Representatives, Femi Gbajabiamila, says the country needs to join efforts in the global energy transition because of the infinite nature of oil.

Stressing that the National Assembly has a strategic role to play in ensuring the growth of the oil and gas sector, Gbajabiamila said it was unfortunate the PIB had suffered setbacks over the years.

He, however, assured that the 9th Assembly would work harder to give the country a legal framework for the sector.

“For the PIB, we have never gotten it right but this time, we are determined to get it right. We have self-imposed dates, but we have gone beyond that.

“We believe that anything worth doing is worth doing well and we must not sacrifice at the altar of time; there are diverse interests and we must put them together.

“What is important is the national interest and we will look at it well, to strike a balance,” Gbajabiamila added.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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