By Ghene Igbogidi
With crude oil production now hovering around 1.7 million barrels per day and inching towards two million, Delta State Governor, Rt. Hon. Sheriff Oborevwori, has reaffirmed his commitment to supporting the growth of the hydrocarbons sector and reshaping Nigeria’s economy.
Against the backdrop of the recent surge in oil production in Delta State which has propelled an increase in revenue from the export of crude oil, Governor Oborevwori, noted that Delta State, as the highest producer of hydrocarbons, is dedicated to fostering an enabling environment for the sector’s continued prosperity, recognizing its pivotal role in driving the nation’s economic development which he has been pursuing vigorously.
He spoke at the just concluded 8th National Council on Hydrocarbons in Asaba. Represented by the Secretary to the State Government, Dr. Kingsley Emu, the Governor expressed confidence in the insights gained from discussions on the successes and challenges of the Act.
He highlighted the meeting’s focus on identifying gaps and recommending amendments, particularly concerning host communities. He emphasized the need for states to be granted clear oversight roles to enhance the implementation of the Petroleum Industry Act (PIA).
Reflecting on the theme of the conference “Petroleum Industry Act, 2021: The Journey So Far,” the Minister of State for Petroleum Resources, Hon. Heineken Lokpobiri, represented by the Director of Upstream Department, Engr. Busari Kumoru, underscored the critical role of the PIA in shaping Nigeria’s monetary and fiscal policies.
He noted that crude oil contributes about 90% of Nigeria’s foreign exchange and 65% of government revenue despite accounting for less than 10% of the GDP. Lokpobiri stressed that the PIA aims to foster a business-friendly environment, attract investments, and ensure harmonious co-existence through host communities’ development funds, lower taxes and royalties, and streamline regulations to improve ease of doing business.
He stressed the council’s critical role in policy formulation aimed at optimizing Nigeria’s hydrocarbon resources and outlined federal initiatives for cleaner energy, gas commercialization, and reduced deforestation.
In his speech, the Delta State Commissioner for Oil and Gas, Hon. Peter Okagbare Uvwejitobor, noted that enacting the PIA Act does not only seek to reform the oil and gas industry, but also at creating a conducive environment for investment, enhance regulatory framework and promote local content development, amidst ensuring that host communities are accorded their right of place in the sector.
This, he said, was why the passage of the Act in 2021 was greeted with so much joy and celebrations.
Uvwejitobor said that as a major hub of oil production in Nigeria, Delta State has vested interest not only in the effective implementation of the Petroleum Industry Act, but also in the benefits of the abundant hydrocarbons are felt by the various communities across the state.
He said the Government of Delta State, recognizes the importance of collaboration among all levels of government, industries and host communities in achieving the goals of the Petroleum Industry Act, 2021. This, he explained, is why the absence of a defined role and seeming non-recognition of state governments in the Petroleum Industry Act must be reviewed.
The three-day National Council created an opportunity for participants to engage in fruitful deliberations and discussions, share insights and explore ways for a more resilient and inclusive petroleum industry in the years ahead.
Participants, members of the Host Communities Development Trust, who were shared into groups, actively defended their memoranda, contributed to conversations, shared experiences and proposed innovative solutions to issues bedeviling the advancement of the Petroleum Industry Act since it became operational.
