In efforts
to douse restiveness in the oil-rich Niger Delta, enhance ownership of hydrocarbon
resources, and fast track development in the areas, the Federal Government has
promised to ensure that host communities participated in transparent and
competitive licence allocation, albeit through local community vehicle.
This is part
of the plans contained in the new National Petroleum Policy, made available to newsmen,
which also assured of creating an enabling business environment along the value
chain.
Discontent
over the ownership and utilisation of oil wealth since the discovery of oil in
commercial quantity in 1956, gave rise to continuous agitations leading to
militancy activities to push for resource control and wealth redistribution.
Given the
prolonged years of violent confrontations by various groups leading, which saw
Nigeria’s crude oil production down to a mere 800,000 barrels per day (bpd)
mid-last year from a previous peak of 2.5million bpd. Government was therefore
left with no alternative than to negotiate with stakeholders in the Niger Delta
with a view to charting a mutually beneficial way forward.
Accordingly,
the National Petroleum Policy articulates the vision of the Federal Government
of Nigeria for the petroleum sector, sets goals and strategies, promotes a
level playing field between state owned enterprises and the private sector.
Under the
terms of the policy, which was approved last week, the Federal Government will
ensure timely and competitive access to petroleum assets, to ensure optimum
exploration, development and commercialisation of Nigeria’s oil and gas endowment.
The policy
identified ineffective regulation, Joint Venture funding challenges, high cost
operating environment, unsustainable importation of petroleum products, and
limited refining capacity as some of the challenges in the Nigeria’s petroleum
industry. Others include dilapidated midstream oil network plagued by systemic
inefficiencies and vandalism across critical areas.
As a result,
the policy will establish the medium to long-term targets for oil reserves
growth and utilisation, and record national social-economic development
priorities, which would be reviewed and updated periodically to ensure
consistency in government policy objectives at all times.
The policy
objective for the midstream is to attract as much investment as possible into
petroleum refining transportation and storage, and for the downstream, create
additional value for Nigeria through refining of oil, and further processing
into significant end products for industries such as complex petrochemicals and
plastics.
It stated: “Through the policy, the Federal Government seeks to gain
more than monetary value for oil. The vision is to ensure oil fuels national
development. Government seeks to achieve this by implementing sustainable
reforms in the sector taking into cognisance the global dynamics for the
petroleum sector and resources, and the peculiarity of the Nigerian petroleum
industry.
“The
policy recognises the negative impacts of the oil industry to the livelihood
and local communities. The government seeks to address these impacts through
regulatory measures such as refineries, gas flare commercialisation and
community engagement.” (Guardian)
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