The Nigerian National Petroleum Corporation (NNPC) has stated that the implementation of the Petroleum Industry Act (PIA) will revolutionalise the nation’s oil and gas industry
The Group General Manager, National Petroleum Investment Management Services (NAPIMS), an arm of the NNPC, Mr. Bala Wunti, stated this yesterday while presenting a paper at the Society for Petroleum Engineers (SPE) Lagos Section Annual Technical Symposium held in Lagos.
Wunti spoke as lead presenter on the theme, “Operationalising the Petroleum Industry Act – An Opportunity for Revolutionising Nigeria’s Oil and Gas Industry.”
The PIA which was signed into law by President Muhammadu Buhari on August 16, 2021 after it was passed by the National Assembly is targeted at reforming the oil and gas industry in Nigeria.
The Act is also aimed at promoting transparency and attracting capital flows into the oil and gas industry.
The NAPIMS boss said the operationalisation of the PIA would bring about certainty, competitiveness and cost optimisation in Nigeria’s oil and gas industry.
Wunti, who gave an overview of the major issues impacting the oil and gas industry, stated that tremendous progress had been made in tackling the issue of security and cost.
He added that the implementation of the Nigeria Upstream Cost Optimisation Programme (NUCOP) and an industry wide tripartite security framework would address cost and security issues respectively thereby brightening the oil and gas outlook for the country.
Highlighting the thematic areas of the PIA, he stated that the Act delineates clearly, the roles and responsibilities of all stakeholders.
This, he stated, would catalyse the growth of the industry in line with the aspirations of government for the sector as encapsulated in the PIA.
On the PIA implementation plan, Wunti stated that the incorporation of NNPC Limited and the inauguration of the NNPC Board had been completed and all hands are on deck to implement other requirements of the PIA within the set timelines.
He further stated that the 3E’s – Energy Transition, Energy Investment and Energy Crisis, were key game changers in revolutionising the oil and gas industry.
Specifically, Wunti explained that the recent energy crisis evidenced by the highest ever gas price was as a result of the global drive to achieve a net zero emission future buoyed by stringent Environmental, Social and Governance (ESG) requirements and activist investors.
He urged stakeholders in the industry to adopt the 3C’s – Critical Thinking, Collaboration and Compliance, as they are key to maximising the benefits of the PIA for all stakeholders – regulators, investors, operators, contractors, host communities and Nigeria.