Chairman of Heirs Holdings, Tony Elumelu has called for increased collaboration between international and local oil and gas firms in order to resolve the myriad challenges affecting the sector’s performance.
Speaking on Monday in Abuja at the third anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Elumelu said that combining the IOCs global expertise with local knowledge and commitment, operators can drive innovation and excellence across the entire value chain to effectively addressing the challenges being faced.
He pointed out that Nigeria was faced with the threat of declining production and investment in the oil and gas sector with oil production dropping from over two million barrels per day to below 1.5mbpd which translates to lost revenues, reduced global market share, and missed opportunities for national development.
Elumelu attributed the situation to aging infrastructure, security challenges in the Niger Delta, stalled investments, regulatory uncertainties, and a global shift towards renewable energy that has compounded the investment challenge.
He said Nigeria cannot permit this to continue, and squander her inheritance and betray the next generation.
Elumelu, who is also the Chairman of Heirs Energies, commend the transformative and bold initiative of NPRC as articulated under Project 1 million barrel of oil (MMBOPD) which aims to boost the country’s oil production by that number in the shortest time possible.
He said in setting a clear and challenging goal, all stakeholders will need to commit to playing their parts and bring the needed collaboration, innovation, and excellence to make the project a success.
He however pointed out that in order for the project to be sustainable, the initiative should go beyond just increasing production but also catalyse a comprehensive strategy to revitalize Nigeria’s entire upstream sector.
For him, the project should encompass key elements which include: modernization infrastructure by upgrading aging facilities to improve efficiency and reduce downtime; and improving security by implementing advanced technologies and community engagement strategies to secure industry assets.
Elumelu also stressed that the NUPRC must be committed to creating a more transparent and efficient regulatory environment which could be leveraged to attract both domestic and foreign investment as well as embracing cutting-edge technologies to optimize production and reduce environmental impact.
Elumelu also emphasised that “the path to 1MMBOPD must be constructed on strategies that maximize the value of our gas resources, reducing flaring and increasing utilization for domestic and export markets.
“This dual focus will help diversify our energy portfolio and mitigate the risks associated with over-reliance on oil.”
He said the UBA Group which he also chairs, was well positioned as a global financial institution and has been committed to “providing the necessary funding and financial expertise to support both established players and emerging indigenous companies in reaching our collective goals and implementing the solutions we have outlined.”
