By Adedapo Adesanya
The Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN) has expressed worry over the impact of the recent policy directions of the Bola Tinubu-led government on Nigeria’s oil and gas operations.
The President of the association, Mr Festus Osifo, stated this on Wednesday in Abuja at the 2024 PENGASSAN Energy and Labour Summit (PEALS 2024) themed The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment, and Crude Oil Theft.
“Recent policy directions by the government have placed untold hardship on Nigerians.
“Chief among them is the flotation cum devaluation of the Naira, which saw our currency slide from N450 officially in May 2023 to the current exchange rate of about 1600 Naira.
“This is the reason why the landing price of PMS today is over N1,000 (reintroduction of subsidy), the reason why AGO is selling for over N1,300 and the reason why all Imported commodities are over the roof today.
“The overarching impact of these on Nigerians can only be imagined rather than experienced,’’ he said.
Mr Osifo said the floating of the Naira in the official market had exacerbated the challenges faced by their members.
He also said PENGASSAN is committed not to relent until victory is achieved in the fight against crude oil theft.
“The scourge of crude oil theft poses a significant threat to our industry, economy, and national integrity.
“As an Association, we have mounted the rostrum over time, both on the streets and in the boardroom, to champion this cause, and we will not relent until victory is certain.
“We are steadfast in our resolve to continuously partner with other stakeholders in the industry to combat this menace through enhanced security measures, technological innovations, community engagement, and collaboration with law enforcement agencies,’’ he said.
Mr Osifo warned that Nigeria stood at a crossroads, especially in the oil and gas sector, and the actions and decisions of the association must be geared toward rescuing the country.
He said the summit would design a framework for a policy trust for the government towards shaping the economic outlook of the country.
“It is incumbent upon us to drive positive change, foster economic growth, and ensure our people’s prosperity.
He, therefore, called on industry players to explore innovative solutions to forestall financial losses to workers prevent undue gains to companies and ensure a fair and equitable environment for all.
Mr Osifo said PENGASSAN would do all it could to push for just and equitable distribution across its branches.
The labour leader appreciated President Tinubu for the recent signing of an Executive Order that granted incentives to investments in the oil and gas industry.
He said the move translated to the recent $550 million Final Investment Decision announced by NNPC Limited and TotalEnergies on the Ubeta project.
Mr Osifo said PENGASSAN equally recognised the efforts of NNPC Limited Management in furthering partnership initiatives in the upstream and downstream sectors of the Industry.
“The recent MOU signed by NNPC Limited with Total Energies and separately with Shell are indications of fostering good relationships with critical partners.
“The expansion of CNG and LPG infrastructures by NNPC Limited across the nook and crannies of the country is a right step in the right direction and this must be encouraged and deepened,’’ he said.