The Department of Petroleum Resources (DPR) says it has advised the federal government to consider withdrawing a $1.5 billion loan request sent to the World Bank.
The DPR said some of the revenue generated and remitted by the agency would save the country from additional and conditional borrowing from the World Bank adding that it has enjoined the government to delay and possibly ignore the loan.
DPR collects oil and gas royalties, gas flare penalties imposed for gas flaring, concession rentals paid for the grant of oil and gas acreages by exploration and production companies, and miscellaneous oil revenue which consists of statutory application fees, license and permit fees and penalties on behalf of the federal government.
Auwalu (pictured) said there is a need to ease regulations to open up the sector for investment, considering the number of open acreages yet to be explored in frontier and inland basins and increased competition from neighbouring countries.
He said easing regulations and passing the petroleum industry bill will encourage investments that would the industry weather the challenges caused by the COVID-19 pandemic, oil price crash and production cuts by the Organisation of Petroleum Exporting Countries (OPEC).
