Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources, has stated that the Federal Government will work with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to promote local refineries.
Lokpobiri spoke at the 2024 PENGASSAN Energy and Labour Summit (PEALS 2024) in Abuja on Wednesday. The three-day summit, the association’s third annual summit, is themed “The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment, and Crude Oil Theft”.
He added that the agreement would improve oil output while also ensuring healthy competition and fairness for all in the oil and gas business.
“Supporting local refineries will enhance domestic refining capacity, reduce dependency on imported refined products, and stimulate economic growth.Financial news subscriptions
“The Federal Government remains determined to ensure that local refineries thrive by creating and promoting a conducive environment for potential investors.
“Having operational refineries within the country is crucial for our economic growth and energy security,” he said.Financial news subscriptions
The minister, who described the summit’s theme as strategic and timely, called for collective efforts to build more investment in the industry and guarantee energy security. He explained that measures had already been taken to ensure that fossil fuel would not become obsolete while also ensuring energy security.
“Energy security is at the core of national security. “In an era where global energy dynamics are rapidly changing, Nigeria must strategically position itself to meet its domestic energy needs and remain a key player in the international arena.”
The minister noted that Nigeria plays a critical role in energy security efforts in Africa, adding that whatever happened in Nigeria affected the West Africa Sub-region.
He said the ministry was committed to providing policies that would lead to the progress of the sector.
“Our vision is to ramp up production so that the mainstream and upstream sectors can be successful.”When I came on board one year ago, we were barely producing one million barrels, but today we produce about 1.7 million barrels.
“Unless the upstream sector succeeds, the mainstream and downstream will not succeed,” he said.
Lokpobiri also explained that the government had built confidence in the industry, resulting in increased investment. On his part, the President of PENGASSAN, Festus Osifo, said the association had always proffered solutions to the numerous challenges in the industry.
Osifo said the problem was the lack of political will to address those problems. “Over the years, we have always provided solutions.
“We provide solutions with a study on how to better manage the refineries, but we don’t get to see results,” he said.
On the issue of divestment, Osifo said the association had always fought for Nigerians to take positions in the management of International Oil Companies (IOCs).
According to him, the challenge with most divestments is that when Nigerians come on board, they are dehumanised, and the association has tried to find lasting solutions to address this.
“There are some oil companies today where payment of salaries has become a problem.They earn revenue in dollars but don’t pay salaries.”.
“We usually engage, but when it fails, we escalate to senior partners to intervene, and when this fails, we have no other options than to go on strike,” he said.
