Indigenous oil and gas operators, under the auspices of Petroleum Technology Association of Nigeria (PETAN), have called on the Federal Government to privatize the refineries as a panacea to the nation’s perennial fuel challenge.
PETAN chairman, Bank-Anthony Okoroafor, said: “Government should encourage more oil exploration activities so that what happened to us with the refineries will not happen with oil production as well. We had four refineries and we failed to maintain them as at when due until they gave up. We need to push for increase in exploration activities if we want to remain a major oil-producing country in the world”.
He noted that drilling activities had become too low, that exploration which peaked in the late 60’s, dropped to a very low level in the past 10 years, adding that this period of falling oil price has made it imperative for government to encourage exploration so as to shore up reserves.
Besides, the Federal Government has promised to explore the use of modular refineries in its quest to solving the country’s energy challenges.
Okoroafor urged government to encourage more investments in oil exploration activities. He argued that the best way to do this is to stabilize the fiscal policies of both the International Oil Companies (IOCs) and the Nigerian National Petroleum Corporation (NNPC).
Okoroafor maintained that fiscal stability can be achieved if government pays off its joint venture cash calls and makes it a first line charge.
He also stressed the need for government to ensure that its fiscal terms in respect to Joint Ventures ownership were investment-friendly.
