Kachikwu: Involving Communities in Oil Activities, Solution to End Crisis in Niger Delta

Emmanuel urges council on hydrocarbons to address crisis in oil industry Ayade wants FG to extend search for oil to Cross River

Okon Bassey

The Minister of State, Petroleum Resources, Dr. Emmanuel Ibe Kachukwu, has said for a lasting peace to be achieved in the Niger Delta region, oil bearing communities must be involved in oil and gas exploitation in their areas.

The minister made the assertion at the closing of the 2nd National Council on Hydrocarbons summit held in Uyo, Akwa Ibom State, noting that from a peak production of 2.35 million barrels per day recorded last year there was a declined to 1.1 million barrels per day due to incessant vandalism.

However, Kachukwu observed that due to sustained engagements with the Niger Delta, production has ramped up to about 2.1 mbpd from 2016 crude oil production average of 1.85 mbpd.

Also, he said the Nigeria local content has witnessed a steady increase in participation of Nigerians in oil and gas contracts by more than 180 per cent.

The minister said the challenges in the sector include security and environment, institutional capacity, funding of investments, high industry technical costs, obsolete legislation and fiscal regimes, downstream sector issues and infrastructure constraints.

The minister said that the seven Big Win Roadmap as launched by President Muhammadu Buhari last year remained peculiar as it has the explicit support and commitment of political leadership, industry and all stakeholders to its implementation.

Issues in the sector he said would soon be addressed by a new National Oil and Gas Policy which would be legislated in the next few months.

The new oil policy, according to him, would create a market driven oil and gas industry, maximise production and processing of hydrocarbons, minimise the environmental impact of oil exploitation and exploration, extend gas penetration in the domestic market and gain a presence for Nigerian gas in the international market.

He added that the policy would also enable Nigeria to operate a gas industry with a clear division of roles between private and public sectors, end and commercialise gas flaring and environmental issues and clarify the rules guiding investment in the gas sector.

“The roadmap has very specific time-focused targets and like the many bold steps we have taken in this sector since the inception of the present administration, we remain focused to making dramatic policy shifts in this sector to grow, deepen and open up the business and opportunities in Nigeria’s oil and gas sector,” he stated.

Speaking at the summit, the Akwa Ibom State Governor, Mr. Udom Emmanuel, said the establishment of the National Council on Hydrocarbons would help to address the crisis and agitations experienced in the oil and gas sector.

“I strongly believe that if we had a platform of this nature before now, where key players and stakeholders often converge to develop policy thrust to drive the industry, the crisis and agitations we have experienced in the sector would have long been addressed,” he said.

The governor who was represented by his deputy, Mr. Moses Ekpo, urged the implementation of the resolutions reached at the first council meeting of the body in order to resolve some of the problems in the oil and gas territory.

He said it was wrong for some federal agencies as well as some oil companies to carry out some interventionist projects without consulting the state government or its agencies.

“This kind of action usually engenders mistrust, generates restiveness which is not helpful in ensuring smooth operations of the industry,” he stressed.