In Nigeria, the issues are compounded by the growing list of challenges of which crude oil theft and vandalism now remain part of the critical reasons forcing investors to divest amidst drastic reduction in the country’s production output.
Despite the campaign against fossil fuels, prevailing global challenges indicate that hydrocarbons may remain useful for decades and that should be good news for a country like Nigeria, whose economy heavily relies on oil and gas. He admitted that only effective regulations could help the country harness the gains of the PIA. “If we must continue to be relevant at the global stage, we must in designing regulations put in focus how we can balance the energy base load for Nigeria so that we will not be left behind in the energy transition train, while still harnessing our rich natural hydrocarbon reserves.
According to him, there are burning issues on implementation of host community funds in line with Section 235 of the PIA as well as finalising the 2020 bid round through issuance of Petroleum Prospecting Licence in line with Section 94 of the PIA. The attempt by the commission on the identification of oil and gas wells producing below capacity while finding a holistic approach towards increasing crude oil and gas reserves from 37 billion barrels and 208.62 TCF needed to be sustained to avert the decline in the reserves and daily production.
Just recently, the Federal Government disclosed that over N200 billion and another $7 million revenue as the NUPRC concluded the 2020 marginal bid round offering over 100 Nigerian companies 49 PPL. In June 2020, the Federal Government had put up 57 fields in a bidding process. Lamenting the dwindling crude oil production in the country, Okoroafor insisted it is not the role of oil companies to solve the issue. He said the current bid round remains the most transparent, adding that some of the issues that affected previous marginal fields licenses were addressed, including forceful joining of companies.