The Petroleum Industry Act 2021 hasn't significantly improved oil and gas operations in
A former Group Executive Director,
He said the country's oil sector has been underperforming due to the incompetence of NNPC staffers and other operators in the industry, pointing out that the oil firm has failed, for a long time, to invest in staff training for optimum capacity.
He claimed that the NNPC has been "outsourcing all its technical capabilities" for the past 20 years.
"I tell you, when we were in office, you could look at every level of manning, that's staffing, and see competence and experience. But how many people at the level of executive directors, for instance, have ever drilled a well or been in an operative position. That's the problem. When you have people, who man the company but have no hands-on experience, then what are we talking about?" he said.
The former group director said the country has failed to record adequate production due to a lack of investment in the industry's operational facilities.
"Gas investment in the last 10 years has been almost nil. For instance, there are no new wells. The old wells have been overdrawn. And oil companies are not investing. The wells can only produce and decline in production rate. You have to have new wells, development wells, and even some appraisal wells, but none of these has materialised. If you don't have new wells, you can't produce.
"If you recall in 2017 or 2018, the expectation of new investment was about
Despite being ranked the 15th oil-producing country in the world,
With an average of 1,083,899 barrels per day in July,
The situation, exacerbated by the rising oil theft, has continued to hinder the development aspirations of
To solve the recurring woes in the sector, the Nigerian government recently unveiled the new Nigerian
But
"Maybe we will see something (differently) when they (NNPCL) roll out properly," he said.
On the Petroleum Industry Act 2021, the former NNPC official said "not much" has been gained from the act and that the operations of oil & gas were not significantly improved by the act.
On oil theft, the former director said it is "completely a security problem" that should be tackled by the government and not the NNPC.
"NNPC cannot handle security outside its limits, (there is) no facility to do it," he said.
'What can be done"
To address the recurring dilemma in the country's oil and gas sector,
"When I look back, 10 to 15 years ago, I don't see capable people replacing those who are leaving,"
He also said the government should invest in the repair and consistent maintenance of refineries, saying it was disturbing that the country's refineries have not been working for years.
"In 1991,
'NNPC, not capable of running refineries'
"I said (it should be) majority shareholding to competent operators with at least 25 to 30 per cent to the government or NNPC, so that you can still continue to get your dividends," he said.
"But, under the present circumstances, the NNPC is incapable of running the refineries because all the staff that were trained and have experience are no longer there."
He said the government "must remove subsidies" before privatising the refineries, explaining that without removing the subsidies, operators will not make a profit.
Copyright Premium Times. Distributed by AllAfrica Global Media (allAfrica.com)., source