THE Federal Government has decried high cost of oil production in the country which has made cost of Foreign Direct Investment (FDI) very expensive.
The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, in his address at the 2017 annual conference of the Association of Energy Correspondents of Nigeria (NAEC), in Lagos on Thursday, put the cost of producing a barrel of oil at $32.
Kachikwu, who was represented by Olumide Adeleke, Deputy Director, Department of Petroleum Resources (DPR), however said government is expediting action to bring down production to $15 per barrel, to significantly bring down cost of FDI.
The minister noted that the Petroleum Industry Governance Bill (PIGB) has been structured to fully turn around the petroleum sector and make it attractive to investors.
Kachikwu lamented security issues and funding gap in the area of refinery which according to him has delayed takeoff of refinery projects even after licenses have been issued.
He regretted that after the DPR has issued about 40 licenses only two projects are currently being developed.
The minister, however was optimistic that the PIGB will bring about fiscal regime that is flexible, promote gas utilisation and enhance local content as well as restructure the Nigerian National Petroleum Corporation (NNPC), for enhanced productivity.
In his speech, the Managing Director of the NNPC, Maikanti Baru explained that the PIGB largely reflects the aspirations of the industry for the emplacement of an effective policy, commercial and regulatory framework that promotes growth and efficient operations.
Baru, however observed that there other issues in the bill that needs to be immediately addressed before it is finally sent to the president for assent.
For that to happen, he urged stakeholders to take advantage of the opportunity to seek clarity and where possible propose changes to ensure that what is signed into law accomplishes the main purpose of reforming the industry for the collective good.
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