Buhari’s 7bigwins Initiative In Oil And Gas Industry Yielded Positive Impact

Buhari’s 7bigwins Initiative In Oil And Gas Industry Yielded Positive Impact

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Tremendous progress has been made by the administration of president
Muhammadu Buhari in the oil and gas industry in the last four years, a
report published by the federal ministry of petroleum resources on the
impact of the 7BIGWins initiative of government has revealed.The
7BIGWins project launched by president Buhari in 2016 was an
intellectual exercise essentially designed to capture the oil and gas
sector holistically with the view to ensure that the industry takes off
and run effectively, efficiently and seamlessly.Under the
initiative which was championed and implemented by former minister of
state for petroleum resources, Dr Ibe Kachukwu, big wins were recorded
in seven critical areas including policy and regulation, accelerated
income streams, gas regulation, refineries and local production
capacity, Niger Delta and security, transparency and efficiency, and
stakeholder management and international coordination.

According
to the report, robust policies and laws were formulated to drive
efficiency, encourage investment and improve local participation in the
sector. “At the moment, we have new policies, we have a lot more
guidelines that we have gazetted and this shows a lot of transparency if
you are able to gazette guidelines that give investors a lot of
confidence because they know what you are expecting from them and it is
encouraging to them. Key initiatives were also implemented to generate
revenue for government that includes initiating capital investment into
midstream and downstream assets for example pipelines, depots and
refineries; review of government equities in JVs, conduction of early
lease renewal, ensure payment of outstanding royalties by oil companies,
refinancing of NNPC loans, implementation of targeted borrowing,
restructuring of JVs to IJVs, review and update of fiscal type
guidelines to bring them in line with best practices,” the report says.

In
terms of the Nigerian gas revolution agenda which seeks to introduce a
significant boom in the oil and gas industry, it was also revealed in
the report that the 7BIGWins was supported by enabling policies that
were already being implemented to jump start the gas industry. “The
actualization of this agenda would certainly ensure improved power
availability for all, a geographically spread industrialization and
repositioning of the country as the regional center for gas-based
industries. We have equally done the gas flare commercialization
programme which idea is to take away gas flare which is a health hazard
issue. Right now, we are 75 per cent gone, remaining 25 percent to go. A
lot is also being done with deepening of LPG gas. We want to
domesticate the use of gas which is much better for the environment and
much safer for the people health wise than using other fuel sources,”
the report highlighted.

In the area of refineries and local
production capacity, the report showed that comprehensive rehabilitation
and revamp of existing refineries were carried out, while domestic
refining capacity was done in co-location, greenfield and modular. “This
is aimed at transiting Nigeria from being a massive importer of
petroleum products to a net exporter of petroleum products and value
added petrochemicals. It also helps to diversify export base and enhance
import substitution, improve GDP growth and generate employment.
Besides, Project 100 was launched specifically to identify 100 Nigerian
companies that can get upscaled into competition for opportunities so
that we can begin to get full benefits for local content,” the report
further revealed.

In terms of the Niger Delta militancy,
stabilizing production, transparency and efficiency as well as
stakeholder management and international coordination, the report
indicated that tremendous achievements were also recorded in the said
areas. “Once we achieved peace in the Niger Delta, production volume
moved up from 800,000 Bpd to 2.1million Bpd which is very good. In the
area of transparency, we published the first monthly report of NNPC way
back from 2015. That practice has continued and so people are able to
know what is going on. We put very efficient policies in all the
agencies – DPR, PPRA and so on so that people can know what is happening
and get update about their activities. The monthly report and the KPR
have been set and continued to be monitored on oversight on a monthly
basis. Apart from being the President of OPEC in 2015 which was an
inherited position, we created a level of trust and believe in our
system to the point where we are able to help elect a Secretary General
for OPEC and our contributions continued to be very valued, while the
absolute focus is to get the four refineries working to their full
capacity of 450,000 barrels back on track using private capital,” the
report emphasized.

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