Onyebuchi Ezigbo in Abuja
Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the federal government to consolidate efforts at implementation of reforms and incentives aimed at stimulating investment into the country’s oil and gas industry.
The union in a communique issued at the end of its 5th PENGASSAN Energy and Labour Summit held in Abuja called for an integrated national approach to gas development encompassing upstream supply, processing facilities, pipelines, storage, LNG, LPG and CNG infrastructure, alongside commercially sustainable gas pricing, bankable offtake arrangements and credit worthy customers.
In the communique jointly signed by PENGASSAN President, Comrade Festus Osifo and General Secretary, Comrade Jerry Amah, the union, “urged government and regulators to consolidate recent reforms and incentives that have stimulated renewed investment and Final Investment Decisions and ensure that Nigeria remains internationally competitive for capital.”
It said the Summit observed that Nigeria possesses enormous gas resources, with over 215 TCF of proven reserves, but continues to face significant challenges in converting these resources into reliable energy, industrial growth and economic prosperity.
PENGASSAN called for an integrated national approach to gas development encompassing upstream supply, processing facilities, pipelines, storage, LNG, LPG and CNG infrastructure.
It further urged accelerated utilisation of gas for power generation, manufacturing, transportation, fertiliser, petrochemicals and domestic cooking, while reducing routine flaring and methane emissions and converting otherwise wasted gas into economic value.
On domestic refining and value addition, PENGASSAN urged the federal government to sustain policies and investments in order to expand Nigeria’s domestic refining capacity and reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products.
It emphasised the need to protect refineries (such as Dangote Refinery, Waltersmilth refinery and others) within Nigeria jurisdiction.
According PENGASSAN, Nigeria should progressively retain more value from its petroleum resources through domestic refining, petrochemicals, gas processing and other value-adding activities capable of generating employment, conserving foreign exchange and stimulating industrial growth.
On the issue of protection of workers’ rights and industrial harmony, PENGASSAN affirmed that capital and labour are complementary rather than competing interests.
It said that sustainable businesses require investment and profitability, while sustainable investment equally requires skilled, motivated and fairly treated workers.
It further called for stronger enforcement of expatriate quota requirements to ensure that foreign expertise is deployed principally where genuine skills gaps exist and is accompanied by measurable knowledge transfer, understudy arrangements and succession plans for qualified Nigerians.
The Summit further reaffirmed that host communities must be genuine partners in petroleum development and called for effective implementation of the Host Communities Development Trust framework under the PIA.
The 5th edition of PENGASSAN Energy and Labour Summit with the theme ‘Strengthening Regulatory
Frameworks as a Catalyst for Stability and Growth in Nigeria’s Oil and Gas Industry focused primarily on complex challenges confronting operations in the industry, especially as they affect PIA amendments, regulatory uncertainty, oil and gas investment, policy consistency, investment incentives, efficient execution,and the protection of workers and host communities.