Nigeria’s oil and gas revenue to exceed $ 20 bn by 2007

Apr 20, 2005 02:00 AM

Federal Government's export revenue from oil and gas will by 2007 hit over $ 20 bn (about N 2.68 tn) per annum.
The revelation came as the Oil Producers Trade Section (OPTS) of the Organised Private Sector (OPS) declared support to government's aspirations in the nation's upstream petroleum sector.

Presidential Adviser on Petroleum and Energy, Dr Edmund Daukoru, who was speaking at the opening ceremony of this year's edition of Nigerian Oil and Gas (NOG) conference and exhibition in Abuja said government was pursuing in oil and gas export proceeds to justify huge investments in the drive to optimise the nation's hydrocarbon potentials.
Pointing at projected increase in the global demand for has, Dr Daukoru said Nigeria has adequately positioned to benefit from an imminent boom through a number of gas based projects which, he explained, will utilise about 73 tcf of gas or 39 % of the nation's estimated 187 tcf gas reserves. He told industry players at the conference that Nigeria must use the opportunities provided by rising demand for gas to grab long term global market share.

Dr Daukoru said the new gas policy would address the key issue of third party access to produced gas to make the sector more flexible for link projects that will use gas to create values in other sectors of the economy. He said about $ 500 mm or N 67 bn would be pumped into the development of gas sector within the next two years to ensure that government's export receipts from oil and gas jumps from the present $ 14 bn to $ 20 bn per annum.
The Presidential Adviser enjoined the operators to collaborate in realising governments objectives of growing the nation's oil and gas profile, building local capacity and monetisation of gas resources through link projects.

Presenting the position of the OPTS in the restructuring of the sector, the Lead country Manager of ExxonMobil in Nigeria, Mr John Chaplin, said the operators would support the nation's industry aspirations if the operating environment were made more congenial.
Mr Chaplin who said Nigeria would play crucial role in meeting global energy needs in the future said OPTS is fully aligned with the national objectives, but pointed out that serious industry challenges include funding constraints, fiscal arrangements for gas and production sharing contracts, and rigorous approval process worsened by due process requirement.

On governments local content drive he pointed at the level of financial and organisational capability of the indigenous contractors as major impediments.
Other challenges he outlined include community relations and cost efficiency in operating in Nigeria.

Source: Daily Champion
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