By Ediri EJOH

The Managing Director/Chief Executive Officer, Frontier Oil Ltd,Mr. Dada Thomas, has urged the Federal Government to strengthen its vast gas reserves to augment the losses being suffered as a result of the dwindling oil prices. Thomas, who said this recently at the Annual Lecture of Aret Adams Foundation in Lagos, also urged government to pay more attention to gas production as it is one of the country’s major revenue generation sources, even as he regretted that Nigeria had not given the sector the necessary attention before now.

According to him, “The country had not paid much attention to the production of gas before now. I implore Nigerians to understand that the gas revolution has started, even though it has been slow here. I think in the next 10 years or so, we will see a major improvement in the way gas is being harnessed and used in the country.

“This will ensure that we grow our economy and improve the quality of life of Nigerians. It is good for the country to join the success story about production and utilisation of gas around the world, so that we won’t be left out.” Speaking further, Thomas also faulted the Federal government over gas price fixing, saying the development is a disincentive to gas producers in the country.

He suggested the need for the Federal government to conduct special licensing round for the sector so as to create room for more gas investors to invest heavily and unleash the potential of the sector. According to him, “Considering the challenges besetting the gas sector, it will not be too much for the Federal government to consider tax holidays for operators in the gas sector.

“The passage of the Petroleum Industry Bill into law would be an added advantage to the sector in the area of growth, investment and prospect,” while noting that the dwindling oil prices was caused mainly by the development and sustenance of the United States shale gas revolution. He also warned that the slated March 2015, set out by the Federal Government for the withdrawal of licences of non-performing marginal field operators still loomed.

He said, “The Marginal Field Operators who are not producing will know their fate in March 2015, when the government will decide whether or not to revoke their licences. My prayer is that government should look at them critically before they take their decisions. By the end of March, we will know which marginal field is retained and the ones that lost their licences.”

He added that, “My message is that those who manage to retain their licences should be effective in carrying out their businesses. I think my company and some others have shown that the marginal fields could produce maximally towards the development of the oil and gas industry in the county.”

Recall that the Federal Government through the Director of Petroleum Resources, Mr. George Osahon, had earlier warned that the licenses of non-performing marginal fields in the country will be revoked by March 2015. According to him, “With this inability to kick start operations and make fallow the assets, the licensing of these fields will be revoked by next year.”

He blamed lack of finance and inadequate technical capability for the failure of many of the operators to operate these assets. He hinted that out of the 24 fields awarded to 30 marginal fields companies in 2003, only eight are producing, while the rest are unproductive or fallow. He added that it was as a result of this that the government had given them ultimatum to produce or lose their licences before March end this year.