*Final document to be released in days, says Petroleum Ministry

By Michael Eboh

Abuja—The Ministry of Petroleum Resources, yesterday, stated that the Draft National Oil Policy would be presented to the Federal Executive Council, FEC, next week, while the final document would be ready in a few days.

Speaking at the ongoing stakeholders’ consultation forum on the draft National Gas Policy and National Oil Policy in Abuja, Senior Technical Adviser to the Minister of State for Petroleum Resources, Mr. Gbite Adeniji, disclosed that when issued, the final document would be binding on all, including government, operators, investors and all stakeholders.

He also stated that a new policy document addressing fiscal issues in the petroleum industry would soon be drawn up and presented to stakeholders with the aim of addressing the thorny issues surrounding fiscal policy.

He said the last Petroleum Policy was approved in 2006, which is a reflection of the fact that we are in a new world of oil, while time is due to take a fresh look at the industry, ensuring that it reflects current trends.

He lamented that Nigeria was not prepared for the headwinds brought about by the volatility in the global petroleum industry due to the absence of a clear cut policy and lack of coordination between government and investors.

To this end, he stated that key features of the draft National Oil Policy include ensuring transparency of regulation, policy contract, procurement and licence awards and is based on a clear recognition of the need to attract private capital.

Adeniji also stated that the Oil Policy was proposing a long-needed overhaul and modernization of the existing petroleum legislation.

“On the government side, we need to be investor-friendly and understand that there is a boundary to responsible behavior,” he noted.

In his contribution to the debate, Mr. Ademola Ademola-Bero, Chairman, Indigenous Petroleum Producers Association of Nigeria, said the new policy should focus on creating an economy that was not dependent on crude oil and which would provide the needed fuel to drive industrialization and economic diversification of the country.

Ademola-Bero, who is also the Chief Executive Officer of First E&P Nigeria, disclosed that the policy must make sure that Nigeria produced more than four million barrels of crude oil per day, warning that if the policy was to get to three million barrels, then, Nigeria had lost it, since it would not have a voice in the global petroleum market.

Speaking in the same vein, Temidayo Adeboye, Head, Operations, Oando Marketing, argued for the privatisation of the country’s refineries, depots and pipelines, as according to him, this will make them efficient.

He also advised that the Federal Government incentivized investors to come in and invest in the country, while also advocating total, not partial, deregulation of the sector.

On his part, Clay Neff, Chairman of the Oil Producers Trade Section, OPTS, of Lagos Chamber of Commerce and Industry, LCCI, stated that the new policy should address issues of security, oil, lengthy contract approval cycle and overlapping regulatory authorities, among others.