FG to reform regulatory, community relations matters in the oil industry- Kachikwu

The Minister for State Petroleum, Dr. Ibe Kachikwu said that the Federal Government will eliminate multiplicity of regulators, as well as eliminate activities of international oil Companies, IOCs, that provoke community agitations.

Speaking through his Senior Technical Adviser on Fiscal and Regulatory Matters, Dr. Tim Okon, at the International Health Safety and Environment (HSE) event in Lagos, Kachikwu also stated that a memoranda of understanding, MOUs, will be worked out between the Department of Petroleum Resources, DPR, and the Federal Ministry of Environment and its agencies. He stated: “The temporary economic situation notwithstanding, the Ministry, through the DPR, is set to emplace sanctions and deterrent charges on avoidable pollution and discharges, while the sustenance of the no-compensation policy on willful damages to oil and gas facilities will be accorded higher priority.”

“The deployment of relevant security technologies is currently being considered, such as facilities and pipeline aerial surveillance. “The path of dialogue is perpetually opened to all relevant stakeholders and to the host communities in particular, in addition to the established avenues for receiving their routine complaints and petitions against any licensed operators.” He expressed regret that the sustained vandalism of production facilities has led to several shut-ins and deferments. This he said has drastically declined the country’s oil production and export figures, with concomitant economic losses and reduction in Foreign Direct Investment (FDI) to the nation. 

Also speaking, Director, Department of Petroleum Resources, Mr. Mordecai Ladan said that the sector in the past decade had witnessed increased activities due to the federal government’s policy and action plan to increase daily production to four million barrels and national reserves to 40 billion barrels by 2020. He stressed that, the hike in militancy activities, poses great challenge not only to the federal government but also to oil companies’ work force and host communities.

(Vanguard)