Seasoned oil and gas technocrat with long years of experience at the NNPC and current CEO of International Energy Services Limited, Dr. Diran Fawibe has linked collapsing international investment interests in the nation’s oil and gas sector to the observed cold feet of the government in delivering Petroleum Industry Bill (PIB) into law.
Explaining the linkage effects in an interview, he made it clear that “PIB is one of the obstacles that need to be cleared for oil bid round in Nigeria,” decrying that “Until this is done, we may not get the best from the bid round.”
“Investors need clarity. This is where the problem has been for the past decade. Investors cannot take care of what the laws will say; those who have invested particularly in the deep water, are at logger heads with government over the intended review of the legislation. They have to be mindful of what may hurt their businesses. No one would invest when fiscal terms could change prematurely. Projects are pending in the deep water because of some of these challenges. The only way out for government is to look at the sector objectively.
Proffering workable solution, Dr Fawibe averred that “The executive and the national assembly must agree and be determined to pass the bill to law as soon as possible. If that happens, it will be a welcome development. There are so many attractive countries and investors know where they get reward for their investment. So, it is absolutely important for government to make hay while the sun shines.”
On the endless speculations by many on whether there is the need for bid round that specifically focus on gas exploration, the energy icon said “Yes.”
“People have been talking about transition from oil to energy, particularly gas. Apart from renewable, this country is endowed with natural gas and we often say that Nigeria is more of a gas producing country.
“Our natural gas endowment is much more than oil. Today we could be talking about over two trillion standard cubic feet of gas. This is coming at a time when we have not really focused on gas exploration.
“If we focus on gas exploration, we would double our reserves. At a time when there is pressure on the impact of fossil fuel, it is advisable to look keenly at gas. If there is less demand for oil in the foreseeable future, we then have the natural resource of the future, which is gas.
Dr Fawibe added that “It is generally considered to be a cleaner source of energy,” saying “With this, the country would mitigate economic challenges that could come from the uncertainties in the oil demand and supply.”
“Government should strategise and focus on this development. We need to convert gas to other products; like power and other related products. This will also reduce our consumption of fuel and diesel. We can convert our gas into fuel.
