FG losing huge revenue to low crude production – PETAN
The Petroleum Technology Association of Nigeria has claimed that the country is losing a lot of revenue daily due to its inability to ramp up crude oil production.
The Chairman of PETAN, Wole Ogunsanya, stated this in Lagos recently when the representatives of the Association of Energy Correspondents of Nigeria, led by its Chairman, Ugo Amadi, paid a courtesy visit to PETAN.
He reiterated the association’s resolve to support the efforts of the President Bola Tinubu-led administration toward increasing Nigeria’s oil and gas production for maximum value.
He said the vision of PETAN was to support the authorities to ensure that all the values existing in the oil industry stay in Nigeria.
According to Ogunsanya, if Nigeria could retain between 60 and 70 per cent of the oil and gas value chain in the country, it stands a better chance of being among the top 20 economies in the world.
He expressed concerns that Nigeria was losing a lot due to its inability to produce up to its oil production capacity.
He pointed out that the country was underproducing to the tune of at least 500,000 barrels per day, which he said was a huge loss to the country.
The PETAN leader maintained that such losses would not have been possible if there had been full in-country retention of values and beneficiation across all the chains of the industry.
He explained, “Essentially, if Nigerian organisations are involved in taking that oil out, taking it to a refinery owned by Nigerians and refining it, if we have petrochemicals refining the gas and the product, we are taking that gas; processing it in power plants; and running pipelines to connect all those power plants. This country will be among the top 20 economies in the world.
“And we believe very strongly that there is no better prescription for Nigeria’s economic solution than that.”
Reiterating PETAN’s commitment to support the retention of those values, he acknowledged the Presidency’s high interest in increasing production.
He pointed out that the Presidency had given the directives and formulated a lot of gazettes, stating that PETAN aligned with those initiatives.
Ogunsanya further said, “Our intention is to support this government, and this country to increase the production of oil and gas. I presented this vision to the whole house of PETAN exactly a week ago and the vision is very clear. PETAN wants to support Nigeria through innovative means to increase the production of oil and gas in this country.”
He acknowledged the challenges facing the industry in Nigeria, including funding, logistics and others.
He noted that his association cannot make progress with some of its plans without collaborating with energy correspondents.
“We cannot do without you. Our message cannot resonate and cannot get across without your partnership with us.
“Essentially, we both need each other. PETAN needs you to tell that story, to sell what our vision is to help the situation we find ourselves in. We are going to support you as PETAN, as we have done in the past. I give you that assurance, we will work with you immediately,” he told the NAEC representatives.
