Kenny Folarin, Abuja

The Minister of State for Petroleum Resources, H.E Timipre Sylva has task the Nigerian National Petroleum Corporation (NNPC) to optimize cost through reservoir research and in-country capacity to reduce cost of services and imported materials.

Sylva stated this in Abuja on Tuesday at the 2021 Nigeria International Petroleum Summit 2021.

According to Sylva, NNPC is the flagship in the oil and gas industry and as such, expect lots of development from them in cost optimization and innovation.

“If we are talking about cost optimization, one of the ways that we can actually optimize cost is to ensure that we are able to research into our reservoirs and develop in-country capacity and if we do that, am sure it is going to really bring down the cost of services and materials that are imported.”

Sylva further stated that cost optimization is one of the goals to be achieved which will make NNPC
an export solutions to Nigerian problems and other countries.

“That’s where are going at the end of the day, we want NNPC to become a truly Nigerian company, developing Nigerian solutions to Nigerian problems which we can export and that is where we are going and ultimately, I believe that is what is going to bring the cost reduction initiative”.

Meanwhile, Managing Director of the Shell Petroleum Development of Nigeria Ltd, Okunbor Osaghie berate the low contribution of gas to the Gross Domestic Product of the Country which has also affected the reserve, however opined stakeholders should pay much attention to it now than ever.

“Where my passion is the relatively modest contribution of huge gas reserves to GDP in this county.

“Quatar contributes over 50% contribution of gas to GDP, all our gas in our country together is still 10-12%, so it is clear to me that the ultimate catalyst on how we essentially make this reserves come to live sits around the gas value chain and that’s an area we must pay lots of attention to.”

Furthermore, Okunbor noted that execution of projects has been a major problem facing the industry.

According to him “Our problem at this stage is not policy, or framework, our issue now mostly is execution.

“Execution to get projects that derives from this policies and bring them to fruition.

“We have critical projects that are in flight that have been enabled by well top three policies, we need to ensure that the PIB when it is eventually passed support this project and by all means can we as a country, an as an industry growth, governance, regulators and operators ensure we focus on execution.

“The biggest problem we are going to have is years from now, we all leave this place, another set that thinks that they are too clever comes in and derail this project.

“That’s what we don’t want, we want to put our shoulders behind well articulated policies and pick this projects, find new ones and execute”. He added.