-Felix Douglas
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) held its 3rd edition of Energy and Labour Summit (PEALS 2024) in Lagos.
Speaking at a press conference and summit, Comrade Engr. Festus Osifo called for greater integration of artificial intelligence (AI) and local ownership of refineries to boost energy security and address crude oil theft in the country.
The theme of the summit: “The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment and Crude Oil Theft,” brought together industry stakeholders to address key challenges facing the sector. Among the most pressing issues was the urgent need for technological advancements to combat crude oil theft and improve operational efficiency in the energy supply chain.
During the press briefing, Osifo outlined key resolutions from the summit, emphasizing that Nigeria must prioritize technology-driven solutions to safeguard its oil and gas industry.
“AI-powered surveillance, predictive analytics, and automated threat detection systems are no longer optional but essential to combat crude oil theft and ensure the integrity of our infrastructure,” Osifo stated. He added that the government must intensify efforts to restore the country’s four refineries, with private investors holding majority shares to enhance operational efficiency and ensure long-term energy security.
Osifo further called on the federal government to increase its stake in the Dangote Refinery from the current 7% to 45%, stating that this move would significantly boost domestic petroleum production and reduce the country’s dependence on fuel imports adding that this would ensure further energy assurance and security for the citizens.
He also highlighted the importance of diversifying Nigeria’s energy mix to include renewable energy sources, noting that the summit stressed the need for investment in solar, wind, and hydrogen energy as the world moves toward a greener future.
The PENGASSAN president expressed optimism that with the right policies and collaborations, Nigeria’s oil and gas industry can overcome its current challenges. He urged all stakeholders to act swiftly on the summit’s recommendations to secure a sustainable energy future for the nation.
Osifo, while officially presenting the communiqué to the media in Lagos, also called on the Federal Government to urgently fix the four national refineries and divest the majority share to the private sector.
He said the refineries should be modeled after the Nigerian Liquefied Natural Gas (NLNG) model, which appears to have been successful.
“Ramping up efforts to make the nation’s four refineries work; once operational, the government should divest majority shareholdings and own at most 49% of the shareholding in the four refineries. Core investors will be brought in to take the 51% as applicable in NLNG”.
Bemoaning a situation whereby the inter land petroleum depots in six geopolitical zones of the country are dilapidated, Osifo stressed the need for the government to get the depots fixed in collaboration with the private sector so as to ensure smooth distribution of petroleum products and enhance the national strategic reserve.
PENGASSAN also called for the expansion of pipelines that could be used in the delivery of refined petroleum products across the length and breadth of the country as this would reduce the pressure put on the roads by trucks carrying the products.
The group also recommended digital intervention to curtail crude oil theft; re-engineer security architecture; and ensure ease of doing business, by reducing bureaucracies or complex regulations that make the gas investment unattractive to investors, among others.
Osifo said those caught for crude oil theft should be punished severely by competent courts of jurisdiction to serve as a deterrent to others. According to him nobody has ever been prosecuted for crude oil theft citing subtle connivance by security agencies ‘shouting without any solution.’
Urging the government to implement the provision for host communities in the Petroleum Industry Act. He said the summit was worried that three years after the passage of the PIA the section of the act had not been implemented at all.
The act stipulated that 3% of the operational revenue of the oil companies should be contributed to the host community fund.
He enjoined the government to also create a business friendly environment by creating incentives for more investors to tap into the nation’s abundant gas resources.
In the upstream, it suggested an amendment of the PIA to include the divestment framework, noting that the previous divestments are not yielding results as the companies lack financial capacity to sustain and expand the divested oil wells.
He urged the Federal Government to stabilize the exchange rate which it says is the main problem the economy is facing today.
No country floats its currency the way Nigeria has done to the Naira and will not run into trouble. “No country allows its currency to float anyhow.”
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