The Minister of State for Petroleum Resources, Ibe Kachikwu, has decried the high cost of oil production at 32 dollars per barrel, saying it makes cost of Foreign Direct Investment very expensive.
Kachikwu made the assertion at the 2017 annual conference of the National Association of Energy Correspondents (NAEC), in Lagos.
The minister said that the Federal Government was making frantic efforts to bring down the cost to 15 dollars per barrel in order to significantly bring down cost of FDI.
"The outcome of this initiative will be a win-win for investors and the nation," Kachikwu said.
He said the Petroleum Industry Governance Bill (PIGB) had been structured to fully turn around the petroleum sector and make it attractive to investors.
Kachikwu also said that the security issues and funding gap in the area of refinery had delayed the take-off of refinery projects, even after licences had been issued.
He regretted that after the Department of Petroleum Resources (DPR) had issued about 40 licences, only two projects were currently being developed.
The minister expressed optimism that the PIGB would bring about flexible fiscal regime, promote gas utilisation and enhance local content and also restructure NNPC for enhanced productivity.
Also, the NNPC Group Managing Director, Maikanti Baru, said the bill largely reflects the aspirations of the industry for the emplacement of effective policy, commercial and regulatory framework that promote growth and efficient operations.
The Senate had on May 25, 2017 passed the bill, which seeks to establish a framework for the creation of commercially-oriented and profit-driven petroleum entities, to ensure value addition and internationalisation of the petroleum industry.
This will be done through the creation of efficient and effective governing institutions with clear and separate roles for the petroleum industry. (NAN)