The Federal Executive Council (FEC) Meeting held on Wednesday 19th July,
\n2017 in Abuja, ended on a high note as the cabinet meeting presided by Ag.
\nPresident Yemi Osinbajo, approved the National Petroleum Policy.<\/p>\n
Speaking to State House correspondents at the end of the meeting, the
\nHonorable Minister of State for Petroleum Resources, Dr. Emmanuel Ibe
\nKachikwu stated that it is a very comprehensive 100-page document that
\ndeals with all the spectrum in the industry.<\/p>\n
Dr. Kachikwu further reiterated that apart from the fact of fluidity in
\npricing and uncertainty in terms of the price regime in crude, the
\nMinistry of Petroleum Resources is pushing for a refining processing
\nenvironment and moving away from exporting to refining petroleum products.<\/p>\n
The National Petroleum Policy defines the strategy of the Federal
\nGovernment with respect to Nigeria\u2019s oil resources. It establishes the
\nmedium to long-term targets for oil reserves growth, and utilization and
\nrecord strategies to be pursued to ensure the successful implementation of
\nthe policy in accordance with Nigeria\u2019s national socio-economic
\ndevelopment priorities.<\/p>\n
It articulates the vision of the Federal Government of Nigeria for the
\npetroleum (specifically oil) sector, sets goals and strategies, promotes a
\nlevel playing field between State Owned-Enterprises and the private
\nsector, proposes fundamental reforms to improve the operational efficiency
\nand performance of NNPC and proposes a long-needed overhaul and
\nmodernization of the existing petroleum industry legislation. It is
\nintended to remove the barriers affecting investment and development of
\nthe sector. The policy will be reviewed and updated periodically to ensure
\nconsistency in Government policy objectives at all times.<\/p>\n
The main aspects of the petroleum policy are:
\n1. Governance (Legal and Regulatory Framework)
\na. Institutional Reforms
\nb. Regulatory Framework
\nc. Commercial Framework
\nd. Fiscal Framework
\ne. Sector Financing
\nf. PSC – Plus Cost Structures
\n2. Industry Structure
\na. Clean Break from the Past
\nb. Establishment of a new National Oil Company of Nigeria (NOCN)
\nc. Restructuring of NNPC: Into autonomous business units
\nd. Gain more of the value from downstream export markets
\ne. Procurement for Projects: Fundamental overhaul to bring efficiency,
\ntransparency and cost control
\nf. Asset Management: Work existing assets much harder, professional and
\nmodern asset management methods to be introduced, cost control methods
\nneed to improve substantially
\n3. Upstream \u2013 Developing Resources
\na. Maximising Production of Hydrocarbons within Nigeria
\nb. Maximise additions to reserves and future production
\nc. Diversify resource base, and identify low cost resources
\nd. Allocation of Oil Licences and Leases
\ne. Minimise Environmental Footprint: \u201cName and Shame\u201d + \u201cPolluter Pays\u201d
\nf. Balance Petroleum Resources with Renewable Energy
\n4. Midstream Operations \u2013 Infrastructure (transportation and processing)
\na. Develop Operating Oil Product Midstream Facilities
\na. Refining: Strong refining sector a basic requirement of Petroleum Policy
\nb. Jetties: Potential areas of risk, physical and commercial
\na. Proposed Commercial Framework for Midstream Oil
\n5. Downstream \u2013 Infrastructure and Markets
\na. Commercialisation and Liberalisation of Downstream
\nb. Petroleum Products Pricing Policy
\n6. Developing National Human Resources
\na. Problems of developing local content in a depressed economy
\nb. Nigeria must be able to Export Skills
\nc. Developing local content and implementing Local Content Act
\nd. Install institutional capacity building
\ne. Introduce a maintenance and safety culture
\n7. Communications: Internal and external communications strategy
\n8. Roadmap and Action Plan
\na. Action plan for short term (months)
\nb. Implementation Plan for medium term (1-2 years)
\nc. Implementation Plan for long term (over two years)
\nd. Critical milestones<\/p>\n