Low crude production is causing significant revenue loss for the Federal Government, according to PE
The Petroleum Technology Association of Nigeria (PETAN) has voiced concerns over Nigeria's daily revenue loss attributed to its limited capacity to increase crude oil production.
Wole Ogunsanya, PETAN's Chairman, made this assertion during a recent meeting in Lagos with representatives from the Association of Energy Correspondents of Nigeria, led by Chairman Ugo Amadi.
Ogunsanya reiterated PETAN's commitment to supporting President Bola Tinubu's administration in boosting Nigeria's oil and gas output for maximum benefit.
He emphasized PETAN's vision to collaborate with the government to ensure that the entirety of the oil industry's value remains within Nigeria.
Ogunsanya highlighted the potential for Nigeria to significantly improve its global standing by retaining 60 to 70 percent of the oil and gas value chain domestically.
Expressing worry over Nigeria's underutilization of its oil production capacity, Ogunsanya revealed that the country is currently producing below its capacity by at least 500,000 barrels per day, resulting in substantial economic losses.
The PETAN leader emphasized that such losses could have been avoided with complete retention of value and beneficiation within the country across all segments of the industry.
He elaborated, "Fundamentally, if Nigerian entities engage in extracting the oil, transporting it to domestically-owned refineries for processing, if we have petrochemical plants refining the gas and its by-products, and if we harness that gas for power generation, interconnected through pipelines to various power plants, Nigeria would rank among the world's top 20 economies."
"And we firmly believe that there is no better remedy for Nigeria's economic challenges than this."
Affirming PETAN's dedication to upholding these values, he recognized the Presidency's keen interest in boosting production.
He highlighted the directives issued by the Presidency and the formulation of various gazettes, stating PETAN's alignment with these initiatives.
Ogunsanya continued, "Our aim is to assist this government and our nation in increasing oil and gas production. I presented this vision to PETAN's entire assembly just a week ago, and the vision is crystal clear. PETAN aims to support Nigeria through innovative methods to enhance oil and gas production in the country."
He acknowledged the industry's hurdles in Nigeria, including funding and logistics issues.
He emphasized that PETAN's progress in certain endeavors hinges on collaboration with energy correspondents.
"We rely on your collaboration. Without your partnership, our message cannot effectively reach its audience.
Essentially, we are interdependent. PETAN relies on you to convey our vision and address the challenges we face. We are committed to supporting you, as we have in the past. I assure you of our immediate collaboration," he assured the NAEC representatives.
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