FG Urges IOCs To Reciprocate Tax Incentives By Unlocking Oil Sector Potential
By Sunday Etuka
The Federal Government of Nigeria has calledon the International Oil Companies (IOCs) operating in the country to leveragethe tax incentives provided to unlock the potential in the oil and gas sector.
Minister of State for Petroleum Resources(Oil), Senator Heineken Lokpobiri, made the call on Wednesday while making his closing remarks during a Panel Session on Upstream Petroleum Leadership with the theme: “Capitalising Africa’s Global Upstream Momentum,” at the 9th Nigeria International Energy Summit in Abuja.
Even though the IOCs have been able to increase oil production from about 1.3million barrels per day (bpd) to around 1.7 millon bpd, under this administration, Lokpobiri said a lot more is still demanded from them.
“The government has given so much by way ofincentives to unlock the potential in the sector. Now, my question is, what areyou going to do? We have given you so much in terms of reforms, tax incentives.All sorts of incentives have been given to you. Now is the time for you guys toreciprocate that government’s gesture of giving you all that you are demandingfor. You are demanding for too much. Sometimes when they look at our demands,they will give you all. Then there will be nothing for us,” he said.
Affirming that the sector is very fundamental to the nation’s economy, the Minister said, “oil and gas account for over 90% of our forest. So, this sector is very fundamental.”
He pledged that more support would be extended to the companies to grow the sector. “As government, we’re here, committed to giving you all the support that you need,to grow this sector,” Lokpobiri said.
He stated that even though some people may find it difficult to agree, things are being done differently from the past, noting that the government has brought the confidence back and more investments are being attracted into the sector.
He clarified that the local content was not to substitute the IOCs or the Engineering, Procurement and Construction (EPC), but to develop local capacity that would exist side-by-side at different levels.
Lokpobiri said the administration would continue to vigorously pursue the ongoing reforms in the sector for the benefits of the industry and the overall interest of all Nigerians.
“My commitment on behalf of the government of Nigeria is that we will continue to pursue the reforms that we are pursuing forthe benefit of this industry. And what is successful here, will trickle down tothe rest of Africa. If Nigeria cannot succeed in the upstream, there will be aripple effect on the entire African continent. And there will be more effect onthe midstream and downstream,” he noted.
Earlier, the IOCs in their separate remarkspledged to work collaboratively with the indigenous companies in Nigeria for the growth of the sector.
The discussants at the panel session include the Managing Director of TotalEnergies E&P, Mr Matthieu Bouyer, the Chief Executive Officer of Seplat Energy Plc, Mr Roger Brown, the Chairman/Managing Director of Chevron Nigeria, Mr Jim Swartz, the Chairman/Managing Director of ExxonMobil Affiliates in Nigeria, Mr Jagir Baxi, Managing Director/CEO of Renaissance Africa Energy, Engr, Tony Attah, the Managing Director of ND Western, Mr Lanre Kalejaiye, the Executive Vice President, Upstream, NNPC Limited, Mr UdobongNta, and Managing Director of Oando Energy Resources, Dr Ainojie Alex Irune.
