After the implementation of the Petroleum Industry Act(PIA) the federal government of nigeria are confident that this law will increase the production output in the nigerian oil sector by a whooping 317 percent representing a 2.8 million barrels per day increase.
The minister of petroleum resources Chief Timipre Sylva explained that irrespective of the large percentage contribution of the oil sector to the economy, The oil sector can do more. Recall according to the GDP statistics released by the national bureau of statistics the oil sector contributes an average of 9% to the economy.
He stated: “The PIA 2021 will undoubtedly assist in harnessing Nigeria’s potential to achieve its plan of increasing oil production to 4mb/d and oil reserves from 37bbls to 40bbls, while also drawing on the country’s estimated 600TCF of natural gas reserves to provide clean and efficient energy.
The petroleum minister gave insight on the how the ministry of petroleum is focused on diversifying investments and developing hydrocarbon materials stating that a single pathway idea to energy transition and net zero emission is not feasible.
He further added “First is the focus on gas. For us, this is at the heart of the energy transition and represents the first step in the journey to renewables, away from oil. Already, we have declared that gas is our transition fuel, and also represents a destination fuel, as we envisage that it will be part of our energy mix by 2050, given the vast resources that can be commercialised and utilized.
Meanwhile, the chairman of Seplat Energy Plc, Dr. ABC Orjiako, said that the company has set 2024 as the target to end gas flaring in all of its operations.