Operator Laments Excessive Regulations In Oil, Gas Sector

A marginal oil field operator, Prof Anthony Adegbulugbe, has described  the numerous government regulations and approvals in the country’s oil and gas sector, as a disincentive to investors.
Adegbulugbe, chairman of Green Energy International Ltd., lamented that unfortunately, operators must obtain these regulations and approvals before they would be allowed to  operate.
Adegbulugbe said this in Port Harcourt, at the launching the book, Marginal oil Fields Development and Operation in Nigeria.
According to him, “there is too much regulations and approvals from the regulatory agencies in the sector. We have the Customs, NCDMB, DPR, Navy, and so many others. These numerous regulations could act as disincentives to investors.”
The book co-authored by Dr. Ibani Frank-Briggs, Prof Sunny Nwajide and Engr. Emiyarei Ikuru, explained how the marginal oil fields worked in Nigeria.
He used the opportunity to caution oil and gas host  communities in the Niger Delta  against the entitlement mentality, so as to enhance harmony and progress with companies operating in their domain.
He said, “a marginal operator who is producing barely 1,500barrels per day and some members of the host community are demanding to be paid N2million monthly salary just for being the host.
“The oil multinationals are also facing same too, but they are large firms and may not really affect them like it’s affecting us. So we must disabuse the people’s mind on this issue of entitlement mentality.
“Entitlement mentality must be worked on by host communities, else there will be no progress in such communities.
Also speaking, one of the book authors, Dr. Ibani Frank-Briggs, said the book provided information to entrepreneurs and investors who were interested in becoming players in the country’s marginal oil fields.
“The concept of marginal field is a new one and there is a lot of knowlegde gap, so we wrote this book to provide information on how the marginal fields work,” he said.
Another co-author, Prof Sunny Nwajide, said marginal fields of the Niger Delta held an enormous amount of hydrocarbon resources, with over 5million barrels estimated reserves.
The book reviewer, Prof Mike Onyekonwu, regretted  that after the last marginal fields bid rounds, only 33percent of the country’s marginal fields were active, while 67 percent were idle.

By: Tonye Nria-Dappa