Major oil companies operating in the country said absence of clear fiscal policy would continue haunt investment in the sector, as it deters them from taking key investment decisions.
Speaking on this development, at the ongoing Nigeria International Petroleum Summit(NIPS) in Abuja, the chief executive officers of the oil firms complained about contract cycle space, security and production cost issues, among other challenges.
The managing director and chief executive officer of Total Nigeria E&P, Michael Sangster, stated that, since the Nigeria’s Oil & Gas Content(NOGIC) Act was signed into law, there has been exponential growth in the local content development in the country’s oil and gas sector.
He emphasised the need for the local content development to be driven by transparency, focus and measured responsibility with a view to giving room for value addition in the country’s hydrocarbon industry.
Similarly, the chief executive officer of an Italian oil major, Eni, Daniel Roberto, advocated quick resolution of grey areas in the Petroleum Industry Bill(PIB), to facilitate its passage.
Roberto argued that investment decisions are guided by enabling policy environment and in economic terms, investors would like to have better understanding of revenue stream before putting money on the table.
He said the government should take strong position on policies that will improve on the security situation.
The chairman, Shell Companies in Nigeria and managing director, Shell Petroleum Development Company(SPDC), Osagie Okunbor, said the company is developing a number of assets with view to enhance reserve.
Okunbor, also spoke in line with his contemporaries especially on the issue of security.
In his wrap up remarks, the director of the Department of Petroleum Resources(DPR), Sarki Auwalu, assured that urgent measures would be taken to provide enabling environment that would encourage more investment in the sector.
Auwalu assured that all concerns raised by partners in the sector would be addressed, adding that, it is government’s desire to improve on the investment climate to boost oil and gas reserves so as to earn more royalties.