Iledatre
The Petroleum Industry Act, PIA, 2021 has been designed to resolve the unintended consequences each of the petroleum sector quadrilemma dimensions which includes inefficiency, ineffectiveness, inequity and any appearance of unethical business practice.
The implementation strategy of the PIA 2021 provisions must essentially promote industry solutions to optimize industry efficiency, institutional effectiveness, stakeholders’ equity and justice, and business professional ethics.
The consequences of the quadrilemma in the petroleum sector on energy availability, energy accessibility, and energy affordability are quite obvious in Nigeria of today but PIA implementation can make them things of the yester-years.
Omowumi Iledare, a Professor of Petroleum Economics, who is also Professor Emeritus in Petroleum Economics, LSU Energy Studies, USA GNPC Petroleum Commerce Chair, UCC Institute for Oil and Gas, Ghana, Executive Dir., Emmanuel Egbogah Foundation for Petroleum Policy Advocacy, Abuja Former Director, SPE Africa Region, Society of Petroleum Engineers Board of Directors, USA; stated the above while speaking in a Virtual Webinar with the theme: Petroleum Industry Act Implementation: Balancing the Petroleum Sector Quardrilemma in Nigeria, organised by Society for Petroleum Engineers, SPE, Abuja Section in Collaboration with Emmanuel Egbogah Foundation held last Wednesday, June 8, 2022.
“Conceptually, PIA framers disavow political expediency, prebendalism and elitism and strategically sets a framework to promote “Technical and resource allocative efficiency in the post PIA Era, Effective manpower development and deployment in the PIA institutions, Equitability in mutuality of interest of stakeholders in the post PIA era, Transparency and accountability in industry governance as mandated in the PIA. Regrettably, Professor Wumi Iledare, PWI, sees, a “business-as-usual” implementation strategy that is at variance with the PIA 2021 framers, looks more like putting a new wine in an old wine bottle, and this may be critically consequential in the post PIA era. Perhaps, PWI perspective is wrong, but time will tell!” Iledare said.
Speaking on Effectiveness Dimension of the Quadrilemma, he said, In a generic sense, effectiveness implies doing the right things without compromising doing things the right way 24 PWI@ SPE Abuja and EEF Joint Virtual Webinar, June 8, 2022 “If doing the right things without compromising doing things right is key to oil and gas future as anticipated by the PIA framers, then a transformational leadership, not a transactional mindset is critical in the Governance Board memberships and Management Teams of the PIA institutions”
PIA 2021, stated in Section 2 (c) of Part I in Chapter 1 of the PIA as one of its five core objectives the promotion of Transparency, Accountability and good Governance.
“Approximately 1.5 – 1.7 million barrels per day, on average, and 36 Billion proved reserves. Nigeria ranked among the top 10 with production of about 2 million barrels per day, on average, and 35 billion liquid petroleum reserves. The projection then was 40 billion barrels proved reserves and 3 MMBbl per day production capacityby2010. Nigeria in 2005 was the promise nation and most coveted petroleum development bride in the Gulf of Guinea with a potential for 4 million barrels per day capacity in view by 2020”, stated the Emeritus Professor.
Talking about sub-optimal industry performance indicators, he said, Oil production was declining and Crude + Condxcensate Production 1994-2017 capacity shrinking. Gradual shift to high-cost low value barrels and Nigeria slipped out of top-10 producers. So also loss of market shares even in traditionally strong areas, Nigeria suffered from serious funding gaps and missed opportunities making it impossible to recover” he stresses.
“The Country is increasingly losing competitiveness and resource base dipping. So also declining exploration effort, development effort only to produce, not to replace volumes and FIDs come once in a blue moon. Activities also dwindled and almost dried up in the delta which made Companies to reduce staff and divesting assets. Restiveness began to build up and Crude theft become a way of survival, and later become big business. So also insecurity becoming a permanent problem”, noted the Executive Director.
