Let the operators breathe:
Regulatory Bottlenecks Suffocating Oil, Gas Sector, Stakeholders Raise Alarm
. Over 40 Regulators Overseeing Petroleum Industry
By Sulaimon Salau
Operators in Nigeria’s oil and gas industry have described the bottlenecks usually encountered in their efforts to comply with the regulatory procedures.
The stakeholders, who spoke at the ongoing Society of Petroleum Engineers (SPE) Nigerian Council’s 47th Nigeria Annual International Conference & Exhibition (NAICE) in Lagos, urged the government to streamline the process for better compliance.
The speakers believed that said the regulatory bottlenecks have continued to suffocate the sector while investors are now looking for solace in other countries.
The Managing Director and Chief Executive Officer, Aradel Holdings Plc, Adegbite Falade, said the oil and gas industry is the most regulated in the country, adding that over 40 regulators are currently overseeing the sector.
He said: “Some years ago, we were dealing with about 10 regulators, but today the number of regulators that we are dealing with is not less than 40. We really have to deal with this. We need the regulators but we believe the regulations should be seamless,”
He emphasized the need for regulations to be more digitized, adding that getting approvals these days is a herculean task.
Noting that the payments to regulators are currently done in dollars, he said, “I would like to appeal to them that we should do our deals in Naira. Let our operators breathe”.
Falade also called for reduction in time frame for securing approvals.
Meanwhile, he applauded the regulators for the support that indigenous firms have enjoyed from them, saying, “the regulators have been supportive, but there is room for improvement”.
Executive Director Oando Plc, Ainoje Irune, who was represented by Babafemi Onasanya at the event, said financial support has been a major concern for indigenous players, adding that finding a financial partner is very crucial to the growth of local players in Nigeria.
He also pointed to the need for community partnership for sustainability and growth of such a host community. This, according to him would reduce the restiveness in the host communities and reduce vandalism which has been a major threat to production in recent days.
He also called for partnership with technology providers to be able to duly tap into tech advancement.
Principal Consultant, Reservoir and Facilities, Mrs Oluseyi Afolabi, said Nigeria must perfect its laws and ensure a seamless regulatory process so that they don’t have to change the rules often.
She said, “you can’t change the rule in the middle of the game. The oil and gas industry is a long term investment and investors are in business to make profit, we don’t need to discourage them.”
