Fatona told newsmen in Lagos that his recommendation is in view of the various challenges the indigenous companies are confronted with, including multiple taxes that have become a serious threat to their smooth operation.
According to him, multiple taxation have rendered the marginal field business unattractive to prospective investors.
“Government should assist indigenous marginal field operators through import duty waivers and tax breaks, and also improved local bank involvement by reducing rates,” Fatona said, but he added that despite their many challenges, the indigenous operators have been able to contribute to the growth of the Nigerian economy.
According to him, local operators contributed about 10 per cent of the nation’s total oil production, with only eight out of the 24 marginal fields brought on stream in the last 10 years.
“From 1987-2007, over 53 indigenous companies were awarded licenses to operate leases in the Niger Delta and Anambra Basin, when production from Nigerian indigenous companies stood at about 259,665 bopd,” hesaid.