Indigenous oil firms to own 50% oil, gas resources – Frontier boss

10 December 2014, Lagos – The Managing Director of Frontier Oil Nigeria Limited, Engineer Thomas Dada has predicted that indigenous oil and gas firms operating in the country will own about 50 per cent of produced oil and gas output in Nigeria in the next 10 years.

Dada who spoke to Daily Independent on the sideline of the just concluded indigenous oil summit held in Lagos, said that international oil companies (IOCs) should then concentrate their efforts on harnessing oil and gas resources domiciled in the offshore and ultra deepwater fields within the period under review.

oil-rigSpeaking on gas resources where his company has comparative advantage, he explained that gas projects meant for the development of Nigeria domestic economy should be given pioneer status, accompanied with tax holiday to boost investment urgently needed to develop Nigerian economy.

He expressed surprise that government never made any provision for the provision of gas to energize 17 independent power plants when the idea was conceived in 2005, adding, that has created hiccup in the supply of natural gas urgently needed to keep these plants running in the generation of electricity required to develop the Nigerian economy.

Speaking further on government participation in the running of business in the country which has created controversy, he said that government should not involve itself in the running of business, rather it should concern itself in the enacting of polices and guidelines for the private sector to follow.

“I don’t believe that it is right for government to be building gas pipeline any longer now, that should be left to the private sector. When all the 17 Independent power stations were conceived, nobody thought of how to feed these stations with gas stock. That has added to the challenges government has to contend with in the power sector,” he noted.

He said, Frontier Oil and Seven Energy, in the last four years, developed a gas master plan in the South Eastern part of Nigeria, adding that his company drilled Ukpo field further, as part of the agenda to boost gas products urgently needed to boost the development of Nigerian economy.

Dada further added that his company has so far supplied over 25,000scf of gas to Ibom Power Plant in Akwa Ibom State and has sealed plans to supply gas to Calabar power plant in Cross River State by next year.


– This Day

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