Port Harcourt — A marginal oil field operator has lamented the numerous government regulations and approvals in the country’s oil and gas sector, which operators must obtained before operations.
Chairman of Green Energy International Ltd. Prof Anthony Adegbulugbe, explained that these numerous regulations could act as disincentive to investors.
He also cautioned communities in the Niger Delta playing host to oil and gas resources, against the attitude of entitlement mentality, in order to enhance harmony and progress with companies operating in their domain.
Adegbulugbe said this in Port Harcourt, while launching the book, Marginal oil Fields Development and Operation in Nigeria.
The book co-authored by Dr. Ibani Frank-Briggs, Prof Sunny Nwajide and Engr. Emiyarei Ikuru, explains how the marginal oil fields work in Nigeria.
“Entitlement mentality must be worked on by host communities, else there will be no progress in such communities.
“For instance a marginal operator who is producing barely 1,500barrels per day and some members of the host community are demanding to be paid N2million monthly salary just for being the host.
“The oil multinationals are also facing same too, but they are large firms and may not really affect them like it’s affecting us. So we must disabuse the people’s mind on this issue of entitlement mentality.
“Also, there is too much regulations and approvals from the regulatory agencies in the sector. We have the Customs, NCDMB, DPR, Navy, and so many others. These numerous regulations could act as disincentives to investors.”
Also speaking, one of the book author, Dr. Ibani Frank-Briggs, said the book provides information to entrepreneurs and investors who are interested in becoming players in the country’s marginal oil fields.
“The concept of marginal field is a new one and there is a lot of knowlegde gap, so we wrote this book to provide information on how the marginal fields work.”
Another co-author, Prof Sunny Nwajide, said marginal fields of the Niger Delta hold an enormous amount of hydrocarbon resources, with over 5million barrels estimated reserves.
The book reviewer, Prof Mike Onyekonwu, decried that after the last marginal fields bid rounds, only 33percent of the country’s marginal fields were active, while 67percent were idle.