DPR to unveil Maximum Economic Recovery strategy for oil,gas sector soon- Director

Mr Sarki Auwalu, Director, DPR

The Department of Petroleum Resources (DPR) says it will soon unveil an industry collaborative strategy for Maximum Economic Recovery (MER) for the Nigeria Oil and Gas sector.

Mr Sarki Auwalu, Director and Chief Executive Officer, DPR, made the announcement on Tuesday while delivering a keynote address at the

ongoing Nigeria Oil and Gas (NOG) Conference and Exhibition in Abuja.

The conference has as its theme: ' Fortifying the Nigerian Oil and Gas Industry for Economic Stability and Growth.'

Auwalu said :  As part of its mandate to strengthen industry and ensure sustainability, the DPR will be unveiling an industry collaborative strategy for Maximum Economic Recovery (MER) for the Nigeria Oil and Gas sector soon.

"The strategy will articulate key delivery programmes to guarantee stability, growth, and development of the industry.

"As a department, we will continue to foster collaboration, influence, facilitate, enable  and promote industry growth, all for economic growth and in overriding national interest."

Auwalu also decried the less than 10 per cent contribution of the Nigeria's oil and gas sector to the nation's Gross Domestic Product (GDP).

He said the contribution was very low compared to other 

Organisation of Petroleum Exporting Countries (OPEC) member countries and need to be addressed in the interest of national development.

Auwalu said: " The main driver for economic transformation transcends revenues; contribution to national economy is more significantly measured in terms of contributions of a sector to the GDP.

" Herein lies the need to fortify the Nigeria oil and gas sector as the true enabler of national economy. 

"To put this in context,  it is appropriate to benchmark Nigeria with nations that we share similar national objectives with respect to petroleum resources management such as the OPEC member countries. 

"For instance, Saudi Arabia’s oil and gas sector contributes about 50 per cent to GDP, comparable to that of Nigeria.

In like manner, Libya, Kuwait, United Arab Emirates, and  Algeria contribute  some 60 per cent, 40 per cent, 30 per cent and 20 per cent to their respective national GDP.

 "In contrast, Nigeria’s oil and gas sector contributes less than 10 per cent to her GDP and ranks the low among OPEC member countries."

While thanking the organisers of the conference, he noted that the theme was very apt because strengthening the oil and gas industry would help the government achieve its vision of lifting millions of Nigerians out of poverty.

The director said the DPR has identified five broad areas in which the industry needs fortification to support national economic stability and growth. 

He listed them to include : Legal, Institutional, Financial, In-sector Diversification and Indigenous Capacity.

According to him, the focussed leadership of President Muhammadu Buhari and the Minister of State, Petroleum Resources, Chief Timipre Sylva, will entrench key fundamentals needed for industry growth.

Auwalu said the passage of the Petroleum Industry Bill ( PIB) by the National Assembly would enhance

clarity in legislative, regulatory, fiscal, and administrative framework. 

He added that the ongoing major capital projects of over $15 billion in the NLNG Train 7, the Ajaokuta-Kaduna-Kano (AKK) pipeline, Assa-North Ohaji South development projects, was an indication of improving business environment.