DPR Releases Strategic Survival Policy for Oil Sector

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SWITZERLAND, JUNE 16 – The Department of Petroleum Resources (DPR) has released strategic plans and policies for the survival and success of the industry post COVID-19.

Director/CEO of the agency, Engr. Sarki Auwalu, made this known in a Keynote Address at a webinar organised by Future Energy Leaders Nigeria (FEL) titled; “Nigeria Oil & Gas Sector: Surviving and Thriving Post COVID –19,

He emphasized four key areas the country is deploying to stay afloat despite troubles and threats posed by the Coronavirus pandemic to the economy.

According to Auwalu, “There is no better time for strategic repositioning and business optimization. There are four ways this can be achieved.

“The first which is cost control and management has to do with the realignment of cost of production per barrel as well as corporate, business and financial stewardship.

“The second is portfolio rationalization and asset Optimization. For this, there would be project Screening and maturation; and Contract renegotiation,” he said.

The third step is highlighted is new business and operational resilience, which include vertical Integration model covering the refineries; Operational Excellence; and Compliance.

He stated that the last stage in the process is strategic partnership; contracting models; Service Provider  Open Access; and shared Risks and returns.”

Auwalu mentioned that the agency has formulated the following model for surviving and thriving post-COVID-19. This includes; Marginal field bid round; Policy and Regulations; Business environment and investment drive; and making this year the Year of Gas.

The DPR boss noted that COVID-19 caused a shutdown of markets globally impacting key sectors of the economy. Amidst global tourism, travels, Hospitality and SMEs, he maintained that the Energy sector had taken a major hit, as transportation was ground to a halt.

He also stated that the sector oils the wheels of the Nigerian economy, accounting for approximately 10 % of Gross Domestic Product (GDP), 80 % of Government revenues and is the principal source of foreign exchange earnings and Foreign Direct Investments (FDIs).

“There are, expectedly, direct impacts of falling oil prices on the country, which include; change in budget benchmark as well as the revised 2020 budget”, he said

He further noted that COVID-19 had incited trends that may persist for a while, stressing that the world would have must learn to work & live around it.

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