OGRepublic August Edition

NIGERIA AND GAS
DPR Formulates MER Strategy, Assures Investors of
Enabling Business Environment in Oil, Gas Industry
The Department of Petroleum Resources
(DPR) says it is formulating a Maximum
Economic Recovery (MER) strategy for
Nigeria to attain maximum value delivery from
its oil and gas resources.
Mr Sarki Auwalu, Director, DPR, made the
announcement during a keynote address at the
2021 Society of Petroleum Engineers (SPE)
Nigeria Annual International Conference and
Exhibition (NAICE) on Tuesday in Lagos.
The News Agency of Nigeria ( NAN) reports that
the conference has as its theme: “The Future of
Energy – A Trilogy of Determinants: Climate
Change, Public Health, and the Global Oil
Market.”
Auwalu said the industry initiative was one of
the outcomes of the work of the National Oil
and Gas Excellence Centre (NOGEC), Lagos
inaugurated in January by President
Muhammadu Buhari.
He said: “Following an in-depth assessment of
the status of the industry, the department
identified the need to formulate the “Maximum
Economic Recovery strategy for Nigeria.
“This is to guarantee the actualisation of
sustainable resource optimisation and the
economic benefits arising therefrom.
“The framework for this industry action plan,
outlines six pillars or building blocks.”
Auwalu said the pillars were: Reserves
Maturation and Production Optimisation,
Exploration and Resources Maturation,
Improved Oil Recovery and Enhanced Oil
Recovery, Implementation Asset Stewardship,
Performance Evaluation and Rewards Risk
Management.
According to him, the draft framework has been
shared with the industry, including professional
associations like the SPE and the National
Association of Petroleum Explorationists.
He said this was in preparation for an industry
collaborative workshop to co-develop and
enunciate this strategy for immediate
execution.
“We count on the contributions and buy-in of all
stakeholders on this crucial national assignment
for our overall benefit and industry
sustainability, “he said.
Auwalu said Nigeria was rising to the occasion as
the ‘trigger’ for continental growth and
economic transformation using its oil and gas
resources to drive value for national
development.
Sarki Auwalu, Director of Department of Petroleum Resources (DPR)
He said the DPR would continue to foster
i n n o v a t i v e i d e a s a n d c r e a t e
opportunities for investments and
sustainability in the industry.
Auwalu said: “As always, we are
enthusiastic to collaborate with all
relevant stakeholders, including the SPE,
toward the realisation of governments
aspirations for the oil and gas sector.
“In our role as business enablers and
opportunity providers, DPR will continue
to promote efficiency to meet the needs
of the industry, creating value, enhancing
transparency, reducing barriers and
transaction costs.”
In another development, DPR has
outlined five key strategies to fortify the
Nigerian oil and gas sector for economic
stability and growth.
Auwalu said the DPR would remain
committed to the development of oil and
gas sector for economic growth and
development.
“For us in the DPR, we contemplate five
broad areas in which the industry needs to
support the nation for economic growth and
stability.
”The areas are legal, institutional, financial,
in-sector diversification and indigenous
capacity.
“And I have to say that with the focused
leadership of President Muhammadu Buhari
and the Minister of State for Petroleum
Resources, Chief Timipre Sylva, the key
fundamental issues on growth are being
addressed, “he said.
According to him, under the legal front, the
long-awaited Petroleum Industry Bill (PIB)
that has been passed will enhance clarity in
legislative, regulatory, fiscal, and
administrative frameworks.
He said that evolving commercial institutions
would be strengthened for efficiency,
prudent management, financial stewardship,
and operational management.
“At the same vein, the regulatory institutions
will be strengthened to streamline roles,
prevent duplication and promote ambition
that will promote regulatory clarity in rules of
doing business.
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OIL AND GAS REPUBLIC I SPECIAL EDITION