Shell Nigeria has said the Nigerian National Petroleum Corporation must be able to fund its share of joint venture costs if it is going to attract the required external investment and partnership, as enshrined in the proposed Petroleum Industry Bill.
The Managing Director, Shell Petroleum Development Company Limited and Country Chair, Shell Nigeria, Mr. Mutiu Sunmonu, said this during his presentation at the Nigeria Oil and Gas Conference in Abuja on Tuesday.
He said partnerships were key to the business and that the industry needed assurances that the government would not impose random burdens and delays, not vilify businesses, and to set clear and consistent policies that would inform long-term investments.
He said the society also needed to know it could trust both business and government to function in a way that balanced risks and rewards.
“The PIB needs to address long-term industry issues; for example, funding issues for JVs, where funding requirements have hampered production growth. Nigeria needs a strong national oil company, but any national oil company has to partner positively and, again, has to compete with those elsewhere that are also seeking external investment,” he said.
The Shell boss urged stakeholders to turn to technology development, adding that as oil and gas became more challenging to produce, the use of technology would also become more important.
Sunmonu said, “Our future strategy should look at how government and industry can work together to ensure maximum recovery of hydrocarbons through new technologies. Industry can and should share best practices in key technology areas.
“SPDC is proud to support the government in its efforts to provide more energy for Nigerians. We need to share best practices on technological advancements that will support government’s aspirations of boosting the economy.
“All of us in the industry need to become more committed partners of Nigeria. Our nation has matured, the competitive landscape has changed and we all have to accept and adapt to current realities.
“The country’s fortunes are linked with the oil and gas industry. Therefore, in a sense, we are custodians of her growth and development, and we must make our partnerships work.”