The Federal Government plans to increase oil output from two million barrels per day (bpd) to between 2.2 and 2.3 million bpd. The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said this in statement made known in a podcast in Abuja.
He also said the government would begin the implementation of some fiscal policies to generate about $2 billion yearly in the short term and $9 billion in the long term.
According to him, the Federal Government has achieved a lot in the past two and half years, adding that following the launch of the #7BigWins by President Muhammadu Buhari, some outstanding deliverables have been accomplished.
He said: “Between 2015 and 2016, the government focused on delivering zero fuel availability challenges. We made sure that fuel scarcity and long queues disappeared and we have been able to continue with that. We thank the Nigerian National Petroleum Corporation (NNPC) for continuing on that delivery.
We have been able to exit cash call system. For the first time, the multinational oil firms have begun to have belief in the need to invest in the country. The amount of investment from the Joint Venture international oil companies (IOCs) is in excess of between $14 billion and $15 billion. The multi-nationals have begun to have confidence that the system is working. The Zabazaba and Bonga extension projects are testaments to the investments.
“The NNPC has opened its books to be as transparent as possible. It is not just about NNPC, other parastatals are doing wonderful works. Openness has been achieved here.”
On the Niger Delta region, Kachikwu said:“The Petroleum Ministry is working with the Vice President, the Niger Delta Ministry, the security forces and the Presidency to further deepen engagement in the region. We are still doing more work to bring calm and stability to the region.
“By end of the year, we plan to implement our petroleum and gas policies, bring out industry regulations and hold industry reward in December. The reward is to those players, who have been exceptional such as low cost operators, those that brought some unique IT projects, those that worked under very challenging conditions and delivered good barrels on the table, downstream players that have delivered good deliverables and infrastructure.
“We will also launch ‘Project 100.’ Get small and big firms and bring them to the finish line by finding the difficulties they have, incentives they need, how do they create work and energize the sector?
“We will also implement our fiscal policies waiting for approval by the Federal Executive Council (FEC). When approved and implemented, they will be expected to generate $2 billion earnings in a year in the short term and about $9 billion yearly in the long term. So, we are working with the National Assembly to transmit it into legislative provision.