Nigeria’s oil reserves no longer enough to win investors – PENGASSAN

Nigeria's oil reserves, estimated at 37.01 billion barrels of proven oil and condensate and 215.19 trillion cubic feet of natural gas, are insufficient to attract global investment in the competitive landscape, warns the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). The association, representing Nigerian oil workers, announced this during the 5th PENGASSAN Energy and Labour Summit held in Abuja.

Competing with other oil-producing countries for limited global capital, Nigeria must offer better fiscal terms, improved security, predictable regulations, and efficient project execution, according to the communiqué issued at the end of the summit. While the Petroleum Industry Act of 2021 was expected to provide a clearer regulatory framework, industry stakeholders continue to raise concerns about regulatory uncertainty, policy changes, approval delays, security issues, and high operating costs.

PENGASSAN urged the government and petroleum regulators to consolidate recent reforms and address challenges such as lack of infrastructure, commercial pricing of gas, and offtake arrangements. The union also called for an integrated approach to utilize gas reserves in various sectors and reduce gas flaring and methane emissions.