PENGASSAN Seeks Incentives for IOCs, Warns of Activities of 'Briefcase Investors' in Oil Industry

By Peter Uzoho

Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has expressed worry over the increasing divestment by the international oil companies (IOCs) from the country, urging the federal government to provide incentives to enable them remain in the country.

The oil workers body also called on President Muhammadu Buhari, who is the country's Minister of Petroleum to take steps to check the presence and activities of portfolio and briefcase investors in the oil and gas sector whose sole aim it claimed was to milk the country without adding value.

PENGASSAN made the interventions in a statement jointly signed by its President, Festus Osifo and the General Secretary, Lumumba Okugbawa, noting that the IOCs' divestment started in 2012 and spread quickly within the industry, resulting in the reduction of the fortunes of developments within the oil and gas fields.

Stating that it was not averse to indigenous participation in the Nigerian oil and gas industry, the association said it would not fold its arms and allow mediocre persons to take hold of national assets and ruin the fortunes of future generations for immediate gains.

"It is on record that since IOCs started divestment in 2012; most of the companies that purchased such assets do not have and cannot attract the requisite finances for capital expenditures in such fields or have made reasonable efforts to provide the required human and technical developments of Nigerians in their establishment.

"Most of these companies practically draw from the existing wells until it is dried up. They do not substantially if at all invest in work over operations or drilling of new wells...

"Concerted efforts should be made to persuade and provide more incentives to the IOCs to remain in the country to benefit from the newly passed Petroleum Industry Act (PIA)

"However, should they decide to exit after all efforts fail, a good investor that has relevant technical experience, good financial standing, and reputation for managing employees must be sort after," the group stated.

This article originally appeared on This Day