10yrs After, FG Approves Oil Policy

The Federal Government, on Wednesday, approved a new policy on oil administration in the country after 10 years.

Minister of State, Petroleum, Ibe Kachikwu revealed this after the Federal Executive Council meeting held in Abuja chaired by the acting president, Yemi Osinbajo.

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According to Kachikwu, the last oil policy was in 2007 and the dynamics of the oil industry has changed dramatically.

He also sited that the new policy captured the reorganisation in the Nigeria National Petroleum Corporation, NNPC, for efficiency and to enable accountability.

“It’s has been 10 Years and you are aware that the dynamics of the oil industry has changed dramatically.

“Apart from the fact of fluidity in pricing and uncertainty in terms of the price regime in crude, we are pushing for a refining processing environment and moving away from exporting as it were to refining petroleum product, that’s one change you will see.

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“Secondly how we sell our crude is going to be looked at, there is a lot of geographical market we need to look at in the long term, contracting and sales as opposed to systemic contracting that we have been doing.

“Those are the fundamentals, it’s a document if well executed will fundamentally take the change process that we began in 2015 to its logical conclusion hopefully in the next couple of years,” he said.

The minister who acknowledged that FG is also working towards the exit of fuel importation said, “We are working assiduously to exit the importation of fuel in 2019 and we also captured the cash calls changes we have done which enables the sector to fund itself through incremental volumes,” he said.

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