Nigeria Loses $15bn Annually to Crude Oil Shortfall – PETAN

In a new revelation by the Petroleum Technology Association of Nigeria, the country’s economy suffers a staggering $15 billion loss annually, equivalent to the national budget, due to a daily shortfall of 500,000 barrels of crude oil production.

Wole Ogunsanya, Chairman of the Petroleum Technology Association of Nigeria (PETAN), revealed the startling during a recent visit by the leadership of the Association of Energy Correspondents (NAEC), led by Chairman, Ugo Amadi.

Ogunsanya emphasized PETAN’s commitment to addressing this issue, highlighting the organization’s role as the implementing arm of the Offshore Technology Conference in Houston, Texas.

He explained that PETAN has adapted its activities to include platforms aimed at supporting government parastatals involved in enhancing oil exploration and production.

The significant revenue loss, Ogunsanya noted, stems from the lack of comprehensive retention of value and beneficiation throughout the oil industry’s value chain.

PETAN’s vision is to collaborate with authorities to ensure that Nigeria retains the maximum value generated within its oil industry.

Ogunsanya stressed that if Nigeria can retain 60 to 70 percent of the oil and gas value chain domestically, it could significantly elevate the nation’s standing in the global economy.

“Essentially, if indigenous firms are involved in extracting oil, taking it to refineries owned by Nigerians for the end products, if we have petrochemicals plants, gas processing plants to support our power plants and run pipelines to connect all those power plants, this country will be top 20 economy in the world.

“And we believe very strongly that there is no better prescription of Nigeria’s economic solution more than that.”

To reverse the downward trend, Ogunsanya said “Our intention is to support this government and the country to increase production of oil and gas.

“I presented this vision to the whole house of PETAN exactly a week ago and the vision is very clear. PETAN wants to support Nigeria through innovative means to increase production of oil and gas in the country.”

Addressing the need for policy initiatives and industry collaboration to retain value within the country, Ogunsanya highlighted PETAN’s dedication to supporting these efforts.

He commended the presidency’s focus on increasing production and affirmed PETAN’s alignment with government directives and gazettes.

“That is the mandate that the President has given. PETAN is going to come up with very innovative ideas on how this is going to be achieved and even low cost approach that is being used in other countries.

“If you go to Indonesia where some of us have relationships, this is what they are doing. They are looking inwards on how to maximize returns from the resources that they have.”

Leveraging their technical expertise and industry position, PETAN is actively collaborating with the government to generate additional value for Nigeria.

Ogunsanya emphasized PETAN’s readiness to deploy resources across the Niger Delta to meet production targets, despite challenges such as funding and logistics.

He highlighted the importance of collaboration and partnership among PETAN and other stakeholders to address industry challenges effectively.

Ogunsanya reassured NAEC of PETAN’s commitment to strengthening their longstanding relationship, emphasizing the shared goal of advancing Nigeria’s oil and gas sector.