The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) is urging the Federal Government to raise its stake in the Dangote Refinery from 7% to 45%. This recommendation, made by PENGASSAN President Mr. Festus Osifo during the 3rd PENGASSAN Energy and Labour Summit in Lagos, is seen as crucial for boosting energy security and ensuring a steady supply of refined products for Nigerians.

Key Takeaways from PENGASSAN’s Proposal:

  • Increased Government Stake: PENGASSAN suggests that the Federal Government model its involvement in the Dangote Refinery after the successful Nigerian Liquefied Natural Gas (NLNG) structure, where the government holds a minority stake while private investors maintain majority control. The union believes this approach will better meet domestic fuel demands.
  • Operational Refineries: Once Nigeria’s four refineries are fully operational, the union recommends the government limit its ownership to a maximum of 49%, with private investors holding the remaining 51%. This, again, follows the NLNG’s proven model of public-private partnership.

ALSO READ: Niger Delta Group Urges Kyari to Fulfill Promise of Port Harcourt Refinery Operation by September

  • Revamping Petroleum Depots: With concerns over the poor state of petroleum depots across Nigeria’s six geopolitical zones, PENGASSAN called for collaboration between the government and private sector to restore these facilities. Enhancing the national strategic reserve and expanding pipelines for refined petroleum distribution would reduce dependency on trucking and improve overall fuel distribution efficiency.
  • Crude Oil Theft and Pipeline Security: PENGASSAN emphasized the need for digital technology and increased security measures to curb crude oil theft. They also urged for stricter penalties to be enforced on offenders, hoping to create a more secure and appealing investment climate.
  • Petroleum Industry Act (PIA) Implementation: The union expressed concern over the lack of enforcement of certain provisions within the PIA, particularly the requirement for oil companies to contribute 3% of their revenue to host community development funds. Three years post-PIA, this provision remains largely unimplemented.
  • AI and Innovation in Energy: To address ongoing challenges such as oil theft and smuggling, PENGASSAN advocated for the integration of Artificial Intelligence (AI) in the energy sector. The union believes AI could enhance operational efficiency and productivity within Nigeria’s oil and gas industry.

The union also advised on the need for a more business-friendly environment to attract investment into Nigeria’s gas sector, recommending amendments to the PIA to establish a clear framework for upstream divestments.