To reiterate its commitment to the Oil and Gas industry especially the downstream sector, OVH Energy Marketing Ltd, Nigeria’s leading downstream company and a licensee of the Oando retail brand has demonstrated its support for government’s ongoing agenda geared at improving the downstream value chain.
The Company made the call at the recently concluded 2019 Nigeria International Petroleum Summit (NIPS), held at the International Conference Centre, Abuja from 27th to 30th of January 2019. The theme of this year’s summit was “Shaping the Future through Efficiency and Innovation”.
The summit, which had OVH Energy Marketing Ltd as one of its major sponsors featured strategic panel discussions highlighting regulatory and legislative frameworks that will drive efficiency and healthy competition in the refining sector. Discussants also evaluated current institutional construct and policies in Nigeria and trends in other climes regarding the use of conventional and modular refineries and suggested ways that institutions responsible for coordinating and regulating commercial activities could contribute significantly to the operational efficiency of the industry through robust but workable policies.
While speaking during a panel session with the theme: “Imperatives of Local Crude Oil Refining”, Huub Stokman, Chief Executive Officer, OVH Energy Marketing, emphasized the need to review the policies concerning importing refined petroleum products. According to him, “There have been attempts to regulate the industry in a bid to ensure sustainability and innovative growth. However, there is an urgent need to develop Nigeria’s capacity to refine crude oil locally. This will bring about great financial and socio-economic impact not just on the petroleum industry but also on other sectors of the economy. This is even more critical now taking into consideration the costs of crude prices in the global marketplace, which means increase in the amount spent on importation of petroleum products”.
Mr. Stokman further stated that the discussion around the refining industry is the first of the 7 Big Wins developed by the Minister of Petroleum Resources, Ibe Kachikwu, to enable a stable environment that will maximize investment opportunities in the oil and gas industry and generate increased growth in the Nigerian economy.
“There is no viable refining if we do not talk about deregulation and removing fuel subsidy. As one of the biggest economies in Africa, we can justify the reason to have a viable refining industry. There is need to invest in refinery infrastructure in order to have the capacity to produce clean fuels”, he further added.
Mr. Stokman thanked the Government, its ministries, the legislature and other agencies for the payment of outstanding subsidies owed to the major marketers.
The Nigeria International Petroleum Summit is a project of the Federal Government of Nigeria. It creates the platform for Nigeria to help galvanize Africa’s response to global Oil and Gas challenges. It is the official government-endorsed event designed to be the ultimate meeting place for Nigeria and Africa’s Oil and Gas sector where principal decision makers from the public and private sectors exchange innovative ideas.