BUSINESS

Insecurity Hinders Investment In Oil And Gas Sector- PENGASSEN

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSEN) has said that the country’s growing insecurity has hindered investments in the oil and gas sector.

The President of the Union, Festus Osifo, made this known during a security awareness campaign in Abuja.

In addition, Osifo expressed dismay at the growing number of kidnappings in the downstream and upstream oil and gas sector.

“Today, a lot of our personnel have been kidnapped. PENGASSAN is, therefore, calling on the federal and state governments to be alive to their responsibilities. They should fund the police and other security agencies adequately.” Osifo stated.

“Security cost is making foreign direct investments in the oil and gas sector to move,” Osifo added.

Osifo further urged the Federal Government to tackle the insecurity challenges in the country.

Speaking on the plan of the FG to sell off the moribund refineries, Osifo advocated for the implementation of the Nigeria Liquefied Natual Gas (LNG) model where the FG owns a 49% stake in the NLNG.

He urged the FG to shelve the idea of privatising all the refineries.

“Why is the federal government not exploring the possibility of adopting the NLNG model where the government holds minority 49 per cent while the private sector will take 51 per cent?” Osifo said.

“Our advocacy, once the rehabilitation work is complete, will be to call on the government to divest from the refineries and allow the private sector to run all of them,” he added.

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