The Petroleum and Natural Gas Senior Staff Association (PENGASSAN) has urged the federal government to address the escalating insecurity threatening the nation’s oil and gas infrastructure.
According to PENGASSAN President Festus Osifo, the cost of protecting offshore infrastructure has become “prohibitive due to insecurity.”
Osifo made this call during a “State of the Nation” press conference in Abuja, where he outlined the various challenges impacting the oil and gas industry.
Osifo emphasized that oil and gas companies currently bear the unsustainable burden of securing facilities, both onshore and offshore.
“For one installation, you have to budget for three or four security vessels, and you pay for these security vessels on a daily basis,” he explained.
The union leader highlighted that international oil operators have exited Nigeria primarily due to insecurity and the prohibitive cost of securing infrastructure.
While commending the federal government’s executive order on its tax credit initiative—designed to lower operational costs for companies—Osifo noted that insecurity continues to be a significant challenge.
“If the government can tackle insecurity, it will reduce the cost of operations for oil and gas companies.”
The union leader also called on the regulatory body to checkmate fuel prices in the country, noting that the current prices are not commensurate with the global market forces.
According to Osifo, the price of petrol per litre should be around N700-N750, considering the drop in crude oil prices from $80 to $65 per barrel.
“When the crude price dropped to $65 per barrel, we did not see a commiserate reduction in the pump price,” he added.
“Naturally, two things contribute to the price of PMS – crude price and exchange rate. These are the two highest factors in determining the final price of PMS.”
PENGASSAN also saluted Nigerians for 26 years of unbroken democracy and called on President Bola Tinubu to recognize the veterans in the union who were vanguards and heroes of June 12.
Specifically, Osifo mentioned ex- President of PENGASSAN, Com. Gani Owodumi and Com. Milton Dabibi ex- General Secretary of the union who were instrumental in the union’s struggle against the Abacha regime.
“We call on the Federal Government to do the needful by recognizing our leaders who were heroes of June 12,” he said.
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