Nigerian directive to oil firms

Published September 27, 2008

ABUJA, Sept 26: Nigeria has ordered oil firms to produce detailed gas production plans within weeks as the oil and gas rich country battled to ease shortages, officials said.

“The federal government has directed all major oil companies operating in Nigeria to submit a detailed plan for domestic gas supply before the end of October 2008,” Levi Ajuonuma, spokesman of the state-run Nigerian National Petroleum Corporation (NNPC) said.

“This is part of (the) government’s agenda to end the perennial shortage of gas for domestic power supply,” Ajuonuma said in a statement.

The order came as junior energy minister Emmanuel Odusin held talks with top oil companies operating in the country.

Odusin said he wanted to see the plans to ensure “uninterrupted domestic supply of gas for power generation and distribution in the country,” Africa’s second largest oil exporter.

“We must to prioritise domestic gas supply... since the country needs power to realise the seven point agenda (President Umaru Yar’Adua’s reform goals) of the federal government,” the minister said.

He said Yar’Adua had expressed concern at the “apparent disregard” by oil firms of an earlier government directive issued in April asking them for their production plans.

“Despite being issued with the obligation, no company has responded with credible supply and detailed work plans, but continue to focus their effort on export or other less important gas utilisation agenda,” he said.—AFP

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