Yar’Adua assures investors in oil, gas

Martin Ayankola, Abuja - 30.01.2008

Federal Government on Tuesday in Abuja assured oil and gas industry operators in the country of adequate funding in 2008 and beyond. President Umaru Yar'Adua gave this assurance in Abuja in his welcome address at the 2008 Offshore West African (OWA) conference.

He was represented at the conference, which theme is “The Gulf of Guinea: Sustaining the Momentum of World Class Resource Development,” by Odein Ajumogobia (SAN), Minister of State for Energy (Petroleum).

According to him, 2008 was the first time the oil and gas budget had not been limited by the country’s budgetary constraints, but by the demand and capacity of the oil industry.

“The challenge really is funding, but I am happy to say that we have addressed the issue. The year 2008 will be the first time our budgeting will not be limited by budget constraints, but by the demand of the industry.

“The issue of rising costs will no longer be an issue. The country welcomes more investments and we hope that as more investments come in, costs will go down and this will ensure greater profitability,” he said.

Alhaji Yar’Adua said funding would boost gas projects, reduce gas flares, increase the country’s revenue profile and boost reserves. Echoing the President’s views, Tony Chukwueke, director, Department of Petroleum Resources (DPR), disclosed that the NNPC and its joint venture partners had almost completed arrangements on how to fund their ventures.