The federal government has urged investors to take advantage of the generous gas fiscal incentives in the provided by the Petroleum Industry Act (PIA) 2021 to boost investment in the sector.
The chief executive officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe who made this call in Abuja, yesterday, also disclosed that Nigeria’s crude oil and condensates reserves increased to 37.047billion barrels per day as at 1st January 2022 from the 36.910bbs recorded at 1st January, 2021.
In the same vein, Komolafe said the National Gas reserves status as of 1st January 2022 was 208.62 (trillion cubic feet) TCF, representing an increase of 1.01 per cent compared to 206.53 TCF as at 1st January 2021.
Despite the increase in Nigeria’s gas reserves, the level of production at about 8BSCF/D of gas, remains very low and inadequate to meet the increase in both local and international demands especially in the wake of the supply disruptions caused by the Russian-Ukraine crisis.
Komolafe said the incentives for gas investors under the PIA includes zero hydrocarbon tax, reduced royalty rates, tax consolidation provisions amongst others.
He said: “A total of sixty-one (61) operating companies submitted their 2021 annual report on reserves in line with the provisions of the PIA, 2021.