FG targets 50% reduction in annual offshore operations, logistics costs

The federal government says the establishment of search, rescue and surveillance (SeRAS) unit is projected to reduce the oil and gas industry’s annual cost on offshore operations, remote locations, flight logistics and emergency response.

Timipre Sylva, minister of state petroleum resources, was speaking at the inauguration ceremony of the National Oil and Gas Excellence Centre (NOGEC) in Lagos on Thursday.

SeRAS, a flagship programme of the centre, is designed to enhance safety management, emergency preparedness and response, and routing transportation for bed-space management.

Sylva said SeRAS will drive cost reduction and improve operational efficiency across the oil and gas industry.

“Conservatively, it is projected that upon full implementation of SeRAS, the annual industry expenditure for offshore and remote locations, flight logistics and emergency response will reduce by 50 percent, a significant gain towards our target of reducing cost-per-barrel across our operations,” he said.

In his remarks, President Muhammadu Buhari pledged to continue the federal government’s economic diversification through the utilisation of oil and gas revenues.

Buhari said: “Our renewed drive for economic diversification using the oil and gas industry as a pivot remains on track as we expand government revenues and deploy it to grow our gross domestic product (GDP), generate employment, and contribute to eliminating poverty in Nigeria.

“It (NOGEC) is, therefore, another milestone in the development of the oil and gas sector and the realisation of greater value for the country.

“The establishment of NOGEC is an indication that the Nigerian oil and gas industry has come of age despite the odds”.

The president assured that Nigeria will strengthen its position as a regional leader in the oil and gas industry adding that his administration will ensure maximum benefit from the country’s huge natural resources.