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Indigenous firms call for higher allocation on crude lifting

By on February 18, 2013

Firms involved in the sales of the nation’s crude oil have demanded that the Federal Government increase the allocations granted to them, as a way of encouraging local capacity.

The local oil firms, have appealed to the government to reserve specific percentage of the crude mainly for indigenous firms.

In an interview with the group, the Chief Executive, Oando Plc, Mr, Wale Tinubu, said that it was very possible for the government to considerably grant such local companies some incentives in relation to tax.

Tinubu said: “We are in absolute support of growing indigenous capacity in every facet of our oil and gas industry. This is because the local companies are paying their taxes, reinvesting their capital and creating enormous job opportunities for the larger community.”

Stating further, he said that such encouragement was capable of boosting local industries.

“If we had not grown enough to extend our portfolio management to trading and marketing, we probably won’t be lifting oil today. If we had not gone into gas, we would not have participated in that sector either. And this can only come by way of encouragement by creating an enabling environment for companies to explore their potential.”