Home Oil & Gas Petroleum ministry receives 77 applications for the gas intervention scheme

Petroleum ministry receives 77 applications for the gas intervention scheme

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The AKK gas pipeline

The Ministry of Petroleum Resources has said it has received 77 applications from operator companies in the oil and gas sector who are interested in its N250b gas intervention scheme.

According to Brenda Attaga, the Technical Adviser to the Minister of State for Petroleum Resources, the conditions include technical feasibility, total business plan an skills and experience output of the business plan as they must meet government’s national objective of cresting skilled and unskilled employment.

Attaga said so far, the 77 applications include 27 for the higher category obligation limit of N10b each and 50 applications for the SMEs category with N50m for each approved application.

“In this regard, our evaluation covers seven fundamental areas which must be evidenced by applicants.

The next important condition is the social economic impact of the business plan and the revenue generation it would engender and contribute to the state of its operation or location.

Also, the financial feasibility of the plan, economic and finance models and the environmental feasibility must be assured and credible.

“This is because people have sent us all kinds of applications that are not in line with the recommended framework of our evaluation.

“The essence is really for us as a ministry to support the propagation of gas and also creation of jobs through access to financing,’’ she said

She added that SMEs would also follow similar structure but that start-ups would enjoy some leniency in the financial model.

According to her, SMEs will prove that they are registered in Nigeria; they pay their taxes; prove affiliation to first class companies which are already established businesses with good track records within the gas value chain.

Attaga also said that there was no timeline for applications, but that the fund had a fixed amount.

She noted that preference would be given to indigenous companies as well as gender-based-led companies in the SMEs category.

She said that with the volume of the fund and spread of businesses, it was expected that the scheme would contribute to job creation.

“In the Liquefied Natural Gas sector, our job creation plan is looking at a minimum of 750,000 jobs; in the Compressed Natural Gas (CNG) sector, we are targeting additional 250,000 jobs.

“The CNG sector jobs including operations of kits centres where vehicles using petrol can be adapted to using CNG and some new fuelling stations would consequently come up.

“On manufacturing, jobs have become leaner because the world is technology- based today and manual labour is getting contracted.

“On industrialisation, we are looking at a spike because of the number of plants that can be set up with this money.

“So, overall, we should hit about a total of three million jobs from this funding, if we get it right,’’ Attaga said

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