She said the volume of petrol consumption has reduced by 34.17 per cent within a short period of time.
Mrs. Alison-Madueke, who spoke in Abuja, said the subsidy has reduced by 59.05 per cent to N850 billion, adding that the government spent N5.27 trillion on petroleum products between 2006 and last year.
She said: “As at December 2012, N5.27 trillion has been expended on products subsidy since the commencement of Petroleum Subsidy Scheme in 2006. A comprehensive reform programme put in place, under the Minister of Petroleum Resources, yielded outstanding results in 2012.”
She said the industry reform was in line with the government’s transformation agenda to promote socio-economic activities.
The reform initiatives, she said, are aimed at restoring effective product monitoring, enhancing transparency and accountability, restoring the integrity of the products importation and volume determination process, changing the negative perception of the sub-sector, especially of the Petroleum Product Price Regulatory Agency (PPPRA), among others.
Mrs. Diezani said the reforms between 2010 and this year covered the downstream, midstream and upstream, among other areas in the oil and gas value chain.
She said the ministry was repairing and upgrading facilities in the refineries and pipelines distribution network to sustain in-country product supply
She maintained that the ministry would continue to ensure stable supply of petroleum product, effective and efficient administration of the subsidy programme which she said remains unsustainably expensive and increased domestic refining
In addition, she said, improvements in local capacity and indigenous participation in infrastructure investments had been vigorously pursued, saying the outcome had been in upgraded training facilities and increased regulatory compliance with local content requirements
The ministry in line with government drive in achieving the national aspiration of 40 billion barrels of oil reserves and four million barrels of oil per day production, including condensate, as captured in Vision 20:2020, has increased exploration activities in the offshore, onshore and Inland basins.
Meanwhile, exploration has been stepped-up in the inland basins of Chad, Anambra, Benue and Bida/Sokoto/Dahomey, she disclosed.
According to her, last year, 19 exploration wells were drilled comprising eight exploration wells in the JV and 11 wells (3 exploration and 8 appraisal wells) under the PSC. Also, 93 development wells were drilled including 55 development wells under JV while PSC delivered 38 development wells.
Within the same year, 33 work- over wells were drilled consisting of 32 work-over wells under JV and one work-over well in PSC
This increased exploration activity is reflected in acquisition of a total of 6, 102 sq.km of seismic data, including 818 sq.km acquired for FES operations in the Chad Basin in Phase 3, 4 and 5 combined.
She said acquisition of 266sq.km of seismic data in the Phase 6 is ongoing by IDSL (a subsidiary of NNPC) in the Chad Basin.
In addition, the ministry has also grown IDSL Land Acquisition capacity by additional three 100percent wholly owned seismic party crews, she said, adding that all these are in line with realising the objectives of the present administration.
Information from The Nation was used in this report.