The Minister of State for Petroleum Resources, Dr Emmanuel Ibe Kachikwu has challenged exploration and production companies in Nigeria to strive to raise daily crude oil production to seven million barrels per day (bpd) from the about 2.1 million bpd currently produced.
Kachikwu, who spoke at the just concluded second edition of the Nigerian Oil and Gas Opportunity Fair (NOGOF) organised by the Nigerian Content Development and Monitoring Board (NCDMB) in Yenagoa, Bayelsa State, urged all stakeholders in the petroleum industry to put all hands on deck to actualise the aspiration.
He said: “Industry players should strive for improvements in all facets of their operations because Nigeria should be producing over seven million barrels of crude oil every day and enough gas to meet its electricity needs. The oil and gas sector should have rapidly developing infrastructure, while oil bearing communities ought to be well developed with proceeds from the sale of crude oil.”
He encouraged Nigerian operators to move into other African countries and use Nigeria’s 60 years’ experience in the sector to lead the operations of their fields.
The Executive Secretary NCDMB, Simbi Kesiye Wabote, said the Board had identified over 80 oil and gas opportunities that would be developed by major international and indigenous operating companies in the short and long term, with the estimated cumulative value of the projects exceeding $100 billion.
The projects, according to him, are contained in the Compendium of Nigerian Content Opportunities in the Oil and Gas Industry launched at the event. The projects and opportunities cover the upstream, midstream and downstream subsectors of the Nigerian oil and gas sector and were collated from presentations by various oil and gas companies at the first edition of NOGOF in 2017 and updated at workshops organised by the Board in October 2018.
Wabote explained that the compendium was intended to create a database of Nigerian Content opportunities and help indigenous and potential investors prepare, improve their capacities and capabilities to participate in available and upcoming contracts and projects.
He added that the compendium gives the industry a five-year outlook and enables stakeholders to key into those opportunities. The NCDMB chief said: “Two years ago when we held this workshop, we talked about ExxonMobil’s Ibot, Total’s Ikike and NLNG Train 7. Today, they are going through the funnel and within the next few weeks they would take Final Investment Decisions (FIDs) on Ikike and Ibot and before the end of the year they would take FID on Train 7. We focus and follow through on those opportunities. Every two years we roll on new opportunities and add to the compendium.”
Kachikwu, who was just re-elected the President of the African Petroleum Producers Organisation (APPO) for a third term at the association’s meeting in Malabo, Equatorial Guinea, also noted that the speedy development of the identified $100billion opportunities would require the roles and contributions of various entities including the Department of Petroleum Resources (DPR) for approvals, Nigerian National Petroleum Corporation (NNPC) for negotiations and the oil companies, who would take FIDs, among others.
He promised that the Ministry of Petroleum Resources would midwife a special arrangement that would involve every agency of government and entity that has a role to play in the approval and development of the identified projects. “We must avoid a situation whereby NCDMB might work very fast and gets to the goal post and others are just taking off. We would create an arrangement that involves everybody and be clear about the deliverables, timelines and opportunities and bring out something which everyone can then drive.”
On government’s support for modular refineries as a strategy for ending crude oil theft, vandalism and environmental degradation, Kachikwu said the Ministry of Petroleum would develop a policy that would encourage persons living in oil producing communities to form cooperatives, with which they can set up and own modular refineries. He said: “We would have some agreements with them to stop the sabotage. We can work with NCDMB to put in a bit of funding. Then we put in technical know-how, business structure around it and have a major shareholder who is an entrepreneur. That way the locals get to participate, get jobs, polish their skills sets, crude is paid for and not stolen and the environment is better dealt with.”
Kachikwu expressed regret that the potentialities of the Nigerian oil and gas sector was not being maximised and advised stakeholders to accelerate their activities because oil is a fast degenerating asset and developed countries were already switching to cleaner energy options
He praised Wabote for his numerous achievements, particularly for the construction of the Board’s 17-storey headquarters building. “The building is not just important to NCDMB but also for Bayelsa State, because it had cried out for long that federal presence was not here. This is a big federal presence. By the time they finish the power supply they are doing with Agip, you will have a near 100 per cent supply of power to most of the Board’s facilities.”
Over 1000 delegates attended the event. The Fair’s theme was: Maximizing oil & gas industry for the benefit of the Nigerian people.
Authored By: Emeka Ugwuanyi
SOURCE: THE NATION