…NCDMB lists 80 opportunities worth $100bn
…FG to create network, timelines for identified projects
… Communities to form cooperatives for Modular Refineries
By Shile GIWA
Over 1000 delegates including the Governor of Bayelsa State, Hon Seriake Dickson;
Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu; Managing
Director of Shell Petroleum Development Company (SPDC), Mr. Osagie Okunbor
and many other dignitaries participated in the just ended 2 nd edition of the Nigerian
Oil and Gas Opportunity Fair (NOGOF) organised by the Nigerian Content
Development and Monitoring Board (NCDMB) in Yenagoa, Bayelsa State.
The fair, which had the theme ‘’Maximizing Oil & Gas Industry for the Benefit of the
Nigerian People’’ was held at the NCDMB 1000 capacity conference hall.
Delivering his welcome address, the Executive Secretary NCDMB, Engr. 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 $100bn.
The projects 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 sectors of the Nigerian oil and gas
sectors 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. “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.”
In his comments, Kachikwu, who had just been re-elected as the President of the
African Petroleum Producers Organisation (APPO) for a 3 rd term at the association’s
meeting in Malabo, Equatorial Guinea, pointed out that the speedy development of
the identified $100bn 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 hinted that 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.”
Speaking further the Minister expressed regret that the potentialities of the Nigerian
oil and gas sector was not being maximized and counselled stakeholders to
accelerate their activities because oil is a fast degenerating asset and developed
countries were already switching to cleaner energy options.
He also challenged industry players to strive for improvements in all facets of their
operations, insisting that Nigerian should be producing over 7m barrels of crude oil
every day and enough gas to meet its electricity needs. Kachikwu also posited that
the 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 our 60
years’ experience in the sector to lead the operations of their fields.
The Minister also commended the Executive Secretary of NCDMB for its numerous
achievements, particularly for the construction of the Board’s 17-storey headquarters
building.
He said ”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 percent supply of power to most of the Board’s facilities.”
The two-day fair featured several opportunity presentations, technical sessions and
exhibition of capacities.