*Accounts for 90% of total oil production
The Chairman of Oil Producers Trade Section (OPTS), a sub-group of the Lagos Chamber of Commerce and Industry (LCCI), Mr. Rick Kennedy, has highlighted the positive contributions the group has made over the years to the growth of Nigeria’s economy.
Kennedy, who is also the Chairman and Managing Director of Chevron Nigeria Limited, in his welcome address at the 60th anniversary celebration of the group in Lagos, said the OPTS has gone through thick and thin with Nigeria and has been the goose that lays the golden eggs for country in the past decades through oil and gas production, payment of taxes, royalties and other levies, and empowerment of local contractors, among others.
He said: “As Nigeria’s needs have grown over time, so has the oil and gas industry, which has consistently responded positively. OPTS members have demonstrated resilience and commitment in the face of economic, security, environmental, and funding challenges. We have continued to make significant contributions to Nigeria’s development. As a group, OPTS member companies account for about 90 per cent of Nigeria oil production and contributes significantly to the domestic and export gas production and supply.
“Over the last decade, OPTS member companies accounted for 40-60 per cent of government revenue and 85-95 per cent of export earnings. OPTS member companies are also proud to have paid tens of billions of dollars in taxes, levies, royalties, rents, and licence fees to the Nigerian government.
“Through direct and indirect employment of people, local contractors, and service providers, OPTS member companies have continued to provide significant livelihood to Nigerians. Our members have continued to invest in individual and group skill development to support exploration and production activities and strengthen the supply chain. This is in addition to a strong social investment programme that spans Nigeria, with a focus on our host communities.”
Kennedy noted that despite the challenges confronting the industry, there are opportunities for improvement and growth. That is what we see in OPTS. Working with the governments at all levels, we have the responsibility and the commitment as a group to get the right policies for our people and for the country.
He explained that OPTS has evolved over the years having begun modestly in 1962 with only three founding member companies (Chevron, ExxonMobil & Shell), and Mr. D. Fleming of then Shell BP as Chairman. He noted that the group was formed in response to the burgeoning oil and gas sector following the discovery of oil six years earlier in 1956.
The history of OPTS is thus the story of Nigerian oil and gas exploration and production, he stated, adding that over the last 60 years, “we have evolved as a group and have become partners with Nigeria in the development of a sector that is key to the nation’s economic growth.
“OPTS has evolved from an organization initially dominated by international oil companies (IOCs) to an all-inclusive 29-member group, out of which 21 are indigenous and homegrown.
“Our strength is not solely numerical. OPTS is also a credible voice in Nigeria’s upstream oil and gas industry. We use this voice responsibly to strengthen the long-term health of the industry, thus the Nigerian economy. Our long-term success has resulted from our partnership and collaboration with companies from across the industry, the government, and other stakeholders to address critical and common industry issues.
“Among other things, we are guided by the following principles: Observance of laws and regulations, Integrity in business, Health, safety, and the environment are all important considerations, and Social accountability.
“These principles explain why OPTS, as a group of responsible businesses that adhere to antitrust laws, does not share, discuss, or trade competitive information among its member companies.”
Meanwhile, in his vote of thanks, the Executive Director, OPTS, Mr. Bunmi Toyobo, thanked all prominent guests that made time out to be present at the event and particularly the Vice President, Prof Yemi Osinbajo, SAN.
Toyobo said: “As part of a team that has helped run an organization that dates back to 1962, today’s occasion is a great source of pride and joy, not just to the present crop of professionals at the Secretariat, but to everyone that has been part of this organization for the past 60 years.
“As we mark this anniversary, we are grateful to so many people and firms who have made this remarkable journey of OPTS possible- from the three initial founding members of the Section in 1962, to the past Chairmen, Executive Committee members, Executive Directors of the OPTS, past Staff of the Secretariat and everyone who has contributed to what OPTS has become today in the Nigerian Oil and Gas industry.
“To all the 29 member-firms of the OPTS today, I say thank you all for your total support for the group and your unwavering commitment to the achievement of our objectives as a group under the Lagos Chamber of Commerce and Industry.
“This celebration is to demonstrate our abiding faith in Nigeria as a group and belief in the boundless growth potentials of our country, given the enabling environment.
“Thank you for celebrating this historic occasion with us.”
