OTC 2017 : PETAN Recommends Infrastructure Deficit Map
Bank Anthony Okoroafor, Chairman, PETAN

The Petroleum Technology Association  of  Nigeria  (PETAN) has advised that an infrastructure  Deficit  Map  be create as the county looks forward to attracting investment in the oil and gas sector to  show  areas and opportunities available  for  investment.

The call was part of the resolutions contained in a communique issued at the end of the Offshore Technology Conference (OTC) 2017 held recently in Texas, USA by PETAN, signed and made available to the Press by its Chairman, Bank Anthony Okoroafor.

The communique noted that with a graphic infrastructure Deficit map in place, alongside right policies and right infrastructure, investors’ interest would be aroused greatly to the benefit of the sector and the country at large.

The line-up of activities on the Programme for 2017 includes: Opening of the Pavilion  by  the  erudite  and  visionary  honorable  minister  of state,  Petroleum,  Dr  Ibe  Kachikwu Panel  session  with  the  Theme  “Global  Energy  Dynamics:  Challenges  and Opportunities  in  the  Nigerian  Oil  and  Gas  industry.   Sub-Saharan Africa Oil & Gas Networking pportunities Workshop (Angola, Ghana, Mozambique, Nigeria,  Senegal,  South  Africa  &  Tanzania) Networking  Dinner  &  Golf  Tournament Short  training  courses  on  FPSO  and  Subsea  Operations  and  Maintenance

First was the Panel Session was kick started with an opening remark by  the  Honorable  minister  of  state,  Petroleum,  Dr  Ibe Kachikwu,  and  a presentation  by  the  GMD  of  NNPC,  Dr Maikanti  Kachallah  Baru. The session  was  moderated  by  the  Mr.  PIB,  Dr Emmanuel  Egbogah.

As a fall out of the panel discussion, Project  100  was proposed. The import is to Identify 100  Nigerians  with  capacities,  energy  and  skill  who  can make  a  change. Also  their  handicaps are to be identified while the right policies are created to  help  them  get  to  the  finish  line.

On paucity  of  investment  funds, it was advised that Harnessing  Local  Long  term  funds  like  Pensions,  Sovereign    funds into  Long  term  productive  and  profitable  infrastructure  assets  like  gas,  power,  lines,  refinery,  utilities  etc  as  done  by  other  pension funds  in  developed  countries will address it.

To minimise challenges of bureaucracy, the communique suggested a cut in Red Tapism and reviewing downward of contracting  cycle  from  9  months  to  6  months as well as reducing/addressing  mutual/moral  distrust between IOC and  Govt by  ensuring transparency, consistency, and predictability  of  policies.

The communique equally recignises the need to address  security  issues  in  the  Niger  Delta through collaboration with  government and other stakeholders. “We need to execute  the  promises  we  made  to  Niger  Delta  now by Planning  security  in  new  pipeline  approval  by  DPR, while IOC’s  comes up with  a blueprint  on  how  to  update  this.

It also looked at the downstream challenges, first of which were Pricing  and ethical  issues and suggested Broadening of the  space  for participation  in  the  industry; increasing the figure of  barrels  refined  in-country; Changing  the  business  model and  Scaling  up –  leave  allocations.

PETAN  to sustain and promote in-country capacities through bidding  in  Silos, setting-up  of “consortiums  like  Bonga  SW  so  that  we  can sustain  build  in-country  capacities”.  It is to collaborate  to  fund  all  these  projects instead  of  raising  funds  in  Silos, and Synergise  in  all  assets  work.

Other resolutions include but not limited to reduction in  Logistics’ costs  from  $23/bbl.  to $2/bbl.  by  working  together  and sharing  vessels,  security  and  management  of  assets;  knocking down  cost  by  40%  by  adopting  Brazilian  model.

Having acknowledged that 90%  of  all  projects  need steel, the communique noted that having one  functional  mill  in  the  next  five  years would be a  catalyst  for  building  all  facilities  in-country, while emphasising the need to build  all  facilities  in-country.

According to the statement, Lead Contractors  in  every  project  must  have  solid  Infrastructure  In-country, while projects must be handled with at least some measure of local contents especially those that can be acquired readily.

In another note of advise, the National Assembly has been told to conclude work on the PIB as soon as possible.

It was also agreed that Harnessing Local Long term funds like Pensions, Sovereign    funds into  Long term  productive  and  profitable  infrastructure  assets  like  gas, power, lines, refinery,  utilities  etc  as  done  by  other  pension  funds  in  developed  countries.

The need for closer cooperation between various key ministries  to  grow  the  nation  rather than  working in  isolation  was highlighted–  Petroleum,  Power,  Industry,  Finance  etc  to synergise of developmental  growth  of  the  oil  industry.

This year’s conference with the theme: “Global Energy Dynamics:  Challenges and Opportunities in the Nigerian Oil  and  Gas  industry”,  took  a  closer  look  at  the  oil  and  gas  industry, and  how  to  fully  optimize  the  inherent  potentials.   It is noteworthy that more than 60,000 attendees and  2,400  companies/exhibitors from  around  the  world  gathered  at  the  annual  conference,  placing  2017’s  OTC among  the  top  10  highest  attended  in  the  49-year  history.  Also, more than 100 PETAN companies and  2,000  Nigerians  attended  the  highly  successful conference. As it has always been since 1969  inception  of  OTC,  attendees  got  crucial exposure to  new  technologies  and  global  developments  in  the  energy  industry.

 

 

 

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