How to overcome upstream, downstream challenges, by stakeholders
Crude oil has over the years, emerged a major foreign exchange earner for about 19 African countries.
Indeed, countries like Nigeria and Angola are highly dependent on the commodity for their export earnings.
This over-dependence on petroleum resources by Nigeria and some of these countries have thrown challenges to their respective concomitant mono-cultural economic profiles.
Beside the uncertainties surrounding the crude oil prices, which have resulted to investment decline and reduction in capital expenditure of many multi-nationals and indigenous firms, the sector has to cope with infrastructural decay, insecurity and stringent fiscal policies.
To mitigate these challenges, speakers at the just concluded ninth Annual Sub-Saharan Africa Oil and Gas Conference, 2016 in Houston Texas, U.S.A, believed that government and operators have a role to play in protecting oil and gas investment in Africa.
According to the Chief Executive Officer of Energy and Corporate Africa, Sunny Oputa, the conference with the theme: “Optimizing Upstream, Downstream and Ensuring Sustainability & Growth”, showcased the business climate in the region, and investment opportunities with spotlight on countries where business activities are burgeoning in terms of licensing rounds, and ongoing productions.
He added that the conference also weighed into current geopolitical affairs, nascent petroleum laws, contracts and other external and internal forces driving the market. “It also showcased impacts of technology and strategies for cost reduction as great elixir for ensuring sustainability and growth”.
Managing Director, Shell Nigeria Exploration and Production Company Limited (SNEPCo), Bayo Ojulari, stated in a topic titled: “Optimising Nigeria’s Oil and Gas Capacity: The Bonga Fied Experience, said that t here is great opportunity for International Oil Companies (IOCs), working together with government bodies and indigenous players to help develop the country’s oil and gas capacity
He stated that business friendly regulations are required to further embed local content, drive investment in infrastructure, capability and capacity building.
According to him, Bonga Field development has provided a significant boost to the local content capability development drive for offshore oil & gas development.
He added that Bonga has the first, largest and most technologically advanced polyester moored deepwater buoy to be built in Nigeria.
He disclosed that fabrication and installation of the world’s largest deepwater Single Point Mooring Buoy at Nigerdock in Nigeria Snake Island Logistics base in Lagos, Nigeria, can support other deepwater developments offshore Nigeria.
Ojulari noted that buoy achievement is major encouraging factor in the consolidation of local content in the oil and gas sector.
He said that the company has partnered with indigenous contractors on the delivery of topsides modification scope for the Bonga North-West. “Topsides scope involved fabrication of skids and installation on the Bonga FPSO.
Shell partnered with the contractor to improve their safety and technical capabilities to enable delivery of the scope. Shell supported the contractor on upgrade of their facility”, he added.
Ojulari said that there has been various facilities upgraded to develop new in-country capability as part of Bonga North West project execution.
He said that SNEPCo also partnered with Nigeria Institute of Welding (NIW) to establish a world class welding laboratory
He noted that using local staff and management, Bonga Wells delivery achieved unprecedented performance — reduced well delivery days from over 100 to 26 days.
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