‘Without effective midstream, downstream sectors, investments in upstream meaningless’

The Society for Petroleum Engineers (SPE) Nigeria has said that without an effective, efficient, and vibrant midstream and downstream sectors, investments in the upstream sector would become meaningless.

The Chairman, SPE Nigerian Council, Salahudeen Tahir,who stated this at a media parley during the closing of Nigeria Annual International Conference & Exhibition (NAICE) 2024, in Lagos, said: “To ensure sustainability, optimisation of the petroleum industry value chain is necessary. And the development of the midstream and downstream sectors play a significant role in achieving this optimisation.

“The midstream sector involves the transportation, storage, and wholesale marketing of crude oil and natural gas, while the downstream sector focuses on refining crude oil into various petroleum products and distributing them to end consumers.

“Without an effective, efficient, and vibrant midstream and downstream sector, investments in the upstream become meaningless. Our God-given natural resources will forever remain in its raw state,” he stated.

He called on all the regulators and industry players, both local and multinational, to ensure strict implementation of the recommendations that arose from the industry-wide gathering.

He said the theme of the conference: “Petroleum Industry Value Chain Optimization: The Inevitability of Midstream and Downstream Development,” was chosen because of the importance of the sector to the economy.

Tahir emphasised that the optimisation of the midstream and downstream sectors of the petroleum industry value chain is essential for attracting investments to the upstream, achieving operational efficiency across the value chain, and meeting the demands of the market in a cost-effective manner.

“It allows for the smooth flow of resources, maximises the value of hydrocarbons, and ensures a reliable supply of petroleum products to consumers,” he stated.

Applauding the President of SPE International, Terry Palisch for his physical presence at the conference, Tahir said SPE is the foremost professional association for petroleum industry practitioners worldwide, with over 127,000 members across 145 countries.

In Nigeria, he said SPE’s paid membership is over 15,000 (including student members), spread across five sections (Lagos, Port Harcourt, Warri, Benin, and Abuja) and 47 vibrant student chapters.