Leveraging on research and development capacity to drive local refineries prospects
The issue of plummeting oil price and its serious implications for government revenue pose serious challenge to the economy.
With Nigeria’s 4 government-owned refineries in Port Harcourt, Warri and Kaduna, producing at an epileptic average of less than 15 percent of its installed capacity, energy experts insist that to overcome this huge deficit, there is the need to also leverage on the research and development capabilities of tertiary institutions in the country to support local refineries.
Industry watchers insist that Nigeria need to be able to leverage on the collaborative benefit that Research and Development from tertiary institutions in the country can offer the oil and gas industry, stressing that by so doing, the institutions can derive opportunities that will in turn reduce cost and promote local content.
“To solve the problem, Nigeria needs to re-strategise and embrace pragmatic options that will not only guarantee refining for local demand, but also ensure her emergence as an exporter of refined products” experts maintain.
Private local refineries prospects
Emerging local refineries’ prospect looks brighter, particularly for the much needed human capital and engineering requirements on the new found collaboration between universities and industry in the areas of research input and infrastructure development. The expectation is that when the linkage is sustained, it will produce graduates with requisite skills for the development of the sector.
The Dangote Refining and Petrochemical Plant refining capacity of 650,000 barrels per day (bpd), production of 750,000 metric tonnes of polypropylene per year and 2.8 million tonnes of fertilizer per annum set to begin operation in 2018, for instance is expected to be greater beneficiary of the collaboration which in the long run addresses the skill gap in the oil and gas industry.
Similarly, other refineries in the pipeline will experience accelerated growth in the areas of refining and exploration with the attendant by products for utilization by other industries.
Linkages between universities and corporate organisations in the view of Olufemi Bamiro, a professor of Mechanical Engineering, Faculty of Technology University of Ibadan is a welcome development because it can enormously be helpful in facilitating the manpower development that will lead to employment of graduates.
Industry watchers observe that the private sector is currently leading the global trend in employment expansion and wealth creation stressing that with government policy support there will be smooth interface for public-private partnerships between the government and the private sector.
Competitive economy is principally driven by technology
Femi Akintunde, managing director, Alpha Mead Facilities and Management Services observes that a unique advantage any country or organisation has over its competitors is a well-developed, skilled, dedicated, committed and motivated human capital.
According to him; “In an increasingly global and competitive economy, principally driven by technology, the ability to articulate and execute a robust programme for the practical training and development of oil and gas professional will remain critical success factor for the sector to succeed in Nigeria”.
He called for a coherent national Technical education strategy with framework developed in consultation with industry players to specify the national priorities for development with the appropriate funding commitment.
Omowumi Iledare, a Professor and director Emerald Energy Institute, University of Port Harcourt, Nigeria while speaking at a Conference organised by Oil and Gas Trainers’ Association of Nigeria (OGTAN) in Lagos recently observe that the oil and gas industry has contributed tremendously to the overall growth of the Nigerian economy.
Iledare disclosed that the upward expansion trend in the industry has created demand for a wide array of jobs ranging from professionals such as geologists and engineers to skilled blue collar jobs such as technicians, welders and electricians.
He, however, maintains that the imperative for the growth and survival of the oil and gas sector in the country should be anchor on the enforcement of the national content mandate which would require technicians of all shades and grades.
According to him; “To meet this growing demand in the oil and gas industry for skilled technical workers, there is a huge need for the oil companies to patronise technical colleges to meet this demand”, adding that by growing investment in technical education, there will be reduction in capital flight by the decreasing use of expatriate staff as technician. He stressed that this will lead to increase in the rate of employment of youth, increase in the economic growth regionally in addition to increase the wealth of Nigeria within the her border while the economy will grow faster.
Olayinka Agboola, an industry expert from Petroleum Technology Development Fund (PTDF) is of the view that the nation’s development aspirations can largely be actualised through Academia-Industry collaboration and teaching support. Such an alliance in his opinion will bridge the gaps between the academia and the industry to accelerate the drive towards a sustainable development in the country.
Industry initiative exemplified by NLNG
Among such industry- universities support initiative is the 12 million dollars Nigeria LNG Limited (NLNG) grants to six universities in Nigeria to develop Nigerian human capital and fostering technological advancement.
Babs Omotowa, out-going Managing Director and Chief Executive Officer of NLNG in his address while commissioning the NLNG Centre for Gas, Refining and Petrochemical Technology at the University of Port Harcourt recently observed that the project is important for Engineering Education in Nigeria as the laboratory is equipped with a modular refinery, the first of its kind in any educational institution in sub-Saharan Africa.
Omotowa said that universities, with their crop of young people and nimble minds, when aided properly, are the fertile grounds from which ideas to fast track Nigeria’s progress will spring from.
Beneficiary universities under the project titled, NLNG University Support Programme, USP, include, University of Ibadan, University of Ilorin, University Port Harcourt, University of Maiduguri, Ahmadu Bello University, Zaria and University of Nigeria, Nsukka. Each of the university selected from the six geo-political zones will got $2 million to execute the modern laboratories projects which will be equipped with the cutting-edge equipment.