More oil discovery offers Africa opportunity for in-continent utilisation
The Society of Petroleum Engineers (SPE), Nigeria Council, said that expansion in new oil and gas finds in Africa and the global unconventional revolution have heightened competition in the continent’s exploration and production industry for investment and market opportunities for value extraction.
However, the growing discovery of oil and gas in many more African countries offers the opportunity for Africa to integrate, encourage in-continent utilisation and evolve from exporter of natural resources to exporter of finished products. The council also said that there is need for African oil and gas producing countries to adapt new sustainable economic strategies to keep up with global economic changes, amidst the US shale oil and gas revolution and the dwindling crude export to US and other countries.
In a communiqué issued at the end of the SPE’s 38th annual conference and exhibition, signed by Bernard Oboarekpe, SPE said that African countries must invest now on infrastructural development and encourage free trade within the region to prepare themselves for any future global energy crisis adding that the global explosion in new oil and gas resources has put pressure on prices and export markets. Oil producing countries must therefore look for alternatives ways to derive maximum benefits from their hydrocarbon resources.
The society said that African indigenous independents should take a cue from the Independent Petroleum Association of America, whose members contribute 54 percent of oil and 85 percent of gas to total US production, and increase their contribution to production in their countries adding that African countries must develop capacities in core engineering, science and technology disciplines in order to fully harness the benefits arising from their natural resources.
Nigeria oil reserves
Nigeria needs over $100 billion investment to achieve its 2020 aspiration of 4 million barrels per day of oil production. A stable regulatory environment, enabled by accelerated passage of the Petroleum Industry Bill (PIB) could be the panacea for overcoming the industry’s funding challenge in Nigeria.
SPE called for “a pseudo-PSC (Production Sharing Contracts) arrangement is advocated for resolving the funding challenge; especially under the subsisting impasse between the federal government of Nigeria and international oil companies on funding the JVs and the terms and conditions of the PSCs; to enable the takeoff of projects currently on hold”.
The group stressed that there is a compelling need to monetize gas, amidst the growing demand for gas in Nigeria, especially for power generation. Government and the industry should therefore increase focus on gas exploitation and development to support the growing power demand.
Indigenous oil production
In the emerging need for domestic energy security in Nigeria, SPE said that indigenous independent oil and gas companies are expected to play increasing role in oil and gas production and refining.
SPE said that Indigenous oil and gas players should be encouraged by government, through the creation of an enabling fiscal, regulatory, and administrative framework for easier access to foreign capital, to aid their development.
According to the body, industry practitioners must find ways to stem the increasing cost of services within the sector adding that indigenous companies should look towards the capital market to raise the huge capital required for expected industrial growth and expansion.
Women in energy
On Women in energy, SPE said that even though there are negative perception of women as liabilities, rather than assets in the industry, despite their huge potentials and array of women who have made it to the top of the corporate ladder, there is need to change that negative perception of women as liabilities, and utilise their many unique abilities, through family and corporate support structures to help them climb the corporate ladder adding that women professional growth in the oil and gas industry should be encouraged.
SPE urged “Forward-looking companies tap into the special attributes of women such as the ability to multi-task, balanced and holistic decision-making ability, accountability, integrity, perseverance, determination, commitment and loyalty to deliver top performance”.
SPE recommended “effective monitoring of their development, networking and mentoring are some of the ways to remove the barriers to women’s participation and upward movement in the industry” adding that “to boost participation of women in the industry, enrolment of women in engineering courses and other science-related courses should be increased”.
FRANK UZUEGBUNAM