PETAN Visits SA To President On Energy
A PETAN delegation, led by the Chairman, Engr. Wole Ogunsanya paid a courtesy caĺl to the Special Adviser to the President on Energy, Mrs. Olu Verheijen .
PETAN Chairman, Engr. Ogunsanya thanked the SA for taking time out of her busy schedule to receive the PETAN delegation, congratulating her on her tenacity in supporting the President of the Federal Republic of Nigeria, His Excellency, Mr. Ahmed Bola Tinubu during this critical time for the oil and gas industry.
He commended the recent Presidential directives and posited that PETAN members are now seeing a drastic increase in activity in the oil and gas industry.
He said that PETAN, which turns 30 years old this year, has made giant strides in the footprints of the oil and gas industry in Nigeria and Africa. Historically , PETAN has been in the forefront of advocating for favorable policies for indigenous oil and Gas companies.
“Looking at all the value that has been created by indigenous E&P operators , he said, “we owe these successes to the Local Content Law which has been an enabler to create value along the entire value chain of the oil and gas industry”.
Engr. Ogunsanya added that some of PETAN’s over 100 member companies are also going into gas development and processing, which remains the catalyst for the Nigerian economy, whilst pledging PETAN’s technical expertise in gas infrastructure development to deepen domestic gas utilization in the country.
He sought the support of the Federal Government and relevant stakeholders in ensuring that PETAN continues to create value along the value chain which can be sustained in the industry as well as across other sectors of the Nigerian economy. “PETAN looks forward to seeing a focused strategy, which would result in increased activity in the land and swamp areas. PETAN member companies now have excess capacity as a result of innovative technology which can be deployed to inshore brown fields at relatively low cost . The resultant effect would be increased value to NNPC and Independent producers accruing immediately to the Nigerian economy from the macro point of view”, he said.
However, he sought Government’s continued intervention and focus on the challenges of evacuation and security which have persistently affected the industry.
Responding, the Adviser to the President on Energy, Mrs. Olu Verheijen, thanked the PETAN association for their dedication and doggedness to the development of the Nigerian oil and gas industry through the Association’s continued advocacy.
The Presidential Directives which were signed in February this year steers the country in a fast-paced direction towards sustainability. This was premised upon the realization that “Nigeria can’t continue to be the main export of energy while remaining energy-poor, so it is important for us to use our energy resource, especially gas, which Nigeria has the 10th largest reserve in the world, as a transition fuel, to diversify our economy”.
She added that the Presidential team was working assiduously towards making Nigeria an attractive investment destination. “This administration intends to focus on the gas-to-power value chain to record higher gains for the people, businesses and industries, even as gas exports need to continue to maximize installed capacity.
“Whilst indigenization is important, we can’t let it be at a cost to our competitiveness, as even the indigenous companies being divested need to go into the capital markets to raise funding for their projects”, she said.
She commended indigenous service companies that have established themselves in and around the International oil and gas space. “However, we need to eliminate ‘ intermediaries’ which add no value and increase the costs of projects. It has to be a meritocracy. You have to do the work to earn the right.
It also remains important to the government to reduce carbon emissions in our onshore businesses to remain attractive and other challenges such as high cost of production and security are being tackled in collaboration with relevant agencies. This administration under Mr President continues to focus on increasing investments and ensuring that we overcome the constraints to investments in Nigerian upstream projects! All of these present opportunities for collaboration with indigenous companies.
As a result of the passing of the Petroleum Industry Act, more strategic decisions are being made and the distinct functions of relevant arms of the industry are being speedily segregated”.
In the Upstream space, she pointed out that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is now highly functional and aggressive about its regulatory functions. Her office supports the President, who doubles as the Minister of Petroleum as the policy maker, setting the tone for strategic decisions as seen in the Presidential Directives. “This way”, she opined, “the NOCs will focus on making trade, and our office is available to facilitate conversations around necessary action points to better position industry players for maximum value across all terrains of the industry”.
She also urged PETAN to showcase their success stories evidencing successful indigenous businesses and service providers who have now expanded their capacities from the initiatives of the Presidential Directives not just in the oil and gas sector, but across other value chains that the sector has catalyzed in the current industrialization and diversification drive.
Responding, the PETAN Chairman, Engr. Ogunsanya assured that PETAN is working with the Nigerian Content Development and Monitoring Board (NCDMB) and an independent audit firm to develop a seal of quality to help identify certified indigenous companies. “Also, we intend to have an accessible database to help mitigate the activities of portfolio companies who indiscriminately jack up the cost of production, therby truncating the efforts of energy professionals in the Nigerian Oil and Gas industry.
The PETAN’s Business Strategy Chairman, Engr. Valentine Obidi posited that a strategic partnership between the office of the SA and PETAN to help identify the low-hanging fruits which can be outlined by PETAN for consideration by Government .
A highlight of the meeting was the presentation of a PETAN Award of Excellence to the Special Adviser, who thanked the PETAN team on behalf of the Nigerian President, herself and her team, adding that PETAN remains one of the key collaborators of government, as their inputs and ideas are always welcome and reflected in government’s policies, adding that the desire is for the government to keep people interested in the sector because it’s so key to the nation’s economy.
“We look forward to our continued collaboration as we start to work together more closely and bring all attendant opportunities to the table. I’m excited about the discussions on production growth and low-hanging fruits”, she concluded.
The PETAN delegation consisted of the Chairman, Engr. Wole Ogunsanya; Publicity Secretary, Dr. Innocent Akuvue; Conference Chairman, Engr. Ibe Chubby Ibe; PETAN’s Business Strategy Committee Chairman, Engr. Valentine Obidi; member, Mr. Kachi Ekezie, member, Dr. Joachim Akwaeke; Mr. Solomon Ewanehi; Treasurer, Sir Okezie Akwiwu; Executive Secretary, Engr. Kevin Nwanze, and Media Assistant/Abuja Liaison Officer, Mrs. Zainab Ajibola
