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The Changing Face of the Oil & Gas

Joseph Dawha,  Group Managing Director (GMD), Nigerian National petroleum Corporation (NNPC), has maintained that with past lessons the nation should be in a position to tackle the challenges ahead. Nnpc GMD.
“Just as there has been a dynamic shift in our industry in the past six months, this occurrence is not new as 1986 and 1998 and 2008 were landmark years. The lessons of the past ought to enable us to respond decisively with this new norm. NNPC on its part is anxiously awaiting the passage of the PIB which will engrain in law a new commercial orientation that would enable a fit for purpose National Oil Company whether in austere times such as this or in better times,” he added.
The Chairman of Oando Energy Resources, Mr. Wale Tinubu, said that oil theft has affected the nation in many ways. He said about 30 per cent of the nation’s 2.2 million barrels daily output is stolen and export illegally to operate illegal refineries and export to foreign markets.
“Oil theft in Nigeria is believed to be about 6 -30 percent of the country’s daily production. Nigeria currently imports petroleum products even though it’s the 13th largest oil producer,” he said. Tinubu advised the government to create bi-lateral relations with growing energy dependent economies such as India & China in order to attract more patronage for its crude oil and gas as well as ensure improved regulation and attractive fiscal terms to encourage foreign investments & confidence in the oil industry,” he said.
He remarked that government should also ensure efficient security measures are in place to prevent bunkering and oil theft in the nation, adding that Nigeria should adopt and implement adequate measures targeted at eliminating gas flaring in the nation. “Gas flares the second largest amount of gas in the world. Flaring about 18 per cent of the associated gas Nigeria lacks proper gas distribution and transportation systems,” he said.
He said over 70 per cent of Africa’s population has no access to electricity, which acts as a fundamental brake on development in the region. “Nigeria has the largest gas reserves which are sufficient to power up the country and still export energy to other African countries,” he remarked.
He said turbines should be established at gas flaring sites to convert gas to power at various oil producing areas. Tinubu said efforts should be made to open new markets for the nation’s oil as crude oil and petroleum products exports to USA have dropped by 67 per cent to 33 mbls in 2014.
“Nigeria’s oil production has remained stagnant since 2010 as foreign investments inflow have reduced over the last  five years 32 per cent,” he said. He said given the importance of crude oil derivative products, crude oil must be refined into consumable products to maximize revenue generation for stakeholders, including the government.
Tinubu also called for urgent development of the power sector, especially through increased supply of gas to thermal plants. “Over 70 per cent of Africa’s population have no access to electricity, which acts as a fundamental brake on development in the region,” he said.
He said the government and others should make massive investments in gas infrastructure including pipelines, compressors, gas tanks and gas refineries for processing and delivery of gas to the end user. “Nigeria has the largest gas reserves which are sufficient to power up the country and still export energy to other African Countries,” he added.
Shell also made it known in its latest report that crude oil theft; sabotage and illegal refining are the main source of pollution in the Niger Delta today. It maintained that in 2013 the Nigerian government estimated crude oil theft and associated deferred production at over 300,000 barrels of oil per day (bpd). The company has it that intentional third-party interference with pipelines and other infrastructure was responsible for around 75 per cent of all oil spill incidents and 92 per cent of all oil volume spilled from facilities operated by the Shell Petroleum Development Company (SPDC) over the last five years.
“Much greater volumes of oil are discharged into the environment away from SPDC facilities through illegal refining and transportation of stolen crude oil. In 2013 the number of spills from SPDC operations caused by sabotage and theft increased to 157, compared to 137 in 2012, whilst production losses due to crude oil theft,” it stated.

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Gladys Johnson The Publisher/Editor-In-Chief Global Business Drive Phone: +13465619347 Email: info@globalbusinessdrive.com gladysjohnsonmedia@gmail.com gladys@globalbusinessdrive.com globalbusinessdrive@gmail.com

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