The Nation Newspaper

Tag: Crude oil

  • How Nigeria can meet 40 billion barrels of oil reserve target

    HOw can Nigeria meet its target of 40 billion of oil reserve barrels by 2020? It is by channelling more investments into the production and exploration of crude oil, experts have said.

    Investments in onshore and deep offshore projects should be galvanised to encourage industry’s growth.

    Elijah White, the Vice President, Exxon Mobil Production Company and Prof Adeola Akinisiju said the country risked missing its target of substantially increasing its crude oil reserves by the turn of the decade, unless the government put together more investment-friendly fiscal terms in its proposed oil reform legislation.

    He said: “Nigeria needs to create a stable and attractive investment climate, competitive fiscal terms to attract capital and develop clear regulatory and competitive policies that would enable her to realise the full potential of the industry.”

    The country, he said, had a huge oil potential, advising the government, and private sector operators to work together for the sector’s growth.

    Akinisiju, a professor of Geology and President, Association of International Energy Economics (AIEA), called for a synergy of operations among stakeholders to encourage industry’s growth.

    The country would meet the 40 billion barrels projection, once a conducive operating environment was in place. He said oil theft, pipeline vandalism, among other untoward practices in the Niger Delta, has affected production drastically.

    According to him, right fiscal policies, improved operating environment and improved infrastructure in the oil producing states would attract more investors to the industry.

    Nigeria plans to raise oil reserves from 35 billion barrels to 40 billions by 2020. The target, experts believe, can be attained, if the Petroleum Industry Bill is passed.

     

  • Crude oil theft causes for alarm

    The Chairman of Moni Pulo Limited (Petroleum Development), Chief Olu Lulu-Briggs, has declared that there is cause for alarm in Nigeria, with crude oil theft placed at 400,000 barrels per day, accounting for annual revenue loss of over $7 billion.

    He spoke at the maiden Roundtable on Petroleum Exploration, Development and Production at the Hotel Presidential, Port Harcourt, the Rivers State capital.

    The roundtable for O. B. Lulu-Briggs Professorial Chair for Petroleum Geosciences at the University of Port Harcourt (UNIPORT), had as theme: “Sustaining Investments and Reserves in the Face of Growing Challenges.”

    The event was attended by UNIPORT’s Vice-Chancellor, Prof. Joseph Ajienka, who stated that if Petroleum Engineers did not discover the reserves, there would be nothing to produce.

    Ajienka, a Petroleum Engineer, also noted that there were many challenges, both local and global, facing the oil industry, while lauding Moni Pulo Limited, for endowing the Professorial Chair and sponsoring the roundtable.

    The Moni Pulo Chairman, who was represented by the indigenous oil firm’s Executive Vice-Chairman, Seinye Lulu-Briggs, stated that establishing the Professorial Chair at UNIPORT was in view of the premium the company placed on education and continuous learning.

    Lulu-Briggs said: “The rampant cases of crude oil theft, pipeline vandalism and illegal refining have despoiled our environment. No new discoveries in the field of oil. There is a lull in exploration. All activities have been around fields discovered over 30 years ago.

    “The roundtable is a creative attempt to create lasting synergies between academic research and practical solutions that will enhance the operations of the Nigerian and the global oil and gas industy.”

    Lulu-Briggs also stated that with crude oil and gas as the mainstay of Nigeria’s economy, the Federal Government should continue to encourage indigenous participation.

    One of the keynote speakers, who is a Nigerian, US-based don, Prof. Wunmi Iledare, described as stupidity, the Federal Government’s Vision 20-2020, while declaring that Nigeria must go back to Vision 1970 and act like Singapore.

    This was also corroborated by another keynote speaker, Dr. Paul Michael Wihbey, from Washington DC, USA, who stated that the Vision 20-2020 would not happen because of leadership.

    Iledare, who is also the Director of Energy Information Division of the Centre for Energy Studies, Louisiana State University (LSU), Baton Rouge, USA, while speaking, stated that he would be surprised if the current Petroleum Industry Bill (PIB) before the National Assembly would be passed.

    He stated that he believed in PIB 2008, which was amended in 2011, which he described as superior to and better than the PIB 2012, reiterating that he pointed out in 2009 in Abuja that the then PIB would not be passed.

    Iledare said: “Is PIB 2012 pragmatic in its provisions? You cannot wait for technology to be transferred. You either steal it or acquire it. Nigeria will be at the driver’s seat of the economy, if the leaders manage the resources well.

    “The greatest challenge in Nigeria’s oil industry is the non-passage of the PIB, still before the National Assembly. To grow our reserves (of crude oil), the Federal Government must put in appropriate legislation. There is need for rethink.

    “To grow reserves, regulatory agencies must be independent, while institutions must be self-sufficient in their funding. Better leasing process is essential. PIB must promote transparency in the oil industry.”

    Iledare, who is also the President of the International Association of Energy Economists, stated that the Nigerian National Petroleum Corporation (NNPC) must be overhauled and independent, while payment of royalties and rents must be regulated by the Federal Government, without given discretionary powers to politicians.

    The LSU don added that the way out would be transparent, accountable, easy to read and understand fiscal regime.

    While also speaking, Wihbey noted that blood oil, through the rampant cases of oil theft and illegal bunkering, was rooted in the non-passage of the PIB, while depriving the host communities of the 10 per cent equity.

    He said the political will to tackle oil theft and illegal bunkering was essential, while calling for support for the Goodluck Jonathan’s administration, in order to be able to tackle the menace, especially movement against overseas end users of stolen crude oil and arms suppliers.

    Wihbey said: “Illegal bunkering is not a traditional insurgency, but an existential threat to the stability of the country.

    “Nigeria’s Vision 20-2020 will not happen because of leadership. It is up to the leaders and the Federal Government to find a way out of the current political situation before 2015.

    “The Federal Government of Nigeria must find a way out, like Obama did to US economy or find another business, besides crude oil and gas, because crude oil theft is criminal.

    “The inevitable can be avoided. It takes the leadership to see the options and act on the options. Illegal bunkering is a dagger to the economy of Nigeria. The threat should be removed.”

    The Director of the Department of Petroleum Resources (DPR), George Osahon, in his keynote address, stated that there was the need to grow indigenous capacity in the oil industry.

    Osahon, who was represented by DPR’s Head of Strategy and Value Management, Alfred Ohiani, assured that the Federal Government’s agency would continue to encourage indigenous participation in the oil industry, stressing that the indigenous oil firms were doing well.

    The DPR director stressed that regulatory framework for the oil and gas industry must be established, to stimulate reserves growth, while stating that the Federal Government was tackling oil theft and illegal bunkering.

     

  • ‘Cultural festival is alternative to crude oil’

    ‘Cultural festival is alternative to crude oil’

    The Executive Secretary, National Institute for Cultural Orientation (NICO), Dr Barclays Ayakoroma, has said the sure way out of the increasing danger of over dependence on oil and gas is the adoption and repackaging of cultural festivals in line with global best practices. He said over the years, oil exploration and exploitation have not only aggravated pollution and youth restiveness, but have also led to hostage-taking, pipeline vandalisation, oil spillages, communal protests and kidnapping, among other vices.

    He said it was high time managers of the economy looked towards other directions to diversify the revenue generation base, adding that one of such platforms is cultural festivals.

    “They are people-oriented because they celebrate the rich cultural heritage of the community; they are not capital intensive; they create jobs for the teeming unemployed thus ameliorating youth restiveness; and they have the potentials of stimulating the local economy,” he noted.

    Ayakoroma stressed that the revenue generation potential of cultural festivals is enormous unlike the oil sector where there are unwholesome practices by key players as seen in the joint venture operations. He cited inability of government to have direct control of oil quota, the recent oil subsidy scam, diversion of petroleum products by marketers as some of the challenges in oil and gas.

    He spoke at the opening of the fifth quarterly workshop organised by NICO in Lagos last week. The workshop, which was on repositioning Nigerian cultural workers for improved productivity had as theme Cultural festivals as tools for socio-economic transformation.

    In his paper entitled Between Crude Oil and Cultural Festivals: Which Way Nigeria? Ayakoroma said the boundaries of tourism have proved to be very elastic as fresh frontiers, broadened horizons and new perspectives have emerged on the tourist canvas over the years. He said the lexicon of tourism has widened into new areas such as medical tourism, sports tourism, religious tourism, cultural tourism and environmental tourism, which attract more players into the sector.

    “It is true that the original concept of tourist attractions as consisting only of exotic natural scenery is fast changing to include local travels and cross border sight-seeing. This explains the differentiation of domestic and international tourism as windows through which stakeholders can market their economies,” he said. He noted that though culture is the vehicle that drives tourism, most counties of the world now turn to tourism not just as an economic pursuit, but for image interpretation.

    He said having realised the dynamics of tourism industry, many states of the federation are keying into it to tap from its huge potentials. According to him, states such as Akwa Ibom, Bayelsa, Lagos, Niger, Plateau and Taraba have recognised the need to boost their internal generated revenue through tourism and as such embarked on development of tourism products to actualise that. “Kwara state is sourcing foreign and local investors to develop one of its largest festivals, the Patigi Regatta into a world-class event…The state government has constructed a motel, executive lodge and VIP chalets some kilometers away from where the event is staged with a view of making the festival an annual event,” Ayakoroma said.

    He listed some major carnivals and festivals that have become tourists attractions to include Ofala festival, Argungu festival, Osun Osogbo festival, Igue festival, Eyo festival, NAFEST, Abuja carnival, Calabar Xmas carnival and Rivers State carnival (Carniriv).

    In his remark at the opening session, he urged culture workers to tap into opportunities provided at training workshops to improve their productivity. He said such platform is not only significant for individual capacity development but it is also beneficial to the larger society when put to best use. He said there is the need for participants to cultivate effective networking between one another, adding that such networking platform would be useful in the future.

    Director, Training School, Prince Bamidele Olusa reiterated that NICO is focused on repositioning cultural workers in order to identify opportunities and to take actions that would bring positive changes and benefits to the society. “We have a high expectation that this workshop will be very beneficial to each o us, and will be put to best use at our various points of duty. We hope that this workshop will be an enjoyable and productive opportunity for you to meet and discuss various issues with your counterparts from other organizations,” Olusa added.

    The workshop also featured a ten minute drama presentation of a play, The Graduate Plava, written and directed by Dr. Dipo Kalejaiye. Among those who also presented papers at the workshop were Abayomi Oyelola, Oladipo Kalejaiye, Law Ikay Ezeh and Bridget Yerima.

  • Crude oil and progress of Nigeria

    Crude oil and progress of Nigeria

    The importance of natural resources to the growth of a country’s economy cannot be underestimated. A country endowed with natural resources can be considered to be blessed. When these resources are effectively utilised, they can uplift the quality of life of the people of that nation.

    Over the years, crude oil exploration in Nigeria has caused many problems for the people with many saying oil is becoming a curse to Nigeria people. Since 1958 when the nation discovered the black gold in Oloibiri in Bayelsa State, it would be incorrect for anyone to deny its adverse impact on environment, politics and security in Nigeria.

    The revenue we garner from oil approximately accounts for 92 per cent of the nation’s Gross Domestic Product (GDP). But 70 per cent of Nigerians still live below the poverty line despite the nearly $1 trillion the nation has made from oil exports alone since 1970s.

    Nigeria’s crude oil has divided opinion leaders, who expressed that the black gold is blessing and curse, depending on which side of the divide one belongs.

    The people who believed oil is a blessing to the country are obviously the people benefiting from its exploration. They cart away the proceeds from oil to acquire material assets for themselves at the expense of our collective development. This is a pain inflicted by the minority group of people referred to as “political class” on the masses.

    The second category of people who believed oil revenue only enriches the elite and not the crumb of it goes to ordinary people.

    Perhaps, this was the reason why the people trooped to the streets in their thousands to protest the government decision to remove oil subsidy last January. It was trailed by several activities that made Nigerians to become wild and resentful against the government they believed has not done enough to better their lots.

    Nigeria may not recover from various environmental problems that have been caused by oil production. About 1.5 million metric tonnes of oil have been spilled for over 50 years of exploration, making the Niger Delta to be one of the most polluted places on earth.

    Though land degradation, pollution and gas flaring is usually a major phenomenon in many oil producing areas around the world, but the one experienced in the Niger Delta region is pathetic because government has not been forthcoming on when the factors that contributed to environmental calamities will stop.

    Many people have lost their lives in agitation to librate the region from environmental problems. Instead of the multinational companies to parley the communities where they get the oil, they are always at loggerhead with them. Many Nigerians will still remeber the circumstances that led to the execution of Ken Saro-Wiwa with eight other Ogoni activists by the government of General Sanni Abacha.

    More so, oil exploration in Nigeria has largely contributed to civil conflicts, crime and political instability. This can be traced to misappropriation of the proceeds from oil sale. If there is a sole reason for calling for a Sovereign National Conference (SNC), resource control would be it. It is posing a serious threat to the nation’s unity and if not properly managed, it might open another Pandora’s Box for the nation that is still struggling to fight Boko Haram insurgency. It is a paradox that oil wealth that should have been a blessing to us is the source of disunity in the country.

    Economy wise, it is saddening that the overbearing nature of the oil and gas sector has brought redundancy to other sectors of the economy where we used to earn our revenue during the colonial era. Agricultural sector which gave the country fortunes in colonial Nigeria is presently at it lowest ebb. A country that was once a large exporter of food crops and various agricultural produces now imports a large quantity of foods.

    I still remembered how I read it in books and what my father told me about the pyramids of groundnut in the North, cocoa in the West, palm oil in the East and timber and other resources in Sapele. All of these have disappeared in post-colonial Nigeria in the wake of oil exploration. Also, mineral resource like tin, columbite and coal among others that used to generate income for the nation have been forgotten because of the oil boom.

    The future looks dicey for Nigeria, especially for the youth if our leaders fail to positively utilise the proceeds from oil sale. Perhaps, two foremost Nigerian literary icons could have foreseen a strife coming when Prof Chinua Achebe in Things fall apart, foretold Nigeria’s post-independence problems. Similarly, Prof Wole Soyinka authored Climate of fear in 2004, a book that chronicled sundry circumstances that resulted into a quest for dignity in a dehumanised world. It is evident that a climate of fear has enveloped Nigeria as earlier foretold by Soyinka.

    Hopefully, the development of a new generation of leaders will proffer solutions to our problems and change the future of Nigeria. This will happen only if the present generation of youths can uproot the seeds of greed, corruption, tribalism and religious fanatism that are being instilled in them by the actions and inactions of certain leaders in the present.

     

    Akindotun, HND II Welding and Fabrication Engineering Technology, PTI Effurun