The Nation Newspaper

Tag: OTC

  • OTC: Dickson, Houston Mayor partner to industrialise Bayelsa

    The Mayor of Houston, United States, Sylvester Turner has pledged to collaborate with Bayelsa State Governor, Henry  Seriake Dickson on the industrialisation  of the state.

    A statement by the Chief Press Secretary to the Governor, Francis Ottah Agbo, said Turner gave his word when Dickson paid a courtesy visit to the Mayor to solicit  investment the state.

    He said Dickson applauded the leadership qualities of the Mayor, stressing that his people-oriented leadership has further consolidated the political economy of Houston.

    The governor specifically listed the Agge Deep Sea Port, economic diversification, agric investment opportunities, oil and gas and the utilisation of the abundant gas reserve to catalyse the industrialisation of Bayelsa, as areas where Bayelsa State Government seeks partnership with the Mayor.

    Dickson said he led a strong Bayelsa delegation to attend this year’s OTC, and expressed satisfaction with the event which he noted, gave his government further opportunity to “take Bayelsa to the world and bring the world to Bayelsa.”

    Dickson expressed delight at the success of his visit to Houston, saying, saying he is willing to stage a comeback, to have a closer interaction with the business community. He also solicited the support of the Mayor in enlisting Bayelsa into the World Energy City Partnership.

    The governor also took advantage of his visit to condole with the Mayor and the people of Houston on the January, 2017 havoc caused by Hurricane Harvey.

    Turner appreciated Dickson and his team for the gesture, stating that Houston is the most diverse city in the country and that there are over 150,000 Nigerians resident in the city.

    He mayor promised to support Bayelsa State in line with the governor’s requests. The Mayor solicited  Dickson’s support in getting a Nigerian Consul office to be cited in Houston.

     

  • PETAN unveils OTC programme

    The Petroleum Technology Association of Nigeria (PETAN), which co-ordinates the Nigerian pavilion at the Offshore Technology Conference (OTC) holding in Houston, Texas from April 30 to May 3, 2018, has unveiled activities for the event.

    The association’s Publicity Secretary, Mr Ranti Omole, in a statement noted that OTC is the premier gathering of professionals and opinion leaders in the global oil and gas industry and it provides excellent opportunities for positive portrayal and promotion of the great potentials of Nigeria and the Nigerian oil and gas industry.

    It also provides a unique platform for close interactions with leading international and major Nigerian oil service companies, indigenous oil companies, industry executives, government policy makers and political leaders, to share ideas on improving the Nigerian oil industry, he added.

    PETAN member companies and many other indigenous oil service companies will be part of a robust contingent, to showcase the dynamism and potentials of Nigeria’s petroleum industry. About 2,500 professionals and industry leaders from Nigeria and beyond her shores will attend this year’s event.

    PETAN has been organising and hosting the Nigerian pavilion at the OTC since 2005. The key highlights of OTC 2018 are; 50 years of OTC: Programming, which reflects on our history, the current state of the industry, and what is on the horizon.

    Faster deployment of new technologies: Solutions to reduce the development timeline and create project-ready technologies which meet current industry challenges.

    Cost reducing tools and techniques: Ways to decrease costs and improve overall value, while maintaining high standards for safety, operationability, and reliability. Integrating to innovate: How advanced software, nanotechnology and the digital revolution are integrating disciplines and triggering historic transformation in the offshore energy sector, among others.

    PETAN’s programme of activities: Monday, April 30: opening of the Nigerian Pavilion in the Reliant Centre by the Group Managing Director, Nigerian National Petroleum Corporation (NNPC). The Pavilion will remain open from Monday April 30, to Thursday May 3.

    Tuesday May 1, 11:30 am: Luncheon and panel session at Crowne Plaza Hotel:  Decision makers speak on important and topical issues impacting our local industry. Also by 6:30pm at JW Marriot, Galleria: Nigeria Oil Industry Awards Dinner and Cocktail.Wednesday May, 11:30am, Crowne Plaza Hotel: Technical Workshop.

    Thursday, May 3, 11:30am; Networking Golf Event: Sugar Creek Country Club, SugarLand, Texas.

  • MTI lists shares on NASD OTC Securities Exchange

    Mass Telecom Innovation (MTI) Plc has listed its shares on the NASD OTC Securities Exchange, opening up a new opportunity for secondary trading on the shares of the telecommunication company after it was delisted by the Nigerian Stock Exchange (NSE).

    A regulatory document at the weekend indicated that MTI’s shares have been admitted to trade on the over-the-counter market. Inaugurated in July 2013, NASD OTC Securities Exchange is registered by the Securities & Exchange Commission (SEC) as a Self-Regulatory Organisation (SRO). The NASD OTC provides the platform for trading of a broad range of instruments over-the-counter, including equities, bonds and securities not listed on the Nigerian Stock Exchange (NSE).

    Many leading companies are listed on the NASD OTC including world leaders like Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand and Fan Milk Plc, popular manufacturer of Fan Yoghurts are listed.

    Other companies included NIPCO Plc; Air Liquide Nigeria Plc; Industrial & General Insurance Plc; Central Securities Clearing System Plc; the clearing and depository arm of the Nigerian Stock Exchange; Nigeria Mortgage Refinance Company; Jaiz Bank Plc, the Islamic bank; Acorn Petroleum Plc; Arm Life Plc; Afriland Properties Plc; BGL Plc; Consolidated Breweries Plc and Food Concepts Plc.

    Also included are Geo-Fluids Plc; Golden Capital Plc; Niger Delta Exploration & Production Plc; Partnership Investment Company Plc; Resourcery Plc; Riggs Ventures West Africa Plc; Swap Technologies & Telecomms Plc; Vital Products Plc; Fumman Agric Products Industries Plc; Free Range Farm Plc; FAMAD Plc; AG Mortgage Bank and Trustbond Mortgage Bank Plc, among others. There are also more than 137 registered traders of participating institutions at the market.

    Authorities at the NSE had in May last year, delisted MTI and three other companies that had repeatedly failed to meet corporate governance standards set by the Exchange. The other delisted companies included UTC Nigeria Plc, Beco Petroleum Plc and MTECH Communications Plc. The delisting took effect on May 2, 2017, although the national council of the Exchange had approved the delisting in February 2017.

    The NSE had stated that the delisting was pursuant to Clause 15 of the General Undertaking, Appendix III of the Rule Book of The Exchange, 2015-Issuers’ Rules,  which deals with the post-listing requirements and sanctions.

    The companies were delisted under the compulsory delisting mechanism of the Exchange after their failure to meet post-listing requirements on timely disclosures and corporate governance.

    The companies were delisted for recurring and irredeemable inability to comply with the listing requirements of the Exchange, especially in the areas of timely and accurate rendition of operational and financial accounts and other corporate governance issues.

    The delisting process of some of the companies had started almost two years ago and the authorities at the Exchange had continuously engaged the companies with the hopes that they would regularise their operations, but they had failed to make any convincing move to comply with listing requirements.

  • NASD OTC sanctions three firms

    The NASD OTC Securities Exchange Plc has suspended a stockbroking firm and fined three others in its first major disciplinary action since the over-the-counter Exchange for  unlisted public shares started operations four years ago.

    Inaugurated in July 2013, NASD OTC Securities Exchange is registered by the Securities & Exchange Commission (SEC) as a Self-Regulatory Organisation (SRO). The NASD OTC provides the platform for trading of a broad range of instruments over-the-counter, including equities, bonds and securities not listed on the Nigerian Stock Exchange (NSE).

    A regulatory document obtained by The Nation indicated that the exchange has suspended a participating institution-Pivot Capital Limited while also imposing fines on Pivot Capital and two other firms- Bestworth Assets & Trust Limited and Traders Trust & Investment Company Limited.

    A source in the know stated that the disciplinary actions were meant to send strong signal to the market that the management of the Exchange will not condone infractions.

    Pivot Capital Limited was suspended from trading on the NASD OTC market for failure to settle trade executed on the market within the stipulated time frame  in breach of Rule 2(8)(3)(c) and Rule 2(8)(6) of the NASD OTC. Pivot Capital is also required to pay a fine of N824,501 before it could be readmitted to the market.

    Bestworth Assets & Trust Limited was indicted on two counts of misstatement of information in breach of Rule (2)(5)(8) and non-remittance of proceeds at effluxion of trading cycle in breach of Rule 2(8)(6) of the NASD OTC. The firm shall pay a fine of N900,000 for the first infraction and a refund of interest on withheld proceeds from sale of shares amounting to N52.908.

    In the same vein, Traders Trust & Investment Company Limited, was also indicted on the two counts of misstatement of information in breach of Rule (2)(5)(8) and non-remittance of proceeds at effluxion of trading cycle in breach of Rule 2(8)(6). The firm is required to pay a fine of N340,000 for the first infraction and a refund of interest on withheld proceeds from sale of shares amounting to N19.040.

    Formerly known as the National Association of Securities Dealers, NASD is owned by several investment and financial institutions as well as strategic investors. It is registered by the SEC as an organised trading platform for unlisted securities.

    There are more than 137 registered traders of participating institutions at the market. Also, many leading companies are listed on the NASD OTC including world leaders like Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand; and Fan Milk Plc, popular manufacturer of Fan Yoghurts are listed.

    Other companies listed on the NASD OTC included NIPCO Plc, Air Liquide Nigeria Plc Industrial & General Insurance Plc, Central Securities Clearing System Plc, the clearing and depository arm of the Nigerian Stock Exchange; Nigeria Mortgage Refinance Company, Jaiz Bank Plc, the Islamic bank; Acorn Petroleum Plc, Arm Life Plc, Afriland Properties Plc, BGL Plc, Consolidated Breweries Plc, Food Concepts Plc, Geo-Fluids Plc, Golden Capital Plc, Niger Delta Exploration & Production Plc, Partnership Investment Company Plc, Resourcery Plc, Riggs Ventures West Africa Plc, Swap Technologies & Telecomms Plc, Vital Products Plc, Fumman Agric Products Industries Plc, Free Range Farm Plc, FAMAD Plc, AG Mortgage Bank and Trustbond Mortgage Bank Plc among others. There are also more than 137 registered traders of participating institutions at the market.

  • OTC 2016 attendance, exhibition dip over oil price slump

    OTC 2016 attendance, exhibition dip over oil price slump

    • As NNPC cuts turnout by over 50%

    The global oil price plunge had a negative impact on this year’s Offshore Technology Conference (OTC) attendance and exhibition.

    More than 68,000 from 120 countries attended against last year’s 94,700 attendees from 130 countries, while 2,500 companies participated in the exhibition against 2,682 in 2015.

    The Nation also learnt that due to the dwindling revenue because of fall in oil prices, representations of the Nigerian National Petroleum Corporation (NNPC) and the oil ministry, at the conference, were slashed by over 50 per cent.

    However, there were the usual exchange of ideas and presentation of papers on how to advance scientific and technical knowledge for safe, environmentally friendly operation and sustainable development of offshore oil and gas resources.

    The OTC Chairman, Mr. Joe Fowler, lamented the current industry reality, which is in its second year.  He however, stated that nearly 300 were new exhibitors, and international companies made up 51 per cent of the exhibitors. “As it has since 1969, the world came to OTC to make critical decisions, share ideas and develop business partnerships to meet global energy demands.

    “The commitment from OTC’s volunteers and staff ensured, regardless of the price of oil per barrel, that OTC upheld its unwavering commitment to delivering attendees unparalleled information on new technologies and global developments. Also, revenue from OTC directly benefits the member programmes of its 13 nonprofit sponsoring organizations.”

    OTC 2016 featured 11 panel sessions,24 executive keynote presentations at luncheons and breakfasts, and more than 325 technical paper presentations. Speakers including international and national oil companies; federal and regional government officials; and academic, presented their views on a wide variety of topics, including future industry directions, operational integrity and risk management.

    The industry downturn also affected Nigerian companies that had set up exhibition stands to attract Foreign Direct Investment (FDI) into the country. Besides, unlike last year, the Nigerian pavilion had few exhibitors.

    Kachikwu who was represented by NNPC’s Group Executive Director, Gas and Power, Mr. Saidu Muhammad while opening the Nigerian pavilion said: “There is need for us to look inwards and see how we can optimise cost to reduce the cost of production per barrel so that we can remain afloat.

    “You cannot reduce cost of production if you do not have Nigerian expertise in development of procurement materials.”

    The Chairman of the Petroleum Technology Association of Nigeria (PETAN), Bank Anthony Okoroafor stated that the association in partnership with the NNPC was considering measures to certify the competencies of companies that execute projects in the country’s petroleum industry. He also called for the deployment of about $600 million that has accrued to the Nigerian Content Fund (NCF) for upgrade of the industry’s in-country capacity.

  • FMDQ OTC lists N8b NMRC bond

    Investors in the N8 billion Nigeria Mortgage Refinance Company (NMRC) bond now have a  secondary market to trade on their investments as the FMDQ OTC admits the mortgage bond to its official list.

    The N8 billion NMRC bond carries a coupon rate of 14.9 per cent and due on 2030. The N8 billion bond is part of the company’s N140 billion Medium-Term Note Programme.

    The establishment of the NMRC in 2013 set in motion the course towards homeownership from accessibility to affordable, adequate and quality housing in the Nigerian economy, through the promotion and development of the primary and secondary mortgage markets in Nigeria.

    However, a crucial  aspect in the success of the NMRC model being the raising of finance from the debt capital market through regular and large issuances of bonds. The first tranche was the N8.0 billion that will be listed on the FMDQ OTC.

    FMDQ OTC stated that the high-profile listing of the NMRC also highlighted the financial market development efforts of the over-the-counter market.

  • NASD OTC’s capitalisation drops by N60b to N593b

    The total market value of companies quoted on the NASD Plc, an over-the-counter (OTC) market, declined by N60 billion to open this week at N593 billion. It had opened last week with a market value of N653 billion.

    The NASD OTC was formally launched on July 1 and opened for trading on July 2. Formerly known as the National Association of Securities Dealers, NASD OTC is registered with Securities and Exchange Commission (SEC) as an over-the-counter (OTC) trading platform for unquoted securities; including equities and bonds. The primary aim of NASD OTC Market is to create liquidity for all publicly held securities in a transparent manner, thereby ensuring a standardised price discovery mechanism for the securities being traded

    According to the opening values for the OTC market this week, the total value of the 19 companies on the market currently stands at about N593 billion as against N653 billion recorded in the previous week.

    Major companies on the NASD included Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand; Industrial & General Insurance Plc, Central Securities Clearing System Plc, the clearing and depository arm of the Nigerian Stock Exchange and Jaiz Bank Plc, the Islamic bank.

    Other stocks included Acorn Petroleum Plc, Arm Life Plc, Afriland Properties Plc, BGL Plc, Consolidated Breweries Plc, Food Concepts Plc, Geo-Fluids Plc, Golden Capital Plc, Niger Delta Exploration & Production Plc, Partnership Investment Company Plc, Resourcery Plc, Riggs Ventures West Africa Plc, Swap Technologies & Telecomms Plc and Trustbond Mortgage Bank Plc.

    According to the latest summary on the NASD, the total share capital of the companies on NASD stands at N83 billion.

    As an OTC, NASD applies two models of admission. In the first instance-admission of company, the issuer or company applies to NASD for listing. The company is under NASD regulation. All the shares of the company are accepted into the market. The issuer undertakes that these shares cannot trade outside NASD OTC. This model is well suited for companies which will eventually raise more funding.

    In the second instance-admission to trade, an individual shareholder presents her certificate in an unlisted company to an OTC participating institution. The participants will open the security to trade on the OTC. More individuals will follow suit and eventually create a healthy dynamic market.  NASD is not a direct regulator of the company in this circumstance.  This model is popular with shareholders of unlisted shares who want access to an open transparent and fair public market.

    Currently, 18 out of the 19 securities trading on the NASD are admissions to trade while one is admission of company.

    Also, 13 new traders representing various stockbroking firms were inducted into NASD OTC market last week, bringing the total number of registered traders of participating institutions to 137. The 13 traders are from African Alliance Limited, Apel Asset Limited, Crown Capital Limited, Dominion Trust Limited, Fortress Capital Limited, Integrated Trust and Investment Limited, Nigerian Stockbrokers Limited, Perfecta Investment and Trust Limited and TRW Stockbrokers Limited.

    The traders had completed their membership requirements with the NASD OTC and were inducted to trade in the market.

    Latest summary showed that NASD opened this week with total year-to-date turnover of 120 million shares valued at N2.37 billion in 444 deals.

    Three months after it hit the N1 billion mark total values of trades in September 2014, NASD had two weeks ago announced that it had recorded more than N2 billion trades value.

    According to NASD, the mark is a cumulative effect of and increasing preference investors have for transparency and Participating Institutions recognition of the liquidity the market affords.

    “This number is significant because it represents deals that hitherto would not have been captured by Securities and Exchange Commission (SEC), tax authorities, economic planners and analysts.   The NASD OTC market is therefore creating an opportunity for both institutional and individual investors to accept and use the same data and get a clearer perspective of our investment terrain,” the NASD stated.

    NASD said it recognised the indispensable contributions of  participating institutions, registrars, custodians and all other operators who have started the development of this market noting that while some operators contributed directly by trading through the system, others have been invaluable in testing, fine tuning and advertising the market.

    “We appreciate all players in the OTC market and look forward to more liquidity and transparency in the OTC market in Nigeria,” NASD stated

    Earlier, NASD Plc and CSCS had devised an alternative dematerialisation system that allows investors to deposit their physical share certificates with the CSCS in exchange for a tradable digital account.

    Dematerialisation is the process of converting a physical certificate into a digital account balance at the CSCS, much like the conversion of a physical cash note to a bank account balance. The NASD- the over-the-counter (OTC) trading platform for unquoted securities only trade on fully-dematerialised and freely transferable securities that must have been registered by the Securities and Exchange Commission (SEC).

  • NASD OTC reaches N653b capitalisation

    The total market value of companies quoted on the NASD Plc, an over-the-counter (OTC) market, has risen to N653 billion, according to latest market valuation of the stocks.

    The NASD OTC was launched on July 1 and opened for trading the following day. Formerly known as the National Association of Securities Dealers, NASD OTC is registered with Securities and Exchange Commission (SEC) as an over-the-counter (OTC) trading platform for unquoted securities; including equities and bonds.

    According to the opening values for the OTC market this week, the total value of the 19 companies on the market stands at about N653 billion.

    Major companies on the NASD included Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand; Industrial & General Insurance Plc, Central Securities Clearing System Plc, the clearing and depository arm of the Nigerian Stock Exchange and Jaiz Bank Plc, the Islamic bank.

    Other stocks included Acorn Petroleum Plc, Arm Life Plc, Afriland Properties Plc, BGL Plc, Consolidated Breweries Plc, Food Concepts Plc, Geo-Fluids Plc, Golden Capital Plc, Niger Delta Exploration & Production Plc, Partnership Investment Company Plc, Resourcery Plc, Riggs Ventures West Africa Plc, Swap Technologies & Telecomms Plc and Trustbond Mortgage Bank Plc.

    Three months after it hit the N1 billion mark total values of trades last September, NASD last week announced that it has recorded more than N2 billion trades value.

    According to NASD, the mark is a cumulative effect of and increasing preference investors have for transparency and Participating Institutions recognition of the liquidity the market affords.

    “This number is significant because it represents deals that hitherto would not have been captured by Securities and Exchange Commission (SEC), tax authorities, economic planners and analysts.   The NASD OTC market is therefore creating an opportunity for both institutional and individual investors to accept and use the same data and get a clearer perspective of our investment terrain,” the NASD stated.

    NASD said it recognised the indispensable contributions of  participating institutions, registrars, custodians and all other operators who have started the development of this market noting that while some operators contributed directly by trading through the system, others have been invaluable in testing, fine tuning and advertising the market.

    “We appreciate all players in the OTC market and look forward to more liquidity and transparency in the OTC market in Nigeria,” NASD stated

    Earlier, NASD Plc and CSCS had devised an alternative dematerialisation system that allows investors to deposit their physical share certificates with the CSCS in exchange for a tradable digital account.

    Dematerialisation is the  conversion of a physical certificate into a digital account balance at the CSCS, much  like the conversion of a physical cash note to a bank account balance.

  • Investors stake N79m on NASD’s unlisted securities

    The NASD Over-the-Counter (OTC) trading platform has recorded 42 deals worth N79.12 million on five firms, nearly nine months after its launch.

    Trading summary obtained by The Nation showed that the deals were struck on 248,165 shares of five firms. They include Friesland Campina WAMCO Nigeria Plc, Niger Delta Exploration & Production Plc (NDEP), Industrial and General Insurance (IGI) Plc, Food Concepts Plc and Consolidated Breweries.

    Formerly known as the National Association of Securities Dealers, NASD Plc is a registered over-the-counter (OTC) trading platform for unquoted securities, including equities and bonds. NASD is owned by various investment and financial institutions as well as strategic investors. It is registered by the Securities and Exchange Commission (SEC) as a platform for unlisted securities. The NASD, which was launched on July 1, last year and started trading the following day.

    The trading summary indicated that WAMCO remained the main driver of the OTC platform, accounting for more than three-quarters of market transactions. Besides, WAMCO is the only actively trading stock so far in 2014. WAMCO recorded a turnover of 178,859 shares valued at N71.72 million in 32 deals, representing 76 per cent, 72 per cent and 90 per cent of aggregate deals, volume and value of transactions on the OTC platform since inception.

    The turnover indicated an average price of about N401 for WAMCO, placing the Peak Milk-manufacturer as the second highest-priced stock if it were to be listed on the Nigerian Stock Exchange (NSE). Nestle Nigeria Plc is the highest-priced stock at the NSE with current market consideration at N1, 060 per share.

    Further analysis showed that Food Concepts has recorded two deals for 35,000 shares valued at N47,250. NDEP recorded a turnover of 20,000 shares valued at N6.24 million in four deals. Consolidated Breweries also recorded three deals for 13,312 shares worth N1.11 million while a deal was struck for 1,000 shares of IGI worth N2,500.

    There are 10 firms on the NASD. The other listed companies included BGL Plc, Geo-Fluids, Jaiz Bank, Swap Technologies and Telecomms and Resourcery Plc.

    Several stockbroking firms, which are equally members of the Nigerian Stock Exchange (NSE), have also signed on to the OTC trading. These included GTI Securities, Anchoria Investment Securities Limited, APT Securities and Fund Limited, BGL Securities limited, Capital Bancorp and FCSL Assets and Management Company Limited among others.

    Trading on the NASD OTC is expected to gather momentum as the trading platform steps up efforts to source private placements and unlisted public offerings.

     

    Besides, the NASD would also offer trading platform for shares of companies who voluntarily delisted their shares or were compulsorily delisted by the NSE if they meet the requirements of the OTC.

    NASD recently indicated it has identified not less than 237 public limited liability companies (Plcs) that could potentially list their shares on the OTC platform in the months ahead. These included previously listed stocks on the NSE that were delisted and companies with no prior listing profile. These potential new listings on the NASD included Abplast Products Plc, Abuja Electricity Distribution Plc, Acorn Petroleum Plc, Afam Power Plc, Afcott Nigeria Plc, Afprint Nigeria Plc, Afren Plc, Africana First Publishers Plc, Ag Homes Saving & Loan Plc, Agip Nigeria Plc, Air Liquide Nigeria Plc, Albarka Air Plc, Allied Energy Plc, Alpgam Energy Plc, Anambra Aluminium Products Plc, Antonio Oil Plc, Aoteoil Plc, Arable Crops Development And Marketing Company Nigeria Plc and Arm Plc among others.

  • OTC: local firms’ participation increasing, says PETAN

    •Oil reserves declining

    The Petroleum Technology Association of Nigeria (PETAN), a group of Nigerian firms that play in the exploration, production and service segment of the petroleum industry, has said Nigerian firms’ participation in the oil and gas industry is increasing resulting in indigenous in-country capacity development.

    Its President, Emeka Ene, said the increase was demonstrated by the number of Nigerian firms that attended this year’s offshore technology conference (OTC) in Houston, United States to showcase their offerings to attract investments.

    He said 60 members of PETAN signified interest to exhibit at the conference, but due to lack of space, all of them weren’t accommodated.

    “We have 60 PETAN members and due to lack of space, we were not able to accommodate all our members who signified interest in taking part in this year’s conference. We have 50 of our members in attendance. Beyond PETAN members, we have at least another 50 exhibitors. So, in all, there are over 100 Nigerian companies that exhibited in this year’s offshore technology conference.

    “What has happened is that the OTC pavilion has become a very viable platform for exhibitors to showcase what they are doing in the industry, and also to attract investors to the Nigerian oil and gas industry. It is a very good platform for striking new business deal. Apart from that, it has really portrayed Nigeria in a very positive light,” he said.

    Ene stated that the conference created opportunity for people to meet and interact with serious Nigerian players, business men, entrepreneurs and technocrats who have been in business for over two decades, adding that this is why PETAN is taking this extra step to bring Nigerian companies to exhibit and make new business negotiations.

    “We arranged elaborate programme through the OTC week. We had plenary session where the issues concerning the Petroleum Industry Bill (PIB) were discussed, as well as a workshop with Nigerian oil professionals abroad, where issues in the country’s oil and gas were also discussed. These are ways and means to create a platform for Nigerians to interact concerning the issues in the oil and gas sector.

    On the impact of non-passage of the PIB on operations of PETAN and attraction of foreign investments, he said the PIB is like setting the rules of the game. All stakeholders recognise the need to have the rules set straight and the PIB is set to achieve that.

    The PIB, he noted, tries to set a clear structure for operations in the oil and gas industry putting into considerations that there are laws that are decades old, which are no longer applicable in the oil and gas industry. Every stakeholder in the industry recognises the need for the PIB. It is inevitable that the interest of different stakeholders will conflict. There have been some issues concerning investors taking investment decisions on some projects due to the PIB. The reason is some investors want to understand the PIB. PIB look at the industry in long term and PETAN has found itself on the side of the international oil companies (IOCs) and the side of the government.

    PETAN said by holding the PIB workshop, it was easy to bring the stakeholders to the table to discuss on the need to have the PIB, so as to attract long term investment in the industry, he added. He said the oil that we are producing, was not found yesterday, it was found some decades ago. So, the oil that we will be produced in the next 10 years has to be discovered today, or else, oil reserves will continue to deplete.

    “If you look at the net oil reserve in the country, for the first time, it has started to decline. If the oil reserve is on the decline today, so what are we going to produce in the future? The oil reserve is also a tool to negotiate OPEC quota, if the oil reserve is declining, it is going to be extremely difficult to make case for higher OPEC quota, and it will affect oil revenue to the country. It is in our interest to have the PIB passed. What we are saying is that there is need to pass the PIB because it addresses the concerns of short term and long term investors in the oil and gas sector. It is not just about passing the PIB alone, but a PIB that would encourage investment in the oil and gas sector,” he said.

    He explained the need for Nigerians to adopt the Brazilian model of local content. He said Brazil has built its local content in the last five years, but Brazil’s approach to local content issue is different from the way we operate our local content in Nigeria. We look at how much work is available and we say in the next 50 years, we will build like 100 wells, but in Brazil, they calculate all these things and put them into a mathematical formula and come out with the result.