OGRepublic August Edition

PETAN Advocates for Extensive Investment in R&D to
Enhance Indigenous Capacity
Petroleum Technology Association
of Nigeria, PETAN, has advocated
for an extensive investment in
research and development to address
capacity barriers that prevent indigenous
companies from meeting the technical
requirements and knowledge to compete
favourably in the Nigerian oil and gas
industry.
PETAN Chairman, Mr. Nicolas Odinuwe,
who was represented by the association's
Conference Chairman, Mr. Chinedu
Maduakoh, said that PETAN is the initiator
of Local Content in Nigeria, and has been
championing the quest for increased local
participation in the Nigerian Oil and Gas
Industry.
He said, "The adoption of the Local
Content Policy as enshrined in the Nigerian
Oil and Gas Industry Content Development
(NOGICD) Act by the Nigerian Content
Development and Monitoring Board
(NCDMB) was commendable, though
more still needs to be done.
LOCAL CONTENT
"Even though some progress has been
recorded in achieving the provisions of the
Local Content Act towards human capital
development and knowledge transfer in
the country, a lot still needs to be done in
areas of aggressive monitoring and
implementation/enforcement by relevant
authorities".
Maduakoh stressed that areas where
Nigerians are to understudy expatriate
personnel in oil and gas service operations
need to be strictly implemented by the
NCDMB to ensure it is carried out as
stipulated in the Local Content Act.
He added that there was also the need to
address capacity barriers that prevent
Chinedu Maduakoh, PETAN's Conference Chairman
Nigerian entities from meeting the technical
requirements and knowledge to compete
favourably in the oil and gas industry.
"There is need for an extensive investment in
Research and Development (R&D) to make the
objective of technology transfer a reality as well
as addressing the gender gaps in the industry.
"PETAN companies and their contractors
employ over 20,000 Nigerians of which over
60% are graduates. This has special domino
effect on the economy through the use of local
inputs, growth of local enterprise and knowhow
which reduce cost and help maintain
standards".
He added that PETAN's massive impact in Nigeria's
Local Content development is evidenced by its over
90 oil and gas service companies offering over
80,000 collateral employment with over 250
technical services including capabilities in Drilling
and Completion, Health, Safety, Security,
Environment and Social Responsibility,
M a n a gement a n d I nfo r m ation, P ro j e c t
Management, Facilities & Construction, Pipeline,
Flowliness & Facilities Production & Operations,
Reservoir Description & Dynamics, Training, Project
Management across the value chain, while not
leaving out linkage sectors such as Catering,
Medical services amongst others.
Oil Accounts for 10 Percent GDP, 86 Percent Export Earnings, says Sylva
Minister of State for Petroleum
Resources, Chief Timipre Sylva, says the
oil and gas sector accounts for about 10
per cent of Nigeria’s Gross Domestic Product
(GDP).
Sylva added that crude oil exports represented
about 86 per cent of total export earnings,
while the actual government revenue from the
sector is 40 per cent.
The minister stated this while delivering the
Graduation Lecture of the National Defense
College Course 29, entitled, “Enhancing Digital
Technology in the Oil and Gas Sector of Nigeria
for National Development” in Abuja.
He said Nigeria, with more than 200 million
inhabitants, remained the most populous
country within the Organisation of Petroleum
Exporting Countries (OPEC).
According to him, the country has proven crude
oil reserves of 37 billion barrels; production
capacity of 2.5 million barrels per day; and
actual crude oil production of about 1.5 million
barrels daily.
“It is the largest crude oil producer in Africa and
holds the largest natural gas reserves on the
continent.
“The country has proven natural gas reserves of
206.53 trillion cubic feet; and average
production of about 7, 575 million standard
cubic feet per day (mmscfd).
Sylva said oil and gas occupied a central place in
Nigeria’s development equation, being a big
producer and marketer of the products.
He said Nigeria, like other oil producing
countries, must continually device imaginative
and sustainable ways of deriving the greatest
value from its oil and gas resources, given the
declining global appetite for fossil fuels, and
price volatility.
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