Shell Nigeria Urges Policy Consistency

The head of Shell’s Nigerian production business used a February 22 speech at the West African International Petroleum Exhibition and Conference (Waipec) to call for greater consistency in government policies.

Shell Nigeria Exploration and Production Company (Snepco) managing director Bayo Ojulari, appointed in late 2015, also told the Lagos gathering that greater use of local content could improve upstream efficiency.

He set out six gave six conditions under which the industry can thrive: stability and consistency of government policies; a proper channel between suppliers where monopoly gives way to excellence; investment in local capacity and capability; work volume and economies of scale to be clearly established and properly undertaken; greater standardisation and simplification of projects; and cooperation among operators to reduce long-term operation costs.

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Experts midway through the two-day conference, which began February 22, agreed that collaboration between service companies, operators and the government is key to maximising the industry's full potential. A parallel exhibition began February 21.

Delegates heard from NNPC Group Managing Director, Maikanti Kacalla Baru. His envoy, Siky Aliyu, head of NNPC subsidiary National Engineering & Technical Company, said that all oil and gas companies need to form a synergy to withstand current harsh market conditions: “In business, you don't get what you deserve, you get what you negotiate. It is imperative therefore that we work together to help combat low oil price business environment.”

Catherine Uju Ifejika, CEO of Nigerian independent producer Brittania-U (pictured above), however said it was a shame that Nigeria had done so little with its gas resources.

"We focus too much on oil when our gas production bests our oil four to one,” she said, calling also for the country’s gas infrastructure to be upgraded in order to better monetise its resource base.

“Gas to liquids, which is a cash cow, has been neglected due to inadequate infrastructure, " she said, apparently referring to the Chevron-run Escravos GTL launched in 2014. Brittania-U owns and operates the Ajapa field on block OML 90, with a 10,000 barrel/day barge-mounted production facility.

Bank-Anthony Okoroafor, chairman of Petroleum Technology Association of Nigeria (Petan) which organised Waipec, said it was the first such event organised for and by the industry.

Omono Okonkwo, Lagos