L-R: David Parkinson, Dr. Layi Fatona, Chairman of Renaissance Africa Energy Company Limited, Roger Brown, CEO Seplat Energy, Dr. Ainojie Alex Irune, MD Oando Energy Resources and Victor Okoronkwo, GMD, Nembe E&P Company Limited as a panel session at NOG Energy Week in Abuja.
…Seplat, a pride to indigenous participation in the oil sector
…Newly acquired Renaissance has increased production to 240000 with 1.9 tcf of gas
…Nembe’s resurgence was due to its resilience
-Felix Douglas
Buttressing his points at a panel session during NOG Energy Week conference, Roger Brown, Chief Executive Officer (CEO) of Seplat Energy, was of the view that indigenous sector is filled with well trained talents especially in Seplat, Shell, Chevron, ExxonMobil and other IOCs. These crops of talents have excelled tremendously in the industry.
He made this known at a panel session titled Harnessing Africa Energy Shift: from Acquisition to Optimisation.
According to him, there is community engagement for prosperity which is significant and implementing Seplat community module and project have been successful.
Roger said petroleum is a long term business and indigenous operators are not quitting the stage. “You cannot run away from your home because it is your home.” It is a long time horizon.
He spoke on the issue of cash call which is a major factor to grow the oil and gas sector.
Roger disclosed that Seplat has five gas plants in Oben and Sapele with huge investments in terms of production and processes 2.5 tcf on daily basis. From the onshore business, the company intends to monetise its gas and supply to NLNG including domestic project. This huge gas project will increase Nigeria’s onshore production and export will transform the oil and gas sector.
He said indigenous players drive is to increase production for the country.
Also speaking at the panel session; Dr. Layi Fatona, Chairman of Renaissance Africa Energy Company noted that there are some elements of indigenisation or independents and one of the strength they have is that they do everything in in-country. Being an indigenous company operating at home gives independents some leverage.
Dr. Fatona posited that when Niger Delta Exploration Company started, the company was accessible and it knows the terrain of its host community. The company did not know people but in contrast the people knew it and that gave it element of access which was fundamental for its business.
The indigenous companies have made humongous progress and they are spreading by acquiring big assets with daily expansion.
These acquired assets are old and require technical knowhow.
“And the most important thing is that we are here and we are not going anywhere.”
The indigenous companies have made significant progress.
Dr. Layi Fatona said Renaissance Africa Energy Company is just 104 days old and has increased production from 140000 barrel per day (bpd) when it took over to 240000 and for the first time in five years, the company was able to deliver 1.9 tcf of gas. This is just the beginning as many things will be done going forward. This is a remarkable achievement for a country that is in need of oil and gas production which has been mandated by the two ministers of petroleum and gas.
“More importantly, we recognize that it is not the speed at which we do it but the diligence and care for people, safety and environment.”
“One of the key things that we have decided that we are going to uphold is doing whatever we do safely with absolute respect for the community, protecting the environment making sure that they do all these in way that we did not compromise given standard.”
The vision of Renaissance is to increase production using all resources at its disposal with partners to achieve the goals.
The company inherited over 1700 staff and more than 5000 contractor staff which have been absorbed as partners.
“We are in a long journey and we are here to stay to deliver the message of government aspiration to increase production, not just in oil and gas, but more importantly we must fulfill all the expectations, respect to the environment, communities and high standard for safety.”
Giving his views at the panel, Dr. Alex Ainojie, Managing Director of Oando Energy Resources, told participants that the price today is, “if we don’t get it right this time, we may never get it right, and for the first time Nigeria has a national oil company that is focused undeterred and it is not distracted.”
But there is need to deal with security and community issues and charity begins from home. This is a symbol of progress that stakeholders must align with. Indigenous player are getting their steps together to move forward and there is need for open dialogue with willingness and alignment to work together and chase the gulf of challenges to achieve the goals.
Presenting his own perspective on indigenous participation, Victor Okoronkwo, Group Managing Director of Nembe Exploration and Production Company Limited stated thus: “We have to get it right because we have no choice and we are here and not going anywhere.”
He spoke on the resilience of the company that Nembe began in 2014 when Aiteo Group bided for Aiteo Exploration and Production Company and successfully it acquired OML 29 with $3 billion which was the biggest investment in the industry at that time.
“Since then, there has been announcement of FID but nobody has been able to put down such huge amount to acquire an asset but Aiteo Group did it.”
Although there were lots of headwind in the industry with regards to Petroleum Industry Bill (PIB), oil price crashed with numerous cases of oil theft. When the asset was purchased, it was producing 25000 bpd but when it was handed over to Aiteo it was previously 14000 bpd. Surprisingly, it improved to 90000 bpd which demonstrated that it has the knowledge and expertise in-country as an indigenous concern.
Unfortunately, the company suffered oil theft and vandalisation. Aiteo operates one of Nigeria’s critical infrastructures of 60000 bpd capacity with five injectors that were affected and production impacted.
It was grossly affected as over a year it stopped production. There was no cash flow and were it not for resilience of its investors and shareholders, Aiteo would have gone under. The company escaped by the whiskers.
Aiteo has rebranded and its Floating Production Storage and Offloading (FPSO), is now Nembe Crude Export Terminal for brand identity. The company faces a lot of challenging in de-risking the asset.
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