Dr. Layi Fatona, Chairman, Renaissance Africa Energy
…Ogbele was the bridge from a single field operator to a respectable national player.
…Renaissance will sprawl four new super majors in Nigeria.
-Felix Douglas
The Nigerian Association of Petroleum Explorationists (NAPE) golden jubilee was celebrated to commemorate the legacy of the association past 50 years. It reflects renewed commitment to innovation, inclusiveness and national relevance.
Fifty years, a group of visionary Nigerian geoscientists came together to build an institution dedicated to excellence, professionalism and national development.
Dr. Layi Fatona who has had over five decades of experience in the oil and gas industry, a distinguished Geologist, partner, entrepreneur and highly respected thought leader in Nigeria’s oil and gas industry has been at the forefront of transformation for Nigerian energy landscape, advocating for the emergence and empowerment of indigenous operators and inspirational production sector.
He referred to the 50 years of NAPE as five decades of ideas, innovation and unwavering resonance in the oil and gas industry. He was of the view that the NAPE anniversary is an opportunity to share a story.
Explaining further, the Renaissance Chairman shared the story of the emergence of a marginal field which he said runs in parallel with NAPE. He called it NAPE’s own story.
“It’s a story of how a small idea born in the meeting rooms and nurtured by bold thinking grows into an enterprise of fundamental significance.”
He said the origin of an early vision is quite touchy and referred to late 1988 after he had left Shell three years later and was with Geotrex System Limited, an endearing consulting entity.
Geotrex was the only oil and gas company that was in the Island. Continuing, Dr. Fatona said in 1988 he drafted what became known as Marginal Development Council through an office memo which was a vision for indigenous operators to take charge of small overlooked oil fields and make them productive.
“We dreamt then of what we call Geotrex Exploration and Production Company Limited, but that never happened.”
In 1989 NAPE presented a special paper at the Department of Petroleum Resources (DPR) seminar now Nigerian Upstream Petroleum Regulatory Commission (NUPRC), on statutory control of the oil industry in Nigeria. This was a public declaration.
“The politics of this period was very charged. Dr Adegbola was the Chief Geophysicist at Shell when the paper was written. We couldn’t deliver it because it was not politically correct for the Chief Geophysicist of Shell to stand in an audience and talking about how to bring change to an industry that was essentially International Oil Companies (IOCs). So the lot fell on somebody else to deliver that paper.”
According to Dr. Fatona, he had left Shell to an open environment where he was free to deliver the paper.
The paper called for a drastic change and gives indigenous companies a chance to be part of the oil and gas industry in Nigeria.
However, in 1996, another veteran professional in the oil and gas industry, Dr. Ebi Omatsola, delivered a classic paper on monumental reserves, confirming the basic potential that indigenous capacity was key in unlocking it, that there were over 200 odd unattended fields in Nigeria waiting to be developed.
This was beginning of the story of marginal fields in Nigeria.
The Ogbele Field
Gulf Oil Company now (Chevron) entrusted some fields into the hands of Nigerians who had no track record at that time.
Speaking further, Dr. Fatona thanked Chevron for entrusting the Ogbele field into the hands of an unknown Nigerian entity.
The Ogbele field which was later known as Niger Delta Petroleum Resources, presently, it has metamorphosed to Aradel Holdings.
At inception, Chevron gave 12 fields which excited pioneer potential indigenous operators. However, Dr. Fatona revealed that it was joyous news but the financial wherewithal was a herculean task for the beginners.
Hence he told his colleagues that from his exploration upbringing 12 fields are awesome, “let us take a positive decision about what we really want.”
Notwithstanding, 2 fields were chosen and 10 fields were returned to Chevron. This was the story of marginal field development while others took the other 10 fields.
Eventually, Ogbele field was developed and brought into production with 20,000 per day flow station and crude storage facilities that has gas field.
Further more 100 million standard cubic feet (scf) gas processing plant by 2010 which was at the beginning of domestic gas activity.
Aradel was one of the first indigenous companies to deliver gas to Bonny NLNG delivering only 1% of the volume that is processed every year.
Dr. Fatona explained that between 2010 and 2020, there was need to start a refinery. Aradel built the first 1000 barrels per day refinery and the capacity increased to 11,000 barrels per day.
After success of Ogbele field, there was need for divestment and the next move was Oil Mining Lease (OML) 34 acquired from Shell, TotalEnergies and Agip in partnership with NNPC.
OML 34 had substantial domestic gas to Escarvos Lagos and West African gas pipeline with other existing gas based industry and power plants.
Dr. Fatona made it clear that IOC divestment is not a retreat. “It is a strong and positive realignment which created opportunities for Nigerians.”
“IOC is the gold water, Nigeria independents came to try to dominate onshore and shallow water, fast, efficient and with the sense of national vision that was delivered.”
“This was the bridge from a single field operator to a respectable national player.”
The Renaissance Africa Energy
Dr. Fatona referred to Renaissance Africa Energy (REA) story as “ultimate uncharted aspiration.”
It sounded impossible to buy Shell but presently, that dream stands as REA, Nigeria’s first indigenous, integrated and super nature.
Today, Ogbele is no longer a marginal field, but a significant, integrated business. It produces almost 20000 barrels a day delivered more than 60 million scf gas to Bonny NLNG on daily basis.
The Renaissance Chairman extolled the outstanding performance of Aradel management as they have been able to hold fort while keeping the sprawling company growing from strength to strength.
The first four months of REA, production went up by more than 200,000 barrels a day. This is an awesome achievement.
REA at present comprises of ND Western, Aradel Holdings, Waltersmith, First E&P and Petrolin. This is trust worthy partners coming together as one.
Dr. Fatona made it known that one thing is essential in the birth of REA which is native intelligence. In other words, learn how to pay your debt.
“If you borrow money from Nigerian banks, and you don’t pay back, you spoil market for others.”
The next 40 to 50 years, the human capital that will drive the future of the industry has to be cultivated. This is an important subject matter for stakeholders in Nigeria.
Dr. Fatana believed that in the next 25 years, the road ahead is that Nigeria will become energy secured independent.
“I see Niger Delta as Africa’s energy hub, I see four new super majors coming out of Nigeria.”
These majors will be private sector driven. “They will build the next East-North Africa gas pipeline operations in addition to what we have now.”
“This is not a corporate talk but a NAPE story which proves that our ideas actually find oil and gas.”
It’s turned into energy of prosperity, and at 50; NAPE has talent, networks and courage to lead Africa’s energy future.
He urged professionals and members of NAPE to move forward together not just as explorers of petroleum, but as architects of a sustainable energy landscape.
Earlier, Dr. Akomeno Oteri also referred to as 001, first President of NAPE made this assertion: “It looks quite a short one but is long in my eyes. First of all, we should thank God for his grace which allows us to be present at this 50th anniversary, because then in 1975 we never knew, but for the grace of God, we will not be present today.”
“NAPE has grown beyond any imagination I had at that time, and this is because of the support of various executives, members, fellows and other organs of the association that have widened the scope of work to grow the society to be what it is today.”
“The celebration is for each and every one of us, celebrating our contribution to making the society what it is today, and it’s my hope that in the next years to come, the association will continue to grow.”
Also giving his remarks at the 50th anniversary was Chief Chamberlain Oruwari Oyibo, referred to as 002, second President of NAPE.
Chief Oyibo pointed out that initially earth science was based in Enugu, Jos and Kaduna. Enugu was the headquarters of Coal Corporation. Coal was being mined, exported and used for power generation. In the eastern part of the country, power plant was fired by coal. Coal was also being used to power engines. Jos was the mining city in Nigeria and it was rich tin while Kaduna was the center of geological society.
He added that Port Harcourt was the centre of oil production before the civil war. After the civil war, pioneer founding fathers of NAPE were in Lagos looking for opportunities to associate and enhance their professional career.
The Nigerian Mining and Geosciences Society (NMGS) was based mostly in some of the aforementioned states.
The first meeting was held with the pioneer President of NAPE, Dr. Oteri and most of the prospective members were young in their twenties working with the IOCs.
Chief Oyibo said the IOCs encouraged people to join American and British associations because they were members. Incidentally, they were also their bosses and were not encouraging them to start any indigenous society or associations nor given time to attend such meeting.
Eventually, the founding fathers met and started NAPE.
Chief Oyibo was glad that the association that started in 1975, has grown to a reasonable level.
“All the things that we wanted to do have been done, but in those days, on Saturdays, we met in our houses.”
For 50 years, we’ve gone far and there was change of name. Those who changed the name had foresight.
As an octogenarian, Chief Oyibo, wished the young members well to continue to project NAPE in good light and make the association to be useful to Nigeria’s economy and the oil and gas industry.
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