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INTRODUCTIONThe Nigerian oil and gas sector is the primary source of revenue for the government and contains an business worth of about $20 billion. It’s Nigeria’s main source of export and foreign exchange earnings and also a significant employer of labor. A combo of this wreck in crude oil cost to below $50 per barrel and post-election restiveness in Nigeria’s Niger-Delta region resulted in the announcement of force majeure by several international oil companies (IOC) functioning in Nigeria. Even though the above mentioned occurrences contributed to the drag in the Industry, perhaps, the major cause is that the unfruitful presence of the Federal Government of Nigeria (FGN) as the dominant player in the Business (possessing about 55 to 60 percent interest from the OMLs).While, it’s unfortunate that many IOC’s playing in the Industry divested their interests in petroleum mining leases (OMLs) and oil prospecting leases (OPLs) granted to them from the FGN; around the reverse side, it’s a good development that indigenous businesses obtained the divested interests in the affected OMLs and OPLs. Thus, domestic investors and businesses (Nigerians) have the opportunity and significant part to play in the sustainable growth and growth of oil and gas market.This newspaper x-rays the roles due to Nigerians and the extent they’ve successfully discharged . This paper finds that the main factor restricting domestic investors from efficiently playing their part in the sustainable development of the industry is that the presence of the FGN in the business and its own inability to fulfil its responsibilities as a dominant participant in the business.In the first part, this paper discusses the roles of national investors, and in the second area, this paper reviews the challenges and factors that inhibit domestic investors in sustainably performing the identified roles.THE ROLE OF DOMESTIC INVESTORS/COMPANIESThe roles domestic investors play in promoting sustainable development in the oil and gas sector include:Providing CapitalEnhancing Personnel and Technical Capacity DevelopmentImproving Technological Capacity and Transport Supporting Development and Research Supplying Risk InsuranceCapital Injection/ProvisionOil and gas projects and services are capital intensive. Hence, financial ability is vital to drive expansion in the industry. Given the higher involvement of domestic investors in Nigeria’s oil and gas industry, naturally, they’ve been saddled with the responsibility to provide the capital required to drive business growth.At 2012, Nigerians had acquired from IOC’s about 80 of their OMLs/OPLs (30% of their licences) and roughly 30 of the petroleum marginal fields given in the business. Dangote Group is currently undertaking a $14 billion refinery project, partially sponsored by a consortium of banks. Another Nigeria firm, Eko Petrochem & Refining Company Limited, is also project a $250 million modular refinery job. From the midstream sector of the industry, there are many indegenous owned transportation boats and storage facilities; and at the downstream industry, domestic investors are actively involved in the sale and marketing of refined crude oil and its by-products throughout the filling stations located across Nigeria, which filling stations are largely owned and funded by Nigerians.Capital is also needed to finance education and training of Nigerians from the several sectors of the business. Instruction and training are vital in filling the gaps in the country’s domestic technical and technological know-how. Luckily, Nigeria currently has associations solely for oil and gas industry related studies. Furthermore, native oil and gas companies, in partnership with IOC’s, today tackle pieces of training for Nigerians in various areas of the industry.However, funding from the national investors is not adequate when compared to the financial needs of the Industry. This inadequacy is not a part of fiscal incapacity of national investors, but due to the overbearing presence of the FGN through the Nigerian National Petroleum Corporation (NNPC) as a participant in the industry; along with regulatory bottlenecks like pump price regulations that inhibit the injection of funds from the downstream industry.Personnel and Technical Capacity ImprovementOil and gas projects tend to be highly technical and complex. Because of this, there is a high demand for technically proficient professionals. To sustain the growth of the industry, domestic investors need to fill the potential gap through training, hands-on knowledge in the execution of business projects, operation or management of already existing facilities and getting the mandatory international certifications such as ISO certification 2015 and American Society of Mechanical Engineers (ASME) certificate. There are currently domestic businesses which undertake projects like mining and production of crude oil, engineering procurement construction, drilling, fabrication, installations, petroleum by-products transport and logistics, offshore fabrication-vessel construction and repair, welding and craft sales and promotion. Lately, Nigerians engaged in the in-country manufacture of six modules of the Total Egina Floating Production Storage Offloading (PSO) vessel and integration of these modules on the FPSO at the SHI-MCI yard.Specialized Capacity and TransferTechnological capacity in the gas and oil market is primarily linked to managerial proficiency in project management and compliance, the assurance of international quality standards in job execution and operational upkeep. Hence to build technological competency starts with in-country development of management capacities to grow the pool of skilled personnel. A specific research found there is a huge knowledge gap between national firms and IOC’s. And’that indigenous oil firms suffered from basic lack of quality management, limited compliance with international quality standards, and poor preventive and operational upkeep approaches, which lead to poor maintenance of oil centers.’To effectively play their role in improving the technological capability in the business, domestic companies began cooperating with IOC’s in project construction and execution and operational maintenance. For example, as mentioned earlier, domestic firms partnered with an IOC in the successful completion of in-country fabrication of six modules of their Total Egina Floating Production Storage Offloading (FPSO) vessel and integration of the modules on the FPSO at the SHI-MCI yard. Other instances include: the very first assembled-in-Nigeria Subsea Horizontal Xmas Tree and the manufacture; installment of subsea equipment like flexible flowlines, umbilicals and jumpers on Agbami Phase 3 project; Setup of 32km 24″ Sonam to Okan NWP pipeline; the fabrication and load-out of this Okan PRP Topsides; Bridge Fabrication of Okan PRP coat, amongst others.It’s well known that since the enactment of the Oil and Gas Industry Content Development (NOGICD) Act at 2010, all projects executed across the sectors of the Industry have experienced the active participation of Nigerians. The Act ensured an increase in technical and technological capacities, but also a gradual process of technology transfer from the IOC’s into Nigerians. The Act in its own Program booked specific Industry services to national companies. The speed of participation and the quality of services of Nigerians has increased tremendously with the consequence that there are currently many domestic oil servicing companies.