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Reserves/ Production growth: Stakeholders advocate collaboration, cost cutting technology

By Ayobami Adedinni

Stakeholders in Nigeria’s Oil  and gas industry have advocated for collaboration between operators, service providers and regulators for the sector to witness the much needed growth.

Speaking at a recent industry event, they also believe that cost cutting is critical to local content development.

According to Managing Director, Shell Nigeria Exploration and Production Company, (SNEPCO), Bayo Ojulari there should be collaboration between the operators and academia.

In his words, “the challenge we have is that the world is moving fast and therefore we must move faster. By now, we should have gone past the stage of having trade or company secrets. We need to look at the model used in Brazil and Indonesia for us to move forward

“When we have collaboration, we will execute projects at half the price and half the time. Once we have the tripod of operators, service providers and government collaborating, investment will come,” he said.

According to him, there should be investment in local capability and capacity adding that the volume of work and economy of scale should be clear.

He said there should also be a movement from short term focus to long term plan and commitment by stakeholders.

“How do you assemble major resources and expertise and then the project finishes and everyone goes. This is not healthy and should not be. Companies must be able to demonstrate and exploit economy of scale,” he added.

In his submission, the Group Managing Director , Schlumberger, Ifeanyi  Nwabogu, said that collaboration between the operator and regulator is below expectation.

In his words, the present collaboration between the operator and the regulator is sub optimal. There has to be collaboration across the industry and the use of technology cannot be over emphasized, “he said.

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