PETAN mulls partnership with Aradel on cost-saving measures for oil production
The Petroleum Technology Association of Nigeria (PETAN) has sought the partnership of Aradel Plc and other indigenous oil producers to develop cost-saving measures to ramp-up oil production in the country.
This move was disclosed when a delegation of PETAN led by the Chairman, Engr. Wole Ogunsanya, paid a courtesy visit to the Chief Executive Officer of Aradel Plc, Mr. Adegbite Falade in Lagos on Tuesday, July 30, 2024.
Speaking, the PETAN Chairman lamented that, “Nigeria’s cost of production compared to many countries is too high and at PETAN, we feel that we have the responsibility to bridge the gap of cost production and cost of sales through collaboration with the government, the regulators and producers like you. In the next few years, nearly 70 percent of onshore assets will be owned by Nigerians, and PETAN has the strategy to maximise the footprints from these assets through a well-articulated partnership model that integrates funding strategies and cost-saving technologies and know-how.”
Engr. Ogunsanya stated that PETAN members with decades of experience in the industry, have all the equipment required to boost oil production in the country.
Realising that all hands must be on deck with the Presidential mandate to revamp the economy through increased oil production, Engr. Ogunsanya pledged PETAN’s all-encompassing and overreaching capacity which its members have garnered over the decades on the local content journey to ramp up oil and gas production for the country at reduced costs of drilling and production.
He added that PETAN would like to have an MOU with Aradel in order to pursue and realise the partnership. Finally, he stressed the need for all stakeholders to work towards eliminating the existence and impact of portfolio companies in the industry. He ended his remarks by informing the management of Aradel that PETAN would be 30 within the year, while soliciting the support of Aradel to host the event.
The PETAN delegation was warmly received by the Managing Director/CEO of Aradel Holdings, Mr. Adegbite Falade, in company of some members of the Board and management of Aradel, including the Independent non-executive Director former of Aradel, Ms. Patricia Simon-Hart.
Responding to PETAN’s submissions, Mr. Falade expressed delight that PETAN remains a dependable partner in the oil and gas industry, noting that it was gratifying to hear the aspirations of PETAN, which aligns with the Federal Government’s vision, and by extension, other operating companies in the industry, including Aradel.
“From our humble beginnings, we have progressed to greater levels in oil and gas production and processing than earlier anticipated,” adding that “with a good number of divestments that are about to be concluded; presenting opportunities in the industry and to be run by Nigerians for Nigerians, there is a greater need for synergy between the new operators, including Aradel and PETAN as technical oilfield services providers.”
Continuing, he assured that Aradel is committed to deepening the existing working relationship with PETAN members in providing critical services to the organisation.
He congratulated and thanked the newly elected executives of the Association who have renewed advocacy around helping Nigeria recover from recurrent losses on oil production levels and revenues, and for offering their services and expertise as experienced professionals in any capacity across the value chain of the oil and gas industry.
