..As indigenous firms tackle IOCs on vendor registration
The signing of the Petroleum Industry Act (PIA) has finally opened doors for new investment as International Oil Companies (IOCs) are set to take Final Investment Decision (FID) on five major projects in the upstream sector of Nigeria’s oil and gas industry in 2022. This includes Owowo,Bonga South West, Bonga North-Shell, Kowe and Aparo.
The Group General Manager (GGM) National Petroleum Investment Management Services (NAPIMS), Engr. Bala Wunti representing Chief Executive Officer, NNPC Upstream, Mr Adokiye Tombomieye at a panel session of ongoing Practical Nigerian Content said the FIDs for these five exploration projects were suspended following uncertainty over the passage of PIB and insecurity in the Niger Delta. According to him, investment inflow will increase in the country from next year as the multinational firms take FIDs on five out of several other projects suspended.
“The PIA has terminated sustained decline in activities from 1999 till date,” he assured.
Before the signing of the PIA by President Buhari, planned projects in Nigeria, which are expected to add about 1.124 million barrels per day to the country’s crude oil production, were either deferred or suspended due to the low crude oil prices and the delay in the passage of the PIB.
The various projects, which were under consideration before signing PIA, are Chevron’s Nsiko 100,000 barrels per day (bpd) offshore deepwater project, ExxonMobil’s Uge 110,000bpd deepwater project; Satellite Field Development Phase 2 project belonging to ExxonMobil; Bosi 80,000bpd crude oil offshore deepwater; Eni’s 120,000bpd Zabazaba-Etan offshore deepwater project.
Others are Bonga Southwest and Aparo 2250, 000bpd operated by Shell Nigeria Exploration and Production Company, SNEPCo; Total’s Egina 200,000bpd offshore deepwater project and Shell’s Bonga North 100,000bpd offshore deepwater project.
Wunti added, “Life is back in Nigeria’s oil and industry with more activities and jobs to be created by PIA.”
In response to a question by one of the delegates, Wunti explained that qualified indigenous service firms will benefit with the FIDs.
During the question and answer session, the Managing Director, Coleman Cables & Wires, Mr George Onafowokan had lamented that the shutdown of Vendors Registration portal by IOCs has prevented companies that acquired capacity from getting new upstream service contracts. He raised the fear that as the FIDs are coming up, indigenous companies that built capacity may end up losing out if this is not addressed by NNPC as the lead partners to IOCs.
The Executive Secretary Nigerian Content Development and Monitoring Board (NCDMB) Engineer Simbi Wabite urged management of NNPC Limited in collaboration with the partners to live by the promise as a commercial entity by ensuring that the FIDs come on stream. He said the new NNPC will be much more transparent, disciplined with no government interference to maximise profit which will make all Nigerians to subscribe to its shares.
The Chairman Shell Companies in Nigeria, Mr Osagie Okunbor responded that Shell Companies will abide with the rules as corporate firm operating on good governance.