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‘Egina, Pushing Nigerian Content Frontier’

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Being a text of a keynote address by the Deputy Managing Director, Deep Water, Total Upstream Companies in Nigeria, Mr. Ahmadu-Kida Musa, at the Nigeria Oil & Gas Conference & Exhibition (NOG) 2018, held at ICC, Abuja, July 2, 2018.
The theme of this
seminar,  “Nigerian Content: The Next Frontier” is relevant for understanding the need to drive the Nigerian oil and gas industry towards sustainable development and growth. It is also an opportunity to discuss important issues the industry may be grappling with as it tries to assume a more local approach in its activities.
I am, therefore, rather delighted to speak about the modest Nigerian Content efforts at Total and what is seen as the next frontier for the industry in terms of in-country activities. You must, however, forgive me, if you find that, in the course of my speech, I keep returning to my current favourite subject, namely, the Egina Project.
Egina Project was sanctioned in 2013, three years after the Nigerian Oil and Gas Industry Content Development Act was signed into law, but It is important to look back at where the sector was to enable us appreciate achievements recorded.
And today’s achievements will be the second part. I will look at the Industry’s post-NOGICD response and what progress was made in advancing Nigerian Content.
The last part will focus on the next frontier for the industry in this area and, with that, we shall wrap up this conversation on a subject I find very interesting.
PRE-NOGICD ACT 2010
Until a few decades ago, the key players in almost all the key sectors of Nigeria’s oil and gas industry were the international oil companies. From exploration to production, refining and trading, the main actors were foreign multinationals.
Oil blocks and assets were owned by foreign oil majors and oil service contracts for engineering, drilling, wireline logging services, supply of safety equipment, construction & fabrication, etc. were largely awarded to foreign owned companies. All these companies were, of course, managed by foreign personnel especially for technical positions. Many project teams were based abroad and only a few Nigerians were lucky enough to be trained abroad or to work abroad, to acquire the relevant technical knowledge and experience necessary to take up key positions in Nigeria.
But by the 1990s, Nigeria joined other emerging economies who sought to take ownership and control of their natural resources for exploitation and transformation into economic development.
To achieve this, some of these emerging economies began to formulate policies and legislation that would compel economic actors to adopt policies that promoted local over foreign.
In 2005, Nigeria took what many analysts consider the most significant step towards Nigerian Content by introducing what was known as the Local Content Policy. As you well know, the main thrust of this Local Content Policy was to promote a framework for which local competencies in the oil and gas sector will be developed through the active involvement of Nigerians using local resources.
The intention of the government, at the time, was to use the local content Policy as a means of discouraging capital flight in the oil and gas industry.
At that time, the Nigerian Government’s Local Content Policy implementation was administered by guidelines issued by the regulatory agencies such as the Department of Petroleum Resources (DPR) and the Nigerian Content Division of the Nigerian National Petroleum Corporation (NNPC).
With this, the industry started to take some steps to embrace Nigerian Content. Some partnered with local contractors on low-risk projects because of concerns about quality and the availability of local capacity. Others embarked on some capacity building efforts, setting up training schools or supporting the upgrade of local yards to manage certain workscopes. Indeed, it has been said that before the Nigerian Oil and Gas Industry Content Development Act came into effect, many industry players approached Nigerian Content as a matter of Corporate Social Responsibility.
Nigerian content was carried out at the discretion of the individual company and often dependent on availability of funding and previous experience with local contractors and partners. Nigerian Content was not really seen as an obligation by many operators. It was often something that was done as an expression of goodwill.
However, there were of course some companies that realised that developing local competencies was a key to sustainability in the future.
It was during this pre-NOGICD period that Total decided to invest in the establishment of a world class petroleum training institution right here in Nigeria; showing its commitment to capacity building and the development of Nigerian Content.
The Institute of Petroleum Studies (IPS), Port Harcourt, was established in a unique tripartite collaboration with the University of Port Harcourt, Nigeria, the French Petroleum Institute, IFP, France and the NNPC/Total E&P Joint Venture.
The institute has consistently produced highly skilled manpower equipped with both the intellectual and technical competencies required in the oil and gas industry. Since its establishment in 2003, IPS has produced over 400 Master of Science graduates and about the same number of Engineering Diploma degree holders; many of whom have filled key positions in various oil and gas companies in Nigeria!
On Total’s projects, Nigerian Content was already a major component before the NOGICD ACT. The Akpo Project, which was sanctioned in 2005 recorded a cumulative Nigerian Content performance of 44%. In 2008, the FID was taken on the Usan Project and by the time the project was completed, the Nigerian Content record had climbed up to 60%.
The point here is that even before Nigerian Content became a matter of law, some in the industry were already on board
POST-NOGICD ACT 2010
On April 22, 2010, the way the business of oil and gas was done in Nigeria changed. That was the day the Nigerian Oil & Gas Industry Content Development Act was signed into law. And the industry, which had already started to embrace the objectives and ideals of Nigerian Content, needed to double its efforts.
The NOGICD Act ushered in an era where in-country value became the focus. With the government now leading the charge with legislation and efficient monitoring through the NCBMB, things began to change more rapidly.
The underlying philosophy and objectives of Nigerian Content today include a focus on:
In-country competency development,  technology development ,   job creation, revenue retention, research and developmentas well as  industrialisation.
The relationship between the Nigerian Content Monitoring & Development Board (NCDMB) and the Industry is that of partners who understand that their goal is the same: local capacity means more robust bottom lines for the Industry and more value for the country as a whole.
In this context, more Nigerian owned engineering firms as well as construction and fabrication yards became more visible as important players in the industry. Many of them became strengthened to participate in FEED and eventually improved capacity fabrication yards began to compete for major development projects.
I must add though that a lot of oil and gas Companies were sceptical of the final destination of this new found impetus by Nigeria on local content.

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Rivers PETROAN Elects 12-Member Executive 

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The Petroleum Products Retail Owners Association of Nigeria (PETROAN), Rivers State Branch, has elected a 12 – member executive to steer the affairs of the association for the next four years.
The executive, elected during the Annual General Meeting (AGM) of the association, at it’s secretariat in Port Harcourt, and sworn in immediately after the election, was mandated to, among other things, tackle the adulteration of petroleum products as well as address irregularities in meter readings across the state.
The newly elected executive include, Pastor Ezekiel I. Eletuo  as  Chairman,  Kanu Addeson C. as Vice Chairman , Dr. Ejike Jonathan Nnbuihe as Secretary,  Fidelis A.Inaku as Treasurer and Lady C. N. Ekejiuba as Financial Secretary.
Others are Anaenye Anthony as Publicity Secretary, Arc. Kingsley O. Anyino as Organising Secretary, Nze Peter Ezenwa as Chief Whip, and Sunny Williams as Auditor.
Other members of the executive included Chidiebere Ronel Akwara as Welfare Officer, Ibe Chimaobi C. as Legal Adviser, and Emetoh Chizoba as Assistant Secretary.
Inaugurating the new leadership, PETROAN Zonal Chairman, High Chief Sunny G. Nkpe, charged the team to build on the achievements of the outgoing executive.
He urged them to collaborate with stakeholders in the petroleum sector to ensure industry stability and address issues of multiple taxation.
Nkpe who emphasized the need for transparency, accountability, and an open-door policy in administering the union, insisted these principles remained crucial in advancing the association’s objectives and improving members’ welfare.
The zonal chairman also commended the outgoing executive for their accomplishments during their tenure and for conducting a smooth transition process.
He further described their efforts as instrumental in strengthening the union’s standing in the state.
In his acceptance speech, the new Chairman, Pastor Ezekiel I. Eletuo, thanked members for their confidence and pledged to improve on the foundations laid by the previous administration.
He promised his leadership would be guided by transparency, accountability, fairness, unity, and integrity.
Eletuo called on all members to support the new executive in its efforts to elevate the association.
Also speaking, the immediate past Chairman, of the association, Sir Chilam Francis Dimkpa, expressed appreciation to members for their support during his administration and stressed the need for them to extend the same cooperation to the new leadership.
Dimkpa highlighted key achievements of his tenure to include capacity building for members, increased union visibility through media advocacy, and the establishment of stronger ties with stakeholders, corporate organisations, and individuals.
He also acknowledged the support of the state government, the Police, the Department of State Services (DSS) and the Nigeria Security and Civil Defence Corps (NSCDC).
Stakeholders present at the event also delivered their goodwill messages.
Highlights of the event included  administration of oath of office to the new executive and the presentation of certificates of return by the zonal chairman.    .
By: Amadi Akujobi
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FG Intensifies Efforts To Reposition Tourism Sector 

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The Federal Government has intensified efforts towards reposition Nigeria’s hospitality and tourism industry for global competitiveness, aimed at strengthening regulation, professionalism and workforce standards across the sector.
This was made known last week when the National Institute for Hospitality and Tourism (NIHOTOUR) conferred  fellowships, inducted professionals and inaugurated the governing boards of the Hospitality and Tourism Sector Skills Council of Nigeria (HTSSCN) in Abuja.
The high-profile event, held at Merit House, Maitama, drew senior government officials, regulators, tourism operators, cultural institutions, hospitality investors and development partners in what stakeholders described as a major institutional shift .
Government also formally inducted registered practitioners into various professional categories while also inaugurating the Board of Trustees and Board of Directors of the HTSSCN, an employer-led platform designed to align workforce competencies with industry expectations.
Speaking at the event, the Minister of Art, Culture, Tourism and the Creative Economy, Hannatu Musa Musawa, said the initiative represented a strategic intervention to strengthen accountability, standards and institutional coordination within Nigeria’s tourism and hospitality ecosystem.
According to the minister, Nigeria’s vast cultural assets, tourism destinations and creative talents can only translate into sustainable economic value through professionalism, regulation and globally accepted operational standards.
She noted that tourism and hospitality industry remains one of the fastest-growing sectors globally, contributing significantly to employment generation, foreign exchange earnings and cultural diplomacy.
Musawa explained  that NIHOTOUR Establishment Act has expanded the institute’s mandate beyond training, positioning it as a regulatory and certification authority for hospitality, tourism and travel practitioners in the country.
“No sector can attain sustainable growth without structure, standards, institutional coordination and skilled professionals,” she said, stressing the need for stronger collaboration between government agencies, operators, training institutions and private sector stakeholders.
In his keynote address, the Director-General and Chief Executive Officer of NIHOTOUR, Abisoye Fagade, described the event as a historic turning point in the formalisation of Nigeria’s tourism and hospitality industry.
Fagade said the induction of practitioners, conferment of fellowships and inauguration of the HTSSCN governing boards marked the beginning of a new era of institutional governance, professional recognition and sector-wide coordination.
“Regulation and standardisation are no longer optional; they are economic necessities if Nigeria truly intends to compete globally,” he stated.
By:  Nkpemenyie Mcdominic, Lagos
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Big Oil Reconsiders Previously Unattractive Destinations

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The Middle Eastern crisis has prompted a reprioritization among international oil companies. Previously unattractive drilling destinations are suddenly looking quite attractive—even Alaska.
The oldest oil and gas producing part of the United States has for years been out of the spotlight as the industry moves to cheaper and faster-growing locations. The only news of any substance about Alaska recently was the Biden administration’s approval of the Willow project, led by ConocoPhillips, which was set to boost the state’s oil output by 160,000 barrels daily, and Australian Santos’ Pikka project, set to start commercial production this year. That was years ago. Now, Big Oil is eager to drill in Alaska.
Earlier this month, a lease sale in the National Petroleum Reserve in Alaska attracted record bids, worth a total $163 million. Among the bidders were Exxon, Shell, and Repsol, with the latter already partnering with Santos on the Pikka development. And this may be just the beginning.
Related: Saudi Aramco Looks to Raise $10 Billion from Real Estate Asset Deal
The Bureau of Land Management offered 625 tracts across about 5.5 million acres for bid in the sale, revived at the end of last year by the Trump administration. No lease sales were held in the National Petroleum Reserve in Alaska under President Biden. Yet under Trump’s One Big Beautiful Bill, there will be a total of five lease sales in Alaska over the next ten years.
“With the imminent start-up of the Pikka project on the North Slope, the reversal in the decline of oil production in the great state of Alaska is going to help put more oil in the Pacific area at an important moment,” Repsol’s head of upstream operations, Francisco Gea, said as quoted by the Financial Times. Gea called Alaska “a fantastic opportunity”. The Pikka project, which has a price tag of $4.5 billion, will produce up to 80,000 barrels daily.
It is indeed a fantastic opportunity, at the very least because it is nowhere near the Middle East and as such is a highly secure energy exploration destination. Canada is in a similar position, by the way: the head of the International Energy Agency earlier this month told an industry event Canada had a golden opportunity to step in as a secure energy supplier in a world that’s currently 14 million barrels daily short on supply because of the Middle Eastern crisis.
Security, then, is what has prompted Big Oil to return to the North—even Shell, which left in 2015 after writing off as much as $7 billion on an unsuccessful drilling campaign hampered, among other things, by strong environmentalist opposition. According to the Financial Times, the supermajor’s decision to partake in the latest Alaska lease sale was surprising for analysts.
However, according to chief executive Wael Sawan, the lease sale concerns a different part of the state. “It is a very, very, very different part of Alaska that we have gone to,” he told the Financial Times. “This is an onshore exploration opportunity in a very well-established basin that has been producing for some time… So this is not offshore Alaska where we have had the challenges in the past.”
Crude oil is not the only thing drawing the energy industry to Alaska in these times of oil and gas trouble. Gas is also a magnet—in this case, in the form of the Alaska LNG project. Interest in the Alaska LNG export project has spiked since the war in the Middle East choked 20% of global LNG supply and sent Asian buyers scrambling for expensive spot cargoes.
Glenfarne Group, the majority owner and developer of the facility, aims to sign binding offtake agreements with buyers soon and advance final investment decisions to later in 2026 and early 2027, company executives told media earlier this year on the sidelines of an energy conference in Tokyo.
“There’s a real interest, particularly with everything happening in the Middle East right now. Everyone would like to get those (preliminary deals) turned into long-term agreements,” Adam Prestidge, president of Glenfarne Alaska LNG, told Reuters in March.
Alaska LNG is designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific. An 800-mile pipeline is planned to transport the gas from the production centers in the North Slope to south-central Alaska for exports. In addition, multiple gas interconnection points will ensure meeting in-state gas demand.
The latest Alaska developments show clearly how the Middle East war has put energy security back in the spotlight, making previously challenging locations desirable again. With an estimated 1 billion barrels of oil supply wiped out of markets since the war began, according to Aramco’s Amin Nasser, alternative supply sources have become urgently needed, and not just for the short term. Even if the Strait of Hormuz reopens soon—which at the moment seems unlikely—energy security will in all probability remain a top priority both for energy producers and for consumers.
By Irina Slav for Oilprice.com
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