The recently concluded Port Harcourt International Oil and Gas Summit, at Hotel Presidential, Port Harcourt, was a decisive step by the people and Government of Rivers State to affirm their real position in the oil and gas industry. Rivers State among other coastal territories in the Niger Delta region is acclaimed to be fecund and lightly prolific. But after over 50 years of active operations in Rivers State, the local economy of the state is yet to leverage on such comparative economic advantage.

The sordid consequences of this disconnect, is the high level of unemployment in the state and complete alleviation of indigenous enterprenous from active participation in the sector.

Using the theme; Towards sustainable Energy Economy in Rivers State, for the three days intensive summit, the state government made bold its plans of transforming the local economy through efficient use of its abundant energy resources. Apart from bridging this yawning gap between the oil and gas industry and the local economy, Rivers State Commissioner for Energy, disclosed that, a prime objective of the summit was to strategically position Port Harcourt as the centre point of oil and gas in the Gulf of Guinea and the entire west African coast.

Its explicit drive towards exploring the full energy potentials of the State for the development of its local economy, the Rivers State Government acknowledged the fact that there were obvious institutional challenges.

It therefore sought the imputs of experts and stakeholders in the oil and gas industry at the summit to brainstorm on the most appropriate measures of shielding the teething challenges.

Drawing from the huge business development potentials of the state, the government according to the energy commissioner, realised that for Rivers State to be the destination of Foreign Direct Investment (FDI), there was need for a moderation in term of managing stakeholders interest, and stimulation of a healthy and fledging business environment in addition to creating a balance of multinational and indigenous players in the industry.

With operations in the Nigeria oil and gas industry centred on a Joint Venture Policy between international oil and gas companies and the Federal Government, the Rivers State government noted that; “the  logical first step to designing and developing a workable energy policy in the state was to pursue effective state legislation”.

Thematic, discussion at the three day summit was therefore centred on seven key factors, such as fiscal and Regulatory  framework, legal and constitutional issues, public-private partnership in Rivers State, oil and gas investment opportunities  in Rivers State, project financing, capacity development and Nigerian content, and community relations and security.

Former Minister of Petroleum in Nigeria Prof Tam David West, who attended the summit expressed dissatisfaction over the unequal partnership existing in the Nigeria oil industry. Describing, oil as a political weapon. He said Rivers State had always been  at the centre of intense national oil politics and debates yet the dividends from the oil industry had not trickled down to the people.

David West, who picked holes in the controversial, Petroleum Industry Bill (PIB) before the National Assembly, alerted that Federal legislators from oil producing states should be vigilant to ensure that clauses intended to further impoverish the oil producing states are removed from the bill.

The statesman also called for the composition of a special committee in Rivers State to  review obsolete federal laws and policies that affects the full  participation of the State in the industry.

One of the discussants at the summit, Dr Okey Ela, described the Rivers State gas master plan as a veritable platform for the state to achieve a sustainable energy policy. He said Rivers has chances of being the most thriving economy if the abundant gas reserves in the  state is exploited for full scale economic and industrial activities. To achieve this he said all industrial clusters in the state should be connected through National gas pipe line, while laws should be put in place to stop wastages of Natural gas through flaring.

Another discussant Pedro Egba, emphasized on the need for provision of basic infrastructure such a power and auxiliary services for the industry. He decried the lack of  clauses synergy in the management of service providers which affects the delivery of quality human capital service providers and vendors, and transferring  technology to local players.

Describing the Local Content Bill passed into law by the President, Goodluck Jonathan as a good omen, he  declared  that active state participation in the oil industry should be the indices of content measurement parameters.

In his presentation Engineer Bumi Obembe, who spoke on; investment opportunities in upstream oil and gas sector, expressed hope over major breakthrough recorded in the industry.

He explained that the monopoly over the owning if rigs, which was the prerogative of international oil companies had been broken, as Nigerians now own rigs. However he said it required more than mere rhetorics, but a political will on the part of government to enhance indigenous participation in the sector.

Dr. Renny Cookey, of Port Harcourt chamber of Commerce, industry Mines and Agriculture, (PHCCIMA), said “the Nigeria oil and gas industry is vibrant, Technologically advanced, and can compete favourably with other oil and gas  industries across the globe.

Inspite of the advances made in the industry, he regretted the fact that indigenous contractors had been sidelined in terms of real sector participation. According to Dr. Cookey, the major constraints of indigenous contractors includes; lack of access to loan, limited market  due to poor products, poor power supply and under capitalisation. He argued  that indigenous contractors were at the centre of local content development and implementation policies.

Stakeholders at the Summit were unanimous on the overriding need to review all oil blocks licenses in Nigeria, noting that Rivers State involvement in oil and gas operations was inconsequential compared to the enormous contributions of the State to National development.

Engineer Tele Ikuru, Deputy Governor of Rivers State who represented, the Rivers State Governor Rt Hon Chibuike Amaechi at the summit, was saddened by the anti Rivers policies of major oil companies operating in the State. He accused the oil companies of  under-developing the state as no Rivers indigene in the service of these companies are allowed to attain  top echeton no matter  how highly qualified.

He said the Rivers State government will sustain its strategic moves of securing its energy potential for the benefit of the state, through state legislation, which will start from an energy bill to be submitted to the Rivers State House of Assembly.

The Port Harcourt Intentional oil and gas Summit was also observed by many pundits with obvious reservation. With the seriousness accorded it by the Rivers State Government, it was expected  that participation at the  summit will be more elaborate.

However, drawing, from a similar summit hosted by the Rivers State House of Assembly Committee on Energy, at the Assembly Auditorium, observers noticed that the first  concluded summit was far from successful.

Some critics based their  arguments and drew their conclusions from the fact that major players in the industry were conspicuously absent at the summit.

In a sharp contrast to the previous summit held early  this year at the Rivers State House of Assembly, the Port Harcourt International Oil and Gas summit was bereft of prime features  such as exhibition by the various oil and gas companies operating  in the State.

Emphatically, the Onne Oil and Gas Free Zone Authority, the epicentre  of the oil and Gas business development activities in the country was completely absence at the summit. The impact of the institute of Petroleum Studies, University of Port Harcourt was also not felt. It could be recalled that during, the earlier summit, hosted by the Rivers State House of Assembly, the managing Director Onne Oil and Gas Free Zone Authority, Dr Noble Abe, made  a powerful presentation, listing areas of comparative advantage in oil and gas sector development in Rivers State and Nigeria in general.

The role of maritime sector as an intricate part of the oil and gas sector development was also not defined at the summit.

Taneh Beemene