Oil & Energy
Ward Advocates Technology-Driven Fiscal Regime
Robust and balanced fiscal regime that matches development cost and size has been described as essential for effective deployment of technology to guarantee proper development of Africa’s vast resources, Mark Ward has said.
Ward, who is the chairman and managing director, Mobil Producing Nigeria (MPN) and the lead country manager, ExxonMobil affiliates in Nigeria made the assertion in a keynote speech at the just concluded 2011 Society of Petroleum Engineers, Nigerian Annual International Conference and Exhibition in Abuja, recently.
The ExxonMobil boss said technology which continues to elvove to help meet people’s needs would have great impact in addressing the needs and issues in future, and would continue to play a critical role in enabling the achievement of energy secuirty objectives.
He explained that the solution to the challenge of satisfying future global demands lies in effective deployment of innovative technologies which would enable the full development of all the resource types from ultra-deep water to un-conventional resources like heavy oil, coal bed, methane, shale gas etc, the optimisation of energy utilisation and also mitigating the environmental impact of energy development and use.
The note reads partly: “Most forecasts predict that global energy demand will be up 35 per cent more in 2030 than today, driven by growth in population and economic activity. The forecasts also indicate that oil and gas will continue to constitute above 60 per cent of the global energy mix as no other energy source can match their availability, affordability and scale.
“So, as the international energy community is busy working on technologies that underpin growth in renewable energy sources as well as nuclear power and lower emission coal, it is critical for us to deliver technology innovations and improvements that will enable increased supplies of oil and gas that will be needed to support economic growth in the years to come.
“Much of the earth’s remaining recoverable oil resources are found in complex geological formations, remote locations, and under harsh conditions. Leading edge technologies are needed to overcome these challenges and bring these abundant resources to market, to the continued success of the industry, it is a key foundation of ExxonMobil. We take a long-term approach to investment in technology. We spend more than $1 billion annually on research and developemnt,” he said.
On how Africa fits into the above, Ward said with a resource base of about 182 GB it produces an average prodcution capacity of 10.5m bbls of crude oil per day culminating to 12. 5 per cent of the world’s total, stressing that the continent continues to show significant growth in exploration and production.
He added that Nigeria, Angola, Algeria, Egypt and Libya were the five countries that dominate the upstream oil production and account for 85 per cent of the continent’s total oil production.
He reasoned that due to the significant activity growth in the deepwater and unconventional sub-segments in Africa in the near future which require cost-effective development, there was need for significant technology deployment.
Vivian-Peace Nwinaene
Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor