The Society of Petroleum Engineers (SPE) says increasing crude oil theft, depleting reserves and dwindling revenues ought to be a major source for concern for all stakeholders in the Nigerian oil and gas industry.
The Council Chairman of SPE, Mr Osayande Igiehon, said this in an interview in Lagos.
He said that Nigeria, being a mono-economy, relied heavily on crude oil, which accounted for 95 per cent of the country’s earnings, adding, therefore, that the current situation was a cause for concern.
Igiehon said that to this end, experts would gather at this year’s exploration conference, organised by the SPE in Lagos, to deliberate on how to proffer pragmatic solutions to the problems.
He said that the conference tagged, “Nigeria Annual International Conference and Exhibition (NAICE)’’ would hold between July 30 and August 1.
He said that the theme of the conference — “To Grow Africa’s Oil and Gas Production: Required Policy, Funding, Technology, Techniques and Capabilities’’ — was carefully chosen in view of the depleting oil reserves in the region.
Igiehon said that the conference aimed at providing a robust platform for governments, industry and the academia to take a position that would be crucial to efforts to stimulate Africa’s economic growth and meet the world’s growing energy needs.
“As exploration of crude oil never ceases, there is need for further discoveries of more reserves to replenish those already extracted from oil wells.
“From inception of oil discovery in Nigeria, you would have observed that after much exploration from a well, it is usually abandoned. Attention is given to other oil wells whenever one well becomes less economical to operate.
“So, the challenge of inventing new technologies to aid new crude oil discoveries and reduce costs of operation would be discussed.
“Besides, the incessant crude oil theft in the region and possible remedies would also be discussed because of the alarming spate of oil theft in the region,” he concluded
However, Igiehon noted that the participation of Nigerians in the oil and gas industry had increased since the enforcement of the Nigeria Content Act began.
“And further possibilities of giving more opportunities to indigenous operators would also be discussed at the conference,” he said.
Igiehon said that the marginal field best practices workshop will feature seasoned experts who had successfully put marginal fields on production, adding that they were expected to share their experiences and challenges.
He said that at the end of the conference, the participants, through the SPE Nigeria Council, would issue a communiqué to regulators on the outcome of their deliberations.