Business
Investments: NNPC Boss Tasks Firms On Collaboration
The Group Managing Director (GMD) of NNPC, Dr Maikanti Baru has advised indigenous oil companies to collaborate to drive oil and gas investments.
Baru gave the advice during the first edition of West African International Petroleum Exhibition and Conference (WAIPEC) organised by Petroleum Technology Association of Nigeria (PETAN) in Lagos last Wednesday.
The NNPC chief gave a keynote speech on ”Collaboration and Local Capacity Development as an Enduring Strategy in a Low Oil Price Environment’’.
Baru, who was represented by Dr Siky Aliyu, Managing Director, National Engineering and Technical Company (NETCO), said that indigenous companies should work together to weather the ongoing low oil prices.
According to him, the only way to weather the oil and gas sector challenges and stiffer international competition from international companies is for indigenous companies to collaborate.
He said that collaboration was also imperative for indigenous companies to reduce their cost of production and prices.
“Local companies must emulate the engineering companies in effective collaboration as there is the need to come together to position themselves for effective competition with international companies.
“The Nigerian oil and gas industry has been fortunate to have had previous and current regimes that recognised and promoted the establishment of institutions and enacted laws,’’ the NNPC chief said.
According to him, the success story of the Detailed Engineering Design (DED) of Topside of TUPNI’s Egina FPSO project delivered safely on time and within budget was an example of effective collaboration.
“A consortium of Nigerian engineering companies led by NETCO is a good example of successful collaboration and capacity development.
“Hitherto, no engineering project of this magnitude has been handled locally because no single local company had the capacity to do so.
“The NNPC management, in its wisdom, approved for three local companies to collaborate and support the local execution of this project.
“This decision paid-off.
“It has placed on record that over 80 per cent of the associated man-hours which was in excess of one million man-hours on a single project can be effectively executed in one project location in Nigeria.
“The collaborative success story of the DED of Egina FPSO project, which represents only a maximum of 10 per cent value chain of the FPSO, has indeed repositioned the Nigerian engineering companies.
“Rather than being the traditional competitors, they are now partners in progress and they are expanding their synergetic arrangements in readiness to take up other projects of this magnitude,’’ Baru stressed.
He listed other upcoming collaborative projects to include: SNEPCO’s Bonga South-West FPSO projects, NAE’s Zabazaba FPSO project, ExxonMobil’s Bosi FPSO Project, NLNG Train 7 or NLNG Debottlenecking Project.
“So much was achieved with DED which represents just about 10 per cent of a typical FPSO project.
“One can only imagine what other opportunities exist in the remaining 90 per cent of the project value chains in the procurement and construction scope of work,’’ the NNPC chief noted.
Baru said that the key to successful collaborations was to set shared goals, agree on rules of engagement at the onset and play by the rules to achieve a successful outcome.
Mr Anthony Okoroafor, the PETAN Chairman, said that the essence of the conference was to promote the region’s oil and gas industry.
Okoroafor said that it was also to set and seek industry best practices as well as to develop commercial opportunities for business and international investments.
He said the association appreciated the support of all exhibitors, adding that they were working to provide a cost-effective business platform.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.