Oil & Energy
Former Adviser Advocates Investment In ICT For Oil, Gas Sector Revolution
Amid daunting challenges plaguing Nigeria’s oil and gas sector, an industry expert and former Technical Adviser to the Ministry of Petroleum Resources, Engr. Rabiu Suleiman has called for higher investments in Information Communications Technology, ICT to fully harness the huge economic potential the petroleum sector holds.
He said ICT plays a significant role in optimisation, efficiency, technology advancement in the oil and gas sector.
“I believe it is time for the oil and gas industry to embrace more ICT. There are new ICT innovations coming up to help tackle most of the challenges faced in the industry. I know Huawei Technologies has been coming up with some new solutions for the petroleum industry.
“ICT is also useful for data management. The oil & gas industry handles lots of information and a lot of it has been paperwork. There is therefore a need for digital transformation to foster efficiency in the way information is stored using ICT.
“The most sensitive equipment in the process plants in the oil and gas industry is the programmable logic controllers, online analysers and all other instrument that control process, temperature, flows and pressure. So, if a company such as Huawei focuses attention on optimisation, efficiency, control and improvement, maximisation of production it will be very good”, he said.
He further explained that ICT has proven useful across other industries, adding that Nigeria can achieve up to 5 percent more oil productivity and at reduced cost using ICT.
“Regarding oil exploration, it is now possible to achieve up to 5% more oil productivity at areduced cost of investment using ICT. There are now ICT solutions that make oil extraction easier at a lower price than what it used to be.
“The major challenge today is that of insecurity. Other challenges include; general economic recession, the recent COVID-19 pandemic that almost grounded the entire world economy. Many countries passed through recession, there was the lowering of oil reserves because production was halted in some countries and therefore, production became low and of course, there are other challenges related to high production cost. If you narrow down and do a comparative analysis between Nigeria and other countries, cost of production per barrel in Nigeria is significantly very high. It went as high as $32 per barrel and crude oil price at the international market went as low as $9/barrel. But quickly, it went up to $140/barrel later and then crashed to below zero by COVID-19.”
He explained that the 2021 edition of the Nigeria International Petroleum Summit, NIPS, which starts on the 6th of June, 2021 in Abuja, provides a great opportunity at this critical time for the Oil & Gas sector in Nigeria, to focus on how to leverage ICT to transform the sector and the economy at large.
“You can easily integrate various ICT components in terms of monitoring of volume flows, temperature, attack, corrosion, contamination, communication, you can tie all these to a dedicated command and control centre. With Huawei’s oil & gas solutions, it is possible to manage pipeline damages. Yes, this has been a major challenge over the years which has greatly affected the economy.
However, there are no ICT solutions to manage these occurrences. It is now possible to track the pipelines and keep them safe through technology. With this in place, more revenue can be generated”.
He also spoke on the need for quick energy transition to renewables like solar, hydro and wind, to safeguard the environment.
“Nigeria is abundantly blessed with renewable energy sources. Sunlight is in abundant, from here in Abuja to the far north. It can be captured and converted into solar system. The main engine for growth is to have uninterrupted power supply. We also have many solar power projects going on. There is 100 megawatts of solar power that I initiated in Kano State. We have many others going on in other parts of the country. We small power panels that you can throw unto the roofs in villages.”
He thus challenged Huawei Technologies to widen its green energy solution provision, especially in solar power for Nigerians.
“Look at the three Nigerian refineries, none of them is producing aviation kerosene, why? Because of the ingress of water into the system and the inability of the laboratory to detect moisture content and poor knowledge of operators who are reluctant to apply new technologies because they are afraid to carry out certain decisions”.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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