Petroleum Technology Association of Nigeria (PETAN) has recommended to the government the need to create good business image for Nigeria through institutional transparency, well-articulated policy, building of enabling infrastructure and improvement on operating environment and security.
The association, umbrella body of indigenous oil servicing firms, said doing this would enable the industry attract foreign investors that would take advantage of opportunities abound in the Nigerian oil and gas industry.
The recommendations, sent to both the Federal Government and the minister of petroleum, advocated for the restructuring of the oil and gas industry operations by simplifying access to assets, maintaining sanctity of contracts, instilling corporate governance in all our dealings and reducing overall project costs for cost effectiveness.
According to Bank Anthony Okorafor, chairman, PETAN, who signed the communiqué, other recommendations to the government include, reduction of Contracting Cycle from 3-5 years to 6 months, industry should partner government to sort out the above ground risks in the Nigerian oil and gas industry so as to make it investment friendly, as Competitive Operating Model is needed as a matter of urgency now.
He said PETAN would partner NNPC to grant seal of Competence and Quality to oil industry service companies – to certify service companies and create service champions in each service category. This will help to grow capacities in the country that can be used in any part of the world.
The policy recommendations, which were arrived at after listening to participants that attended the panel session on ‘Local Content’ development and other engagements at Offshore Technology Conference (OTC 2016), Houston, USA, PETAN said “it deems it pertinent to make the recommendations to the Nigerian government, the minister of state for petroleum resources and other industry stakeholders because of the need to address the current drift in the oil and gas industry.”
The recommendations, which formed the major plank of the communiqué issued by PETAN after the conference, noted that it was imperative to encourage creativity and opportunity for partnership among Nigerian companies in order to scale up to big projects in the face of current complex industry challenges.
The association also wants Nigerian Content Development and Management Board (NCDMB) to take steps to help Nigerian companies survive the current industry downturn and oil price collapse so that they will be around when the industry cycle turns around.
On the maritime sector, the communiqué said the Cabotage Laws should support Nigerian Content by providing the enabling environment for growth in Nigerian participation in maritime and ownership of vessels.
“A special goal is to have Nigerian owned vessels transport Nigerian crude, which is not happening presently. Government, regulators and stakeholders must remain focused on the goals of the Nigerian Content Law. Progress has been achieved, but more work needs to be done. Leveraging Nigerian Content in oil and gas has to go beyond oil,” it noted.
The chairman of the association, while reviewing the entire conference and the participation of Nigerian companies, said: “Indeed, the OTC 2016 proved to be a critical opportunity Nigeria could not have missed considering the volatility of our current energy situation amidst the global energy depression. And so, the Petroleum Technology Association of Nigeria (PETAN) led the way to OTC 2016 to put Nigeria in the global energy limelight”.
In doing this, the chairman said that PETAN consolidated on annual achievements recorded by the association in driving partnership of indigenous Oil and Gas companies with their international counterparts.
“It is noteworthy that PETAN companies and 2,000 Nigerians attended the highly successful conference.”
OLUSOLA BELLO
