Kelvin Bowoto
The Nigerian National Petroleum Company Limited (NNPC Ltd) has called for increased collaboration among upstream operators, particularly independent producers, to address the issues impeding the effective development of divested assets in the country’s oil and gas industry.
Oritsemeyiwa Eyesan, the company’s Executive Vice President for Upstream, made the plea on Wednesday during a panel session at the ongoing 2024 Nigerian International Energy Summit (NIES 2024) in Abuja.
Speaking on the theme of “Innovation, Collaboration, and Resilience: Empowering Independent Producers in the Dynamic Energy Era,” Eyesan stated that previous experiences with divestments and how the assets were operated have left much to be desired, with most of them experiencing a decline in production rather than growth.
“In the industry, if you want to quantify performance, you use three key indicators: production growth, reserve growth, and asset integrity. If I use these indices to evaluate previous investment endeavors and scale the actors, I would be lying to myself if I said that everyone did well. Yes, we acquired the assets, but we are now worse off in terms of production than we were before the acquisition,” the EVP lamented.
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She did, however, acknowledge that there had been some success in the activities of independent producers.
She cited some of the problems as insecurity, lack of financing, and lack of technological capacity, emphasizing that the challenges might be overcome through collaboration among industry players.
“The importance of collaboration cannot be overstated. Someone suggested that we should declare an emergency, and I completely agree. Instead of sitting here and talking about the obstacles, I believe we should have a war room where we discuss the issues and lay out specific plans to tackle them, rather than waiting for stakeholders to take them on individually. “We require collaboration, collaboration, and collaboration,” she exclaimed.
Mr. Adegbite Falade, Chief Executive Officer of Aradel Holdings; Mrs. Elohor Aiboni, Managing Director of SNEPCo; Mr. Demola Adeyemi-Bero, Managing Director of First E & P Development Company; and Mr. Matthieu Bouyer, Chief Executive Officer of TotalEnergies, participated in the panel discussion.
The panel also included Mr. Shane Harris, Chief Executive Officer of ExxonMobil Nigeria; Dr. Ainojie Alex Irune, Chief Operating Officer of Oando Energy Resources; and Mr. Cosmas Iwueze, Director of Chevron Nigeria’s Joint Venture.
Techrectory with Agency Report.
