A Review of the Nigerian Energy Industry

PETAN raises bar for Nigeria’s oil, gas industry

16 January 2015, Lagos – The Petroleum Technology Association of Nigeria (PETAN) has expressed optimism for growing participation of indigenous players in a progressive oil and gas industry in the years ahead.

The Charman PETAN, Emeka Ene, who disclosed this in an interview with journalists recently, said Nigeria’s oil servicing sub-sector is maturing, which is an indication that the local content initiative has come to stay.

Nigeria's marginal oil fields.
Nigeria’s marginal oil fields.

Stating that more independent local operators are springing up to hold ace in the sector this year, he emphasized the need to grow capacity and optimal utilization of local expertise.

“What happened last year is setting paste for sustain grow for oil serving companies in Nigeria over the next decade because infrastructures is been built, capacity is being run, irrespective of availability of contract and staff but with a realisation that as far as oil industry in Nigeria goes, there is potential for growth therefore we must invest,” he said.

Applauded the Federal Government for its unwavering commitment to growing local participation in the sector, Ene said: “I think this is laudable, the reality was that the passage of the Act was a good initiative and that is the impetus for Nigeria companies to began to ramp up capacity. That is the bottom line, to large extent that as created a springboard for growth in the whole sense.

“There are certain line up which could position Nigeria as a strong country over the next 20 to 30 years, the first is local content and gas master plan which create a basis for real gas market and privatising power will grow Nigeria’s economy stronger.

“PIB will also create long time investment in the country, all of this will create huge investment for the industry and the country as a whole,” he stated.

Ene however saw opportunities in the dwindling crude oil prices at the international market rather than entertaining fears, urging the indigenous operators to look inwards and exploit the opportunities therein.

“You have to understand that Nigeria’s oil today is not as cheap as it was in 15 years ago. The reality today is that cost of production of Nigeria oil is within $20 to $30 per barrel. The circle of ups and down is a good thing, it allows efficiency to be built and allows companies to re-strategies on how to deliver service quicker better and faster.

“I think to large extent the opportunity that Nigerian companies had should be increased because all firms now want to get more values and they not ready to open up there cheque book and sign without asking values to render. We reckon that Nigerian content and Nigeria companies will actually get busier with the support of the regulators and policy makers. Nigeria companies should actually get busier in a tight market than other way round,” he said.

He however, assured that PETAN would continues to advocate for what is good and best for the industry, both from operators, and international point of view.

“That is the reality, because we are in the business to continue to provide services that are world class for operators, we want to encourage and continue to encourage investments. So, PEATN’s leadership role in the industry is participatory, collaborative and incisive. We recognised that for the industry to keep growing, we have to maximize local availability of services,” Ene stated.

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