Aret Adams 20th Memorial Lecture Canvases Critical Action on Reviving Nigeria’s Petroleum Industry
Speaking at the 20th Aret Adams Memorial Lecture with the theme: “Critical Actions to Revive Nigeria’s Petroleum Industry for National Development,” the Chairman of Aret Adam Foundation, Engr. Charles Osezua stated that the theme was chosen against the background of an election year, with declining production and diminishing investment in the oil and gas sector occasioned by security challenges and massive oil theft.
This made it impossible for Nigeria to meet its OPEC quota, at a time when crude oil price was hovering above $100/bbl.
Consequently, the Board of Trustees resolved that this year’s lecture series should focus, on finding solutions to assist the incoming government, in addressing three critical issues of security, funding and investment, so it can create policy environment for revival of petroleum industry for national development.
“Today, we have a new Government in place, whose first action was the removal of petroleum products subsidy, an action which is completely aligned with the philosophy and goals of late Aret Adams, both as Group Managing Director of Nigerian National Petroleum Corporation (NNPC) and later, Special Adviser to the Head of State. Aret, desired a deregulated petroleum marketing industry, where competition and efficiency creates, value for the benefit of the consumer, releasing the creative and entrepreneurial energies of Nigerians, which in his views were held hostage by subsidy, so they can thrive and expand beyond the shores of this country.”
The Chairman of Aret Adams Foundation, said Chief Adams was a thoroughbred Geologist, with great commitment to excellence and fearless at taking decisive decisions.
At the NNPC, he exploited and opened the frontier basins of Nigeria, with great successes offshore. As a pragmatist, who never say die, nor give up in the face of obstacles and challenges, he pushed the boundaries when crude oil prices dropped below $13:00 per barrel in the mid 1980s. Aret re-innovated the joint operating agreements with the IOCs, to keep the rigs in the country working, while most of the global oil producing countries were shutting down!
His success as a hands-on professional and ability to achieve greater goals, in a volatile, uncertain, and chaotic environment was so incontrovertible, that upon his passing in 2002, his peers resolved to make him the symbol for professional excellence in the Earth Sciences. Accordingly, today, the highest award for excellence, by the Nigerian Association of Petroleum Explorationist (NAPE), to Earth Scientists, of any nationality, is the “Chief Aret Adams Awards”.
Aret loved his Country; he loved the truth and was bold in its pursuit. Appointed Managing Director of NNPC in 1985, he set for himself an ambitious goal of transforming the Corporation into a mega national oil company. Accordingly, he set up a task force for the Commercialization, Reorganization and Capitalization (CRC) of NNPC by pulling together the best in the Corporation; to enable him realize his goals. By 1988, he saw to the creation, of a commercially and financially autonomous NNPC, with the establishment of 11 subsidiaries; and was re-appointed as its first Group Managing Director.
Osezua explained that for Aret to achieve his dream of positioning NNPC as a mega national corporation, he pushed for the enthronement of meritocracy, and the removal of petroleum subsidy. Then and now there was resistance and Aret was eventually removed from office, in what was called in the “National interest.” Aret was recalled to government services, almost ten years later, as a Special Adviser on Petroleum Resources to the then Head of State Gen. Abdulsalam Abubakar, in 1998.
Unfortunately, thirty-four years later, discussions on oil theft and subsidy removal are still topical issues which culminated to the theme of this Lecture.
Giving his keynote address at the Lecture, Managing Director/CEO of First Exploration & Petroleum Company Limited; Mr. Ademola Adeyemi-Bero, spoke on the evolution of Nigeria’s oil industry adding that it was a journey with a strong start and remarkable with an important contribution to global oil and gas. The country’s first oil was discovered in 1958.
Bero made it known that over 40 indigenous licences were granted in 1998 with some significant progress in terms of local participation. The Federal Government Marginal Field Program engendered growth of Nigerian independents with twenty-four marginal fields awarded to thirty-one indigenous companies.
But only twelve fields in production to date perhaps due to challenges. The divestment by major IOCs has significantly deepened the growth of Nigerian Independents. Fifteen indigenous independents acquiring divested assets with current production capacity of about 180,000 barrels of oil/ day contributing over 30% of Nigeria oil production, aspire to the 60% crude production.
However, the First E&P boss cautioned that governance and operating framework restructuring is pivotal to Nigeria’s oil industry which is not visible yet. This has hampered investors to Nigeria while existing ones are closing shops. Nigeria should provide a sustainable operating environment for business to thrive.
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Besides, human capacity and infrastructure re-building is necessary for the petroleum industry to enhance the sector with new young mindsets that will drive it for growth. The industry urgently needs to access $20 to 30 billion of financing for the sector.
Mr. Austin Avuru, Chairman of AA Holdings was of the view that there is hope for the country’s energy sector and all is not lost yet, if the right things are put in place. He added that a communiqué will be presented on the proceedings of this year’s annual Lecture and given to the government.
On the part of implementation, it is left for government to take action but industry players will always lead the conversation for a better industry.
Mr. Osayande Igiehon, Chief Executive Officer, Heirs Holdings Oil & Gas Limited, who also spoke on the panel session made it known that the company is battling with theft since its production is often depleted. He stated that Heirs thrives to ensure the company plays its part in the country’s production. He was hopeful that the country’s oil industry will improve though there are challenges.
On his part, Chief Chambers Oyibo, a former GMD of NNPC advised the new government to ensure that credible professionals are allowed to manage the affairs of the industry. The oil industry is not for square pegs on round holes.
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