By Ikenna Omeje
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, has said that the regulatory role of the Board is not to stifle the oil and gas industry, but to create enabling environment for businesses to thrive.
Wabote said that the Board is dedicated to the development of the Nigerian oil and gas industry, which is why the word ‘Development’ is specifically included in the name of the agency.
He stated this at the maiden edition of the Nigerian Content Midstream – Downstream Oil and Gas Summit 2022, which held in Lagos with the theme “Maximizing potentials in the Midstream and Downstream Oil and Gas Sector — a Local Content Perspective”.
The NCDMB boss noted that there are potentials for employment in the midstream and downstream of the Nigerian oil and gas industry, adding that the two sectors have the potential to ensure the country’s energy security, promote shared prosperity, national pride and drive social impact.
“The NOGICD Act 2010 establishes the NCDMB as the regulator of Nigerian Content in the entire spectrum of the oil and gas industry. We’re not set up only to regulate the upstream sector of the industry, but also the midstream and the downstream. Our regulatory role is not to stifle the industry, but to provide an enabling environment, an all inclusive business environment, for businesses to thrive with the active participation of critical stakeholders, and particularly, Nigerians,” he said.
“We’re for the development of the oil and gas industry, which is why the word ‘Development’ is specifically included in the name of our agency.”
Wabote rehighlighted that the development of the Board goes beyond oil and gas industry, adding that it also connects to linkage and other sectors of the economy such as public construction, ICT, agriculture, research and development, education, among others.
He explained that the midstream and downstream sectors of the Nigerian oil and gas industry represent key areas to drive and attract value to its 2027 70 percent local content target in the industry.
“Based on our 10-year Strategic Roadmap to achieve 70 percent Nigerian Content target in the oil and gas industry by the year 2027, the Midstream and the downstream sectors of the industry represent key areas to drive and attract value to meet our set target,” Wabote said.
“In the midstream and the downstream sectors of our industry, the employment opportunities are higher in number and of a longer duration when compared to that of the upstream sector. This provides means to absorb outputs of our human capacity development programmes in the scope of job opportunities.
“The entry barrier for businesses to partake in the midstream and the downstream sectors of the industry is relatively low when compared with that of the upstream sector. There are vast business opportunities in the midstream and the downstream sectors, ranging from processing, transportation, storage and distribution.”
With the seemingly energy crisis the world is witnessing today, he said that the development of the midstream and downstream sectors has become very fundamental, to ensure energy security in the country.
“A situation in which supply and demand for energy resources are weaponized, it’s very precarious for an import dependent country like Nigeria. There is a need to maximize the potentials of our midstream and downstream sectors, to ensure energy security and national pride,” he said.
According to Wabote, the direct social impact brought by productive and efficient midstream and downstream sectors of the oil and gas industry is immense and needs to be maximized, noting that availability of energy has correlation with the quality of life, productivity, life expectancy and social harmony.
Touching on the refining Roadmap of President Muhammadu Buhari’s administration, he said that it focuses on rehabilitation of existing refineries, construction of greenfield refineries and construction of modular refineries. He said that this target will increase the country’s refining capacity to more than 1.4 million barrels per day. Out of this number, Wabote said that about 400,000 bpd is expected to come from the rehabilitation of the Nigerian National Petroleum Corporation (NCDMB) refineries in Kaduna, Port Harcourt, and Warri, using a target of not less than 90 percent of their capacities.
For the greenfield, he said it will contribute 650,000 bpd from the Dangote refinery while BUA’s expected construction of 200,000 bpd in Akwa Ibom State is another.
He listed some of the investment partnerships being undertaken by the Board to include the 5,000 barrels per day Waltersmith Modular Refinery at Ibigwe, Imo State; 12,000 bpd Azikel refinery; 2,000bpd Atlantic refinery and NEDO Gas Processing Company in Kwale, Delta State, an 80 million standard cubic feet per day (MMscfd) gas processing plant.
Others include the development of 5,000 metric tons LPG Storage and loading terminal facility by Triansel Gas Limited in Koko, Delta State; Duport Midstream Energy Park with a modular refinery, power plant and 40MMscfd gas processing facility at Egbokor, Edo State; Southfield Petroleum 200MMscfd Gas Processing Plant — representing about 10 percent of the current LPG demand nationwide, which he said, will be produced in-country instead of being imported.
Declaring the summit open, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said that one of the mandates of the Ministry of Petroleum Resources under the Next Level agenda of Buhari’s administration is the increase of domestic refining capacity, adding that Waltersmith, Azikel, Atlantic modular refineries are some of the partnerships that the NCDMB has built to grow domestic refining capacity “in line with the vision of the Board to be a catalyst for the industrialisation of the Nigerian oil and gas industry and its linkage sectors.”
He noted that under the Decade of Gas initiative, Nigeria has declared gas as its transition fuel towards meeting the Net-Zero carbon emission target, adding that the government has backed critical projects in this regard.
“Under the Decade of Gas initiative, gas has been declared a transition fuel towards our actualisation of the Net-Zero carbon emission target. Government has supported critical projects such as NLNG Train 7, Ajaokuta-Kaduna-Kano (AKK) gas pipeline, Nigeria-Morocco Gas Pipeline, TransSahara Gas Pipeline and the National Gas Transportation Network Code.
He commended the NCDMB for organizing the summit, adding that the summit was very apt as the Nigerian oil and gas industry is at that phase where the country is exploring the opportunities and potentials associated with the midstream and downstream sectors.
“The Petroleum Industry Act (PIA) has also introduced a governance framework for the industry with clear delineation of roles, including regulation and profit-centric business units.
“The Act contains fiscal incentives to attract investment in gas development and local refining; it also provides exceptional care for host communities and future energy security through dedicated funding renewable energy development and local content.”
Sylva further noted that the country needs to find ways of unlocking its natural gas potentials and pull out millions of Nigerians out of energy poverty.
Speaking on “Enabling Businesses and Creating Opportunities in the Midstream and Downstream Oil and Gas Value Chain”, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMPRA), Engr. Farouk Ahmed, citing secondary data, said that expected global Gross Domestic Product (GDP) between 2020-2030 will be driven in China, India and Africa.
Represented by the Authority ‘s Executive Director, Hydrocarbon Processing Plants, Installations and Transportation Infrastructure, Francis Ogaree, Ahmed said there are opportunities in the country’s midstream and the downstream sectors of oil and gas industry in areas such as gas development, infrastructure and refining, adding that there are also opportunities anchored on the Decade of Gas, which he said, are in areas such as energy security, environmental sustainability and gas based economic development.
