NOGOF unveils N35.7 trn job outlook for oil contractors

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According to opportunity presentations at the just concluded Nigerian Oil and Gas Opportunity Forum hosted by the Nigerian Content Development and Monitoring Board (NCDMB), the planned projects which span from upstream exploration and production through midstream processing and infrastructure development, quayside development and building constructions to downstream infrastructure and facility development and refurbishment will last for a period of about 10 years.

Executive Secretary of NCDMB, Engr Simbi Wabote, told the The Oracle Today, that the opportunity forum provides outlook on emerging industry projects with the purpose of preparing contractors and sundry service providers in the petroleum and linked sectors to muster adequate capacity to deliver the jobs in-country.

The 2023 NOGOF which was organized by the NCDMB in collaboration with Jake Riley Limited mustered over 1000 delegates who thronged the event to glean business intelligence from opportunity presenters including regulators, international oil companies, indigenous exploration and production firms, midstream refining and gas processing companies, trading and marketing companies whose projects have been approved by the government.

In their opportunity presentations, the players listed the budget outlook on their emerging projects and the work scopes that detail capacity and competency requirements from contractors.

In the industry leaders’ panel, one of the opportunity presenters, Mr Cosmas Iwunze of Chevron’s affiliates in Nigeria, listed planned field activity programmes to include refurbishment of subsea production facilities at operated Agbami deepwater field, including subsea trees and well re-entry.

Mr Iwunze delivered the presentaion of the Chairman of Chevron’s affiliates in Nigeria, Mr Richard Kennedy.

He also listed refurbishment and upgrade of the Agbami manifold and mooring equipment for the floating production, storage and offloading (FPSO) vessel. He added activities at the company’s Escravos gas plant, involving the degasser facility.

Still on Chevron, Mr Iwunze pointed at the company planned debottlenecking of the operated Okan gas gathering and pipeline construction project; adding the planned infil well development projects to arrest decline and enhance production at is panther project.

Chevron, according to him, is also working on pipeline sectional replacement at its operated Sonam project which, Mr Iwunze added, would be followed by Dibi North pipeline replacement later in 2023.

Services would also be required for under water inspection of the Agbami FPSO ahead of its planned dry docking ahead of new field development in the block between 2023 and 2026.

Chevron’s planned projects, according to the presentation by Mr Iwunze, would run into several billions of dollars.

Country Chair of Shell in Nigeria, Mr Osagie Okunbor, declared at the event that Shell would pump in some $20 billion in planned field activities including new developments at the operated deepwater Bonga fields from where the company has already exported over a billion barrels of petroleum liquids since 2005.

Mr Okunbor stated that Shell would pursue a number of activities for enhanced and incremental production of liquids and gas from operated assets mainly in the deepwater and select onshore operations in the country.

He listed gas focused projects to include some $13 billion of investments in gas well development projects that would deliver significant 3.0 billion standard cubic feet of gas per day from onshore and shallow water fields in the Niger Delta.

He pointed at a $3.0 billion projects targeting 1.0 Bcf/d from Assa North and for Brass fertilizer feedstock projects, involving drilling of 50 development wells, construction of kilometres of pipeline and procurement of skids and meters in the trunk line.

To sustain feedstock for the existing trains of the operated Nigerian Liquefied Natural Gas (NLNG) Limited, Mr Okunbor declared that Shell would stake about $4.0 billion to develop about 1.0 Bcf/d of gas to maintain gas supply to Trains 1-6 of the liquefaction company.

From the company’s operated shallow water assets, Shell will spend $6.0 billion to drive three major projects that would target simultaneous significant liquids and some 0.7 Bcf/d of gas production in an integrated plan for domestic gas supply.

In the deepwater where the company plans new field development projects, Mr Okunbor stated that Shell would spend another $6.0 billion on some 370,000 barrels of new oil production and activate output from the 9.0 trillion cubic feet of reserves in the operated deepwater Nwa/Doro oil block.

He pointed out that the projects would involve over 40 subsea wells and a host of activities that associate with deepwater field developments.

In dwelling on its Bonga oil block in oil mining lease (OML) 118 operating license, Shell told the Nigerian community of oil contractors that development of the Bonga North field would be imminent due to the project economics that put it ahead of more complex Bongas Southwest/Aparo development.

The development models would tie the subsea production facilities back to the existing Bonga FPSO which has been refurbished for field life extension and production capacity expansion.

Mr Okunbor reminded the contractors that only competitive prices and commercial bids would make the project fly, adding that the bankability of the project would determine its viability outlook and eventual realization.

He said the subsequent development of the Bonga Southwest/Aparo would rely on more complex considerations including the alignment of ambition among the venture partners. He noted that the development project would be plotted along the lines of commerciality, competitiveness and economics.

On project plans by TotalEnergies in Nigeria, Mr Obi Ibemba told the audience that the French company would drive new activities in operated deepwater Porewei, conventional offshore Ofon and onshore Ubela fields.

Mr Ibemba delivered the opportunity presentation of the Managing Director/Chief Executive of TotalEnergies E&P Nigeria Limited, Mr Mike Sangster.

*Managing Director/Chief Executive of TotalEnergies E&P Nigeria Limited, Mr Mike Sangster*

The brownfield Obite production facility in OML 50, Mr Ibemba said, would now be modified to take on new production expected to be tied back from the new Ubela development. The development will primarily guarantee marginal gas production of about 10 MMscf/d or 350MMscf/yr for supply to the NLNG.

TotalEnergies is a shareholder and Shell’s operating partner in the NLNG.

Mr Ibemba said that indigenous National Engineering and Technical Company (NETCO), a unit of the Nigerian National Petroleum Company (NNPC) Limited, is already handling the engineering package of the project.

He however pointed at other opportunities for contractors to include provision of well pads, well slots, 11 kilometers of pipeline to Obite Gas Plant, drilling of sic wells and environmental remediation.

He said all procurement of products and services for the development of the Ubeta field would be in-country, and that contractors must adopt the company’s sustainability roadmap and environmental responsibility.

Mr Ibemba said the activities of the company would henceforth adopt cycle economy, give attention to biodiversity and guarantee local community prosperity.

In a separate presentation, Deputy General Manager, Nigerian Content at TotalEnergies Limited, Mr Cyprian Ojum, also declared that it would carry local contractors along its movement to become supplier of diversified energy for the future. It called on the local service providers to position with the company in migrating products and services for supply of new kind of energy.

The company stated that its change management process has enabled its contractors to also take position in production and distribution of new sustainable energy.

The Nigerian Exploration and Production Limited, the upstream arm of the NNPC Limited, also declared at the local content job fair that it would need some 600 wells to be drilled by next year, adding that it would target production of more gas for power generation and fertilizer production.

Executive Vice President, Gas, Power & New Energy, NNPCL. Mr Mohammed A. Ahmed, in a related presentation also hinted that the government’s ambitious transnational gas pipelines and the ongoing Ajaokuta-Kaduna-Kano (AKK) pipeline project present enduring opportunity for local contractors with capacity for related services.

From production through infrastructural development through trading and marketing to utilization facilities, Mr Ahmed pointed out, the gas value chains would continue to present opportunities for players willing to close gaps in the system.

He noted that the immense opportunities in the construction phase of the AKK, Trans-Saharan and Nigeria-Moroccan pipeline as well as virtual supply of gas to isolated markets along the pipeline routes.

With 7.7 Bcf/d og gas planned for distribution by 20235, Mr Ahmed, said, investment opportunities are robust for players interested in establishing local pipe milling industries. He said local production of quality pipes confer cost advantage and less pressure on the nation’s foreign exchange.

In providing the sustainability basis for investments in pipe mills and construction capabilities, Mr Ahmed flaunted nearly 14, 000 kilometers of pipeline for the transnational pipelines in addition to the ongoing 614 kilometers of AKK pipeline which, according to him, presents to take off point for Trans-Saharan gas pipeline.

He also pointed opportunities related to approved $5.0 billion projects for three power plants to be sited in Abuja, Kaduna and Kano as part of the full package of the conceived major offtake from the AKK pipeline.

Mr Ahmed also pointed at the proposed Ibadan-Ilorin, East-West, and many distribution pipelines that would offer transmission and linkages to proximate and remote offtakers via pipeline and virtual supply modes.

He said the planned surge n volume production and ongoing infrastructure development present investment opportunities in fertilizer plants to meet surging internal demand, methanol plants, petrochemical plants and compression and bottling for virtual delivery.

He noted that high cost of diesel and petrol would drive demand for autogas as soon as the planned deregulation of the petrol market is achieved, adding that the demand switch would trigger opportunity for conversion of vehicle engines to use of gas.

He said government’s programmes on autogas and domestic gas expansion also present enduring opportunity for investors in production of gas cylinders and accessories.

Managing Director of Shell Nigeria Gas (SNG), Mr Ed Ubong, declared to the contractors who are seeking opportunities that the company is working on a new Gbarain-Ubie gas pipeline network in collaboration with the NCDMB to position for emerging demand from industrial parks and other consumers in Bayelsa State.

He said that the Gbarain gas distribution pipeline was currently at construction stage, adding that the company was in contract with 70 companies with value proposition of N26 billion.

The NNPC Limited returned to the podium with offer of partnership in its shipping business, offering investors the opportunity for joint shipping operations in line with its existing model already expressed in the joint venture with operating companies.

It also offered investors 10 percent stake in its condensate refinery projects.

Mr Sani Aliru told contractors that OPAC Refineries in Edo State plans to expand its processing capacity by 50,000 barrels per day (50 KBD) from current 10 kbd to to 60 kbd by 2017.

He said the company currently needs services for storage tank construction, facility maintenance, engineering consultancy, installation of naphtha reformation unit and product evacuation haulage.

With then expansion project, he said, the company would now process its current fuel oil output to produce bitumen and lubricants.

Executive Secretary of the Major Oil Markers Association of Nigeria (MOMAN), Mr Clement Isong, declared that the marketing group presents opportunity for products supplies, jetty services provision, depot and storage services and transportation and haulage of products to market destinations.

With significant 33,000 filling stations in the country, Mr Isong declared that the marketing group requires services in the provision of technical innovations that would lead to consolidation and new business models to enhance commerciality of operations.

*Chairmann of MOMAN, Mr Olumide Olaosun*

With introduction and deployment of technology, he declared, MOMAN expects that new business models would come to play in the marketing segment of the full industry chain.

He called for immediate liberalization of market supplies as new local refinery come online, arguing that only a vibrant market with fierce competition would trigger the much desired open access and optimization of the nation’s distribution infrastructure.

Mr Isong who delivered his presentation online told contractors that the marketing niche of the industry has urgent need for depot upgrade, training and retraining of personnel; upgrading of filling stations, management efficiency, cost cutting automation technology, EV charging ports at retail outlets and refreshment points for long distance travelers.

Falcon Corporation, an indigenous gas solutions provider with franchise for gas distribution and marketing across many sections of the country, declared to the opportunity seekers that it is shopping for partners with upstream value, gas based industries, and gas trading to optimize its 1.7 Bcf/yr capacity.

Managing Director, Mr Audrey Ezigbo, who presentation was delivered at the NOGOF 2023, declared that the company with capacity for 30 Bcf needs partners for its operations which currently offer significant 10,000 tons of domestic gas storage, residential supply reticulation, and in-country assembly of consumption accessories.

Her presentation was delivered by the Head of LPG Sales and Marketing, Mr Godwin Okoduwa.

She offered investors opportunities for LPG bottling franchise, virtual pipeline, piped supply infrastructure, business advantage in Lagos free zones, virtual pipeline franchise, certified cylinder production and refurbishment, bulk transportation services and retail.

Operations Director of Frontier Oil Limited, Mr Oluwole Adefila, told contractors that the company plans to increase production from current levels to 3,000 barrels per day by drilling additional two wells in the year. It also needs a crude processing unit for the new output.

He said the drilling and completion activities provide opportunities for contractors. He however said that the success of drilling would determine the feasibility of the crude treatments plant.

In a presentation at the event, General Manager Engineering, Seplat Energy Plc, Engr. Walter Egemba, informed contractors that it would require specialized services with its operated Amukpe liquid handling facilities to address about 80,000 barrels of produced water. It also called for tenders for its Ohaji South pipeline project and Oben secondary compression.

Handling the produced water, Seplat declared, would entail two buffer tanks, and the Oben gas project would demand plant flare out facilities.

Managing Director and Chief Executive Officer of Coleman Cables & Wires, Onafowokan George, declared that the Nigerian Content policy had helped the company develop capacity not only for the petroleum industry but for all industrial sectors of the economy.

He stated that the capacity to execute jobs in the telecommunications, electricity transmissions and distribution, marine vessels and shipping as well as industrial constructions has helped the company hedge investments in the petroleum industry during activity downtimes.

Secretary of Petroleum Technology Association of Nigeria (PETAN), Mr Engr. Obidike Nelkon Uzu, told contractors that procurement and services in the industry are shifting with the demands of the market, adding that members of the group are collaborating with original equipment manufacturers round the globe to conform to changing demands.

He told the audience that PETAN was working on African Local Content policy model on the back of the African Continental Free Trade Agreement ((ACFTA) to lay template for governance response strategy to new market opportunities.

In presenting the viability support for all propositions advanced to contractors at the NOGOF 2023, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) assured that the commission would create opportunity for investments as required by the Petroleum Industry Act (PIA) 2021.

The Commission Chief Executive, Mr Gbenga Komolafe, whose presentation was delivered at the event, declared that the regulator would make investments in the upstream petroleum industry predictable by activating all the fiscal incentives provided by the PIA.

He said the NUPRC was providing basis for activity by providing access to resources through the concluded marginal field round, the flare gas commercialization programme and the ongoing mini-bid round for deepwater fields.

He told the players in the industry that the upstream regulatory agency was ready for business.

In a winding recap with the media, Engr Wabote declared that oil and gas contracts valued at over $50 billion would be awarded by players in the industry in the next five years if the industry would overcome fiscal and other issues in the operating environment and take investment decisions.

Pointing at robust interest of contractors in the two-day fair which drew 1,086 registered participants, Engr. Wabote stated that the quantum of opportunities covered different segments of the industry and required proper collation as they run into billions of dollars.

He stated, “some of the opportunities are from the indigenous players, some by NNPC Ltd and the international oil companies. If you put them together, in the next 5 years, they would exceed $50 billion that would be invested in the Nigerian oil and gas industry.”

On steps to be taken by interested service companies and other players to participate effectively in those projects and opportunities, Wabote charged such firms to prepare themselves adequately, restating that the oil and gas industry is highly technical and does not compromise safety and standards.

“If someone gives you projects he intends to execute in the next two years; Nigerian companies having listened to the opportunities should go back and continue to build their capacities in readiness to actively participate.”

He also counselled that the oil and gas sector is not an environment where an entrepreneur can immediately step in and achieve success. “You must have staying power to succeed,” he said.

He said the NCDMB would collate the opportunities into a compendium and make them available to registered participants. He also confirmed that NCDMB would track the development of the opportunities showcased at every edition of NOGOF.

In providing an update of projects shared at previous editions and he said that “most of them have come to fruition, others are challenged by security concerns, final investment decisions (FID) challenges, bankability, and regulatory requirements and approvals. But those that have crossed the hurdles have been developed and are producing today.”

“We shared Ikike and today it is almost doing 50,000 barrels per day; we shared Nigeria LNG Train 7 almost 6 years ago and today it is in full steam, hoping to be completed in 2026. We shared the upstream opportunities that will feed into Train 7, HI, HA and Obeta projects. This has been a tremendous success by NCDMB,” he explained.

On other conditions necessary for the speedy development of oil industry projects, Wabote canvassed for the eradication of policy inconsistencies. He advised other regulatory bodies in the industry to conclude the formulation and release of key regulations that would operationalize the Petroleum Industry Act (PIA).

He noted that such regulations would give investors the necessary confidence to stake funds on projects.

Engr Wabote lamented the inability of some exploration and production players in the industry to optimise their capacity due to security impediments to efficient production evacuation from production sites.

Alternative and creative options so far adopted by players to circumvent production losses on the pipelines, Engr Wabote noted, impose additional cost burdens that impact commerciality of operations.

He noted that the Nigerian Content policy of the government has been able to build a formidable indigenous crew of players who have successfully displaced expatriates from the system.

The Oracle Today reports that the fourth edition of NOGOF was attended by leaders of the oil and gas industry, including the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mallam Mele Kolo Kyari; Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor; chief executives of several international and indigenous operating and service companies and other stakeholders.

The event featured opportunities and technical sessions in which representatives of several operating and service companies and regulatory agencies presented their plans and projects, and preferred solution to prevailing industry constraints.

The NCDMB declared that the session of NOGOF would hold in 2025.

The value of the dollar for the purpose of this feature story is based on the parallel market exchange rate of N700.

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