NAPE 2016 Pre-Conference Workshop
Pre-Conference Workshop 2016
Theme : Stimulating Upstream Investments in Nigeria’s Frontier Basins
Date: Monday, 14th November, 2016
Time: 9.00am to 3.00pm
Venue: Eko Convention Hall, Eko Hotel & Suites, Victoria Island, Lagos, Nigeria.
Keynote Speaker: Dr. Mazadu Bako; Group General Manager, Frontier Exploration Services; NNPC
Speakers:Dr Ebi Omatsola, FNAPE
Mr. Timi Familusi, Leader Sub-Saharan Africa for Accenture Strategy Energy
Mr. Lekan Akinyanmi CEO Lekoil
Lead Discussant: Mr. Mordecai Baba Ladan, Director, Department of Petroleum Resources (DPR)
Mr. Ade Adeola, Managing Director, Standard Chartered Bank, UK/Head Energy Africa
Prof. O. S. Adegoke, FNAPE. Chairman Mosunmolu Limited
Mr. Austin Nwazeapu, FNAPE. Former Managing Director, Gas transmission and Power Ltd.
Moderator: Dr. Tajuddeen Umar; Former Chairman Nigeria Sao Tome JDA and Member, NNPC Board of Directors
Registration: Conference Registered Attendees - Free
Non Conference Registered Attendees - N20,000.00
Stimulating Upstream Investments in Nigeria’s Frontier Basins
There are growing concerns in the oil and gas industry in Nigeria about the country’s average Reserve Replacement Ratio (RRR), a metric used by investors to assess the operating performance of oil and gas companies, which is currently negative and the apparent lack of robust Government policies to encourage exploration for oil and gas.
The Nigerian Association of Petroleum Explorationists (NAPE),in 2015, cautioned that the Nigerian government’s aspiration to increase crude oil reserves to 40 billion barrels by 2020 may be unattainable if the cutback in exploration activities in the country and the other local challenges facing the industry werenot addressed. These local challenges are complicated by the intense competitionfrom other African countries for the finite global exploration budget.
The Niger Delta is a mature Oil and Gas province. However, only 3 of the 9 plays types identified have been explored. This ‘poor’ exploration performance has been attributed to community-related disruptions, and investor perceptions of unfriendly operational and fiscal terms. Against this backdrop, Nigeria’s frontier basin offers a diversity of opportunities to meet the strategic objective of growing the country’s reserves base and surpassing the 40 billion target.
To meet and surpass this target, therefore, there is an urgent need to grow and solidify Nigeria’s petroleum reserve base by finding oil and gas in new basins and at much deeper depths, beneath the currently explored intervals of the Niger Delta.
The Federal Government of Nigeria has single-handedly funded and led the exploration for oil and gas within the Chad basin with 23 wells drilled and non-commercial discoveries encountered. Some measure of private sector-led exploration successeshave been recorded within the Dahomey, Anambra, and Benue Trough. Production recently commenced offshore DahomeyBasin operated by YinkaFolawiyo and partners and Anambra Inland Basin operated by Orient Petroleum Resources. All the exploration outcomes indicate a gas-rich, cretaceous-age reservoir sands.
In recent times,the Federal Government, in its drive towards the attainment of its goal of diversifying the country’s hydrocarbon resource base, is promoting initiatives that will aid its objectives.There is also opportunity for private equity investments and new players (local and International) to support these initiatives, including, but not limited to
• Aggressive exploration drive,
• Complementing FES efforts through deployment of new technology and comparative repository expertise acquired from similar basins elsewhere,
• Positioning investors to develop and operate these fields following anticipated technical and commercial successes.
These initiatives are geared towards the achievement of a reserve replacement of 1bbo, discovery of an average of 5.5 tcf of gas annually and the drilling of more wells to explore beneath 15,000ft.
NAPE is committed to supporting the Federal Government’s quest to find more oil and gas and attract investors to take the challenge of finding more oil and gas in Nigeria’s frontier basins. Consequently, our 2016 ICE Pre-Conference Workshop is dedicated to this goal. We therefore invite you to join a rich array of speakers and discussants to participate in this workshop with the focus theme: Stimulating Upstream Investments in Nigeria’s Frontier Sedimentary Basins.
The workshop discussed:
• How to generate policy guidelines that would attract private equity investments to explore Nigeria’s frontier sedimentary basins,
• Lessons from other successfully explored frontier basins in Africa,
• Review historical exploration and development activities in all of Nigeria’s frontier sedimentary basins, successes, failures and the lessons learnt,
• Discuss the technical challenges - available data and their suitability for exploration in identified frontier basins,
• Discuss commercial challenges - fiscal attractiveness, stability and innovative incentives to attract the desire level of commercial interest in view of the non-passage of Petroleum Bill into law, and
• Identification and management of stakeholders (Local, States &Federal) to ensure mutually beneficial relationships will also be discussed.
A communique of the proceedings will be issued and presented the Federal Republic of Nigeria as our expertise contribution towards the actualization of the 40bbo reserves base goal for 2020.
NAPE 2015 Pre-Conference Workshop
DATE: NOVEMBER 9, 2015
Venue: Grandball Room, Eko Hotel
Registration: Included in conference registration for Members
Non Members: N20,000
Theme: Survival Strategies for Petroleum Exploration and Exploitation in our Challenging Environment
Volatility of oil price has always been the focus of economic and financial news. The higher oil prices are, the more positive is the economic outlook for petroleum exporters. On the contrary, countries dependent on petroleum imports suffer from high energy prices, such is the quandary Nigeria find itself entangled. Nigeria currently maintains an economically unsustainable negative net energy balance in which the country exports virtually all produced crude and imports a substantial part of its refined petroleum products needs.
The world has witnessed a 55% drop in oil price between 2013 and 2015. The World Bank/IMF forecasted that oil price will remain depressed around $55 per barrel in 2015 and the next two years. Juxtaposed with this, over the last decade, exploration in the Niger Delta has declined and so has the of oil and gas discoveries. This decline trend is attributable to a number of factors such as funding issues, Oil theft, security and declining profitability and competitiveness of the Nigerian environment, which the Petroleum industry Bill (PIB) sought to address. The uncertainty over the bill continues to increase as the price of oil took an unprecedented bashing. In addition, oil and gas discoveries in Africa is more widespread in places such as Ghana, East African Rift, and South Africa, investors have a wide choice of investment location, leading to stronger national competition that may compel Nigeria to be more proactive in passing the Bill or come up with alternative solutions that would be sufficiently competitive to attract more investment into the Nigerian oil and gas industry.
Anticipated higher oil production globally, may bring about an unwilling economic transition for Nigeria. Therefore, an energy trade strategy is required to address an unsavory situation in the short term and its economic impacts in the long run. The dramatic fall in oil prices over the last several months has had a significant impact worldwide on energy industry and related sectors. The current global supply output is high due to the competitive market situation between U.S. shale oil producers and OPEC. Shale oil production has doubled in the last two years and Western nations have cut-back on the demand for OPEC oil. As a result the world is awash with oil, with neither party backing down to shore-up prices.
The effect of unanticipated regional crises in both OPEC and Non-OPEC oil-producing countries has limited supply and affected oil prices. Such as the nuclear stand-off with Iran and subsequent economic sanctions, the imminent possibility of an Israeli strike; The Russia-Ukraine crises; The Libyan ethnic war and the Saudi-Yemeni crises have all exacerbated the price volatility. In addition, natural and man-made disasters also have significant impacts, between the two Hurricanes Katrina and Rita about 113 offshore platforms were destroyed; The Mississippi River flooding damaged 457 pipelines; While the Japanese Tsunami shut down 3 nuclear power plants causing reliance on gas-fired turbines. All these factors have created a state of dynamic flux that this keynote address will attempt to proffer solutions for Nigeria.
• Government Regulations & Policy Framework: Impact on Production in a low priced regime
• Marginal Field Investments: Reappraisal under current global energy dynamics
• Managing Nigeria’s Oil theft in a depressed global oil market
• Oil Price Volatility and competitiveness of Nigeria's Oil
NAPE 2014 Pre-Conference Workshop
Date: Monday, 10th November, 2014.
Time: 9.00am - 3.00pm
Pre-Conference Workshop: Theme – “Driving an Executable Gas Flare-out Agenda for Nigeria Oil and Gas Industry”
NAPE 2013 Pre-Conference Workshop
The Pre-Conference Workshop was held on Monday, 11 November 2013 at the Eko Hotel & Suites, Victoria Island, Lagos. The workshop was on The Marginal Fields Experiment & the Growth of E & P Independents in Nigeria
Engr. Funsho Kupolokun
Former GMD, NNPC
Sub Theme 1:
From 2003 to 2013 – Supporting the E & P activities in Nigeria, the role of the Banking sector
Sub Theme 2:
The Develoment of Ebendo Field: A Measure of True Grit
Sub Theme 3:
Nigeria Exploration & Production Indigenous Opportunities, the View from the World Bank
The NAPE President (2012), Dr. Mayowa Afe (left) welcoming participants at the Pre-Conference. Right are some participants including Dr. Ebi Omatsola fnape, Mrs. Esther Adeniyi, Mrs. Uduak and Prof. C. M. Ekweozor fnape
We thank you for your participation on Tuesday 9th October 2012 at the NAPE 2012 Pre-Conference Workshop at the Eko Hotels & Suites, Victoria Island, Lagos.
STAKEHOLDERS DISPUTE CLAIMS OF NIGERIA’S EXCESS GAS RESERVES
The persistent claims that Nigeria has excess gas reserves is being hotly disputed by industry stakeholders, who warn of dire consequences of the country’s potential failure to embrace new techniques and technology to explore and exploit available gas resource.
STAKEHOLDERS in the country’s oil and gas industry have described as false the claims that Nigeria has excess gas reserves. They said given the increasing domestic needs for gas and the unavailability of gas to power some completed projects, especially in the power sector, the country’s gas reserves would not meet local demand.
The players, who stated this at the 2012 edition of the pre-conference workshop of the Nigerian Association of Petroleum Explorationists in Lagos on Tuesday, maintained that in the nearest future, Nigeria might need to source natural gas outside its shores to meet local needs.
In his presentation, the President, Nigerian Gas Association, Mr. Chima Ibeneche, said the talk about Nigeria having a huge gas reserve was not true. According to Ibeneche, gas has huge relevance in today’s environment, which is largely driven by the Internet, and technology as a whole. He said activities in non-Organisation for Economic Cooperation and Development countries, which include Africa, were driving demand for gas globally. He added that global gas demand would continue to grow in the next 20 to 30 years, but will be supported with coal in the short term. He noted that electricity generation remained a strong driver for energy fuel, and global electricity demand would continue to rise; of which by 2040, there would have been a rise in demand for electricity by about 80 per cent.
Ibeneche said,’’A look at gas per capita in Nigeria will make you understand that we have no gas at all,’’ adding that the demand for gas in Nigeria would continue to grow.
Shale gas, which is the product of advanced technology, is gradually eroding the anticipated prospects and hope of natural gas as a major income stream of the federal government.
Quoting the Energy Information Administration, the NGA boss said recent forecast has it that the United States’ Liquefied and Natural Gas imports was already dropping. According to him, this is a bad market signal for LNG exporting countries, like Nigeria.
Soon, US imports of LNG would be negative and exporters of LNG might shift bas to the Middle East, where the demand for natural gas still remained high, he explained.
He said,’’ Now is the time for Nigeria to have more LNG plants and contracts. For our export, we need to take advantage of the windows we have now. We should not delay.’’
Ibeneche said it was important Nigeria balanced its LNG exports with local usage, as the country might not be able to appropriately price its LNG, if the focus was mainly on local use.
On the way forward for the sector, he said, ‘if we must take final investment decision on any LNG plant, we must ensure it contributes significantly to the fortunes of the Nigerian economy.
‘‘We need to use the revenue government gets from LNG exports to build the grid so that we don’t get to lose more gas; and we have to fully implement the Gas Master Plan.’’
In a bid to getting things right in the gas arena, he said the government should also resolve issues bordering on supply chain, the consumers and regulation/ policies for the development of Nigeria’s Liquefied Petroleum Gas (cooking gas) market.
‘‘Now, the fiscal policy for LPG in Nigeria is wrong. We should revisit it,’’ he added.
Also commenting, the Group Managing Director, Conoil Upstream, Dr. Ebi Omatsola, said, ‘‘I wonder when players say we have excess gas in Nigeria. The question, there fore is do we really have excess gas reserve, looking at the increasing demand for gas in power generation and others?’’
Commenting, the Vice –President, gas, Shell Petroleum Development Company, Mr. Ubaka Emelumadu, said Nigeria was already positioning itself for effective use of gas resources through the Gas Master Plan, power sector reform, among others.
He said to realize the vision 2020 goal of 10 percent annual economic growth, the Gas Maser Plan remained a reliable tool and must be taken very seriously.
Emelumadu called for a balanced fiscal regime for LNG, stressing that government has no business becoming a competitor in a commercial business like LNG trade.
The President, NAPE, Dr. Mayowa Afe, also reemphasized the need for effective use of natural gas to develop the local economy, especially the power sector.
This campaign is coming at a time when the country’s power sector is seriously facing gas support challenges, as some existing and new power plants are currently not operational due to shortage of gas.
He also expressed worry over of future of LNG business, which is being considered as a major revenue source for the Nigerian economy.
He said natural gas was the fastest growing energy resource in most regions of the world, owing to its abundance and relatively low carbon content, which makes it more environmentally acceptable compared to coal or crude oil.
‘‘Gas transportation from producing locations to areas of consumption could be capital intensive, accounting probably for the large volume of stranded gas in the country. This encourages flaring, while constraining its widespread utilization in various industries, including the power sector,’’Afe said
On shale gas, NAPE has said that its production across the globe was a threat to the growth of the Nigeria’s LNG industry. It said shale gas availability might lead to a drastic drop in LNG prices.
According to the Centre for Public Policy Alternative, if the price for Nigeria’s LNG drops drastically, it may lead to gas wastage through offshore flaring by oil producing companies, as the LNG business will be less attractive and rewarding.
Currently, only Russia flares more gas than Nigeria in the world.
Shale gas, which is the product of advanced technology, according to experts, is gradually eroding the anticipated prospects and hope of natural gas as a major income stream of the Federal Government.
For the Pre-Conference Workshop pictures, Click Here.
(Culled from The Punch Newspaper, October 11, 2012)
The theme for the Worksop was "The Economic Imperative for the Local Utilization of Nigeria's Gas Resources"
1. International Developments in the Shale Gas Arena
2. Domestic Gas Utilization: The journey thus far (Challenges and Opportunities)
3. Gas to Petrochemicals: Adding Value for Economic Development
SPECIAL GUEST OF HONOUR
Engr. Andy Yakubu
The Group Managing Director
Nigerian National Petroleum Corporation (NNPC)
Dr. Ebi Omatsola, fnape
Group Managing Director (Conoil Producing Limited)
Engr. Chima Ibeneche
President, Nigerian Gas Association
Title: International Development in The Gas Arena: Implication for the Commercialization of Nigeria’s Gas Resources
Mr. Ubaka Emelumadu
Vice President Gas; Shell Petroleum Development Company of Nigeria Ltd.
Title: Utilisation of Nigeria’s Gas Resources:
Perspective of The Journey so Far
Mr. Osten Olorunshola
The Director, Department of Petroleum Resources
Title: Defining an Effective Gas Commercialisation Policy for Nigeria
PANEL OF DISCUSSANTS
Mr. Bolaji Osunsanya
Managing Director, Oando Gas and Power
Mr. Babatope Olaleye
General Manager, Geosciences, Nigeria Agip Oil Company (NAOC)