Stokman Harps on Improved Operational Efficiency in Midstream-Downtown Oil Sector

Peter Uzoho

Chief Executive Officer of OVH Energy Marketing Limited, Mr. Huub Stokman, has stressed the need for petroleum marketing companies in Nigeria to retool their service models to ensure excellent customer satisfaction and improved operational efficiencies.

He stated that with the proposed deregulation of the downstream sector backed by the Petroleum Industry Act (PIA), Nigeria would soon have a functioning refinery landscape which will create value for the country. 

Stokman stated these in Lagos while speaking as a panellist at the just-ended Nigerian Content Midstream and Downstream Oil and Gas Summit, with the theme, “Maximizing Potential in the Midstream and Downstream Oil and Gas Sector – A Local Content Perspective.” 

The even was organised by the Nigerian Content Development and Monitoring Board (NCDMB).

Contributing on the topic, “Opportunity Areas and Challenges of Investment in the Petroleum Product Marketing and Bunkering Sector,” Stokman said stakeholders must properly capture the upcoming value in the downstream sector through safe and sustainable operations down the value chain to avoid waste.

He explained that once deregulation happens, the price of petrol -which currently sells for the government’s approved price of N165 per litre, would probably increase, arguing that when that happens, the consumer would naturally request more value for money. 

 He said: “The retail forecourt offerings in the industry are not on par with those of other countries on the continent. Once deregulation happens, the price of premium motor spirit will probably increase.  

“When this happens, the consumer will naturally request more value for money. When we pay more, we typically want more. To satisfy the consumers demand, industry players must guarantee the quality, quantity, and excellent customer service in a safe and secure environment”. 

Stokman, however, highlighted key challenges facing the manufacturing industry that supports the oil and gas industry, including reliance on import of critical raw materials, inflation and currency devaluation, as well as industry skills shortage arising from skilled Nigerians moving overseas. 

He noted that investments done by the oil and gas industry in upskilling existing manpower will contribute to build in-country people skills availability.