Industry Executives: FG’s Oil Reforms Boosting New Offshore Projects
Peter Uzoho
Industry executives have confirmed that recent presidential reforms in the oil sector as well as a surge in indigenous operatorship are unlocking production growth and a new wave of deepwater projects that had stalled for nearly a decade.
Chief Executive Officer of SeaQuest Exploration and Production Services Limited and Vice Chairman of the Society of Petroleum Engineers (SPE) Nigeria, Mr. Etta Agbor told THISDAY that the turning point has been the executive orders signed by President Bola Tinubu aimed at cutting red tape and improving project economics.
“In terms of outlook, I will tell you clearly that the industry is picking up. The operators have a lot more latitude now to quickly move faster because they are now empowered and mandated to take action for projects up to 10 million dollars and below,” he stated.
Agbor explained that decisions which previously moved through joint venture partners and the NNPC Upstream Investment Management Services (NUIMS) often got stuck in lengthy approval cycles.
“So typically, what used to go through all the contracting process, go to the JV partners, go to NUIMS, that takes a long contracting cycle to complete. Most of those things are now within their purview, they can quickly do it internally,” he said.
While operators will still provide clarifications at JV meetings, the ability to act first and report later has, in his view, repositioned companies to respond to opportunities in real time.
Agbor cited Heirs Energies, which has grown output from about 20,000 bpd to roughly 50,000 bpd “on the excellent brownfield innovations that are put in place on walkovers and all interventions,” and without drilling new wells.
Chief Executive Officer of CB Geophysical Solutions and former Chairman of the Petroleum Technology Association of Nigeria (PETAN), Mr. Bank-Anthony Okoroafor told THISDAY that the pickup in activity is already exposing a skills gap.
“The industry is picking up. And the key thing now is the requirement for more skilled staff,” he said.
