Success Hills Multinational Nigeria Limited

We are licensed custom agent, ship brokers and Clearing & forwarding Agency in the business of ship brokerage, Tanker/vessel/barge charter, freight forwarding and clearing, Haulage/ Transportation, warehouse and collateral Management.

Success Hills Multinational Nig Ltd (SHM) in partnership with its sister company Somarto Nigeria Limited acquired its customs license to carry on clearing activities at all Nigerian sea ports, airport, train stations and land boarder !

OUR MANAGEMENT

SHM Group has a virile and very dynamic workforce that we like to refer to as our strength. This is in line with our mission to recruit, retrain, and reward high- performance workforce.

This hardworking, virile and dynamic workforce is managed and controlled by a group of highly competent management team with tones of experience in the petroleum sector, giving our company an edge over others in terms of productivity and Services delivery to our clients and shareholders respectively.

We have a qualified system for accessing key skills and experience to ensure that our staffs and consultants have significant and relevant experience relative to the job they are assigned.

Creating an environment that supports professionalism, Integrity and innovation has led to higher performance team .
.. STRENGTHEN CLIENT BASE BY ENSURING EXCELLENCE AND INNOVATION IN SERVICES DELIVERY...

SHM Group : it was incorporated as a limited liability company in Nigeria in 2019 to carry on the business of drilling support services for the oil and Gas industry; environmental management, marine logistics etc.
It is also involved in the business of marketing, supply and trading of crude oil and petroleum products, within and outside West Africa.

Under the executive management of Mr Egbo Godswill as the chairman of SHM Group, Success Hills Multinational Nig Ltd has been strategically positioned to achieve a sustainable competitive advantage to achieve it's Vision.

This is further enabled by the proper deployment of good corporate governance and risk management practices.

In fulfilling our vision, we shall continue to build and imporve the capacity of the communities we operate in. Through our "SHM Foundation" , we shall always endeavor to be responsible corporate citizens.

SUCCESS HILLS MULTINATIONAL NIG LTD (SHM GROUP) HAS BEEN STRATEGICALLY POSITIONED TO ACHIEVE A SUSTAINABLE COMPETITIVE ADVANTAGE TO ACHIEVE ITS VISION...

SHM Group: with Services ranging from Engineering, Procurement, Construction, Project Management, Facility Maintenance, Pipe laying and Maintenance, shipping, import & export, oil well Services, and vessel / tanker chartering.

We adhere to the highest standard of professionalism and strive to exceed the expectation of our clients through integrity, imbibing very strict culture and quality service delivery.

To us, safety is not an act but part of our culture which ensures we deliver quality Services safely.

Success Hills Multinational Nig Ltd (SHM Group) is incorporated under the laws of the Federal Republic of Nigeria as a wholly owned Nigeria company.

Success Hills Multinational Nig Ltd (SHM Group) is a privately owned indigenous company, focused on providing diverse Services to the upstream, mid stream and down stream sector of the Oil and Gas industry in Nigeria and west Africa Region sustainably.

Notice of Consultation with Stakeholders on Regulations Development in Compliance with Section 216 of the Petroleum Industry Act 2021 (PIA)

Somarto Nigeria Limited Somarto Nigeria Limited is a privately Nigeria owned indigenous company, RC 1337742 focused on providing diverse services to the upstream , midstream and downstream of the Oil and Gas industry.
with services ranging from Engineering, import/export ,etc.

STATE HOUSE PRESS RELEASE

PRESIDENT BUHARI APPOINTS BOARD AND MANAGEMENT OF NNPC LIMITED

President Muhammadu Buhari has appointed the Board and Management of the Nigerian National Petroleum Company Limited, in accordance with the power vested in him under Section 59(2) of the Petroleum Industry Act 2021.

Chairman of the Board is Senator Margret Chuba Okadigbo (South East), Mele Kolo Kyari, Chief Executive Officer, and Umar I. Ajiya, Chief Financial Officer.

Other Board Members are; Dr Tajudeen Umar (North East), Mrs Lami O. Ahmed (North Central), Mallam Mohammed Lawal (North West), Engr. Henry Obih (South East), Barrister Constance Harry Marshal (South South), and Chief Pius Akinyelure(South West).
The appointments take effect from the date of the incorporation of the NNPC Limited.

Also appointed are Executive Commissioners of the Nigerian Upstream Petroleum Regulatory Commission. They are: Dr Nuhu Habib (Kano), Executive Commissioner, Development and Production, Dr Kelechi Onyekachi Ofoegbu (Imo), Executive Commissioner, Economic Regulations and Strategic Planning, Capt. Tonlagha Roland John (Delta), Executive Commissioner, Health, Safety, Environment and Community, and Jide Adeola (Kogi), Executive Commissioner, Corporate Services and Administration.

Earlier appointed are the Board Chairman, CEO, Executive Commissioner, Exploration and Acreage Management, and Executive Commissioner, Finance and Accounts.

New appointees at the Nigerian Midstream and Downstream Petroleum Regulatory Authority are Francis Alabo Ogaree (Rivers), Executive Director, Hydrocarbon Processing, Mustapha Lamorde (Adamawa), Executive Director, Health, Safety, Environment and Community, Mansur Kuliya (Kano), Executive Director, Midstream and Downstream Gas Infrastructure Fund, Bashir Sadiq (Sokoto), Executive Director, Corporate Services and Administration, and Dr Zainab Gobir (Kwara), Executive Director, Economic Regulations and Strategic Planning.

They join the Board Chairman, Executive Director, Downstream Systems, Storage and Retailing Infrastructure, the CEO, and Executive Director, Finance and Accounts, who had earlier been appointed.

For Midstream and Downstream Infrastructure Fund, new Council Members are; Mr Effiong Abia (Akwa Ibom), Bobboi Ahmed (Adamawa), and Engr. Abdullahi Bukar (Katsina).

It will be recalled that President Buhari had last September written the Senate on the administrative structure amendments to the Petroleum Industry Act, which included appointment of Non-Executive Board Members, removal of the Ministries of Petroleum and Finance from the Board of the two new institutions, and appointment of Executive Directors.


Femi Adesina
Special Adviser to the President
(Media and Publicity)
January 5, 2022

As 57 marginal acreages open new vista for jobs, investment in Nigeria’s oil industry

History was made on June 1, 2021, when the Federal Government granted licenses to Nigerian investors for 57 marginal oilfields in the country’s oil-rich Niger Delta region.

Director of the Department of Petroleum Resources (DPR, Mr Sarki Auwalu, who announced the awards in Abuja, said the 57 marginal fields offered spanned land, swamp and offshore locations. The award which came barely one year after the Department of Petroleum Resources (DPR) opened a bid process for 57 marginal fields on June 1, 2020, at the peak of the COVID-19 pandemic, amid concerns that the round may eventually not hold due to ravaging impact of the pandemic on economic activities not only in Nigeria but across the global financial and oil markets.

In the oil industry, demand and price of crude oil, Nigeria’s highest revenue earned dipped treacherously as economic activities across the world went mute.
In the face of those odds, Auwalu in a speech announcing the awards, said that at least, half of the successful marginal field investors have accepted the offers and have even made the mandatory payments to signature bonuses to the Federal Government which is targeting about $500million income from sale of the new acreages.
At the presentation of letters to the winners in Abuja, on May 30, 2021, the DPR Director further explained that a total of 591 firms submitted their Expression of Interest forms, out of which 540 were pre-qualified, while 482 were bids submitted by 405 applicants.

In the end, 161 companies were shortlisted as potential awardees, out of which 50 percent have met all conditions and therefore, are eligible for awards today. We are set to ensure opportunities are extended to other deserving applicants to fill the gap,” he said.
However, for oil and gas stakeholders, one of the major conditions for the award of the new acreages to participants is the payment of signature bonus.
With 50 percent of leases already paid for, it is expected that government would have raked in about $250 million in signature bonuses so far, while looking forward to harvesting additional $250 million from other winners who could not pay on the day of the award in the weeks and months .
Beyond its financial gain to the government, another key objective of the project would be its potential to increase job opportunities for Nigerians through fresh investments in the oil and gas sector.
However, given the dearth of fresh investment in Nigeria’s oil and gas industry over many years, the collateral impact of the 57 fresh acreage awards cannot be overemphasized, especially as all are 100 percent indigenous oil and gas companies.
Another critical attribute of the 2021 exercise was with its capacity to further enhance the technical abilities of Nigerian oil and gas entrepreneurs and the sector’s growing manpower base now heading to a complete and convenient takeover of management and operations from foreigners currently at the commanding heights of the industry.
For the Federal Government, raking in an estimated $500million in signature bonuses from the winners of the marginal oil blocks at a time of acute foreign currency scarcity is no mean feat, aside the project’s complementary role in job creation even if at least half of the awards could come on stream immediately.
For President Muhammadu Buhari, who had set the target of pulling 100million citizens out of poverty trap over the next 10 years, the new marginal oil fields awards can be a greater enabler for realising that dream given the multiplier economic outcomes of every oil and gas investment.

A cursory assessment of the projects reveals their multi-dimensional impact on job creation, revenue generation for the Federal Government, technology transfer for indigenous oil and community that are indeed enormous for the nation’s struggling economy. One would also not ignore the impact on Local Content Development initiative in the oil and gas industry and its contributions to national oil and gas reserves
The multiplier effects on the economy that often manifest through increase in Gross Domestic Product (GDP), and job creation employment cannot be over emphasized. But unlike similar award programmes in the past, the processes leading to the award of the 57 marginal field licenses in June of 2021, were adjudged the most transparent by the indigenous oil and gas executives that participated at the bid round.
This was so because the Department of Petroleum Resources (DPR), Nigerian Oil & Gas industry regulatory agency charged with the responsible for the administration of Petroleum laws and statutes as well as implementing policies on oil and gas activities in Nigeria took steps to ensure that the conduct was openly transparent, particularly against the backdrop that it turned out to be an all Nigerian affair.
As an Opportunity House and Business Enabler – DPR brought it supervision and monitoring expertise in petroleum industry operations to bring transparency to bear on the processes leading to the award of the acreages to the delight of participating entities.
This is largely because much of its strategic focus for wealth creation for the Nigerian state was premises around four critical areas that included Bid Rounds (Investments), Reserves Growth, (Global Competitiveness), Production Increase (Revenues) Reduce Cost-Per-Barrel, (Profits &Capital Efficiency).
In a recent media presentation on his winning strategies for development of the nation’s marginal fields, Auwalu Sarki, the boss of the oil and gas agency listed Scalability, (Start Small; Grow Big), Vertical Integration & Diversification(Upstream, Midstream and Downstream /Gas Industrial Hubs) as his key strategic focus and indeed the way to go in building an integrated and competitive oil and infrastructure.
Part of that strategy also includes collaboration and synergy that seeks to empower clusters of contiguous fields to aid synergy and collaboration among operators.
To achieve these milestones, the DPR work programme implementation would involve scientific mechanisms that include appraisal of opportunities and robust field studies.
Moreover, in its attempt to ensure that the leases awarded to indigenous operators are not disruptive of their hosts, the oil and gas regulator said it is targeting a more robust Community Relationship apparatus of operators and communities with Corporate Social Responsibility (CSR), compliance to global operational and local regulatory standards as well as Operational Excellence are strictly adhered to by all stakeholders.
More importantly, the DPR boss had emphasized the imperative of cost control and optimisation using global best practices and benchmarks.
On strategies for crude oil and gas reserve growth against which the 57 licenses were doled out, Sarki listed Deep Drilling, Target By-Passed accumulation, Migration of P3 to P2 (& P1), Improved Oil Recovery (IOR), Enhanced focus on sustainable, FDPs, Frontier Exploration and Bid Rounds. He also outlined strategies for production growth to include recovery from impact of ‘Triple Force’ (COVID, OPEC+, Crude Price), expected production from assets with approved FDPs, marginal field bid round and additional deepwater production.
The outlook over the three year period of 2021-2024 is to boost the nation’s crude production capacity by an additional 600kbpd.
This initiative is also expected to dovetail into its midstream objectives of expanding local refining capacity through empowerment of Modular refineries, Integrated Refinery Complex, Impact of price freedom, Zero Routine Flare for new developments, Gas Flare Commercialisation, Gas Processing Plants, •Central Processing facilities, Fertilizer Plants Petrochemicals.
In addition to wanting to stimulate Domestic Refining the agency seeks through on going reform encourage the development of Gas Based Industry, Gas Pipelines and Flare Gas Capture
For instance, at the signing ceremony of the Pre-Front-End Engineering Design (FEED) for the first-of-its kind Floating LNG Project in Nigeria recently, Sarki had expressed his delight at the event that came following the issuance of the License to Establish the flagship FLNG project by the Department of Petroleum Resources in February this year.
According to him, the prompt transition of project implementation to the commencement of initial basic engineering works was a testament to the doggedness, resilience, and business-mindedness of UTM Offshore, now blazing the trail in major capital midstream gas development by independent, indigenous companies.
He further stated the exercise was in line with President Muhammadu Buhari, administration’s commitment to support policies that will boost investment in the Nigerian oil and Gas sector following his declaration that “Nigeria is Open for Business”. He argued that the DPR, under the supervision of the Minister of Petroleum resources, has continued to implement policy and regulatory reforms driven by commitment to attract new investments, create value and improve the contributions of the Oil and gas sector to Nigeria’s GDP.
“With the commencement of preliminary engineering of this Liquefied Natural Gas project, the drive by Mr. President and the Minister to make the 2021 – 2030 Nigeria’s decade of gas is fast becoming a solid reality. As a Department, we will continue to provide opportunities and enable the businesses of promoters and investors in the oil and gas industry for economic growth stability and sustainability of Nigeria and for the mutual benefit of all investors and industry participants. Our Licenses, Permits and Approvals will continue to serve as stimulants for value addition and enablers of development.” He said
Sarki also pledged the agency’s unflagging support to seeing the winners through the successful ex*****on of the landmark project in a safe, cost-effective, and timely manner whilst ensuring adherence to applicable Nigerian laws and regulations and global best practices, all in a bid to ensure successful project development and optimum return on investment.
He however called on all stakeholders to take advantage of the resources of the National Oil and Gas Excellence Centre (NOGEC), which was commissioned in January 2021 as the one- stop shop techno-economic resource to enhance safety, value, and cost efficiency in the industry, assuring the DPR will plow its wealth of experiences in major capital development projects to bring all relevant resources to bear on the project for overall sustainability and enhanced value to all stakeholders.
DPR’s National Oil and Excellent Centre (NOGEC) was commissioned to drive the three-fold objectives of Safety, Value and Cost Efficiency in the industry and currently hosts a number of key centre of Search, Rescue and Surveillance (SeRAS) Command & Control Centre, the National Improved Oil Recovery Centre(NIORC), Oil & Gas Alternative Dispute Resolution Centre (ADRC) Oil & Gas Competence Development and Integrated Data Mining & Analytics Centre (IDMAC) Centre (CDC).
How award will impact Nigerian Content
Despite being Africa’s leading oil producer, Nigeria happens to be one of the few OPEC members whose oil industry is still under the control of by expatriates.
This has led to a situation where top management and executive positions are held by foreigners. It was therefore in an effort to correct this imbalance that the oil and gas industry birthed the Nigerian Oil and Gas Industry Content Development (Local Content Act) in 2010 to promote indigeneous participation in the Nigeria’s oil and gas industry for the purpose of improving the economic and social well being of those engaged in operating in the oil and gas industry.
This Act also provides for the development of Nigerian content in the Nigerian oil and gas industry, Nigerian content plan, supervision, coordination, monitoring, and implementation of the Nigerian content.
It outlined the requirement of organization wishing to operate in the Oil and Gas Industry in Section 2 of the Local Content Act, which states that “all regulatory authorities, operators, contractors, subcontractors, alliance partners and other entities involved in any project, operation, activity or transaction in the Nigerian oil and gas industry shall consider Nigerian content as an important element of their overall project development and management philosophy for project ex*****on”.
It defines Nigerian content in Section 106 as “the quantum of composite value added to or created in Nigeria through the utilisation of Nigerian resources and services in the petroleum industry resulting in the development of indigenous capability without compromising quality, health, safety, and environmental standards”.
A key objective of the Local Content policy is to increase Nigerian participation in the oil and thresholds for the use of local services and materials for the promotion of technology and skill to the Nigerian labour in the oil and gas industry.
With award of the 57 acreages to local investors, the expectation is that the initiative would now offer Nigerian indigenous manpower in the oil and gas industry a rare opportunity to showcase their potential and stop playing the second fiddle in an industry that has brought enormous wealth to several oil and gas jurisdictions across the globe.
In addition to creating the much desired jobs, communities in the oil bearing areas of the country stand the chance of enjoying much higher standard of living through the wealth that would be generated from the investments.

DPR REVIEWS 5 TERMS IN GAS PRODUCTION SHARING CONTRACTS
The Department of Petroleum Resources (DPR) says it has reviewed five terms for gas development under the Production Sharing Contracts (PSC) in the Country.

Mr Sarki Auwalu, the Chief Executive Officer, said this during a Public hearing at the National Assembly organised by the Joint Committee on Gas Resources and Petroleum Resources, Upstream and Downstream, in Abuja, on Monday.

The hearing was on the Topic: “Inclusion of Gas Terms in Production Sharing Contracts by the Nigerian National Petroleum Corporation (NNPC).”

He said DPR had considered and reviewed five terms for gas development in PSC and the terms included duration, cost of gas, tax gas, royalty and profit gas.

“These five terms, we believe when considered, will definitely make it robust and enable the provisions that made in the Petroleum Industry Bill (PIB) to adequately address all issues and concerns,” said Auwalu.

He explained that the first PSC as a business arrangement was signed in 1973 between the government and international oil companies with the absence of gas terms in the contract.

According to him, others were signed in 1993 with oil majors and 1998 with main indigenous companies, while 2005 and 2007 served contracting documents between NNPC and their contractors.

He noted that under the existing PSC and gas terms, Oil mining Lease (OML) 42 and 36 were awarded on PSC, in addition to OML 127 and 130 that were on Sub lease.

“The new regime of the PSC was introduced by the deep offshore by the inland basin connection Sharing Contracts of 2004 and was amended in 2019 to replace the royalty regime of 1999 act,” he said.

On utilisation of PSC funds, he noted that so far gas from OML 18O and 130 operated by shell and Total were being utilised via Nigerian Liquified Natural Gas (NLNG).

These, he said were also strategies used in the industry to enhance gas pe*******on and utilisation in Nigeria.

Auwalu added that the gas price mechanism template would be presented to the Minister of State for Petroleum Resources, Chief Timipre Sylva, on March 9th.

Department of Petroleum Resources (DPR) is pleased to announce the launch of Downstream Remote Monitoring System (DRMS) as follows :
Date : Thursday 11th February, 2021
Time : 10:00am
Venue : Transcorp Hilton Hotel, Abuja ( Congress Hall)

Why FG is Moving DPR Headquarters to Abuja’

The Director and Chief Executive Officer of the Department of Petroleum Resources (DPR), Mr Sarki Auwalu, has said that the federal government is moving the headquarters of the industry regulator from Lagos to Abuja for the sake of centrality.

Speaking at the ground-breaking ceremony in Abuja, Auwalu, noted that the organisation would continue to work hard to defend the confidence reposed in it in the industry.

According to him, the choice of Abuja as the location of the headquarters was to ensure the centrality of the regulatory work of the agency and closeness to all the major stakeholders.

“Establishing the headquarters in Abuja is the best for the sector, because the entire DPR stakeholders that need to work closely with the operations are in Abuja.

“We are looking for petroleum resources all over the nation with already seven existing basins which would be better managed from the central point,” he stated.

Auwalu added that as a forward-looking organisation, the DPR would continue to innovate and fully prepare for the challenges of the times.

“As a department, we will continue to justify the confidence reposed in us by government. Rest assured that this building will support DPR’s enabling businesses and creating opportunities for the industry to thrive, using our robust regulatory framework and service instrument.

“This DPR is the DPR of the 21st century, a century we use big data and artificial intelligence. Our work requires data to enhance and maximise revenue for the country.

“Those things that are available to us, especially IT facilities are exactly what the building represents, we make it a 21st century building whereby technology will rule and we will use intelligence to make our country proud,” he stated.

In his comments, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said that the construction of the headquarters was another milestone in infrastructure development efforts of the federal government.

“The construction of this building tagged: ‘The Barrel‘ is yet another milestone achievement by President Muhammadu Buhari in the area of infrastructure development and its commitment to reposition the oil and gas sector for effective service delivery.

“DPR as a critical agency of government, regulates, monitors activities of the Nigerian oil and gas industry which drives all other sectors of the economy,” he said

Sylva said the edifice, when completed would provide a conducive environment to support oil and gas businesses across the value chain for operators, service providers, investors, international collaborators among others.

According to him, the design of the building reflects an innovative and timeless architecture that honours the Abuja Central Business District landscape, adding that the project will be completed in 24 months.

The Managing Director, Julius Berger Nigeria, Dr. Lars Richter, in his remarks, said the building would be completed within the time frame.

He noted that the building upon completion would represent a world class one that would meet global standard, stressing that Julius Berger has had a great record in infrastructure development in Nigeria since 1965.

“The building has office facilities, auditorium, clinic, restaurant, energy house among others, we will deliver the project within the timeframe,” Richter stated.

DPR urges operators of filling stations, gas plants on safety

The Department of Petroleum Resources (DPR), has urged operators of filling stations and gas plants in Adamawa to abide by all safety guidelines to avoid disaster.

Alhaji Sadiq Ibrahim, DPR Operation Controller in the state made the call at a stakeholders meeting on Friday in Yola.

According to him, safety is the number one priority in the business to save life and property.

Ibrahim called for the continued cooperation of members of Independent Petroleum Marketers of Nigeria (IPMAN) in the state for effective service delivery.

He said that the aim of the meeting was to rub minds so as to understand each other for a successful business.

Also speaking, Ibrahim Abubakar, the Acting Head of Operations, DPR called on the marketers to upgrade their services as most of DPR’s activities were now online unlike before.

He said that their payment into the Single Treasuring Account was aimed at blocking all leakages.

In his remarks, Alhaji Dahiru Buba, chairman of IPMAN in the state, commended the department for the enlightenment and promised to reach out to members for maximum compliance

PHOTO NEWS: Yesterday 29-01-2021

Images from the announcement of FID for Brass Fertiliser and Petrochemical Company Ltd (BFPCL)'s Integrated Project by the Shareholders - , NCDMB and DSV Engineering, in Abuja, earlier today.

: Yesterday 29-01-2021

Its Official!!! NNPC, Nigerian Content Development Monitoring Board and DSV Engineering Take Final Investment Decision (FID) for $3bn Brass Fertiliser Project.

Happening Now at the National Assembly:

Day 2 of the Senate Public Hearing on the Petroleum Industry Bill (PIB 2020), with the Honourable Minister of Petroleum Resources H. E Timipre Sylva, GMD Mallam Mele Kyari and other Oil & Gas Industry Stakeholders in attendance.

Resetting Nigeria’s energy landscape with NOGEC

Nigeria’s oil and gas sector appears set for a major turnaround after years of lull in the sector occasioned by a low oil price regime and the coronavirus pandemic which saw US oil prices turning negative for the first time in history on April 20, 2020.

A floodgate of unwanted oil in the market caused the West Texas Intermediate (WTI), the benchmark price for US oil, to plummet to almost -$40 a barrel after the fastest plunge in history.

The development sent shivers down the spines of oil producing countries, signaling that the worst was yet to be seen as the coronavirus pandemic spread across countries of the world.

The after effect was the shutdown of refineries across Europe ditto for factories in China and other parts of the world.

Nigeria, a major oil exporter which depends on about 80 per cent of its revenue from oil was the worst hit as oil production and revenue dropped drastically.

In May 2020, Nigeria’s Finance Minister, Mrs. Zainab Ahmed announced that revenue target fell by N125.52 billion in Quarter one of 2020 to N940.91 billion.

Ahmed attributed the shortfall to the double whammy of the headwind caused by the COVID-19 pandemic and the slump in oil price due to a sharp drop in demand and price war between two powerful producers, Russia and Saudi Arabia, representing 31 per cent of the prorated oil revenue target.

Nigeria, according to the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI) is among the top 10 countries with the highest cost of oil production.

Though, the Nigerian National Petroleum Corporation (NNPC) has assured that efforts are in top gear for the industry to ensure that it crashes the cost so that the country could reap the gains even in a low price oil regime.

Group Managing Director of NNPC, Mallam Mele Kyari, had last December at the Central Bank of Nigeria’s(CBN) round table session expressed the corporation’s readiness to put in place measures that will reduce the cost of crude oil production in Nigeria to create market for the country’s crude.

He said the move was also aimed at making the country a choice destination for Foreign Direct Investment.

According to Kyari, the current cost of crude oil production in the country is within the range of $15 to $17 per barrel, while Saudi Arabia has a cost of production that is between $4 and $5 per barrel.

He noted that due to the uncertainty of the global crude oil market, countries producing at the cheapest price would remain in the market while those with high cost of crude oil production would not be able to cope with the competing prices.

It was for this reason and many more that President Muhammadu Buhari, in being proactive and as part of measures to ensure that Nigeria’s energy landscape was in tandem with global realities in the area of cost efficiency, safety and value, last Thursday, virtually inaugurated the National Oil and Gas Excellence (NOGEC), Lagos. NOGEC will operate under the supervision of the Department of Petroleum Resources (DPR).

What NOGEC seeks to achieve

Buhari, who also doubles as the Minister of Petroleum Resources at the inauguration of NGOEC, said the centre has been carefully designed to support the achievement of the ministerial priorities – significant amongst which are cost reduction, increase in production, and value maximization in the industry. The Centre, according to him under the direct supervision of Department of Petroleum Resources (DPR), will leverage the existing capacity of the National Data Repository (NDR) as the principal data warehouse of the industry to drive initiatives that will enhance safety, value and cost efficiency across all operations in the Industry.

Buhari, who was represented by the Minister of State for Petroleum Resources, Mr. Timipre Sylva, said the establishment of the NOGEC is not only a response to a safer, cost efficient and sustainable oil and gas industry, but also a strategic move to position Nigeria as regional and global leader in cost efficiency, breakthrough solutions and value added services for the industry.

‘‘The establishment of NOGEC is not only a response to a safer, cost efficient and sustainable oil and gas industry, but also a strategic move to position Nigeria as regional and global leader in cost efficiency, breakthrough solutions and value added services for the industry.

Accordingly, and to achieve the afore-mentioned three-prong value drivers of safety, value and cost efficiency, the integrated NOGEC complex encompasses the following five (5) Units: Search, Rescue and Surveillance (SeRAS) Command & Control Centre, National Improved Oil Recovery Centre (NIORC), Oil and Gas Alternative Dispute Resolution Centre (ADRC), Oil and Gas Competence Development Centre (CDC) and Integrated Data Mining & Analytics Centre (IDMAC)

Buhari highlighted the main elements of each of these centres to underscore its role in driving cost reduction, increasing production and enhance value for the Industry.

According to him, SeRAS is a flagship programme of the centre designed to enhance safety management, emergency preparedness and response and routine transportation for bed space management.

SeRAS, he said, will therefore drive cost reduction and improve operational efficiency across the industry. Conservatively, he said it is projected that upon full implementation of SeRAS, the annual industry expenditure for offshore & remote locations flight logistics and emergency response will reduce by 50 per cent – a significant gain towards the country’s target reduction of cost-per-barrel across our operations.

NIORC on the other hand, is designed to promote the implementation of Improved and enhanced oil recovery technologies/methods to arrest the incidences of production decline and resultant high cost in many assets especially in the matured Niger Delta Basin.

In essence, he explained that NIORC will trigger secondary and tertiary recovery operations in the industry. The Centre will collaborate with operators, global technology centres, international oil and gas regulators and other relevant parties to leverage experiences and best practices for application in Nigeria.

‘‘Expectedly, the foregoing measures will result in reserves growth, production increase, field life extension, improved asset life cycle cost and reduced cost-per-barrel, all with positive impacts on national economy and investors’ profitability.’’

For ADRC, he disclosed that it is was created to arrest the prevalent value erosion attributable to sub-optimal development or non-development of oil and gas assets due to lingering disputes in the industry.

The ADRC, he said, shall offer arbitration, mediation and conciliation services utilising industry’s technical experts who will provide fair and balanced resolutions of industry related disputes from an informed position. The Centre, he added, will take advantage of resources of the National Data Repository (NDR) to ensure alternative dispute resolutions that result in value optimisation in terms of resource growth and global competitiveness.

In the same vein, he explained that the other two (2) units namely; IDMAC and CDC are structured to position Nigeria as a top-tier destination for credible, bankable and investment grade data in oil and gas and to serve as regional hub for competence development respectively.

‘‘These centres will provide cost-effective data and analytics solutions for investors, financiers, operators as well as resources for oil and gas capacity building and trainings.

I wish to assure all that NOGEC represents a state-of the-art, integrated facility that will provide the oil and gas sector with the much needed technical and resource capabilities for stability, growth, safe operations and cost efficiency for the benefit of all stakeholders.

We are confident that this Centre will support the attainment of Mr. President’s clear development imperatives for sectoral growth and the industry performance targets set by the ministry for a fortified oil and gas sector.’’

DPR’s perspective

Director of DPR, Mr. Sarki Anwalu, in his presentation at the inauguration ceremony commended the Nigerian Oil and Gas Industry for its tenacity and resilience in the face of several challenges.

The journey to NOGEC according to him, began with the express mandate of Mr. President for the industry to reduce cost, improve efficiency and create employment.

‘‘Based on these directives and the ministerial delivery priorities, DPR identified five key initiatives that will help to achieve the intent of Mr. President’s mandate. It is pertinent to note that the entire oil and gas business is hinged on revenue and safety, which provide the basis for identifying the five (5) initiatives that form the pillars of NOGEC.’’

Anwalu said NOGEC encompasses industry-focused programmes that will drive strategic mediation in operations, skills and competence development, use of Big Data, Internet of things (IoT) and Artificial Intelligence (AI) for decision making, deployment of proven technology for secondary and tertiary oil recovery as well as coordinated response for emergency.

‘‘Today, we have concluded the framework and implementation modalities for successful take-off of these programmes within the NOGEC due for imminent commissioning.

Your Excellency, sir, we have no doubt that the industry now has the resource and platform to interact, cooperate and collaborate on salient industry issues that remain impediments to cost reduction, safe operations and optimum value optimisation.’’