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18/11/2020 News

2020 NAPE: Osibajo Harps on Current Economic Realities

Nigeria’s Vice President, Prof. Yemi Osibajo has harped on Nigeria’s economic realities and the way forward at the opening ceremony of the  38th edition of the Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists, NAPE held on Tuesday, November 17, 2020.

The “hybrid” conference that was held physically at the Eko Hotel, Lagos and online had the theme: Accelerating Growth in Nigeria’s Hydrocarbon Reserves: Emerging Concepts, Challenges and Opportunities.

The Vice President who was represented by the Minister of State for Petroleum Resources, Chief Timipre Sylva stated: “Distinguished delegates, there is no gainsaying the fact that the growth and development of some nations are heavily dependent on energy availability and utisilastion especially on crude oil and increasingly on natural gas. Renewable energy is becoming a cheaper form of energy. Therefore reduced dependency on hydrocarbon resources over the next century seems inevitable.”

“One of the current cardinal mandates of the ministry of petroleum resources is to drastically reduce the unit cost of crude oil production in order to increase government revenue. In order to grow our reserves, we have proposed fiscal incentives that would attract investments in our basins in the petroleum industry bill. In addition, the fiscal provision for gas business will be one of the most attractive in Africa,” stated Prof. Osibajo.

The conference began on Sunday, November 15 and it is expected to end on Thursday, November 19, 2020, as various online and physical activities have been lined-up to ensure full participation of members. Chairman Amni International Petroleum Development Company Limited, Chief Tunde Afolabi delivered the keynote address and was also conferred with the 2020 Aret Adams Award.

In his virtual address, the Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mallam Mele Kyari specified that: “What Covid-19 did to the oil and gas industry is monumental. The collateral cost that we forecast to the industry is about a trillion dollars of loss to the E&P business this year. But businesses must adjust. There are two things we have to do: first, you need to pull down your cost and increase your revenue. We have decided with our partners that we want to refocus on gas development both in the domestic market and for export.”

Kyari added that the Petroleum Industry Bill, PIB will create the right fiscal environment for businesses to thrive, generate more investment and, “by the mid of next year, we are very sure that the PIB will have come to pass.”

Apart from its full participation at the conference, Total is also exhibiting at the ongoing virtual exhibition of the association.

Total’s Executive General Manager, Deep Water GSR & Planning and Chairman Society of Petroleum Engineers, SPE, Mr Olatunji Akinwunmi joined other associations to share his goodwill message with NAPE. “The year 2020 has been a remarkable one, due essentially to the global coronavirus pandemic which has indeed continued to make its impact felt very negatively in every aspect of human endeavour, and by extension the energy industry,” he said.

Mr Akinwunmi was explicit on the effects of low prices, reduction of investments and many others on the country and hoped that the conversations that would be facilitated between industry experts around the theme of the conference would lead to immediate positive actions in the resuscitation of exploration in the country.

Earlier in his welcome address, the NAPE President Alex Tarka informed participants that, “NAPE turned 45 years in August,” and appreciated all members of the association, participants and sponsors.

Petroleum Explorationists, NAPE was Accessing Quality Information & Data Journalism for Oil & Gas Media Professionals.

In his overview of the oil and gas industry in Nigeria, Mr Oguachuba stated: “E & P in Nigeria remains the economic driver of the nation. It’s the basis of more than 70% of Nigerian’s foreign income earning. Nigeria is the leading producer in Africa, and it is ranked 6th in the world when it comes to LNG production and export. Although not without challenges, there has been consistent growth in the domestic gas sector.”

He further said: “Total as a key player in the industry is committed to the growth of oil and gas in Nigeria as a major economic driver and we are open to collaboration with the Federal Government of Nigeria and other key stakeholders towards the continued development of oil and gas in Nigeria. That is evident because we are one IOC that continues to invest in the exploration and development of resources, from AKPO to USAN and the recently concluded Egina field.”

The ED responded to questions from participants giving details of Joint Venture (JV) and Production Sharing Contracts (PSC).

Other speakers at the workshop were Growth Editor, Stears Business, Yvette Dimiri and Publisher, Africa Oil+Gas Report, Toyin Akinosho.

Earlier in his opening remarks, the President, NAPE, Alex Tarka noted: “The theme of this workshop is significant  and relevant especially in the new normal where the COVID-19 pandemic continues to cause us to adapt to new ways of working, living and relating with each other.”

The one-day workshop was held by NAPE to enrich the quality of reportage of events in the oil and gas industry.

  • Mr Akinwunmi giving his goodwill message

  • Chief Sylva delivering the Vice President's address

  • Mallam Mele Kyari giving his remarks

  • Cross-section of participants at the conference