building together
Reminiscences on My 40+ Years in the Oil & Gas Industry in Africa
‘Layi Fatona (Ph.D., D.Sc.. Honoris Causa) Managing Director, Niger Delta Exploration & Production Plc
Reminiscences on My 40+ Years in the Oil & Gas Industry in Africa - - PowerPoint PPT Presentation
0 Reminiscences on My 40+ Years in the Oil & Gas Industry in Africa Layi Fatona (Ph.D., D.Sc.. Honoris Causa) building together 0 Managing Director, Niger Delta Exploration & Production Plc Outline 1 GENERAL INTRODUCTIONS
building together
‘Layi Fatona (Ph.D., D.Sc.. Honoris Causa) Managing Director, Niger Delta Exploration & Production Plc
building together
1 1
GENERAL INTRODUCTIONS
▪ Conversation, Format & Why The Geological Time Scale? ▪ Before the Beginning – A Basement Complex of Life (My Pre Cambrian Setting) ▪ The Cambrian Ordovician – Pioneer NYSC ▪ A Paleozoic Time Setting – 1st Shell BP Working Experience ▪ The Mezozoic Equivalent – IC Post Graduate Education
THE TERTIARY BUILD OUT (TRANSGRESSIVE)
▪ The 2nd Employment @ SPDC (Paleocene) ▪ Geotrex Systems (Eocene) ▪ ND Phase 1 (Oligo-Miocene) ▪ ND Phase 2 (Piocene) ▪ Late Tertiary/Early Quaternary – ND Phase 3 (Pleistocene)
THE FUTURE CENE – ND Phase 4 and Beyond
▪ Appreciations For A Professionally Fulfilling Journey….
building together
2 2
Without Permission of our 3 Lovely Boys ‘Tenne, ‘Bade & ‘Tokunbo Fatona “Extraless” May 2019
building together
3 3
building together
4 4
building together
5 5
The Presentation – Metaphorically will mimic Geology in its basic set and simple format The Geological Time Scale Approach. This is what I opt to adopt for Today and This Presentation
building together
6 6
The Basement Complex of Life Life (Before & Up till end of UI) (‘49-’73) B.Sc. Hons
The Geological Time Scale
building together
7 7
Removing the Doubts on LF – The Pre Cambrian (Basement Complex Life)
‘LAYI FATONA (LF)
A Student of Geology @ the University of Ibadan The 300 Level Geology Department Shaping us for the Professional Future
GL 101, 201 & 301
Prof Kevin Burke, Dr (Mrs.) Durotoye, M.O. Oyawoye and Oma Rahaman
GL 102/3, 202 & 302
Prof Adeleye, Deseragie, Fayose
GL 104
Prof Makanjuola – The Joshua Crowd
BORN 1ST JUNE 1949
LAWRENCE OKUNADE FATONA
ILEWO, ABEOKUTA, OGUN STATE, NIGERIA
CHRISTIANAH ABIMBOLA FATONA
The UI ‘73 Mafia was Made! (June 1973) ‘LAYI FATONA
IN
TO
&
building together
8 8
Pioneer NYSC (Incubating the Geologist) The Basement Complex of Life Life (Before & Up till end of UI) (‘49-’73) B.Sc. Hons
The Geological Time Scale
building together
9 9
Pioneer Youth Corper(s) of Nigeria : July 1973 – June 1974
✓ The North Central State Water Board Experiment ✓ Project Managing – Old Zaria Town Water Distribution Network System ✓ Zoba Dam Project – Soil Investigation
The Young Explorer & Graduate
Removing the Doubts on LF (The Cambrian Age Equivalent Setting 1973 – 1974)
Learning Statements
❖
Short Impactful Life
❖
Take and use of every opportunity that comes your way in Life
❖
Don’t force or change your destiny: Not the Story of today’s NYSC!!!
building together
10 10
1.
Geological Surveys Limited
2.
Nigerian Mining Corporation
3.
Baroid Nigeria Limited
4.
Assistant Lecturer Research Position, Uni Ibadan
5.
Joining A Best in Class International Oil Corporation – July 1974
Removing the Doubts on LF – Ending the Cambrian Period
building together
11 11
The 1st Shell BP outing and working experience
Pioneer NYSC (Incubating the Geologist) The Basement Complex of Life Life (Before & Up till end of UI) (‘49-’73) B.Sc. Hons
The Geological Time Scale
building together
12 12
❖ 1st SHELL-BP Outing and Working Exposure ❖ Turning Engineers to Geologists and Vice Versa ❖ A Stunning 6 Month Training at the Shell Training Centre – WARRI ❖ You were Professionally Fully Cooked at the end of it!!!
Questions & Observations
❖ Where is Today’s Nigerian Oil & Gas Training Domain?........Is it FUPRE? ❖ R&D – still missing Sadly. No Nation or Industry develops without this ❖ The Nigerian Content Management Board to the Rescue ❖ There is space to compel emerging Nigerian Independents to be the regenerating arrow head –
Leading training and Human Capital Development for the Industry
Removing the Doubts on LF – Ending the Cambrian Period
building together
13 13
The 1st Shell BP outing and working experience
Pioneer NYSC (Incubating the Geologist) The Basement Complex of Life Life (Before & Up till end of UI) (‘49-’73) B.Sc. Hons
IC Post Graduate Education
The Geological Time Scale
building together
14 14
PETROLEUM GEOLOGY – Properties of the Republic of Cameroon (M.Sc.. DIC.) & SEDIMENTOLOGY – Of the East Midlands Coal Field (Ph.D..)
The Post Graduate Student Days at
Memory Statements Academically Expressive and Explosive Intensely Focused (International Melting Pot) Proudly Nigerian “in Context” Alas! You were just as good as the next PG student. We never had any good Embassy Representation!!! Connected with my life Partner – Toyin Fatona
building together
15 15
The 1st Shell BP outing and working experience
Pioneer NYSC (Incubating the Geologist) The Basement Complex of Life Life (Before & Up till end of UI) (‘49-’73) B.Sc. Hons
IC Post Graduate Education
2nd Employment by SPDC (1980)
The Geological Time Scale
building together
16 16
2nd Employment by and at Shell Petroleum Development Co. (SPDC) – May 1980
Removing the Doubts on LF: The Palaeocene (Equivalent)
Founder & President, Geotrex Systems Limited First Nigerian Exploration Manager Shell Petroleum Development Co. Nigeria (SPDC)
The Late Mentor of Many of My Times and Peers (Mr Edward Ekuyasi Iyamu)
I as the young Exploration Geologist at my 2nd round of Employment at Shell was discovered by the one I once described as “The Explorer’s Explorer”…Edward Ekuyasi Iyamu
Memory Statements Professionally as a Career Period; Distinctively short, but Inspirational and Fulfilling in Dimension Multitasking Capabilities My Western Study Team Position with Dr Ebi Omatsola - The Professional Slave Driver “Work & Expect No Reward” I AM FOREVER GRATEFUL OF THIS MENTORSHIP
building together
17 17
The 1st Shell BP outing and working experience
Pioneer NYSC (Incubating the Geologist) The Basement Complex of Life Life (Before & Up till end of UI) (‘49-’73) B.Sc. Hons
IC Post Graduate Education
2nd Employment by SPDC (1980)
Geotrex Systems Ltd
The Geological Time Scale
building together
18 18
Resigned from SPDC to join the foremost Exploration & Production consulting Company in Nigeria – Geotrex Systems Limited Joined as Consulting Geologist – 1986 Appointed Senior Vice President – 1988 Appointed President, Geotrex Systems - 1990 Removing the Doubts on LF: The Eocene (Early Tertiary Time Equivalent)
This is what I have severally described as the “Gbagada Connection”. The Entrepreneurial Instincts were playing out…..
Observation Statements and Questions
❖
What led a young professional quitting an assured Professional life at Shell
❖
Ignorance (of the consequences of failure) was BLISS!!!
❖
Follow your Hunch in Life
building together
19 19
The Early Tertiary Transgressive Time Equivalent Period Comes Fully Alive (1988 & Beyond)
◼ The January 1988 & Beyond Memo ◼ The NAPE Presentation of April 1989
Was this an Oligo-Miocene time type Transgressive Event?
building together
20 20
The 1st Shell BP outing and working experience
Pioneer NYSC (Incubating the Geologist) The Basement Complex of Life Life (Before & Up till end of UI) (‘49-’73) B.Sc. Hons
IC Post Graduate Education
2nd Employment by SPDC (1980)
Geotrex Systems Ltd ND Phase I
The Geological Time Scale
building together
21 21
◼THE GBAGADA CONNECTION
The Eocene Time Continued
A FINANCIAL INSTITUTION (MIDAS BANK)
AN E&P SETUP (GEOTREX SYSTEMS)
building together
22 22
The Eocene Time Equivalent Aret’s Conclave
Exploration & Production Management Finance
✓ Eddy Iyamu (Late) ✓ Dr. Imo Itsueli ✓ Alex Okoli (Late) ✓ David Richards ✓ Sammy Olagbaju (Late) ✓ Chief Aret Adams (Late)
Geotrex Systems Ltd Midas Drilling Fund Multinational Expertise Ltd
Late Chief Aret Adams
Uwaifo Jones Ltd
✓ John Jones “The Marketer”
The Pioneering Founding Team at NDEP
✓ Dr. Imo Itsueli ✓ Dr. Layi Fatona
building together
23 23
The Eocene Time Equivalent Continues
◼ A Start Up Conceived - The Marginal Oil Field Initiative ◼ Waiting for a Presidential Consent – AN ABACHA EXPERIENCE (It was like waiting for Death to come) ◼ Shareholders Funds to the rescue – The early birds came; Feyi Soluade George, J Familusi, Ladi
Jadesinmi , The Chemur Group – Led by Mr. Goodie Ibru
Goodie Ibru
building together
24 24
The Eocene Time Equivalent Continues
◼Fund Raising Experiences (Untold and Unshared till Now)
✓ Raising capital from the public ✓ Selling ND shares by word of mouth ✓ Street canvassing – Dignified Hustling !!! ✓ The Midas Bank Bridge Loan ✓ Public Offering (IPO) ✓ $6M Loan from Erstwhile Intercontinental Bank Plc (The Push to 1st Oil) ✓ Engr. Enuha and his Cakasa Group Rescue Plan
Femi Akinsanya (Financial Adviser)
building together
25 25
Eocene Time Equivalent: The Beginning of the End
Ogbueshi Ben Osuno. A seamless Board Transitioning – A strength
The Loss of an Icon (Late Chief Aret Adams)
Late Chief Aret Adams Chairman of the Board 1993 – 2002 Ogbueshi Ben Osuno Chairman of the Board 2002 – 2012
And No Void…….. Thanks to
Could this have been the End Eocene times, like it was in the Geologic Time Scale
building together
26 26
Our Strength, Our People
◼ Putting the Cart before the Horse (so it seemed to so many) ✓
Assembling our Production facilities before anything else
✓
Re-Entry of Ogbele – 1
◼ A Rig Collapse DWC 10 – Fatality & Survival (2004)
◼ Bouncing Back to Well Re-Entry (2005) ✓
DWC – 30
✓
A Successful 1st New Well Drilled – Ogbele 3 (2007)
✓
The Bumper Harvest Years (2008 – 2009)
Rig Collapse @ Ogbele Well 1 Location - 2005 DWC 30 on Well 3 - 2007
Our Oligo-Miocene Equivalent (ND Phase I Years)
building together
27 27
◼ 1st revenue on 31st December 2005 at $51/bbl. vs
economic model at $17/bbl.
◼ Paying Back our Debt @ 27% Interest ◼ Drilling for Failure (Broke) ✓
Our 1st Dry Hole – Ogbele 4.
✓
$20M Down the tube.
✓
Have since effectively converted the well for Produced Water Disposal
◼ Coping with Militancy ✓
Concept of Self Preservation
✓
Shut-Ins, Shut-Downs & Production Maintenance
1ST Oil at Ogbele Flow Station (2005)
Our 1st Major Oil Price Crash - 2007
Oil price in $ Year
Our Oligo-Miocene Time Equivalent Continues
building together
28 28
◼ Dealing with Gas Flaring – as a challenge ◼ Commercializing our Gas Resources ✓
Negotiated & Executed 1st GSPA with SPDC JV to deliver gas to NLNG Train 6 - 2010
✓
Commenced 12”x20km gas pipeline to NLNG manifold at Rumuji – 2010
✓
First Gas Delivery to NLNG Bonny Plant – November 27th 2012
◼ The Gas Challenge Turned an Opportunity ◼ Diversifying our Revenue Base ◼ Dealing with Insecurity ◼ A Gas curse turns the company
around
Ogbele Gas Processing Plant Monetizing our Gas Resources (The Billy Agha Factor)
Cause & Effect: The Gas Flare Scare!!!
◼ There is life beyond Oil Production – The Integrated
Field Development Concept comes alive at Ogbele
Preparing for our Pliocene Times
◼ Coping and Compliance with Gas Flare Penalty
building together
29 29
building together
30 30
ND Phase I – Our Oligo Miocene Time Equivalent
◼ Growing Ogbele Reserves Base – From 5MM STOIP @ Farm Out Agreement ◼ 1st Stage: Geotrex Systems (10.6MM AUR)
◼ 2nd Stage: Wells 7, 8 & 9 New Reserves + Maps
◼ 3rd Stage: Drilling Campaign
building together
31 31
The 1st Shell BP outing and working experience
Pioneer NYSC (Incubating the Geologist) The Basement Complex of Life Life (Before & Up till end of UI) (‘49-’73) B.Sc. Hons
IC Post Graduate Education
2nd Employment by SPDC (1980)
Geotrex Systems Ltd ND Phase I ND Phase II
The Geological Time Scale
building together
32 32
ND Phase II – Our Pliocene End Tertiary Time Equivalent
❖ Upscaling from Ogbele Marginal Oil Field Development
❖ In a Strategic Partnership Acreage (OML-34) Acquisition With
Acquisition of the Divested 45% Interest of Shell/Total/Agip JV OML 34 JV with NPDC
OML 34 Produce Oil and Gas with substantial Daily Domestic Gas Supply to the ELPS – Escravos Lagos Pipeline WAGP – West African Gas Pipeline
The IOC Divestment Opportunities opened a New Horizon for Further Advancement
building together
33 33
The 1st Shell BP outing and working experience
Pioneer NYSC (Incubating the Geologist) The Basement Complex of Life Life (Before & Up till end of UI) (‘49-’73) B.Sc. Hons
IC Post Graduate Education
2nd Employment by SPDC (1980)
Geotrex Systems Ltd ND Phase I ND Phase II ND Phase III
The Geological Time Scale
building together
34 34
ND Phase III – Our Pleistocene Holocene (Today) Time Equivalent (The Quaternary of our Existence)
Oil & Gas Exploration & Production – NDPR, ND Western Fully Commercialized our Gas Reserves & Resources – ND Gas Refining part of its own Production Domestically for the Nigerian Economy Growing refining capacity from a paltry 1kBPD 11kBPD – ND Refineries Ltd Displaying Nigeria’s Domestic Capital through;
A.
NDEP’s Cash Flow (Shareholders Equity & Capital)
B.
BOI Funding, guaranteed by Access Bank On behalf of itself and 2 other Indigenous Partners (Express Pet. & Petropros International Ltd), Successfully drilled OMA Field Appraisal & New Discovery in OPL 227, its 1st shallow
Ultimate Metamorphosis into Nigeria 1st Fully Integrated Energy Company
Stepping Up and Out – A Sub-Saharan Adventure
building together
35 35
Diesel (AGO)
1
Marine Diesel Oil (MDO) Aviation Fuel (ATK) Heavy Fuel Oil (HFO) Liquified Petroleum Gas (LPG) Naptha (PMS)
2 3 5 4
Growing Processing Capacity from 1,000 bopd to 11,000 bopd Increasing Product streams from 1 to 6
Ogbele 1,000 bopd Refinery (AGO, Naptha)
6
ND Phase III – Our Pleistocene Holocene Time Equivalent Continues
building together
36 36
ND Phase III – Our Pleistocene Time Equivalent Continues
From the camera lens of an helicopter Pilot – April 2019
❖ Commissioning the Ogbele Refinery Expansion Project (1,000 > 6,000 > 11,000
bbls/day)
❖ Commissioning the development of our 2nd Marginal Oil Field – The Omerelu
Field Development
❖ Increasing our Gas delivery capabilities and meeting our DOM Gas Obligations
building together
37
v
1992-2000
Incorporated on 25 March 1992 (as the Midas Drilling Fund)
Out Agreement (FOA) between the NNPC Chevron JV (an IOC) and NDPR (a Nigerian Independent).
2005-2010
28 August 2005, Achieved first oil production
Agreement (GSPA) with the Shell/NNPC JV
Topping Plant (The Ogbele Mini Refinery)
2012-2015
2012 - Commissioned the Ogbele Gas Processing Plant ,Lead acquisition of the 45% Interest of Shell/Total/ Agip in OML 34
continuous production
2016 - 2019
OML 34 JV Asset Management Team (AMT)
measure of gas into the Bonny NLNG Export terminal.
Operations
gas into the Bonny NLNG Export terminal.
Cumulative Production (As at 7th May 2019)
building together
38 38
The Vintage Geological Structures of Ogbele Field
5.0MM STOIIP
building together
39 39
The Vintage Geological Structures of Ogbele Field
Proposed Location Ogbele-1 assumes oil field to the crest?? PVT Analysis??? Ogbele-2 Surface Location
building together
40 40
The Vintage Geological Structures of Ogbele Field
Ogbele-4ST Ogbele-2 Surface Location Ogbele-3, 4 Surface Location
building together
41 41
The Vintage Geological Structures of Ogbele Field
Ogbele-2 Surface Location Ogbele-1
Ogbele-3, -4 & -5 Surface Location
building together
42 42
The Vintage Geological Structures of Ogbele Field
Ogbele-1, -7, & -7ST Surface Location
building together
43 43
The Vintage Geological Structures of Ogbele Field
Ogbele-1, -7, -7ST Surface Location Ogbele-6 & -8 Surface Location
building together
44 44
The Vintage Geological Structures of Ogbele Field
Ogbele-7ST Surface Location
building together
45 45
The Bridge Between Now & Our FutureCene
>>2MM Production As at May 2019 @3k bbl/day 0% BSW
building together
46 46
The Bridge Between Now & Our FutureCene
Well 11 - New Producer May 2019
building together
47 47
Ogbele Reserves Growth (2005 – 2019)
Total Gas Production of 81.5Bscf Net Cumulative Oil Production
building together
48 48
building together
49 49
The Sad and Sour Phases of our Life ‘’I am a force for Good. I defy the odds. I go for New Standards, and I am continuously stepping up’’ Godwin Aret Adams - Friday 2nd August 2002.
building together
50 50
The Sad and Sour Phases of our Life
Rig Collapse @ Ogbele Well 1 Location - 2005
building together
51 51
The Sad and Sour Phases of our Life
Well 4 Spud Location - 2008
building together
52 52
October 16th 2017
The Sad and Sour Phases of our Life Production Adviser NDPR
building together
53 53
The Sad and Sour Phases of our Life
building together
54 54
ND Phase III ND Phase I ND Phase II Geotrex Systems Ltd
2nd Employment by SPDC (1980)
IC Post Graduate Education
working experience
Pioneer NYSC (Incubating the Geologist) The Basement Complex of Life Life (Before & Up till end of UI) (‘49-’73) B.Sc. Hons
FutureCene ND Phase IV & Beyond
The Geological Time Scale – The FutureCene
building together
55 55
▪ I cannot and should not end this Reminiscing experience without 1st putting NAPE as my political constituency of natural calling, and allowing you all members without a strategic peep into NDEP’s next geologic time space, and what this will look like. ▪ This is the time era I will call the FUTURE-CENE (Pronounced Future Scene) or NDEP Phase IV
◼ With Substantial Nigerian Producing Asset Base ◼ The Ogbele Central Processing Hub ◼ Omerelu Field – On Stream ◼ OML-34 JV Partnership with NPDC ◼ OPL 227 – Shallow Offshore Development ◼ Deeply entrenched O&M footprint in South Sudan ◼ Emerging Strong Asset Acquisition Potentials in Mozambique,
Zambia and Uganda
Allow Me to Introduce to you – The New and Future NDEP
A Stock Brokers Recommendation: Buy, Buy & Keep Buying!!! ND
Nile Delta SS (Ltd) Mozambique Uganda Zambia
building together
56 56
From Within
From Outside
OU
building together
57 57
building together
58
building together
59
It will not be another 40 or even 70 years that I will have the opportunity of standing & addressing an audience of this nature. However, these past 40+ years had been traumatic, engaging, rewarding and above all professionally fulfilling