V.A.L.O.R V alue A dded LO cal content R educes cost: Creating a - - PowerPoint PPT Presentation
V.A.L.O.R V alue A dded LO cal content R educes cost: Creating a Strategic competitive advantage for Nigerias Oil & Gas Industry through stakeholder Collaboration Emeka C. Ene PETAN March 3rd, 2016 Global Oil Supply > Global Oil
Value Added LOcal content Reduces cost:
Creating a Strategic competitive advantage for Nigeria’s Oil & Gas Industry through stakeholder Collaboration
Emeka C. Ene PETAN
March 3rd, 2016 – EIA Short-term Global Energy Outlook 2016
“Global Oil Supply > Global Oil Demand”
Will Geopolitics alone save the situation?
SHALE OIL DISRUPTION IRANIAN & LIBYAN OIL? WEAK GLOBAL ECONOMY Oil Prices goes beyond the Geopolitics!
Nigeria?
No Savings during the Boom Cycle!
0.00# 20.00# 40.00# 60.00# 80.00# 100.00# 120.00# 2004# 2006# 2008# 2010# 2012# 2014# 2016#Oil#Price#(US$)#
[Source:#OPEC]# 0" 2" 4" 6" 8" 10" 12" 2012" 2013" 2014" 2015" NIGERIA'EXCESS'CRUDE'ACCOUNT'(ECA)/SWF'(B$)' Source:'World'Bank','IMF,'Nigerian'Govt.' ECA/SWF"(B$)" Source: OPEC
Rig-count Middle East | Rig-count Nigeria
…Resulting in decline in exploration activity, reserves & production!
Exploration wells & Discoveries (source: DPR) “We cannot build an (oil) economy where corruption is the working capital - Muhammadu Buhari ”
“…Industry-wide Collaboration is CRITICAL to rescue the situation”
Content (not Rent collection)
challenges
COLLABORATE TO ELIMINATE SYSTEMIC COSTS
Cost reduction should be industry-wide
DEVELOPMENT COSTS FINDING COSTS INFRASTRUCTURE COSTS OPEX COSTS $/BBL
High systemic Costs
Source: Jojarth: Estimating Average Production Costs of Oil Fields ; EIA NOT RENT COLLECTION!
Capture Value-Added Local Content
Local Content Value destruction
LOCAL CONTENT @30$ OIL PRICE!
Collaboration between Nigerian companies will reduce project costs
PETAN IN NUMBERS
★Nigerian-based Industry
advocacy trade association.
★85 Nigerian Oil Service
Companies.
★250 Technical Services. ★Employment: 20,000+ ★Collateral employment:90,000+
Cluster to solve common industry challenges
PRODUCTION
MARKET
PETROLEUM PRODUCTS
4 Critical Industry Challenges
Sustainable
production Value- added local content
knowhow retention 20,000+ jobs
Stranded Gas modular gas plants Gas for power
Sufficient petroleum products
refineries
transport
Regional supply security
Security pipeline monitoring technology Eliminate +10% oil losses
Stranded Gas Solutions
plant
fractionating Plant in Nigeria
25,000 bpd modular refinery 12 months - design to commissioning 60 days on-site installation Potential Quick-win in a Low oil price environment!
REAL-TIME PIPELINE MONITORING TECHNOLOGY DEPLOYED IN THE NIGER_DELTA
A reed never becomet an iroko tree by dseaming
African proverb
THANK YOU
@eneemeka