|By Okafor Joseph|March 14-2017- @- 07:28GMT
The Nigerian National Petroleum Corporation (NNPC) has reveal areas of collaboration with the international oil companies (IOCs) in Nigeria to increase oil and gas production in the country.
During the ‘Industry Leaders Panel’ session just concluded 2017 edition of the Nigeria Oil and Gas (NOG) conference and exhibition in Abuja The corporation said in a presentation that the IOCs needed to continue to collaborate with it to achieve the common goals in the respective Joint Venture agreements they signed with it.
The presentation was made by the corporation’s Chief Operating Officer, Gas and Power, Saidu Mohammed, who represented the Group Managing Director of NNPC, Dr. Maikanti Baru at the panel discussion.
Baru, however, said while corporate and national ambitions might differ, the NNPC and IOCs could still collaborate to achieve their objectives.
He charged the IOCs to team up with the corporation to leverage their joint capacities in energising the country’s upstream production.
Baru listed the areas they could collaborate to include contractual model, technology, funding, production growth, capacity development, cost reduction, environmental protection, corporate social responsibility, security and reserve growth.
“Corporate ambitions and national aspirations are different. However, we can maximise mutual benefits through collaboration,” he added.
Listing the possible areas of collaboration, he stated: “Contractual model – lessons learnt in existing contractual models such as PSC be applied in improving future contractual relationship between the IOCs and NOC, technology – technological advances made in oil and gas can be extended to benefit other sectors of the economy, funding – collaboration required to finally exit JV cash calls where IOC used to borrow on behalf of the JVs to fund JV operations.”
On production growth, Baru said it would be critical for improving both project and country economics if IOCs collaborate with the NNPC to grow production and reduce cost of production.
He also stated that in partnering of capacity development, they could help develop the right human capacity that will guarantee posterity for the companies and Nigeria, adding that such collaboration could also help in cost reduction for exploratory opportunities.
He noted that lessons learnt and best practices garnered on how to reduce cost of production significantly could help the industry remain competitive, while environmental pollution in the form of gas flares and oil spills are issues where collaborations are needed for quick mitigation and response.