The Nigerian National Petroleum Corporation (NNPC) has urged indigenous companies to take advantage of opportunities in the upstream sector to become key players in the industry.
Adokiyevl Tombomieye, Chief Operating Officer, Upstream, NNPC, gave the advice on Tuesday at the virtual 2021 Nigerian Oil and Gas Opportunity Fair (NOGOF).
The two-day fair has as its theme:’Leveraging Opportunities and Synergies for Post Pandemic Recovery of the Nigerian Oil and Gas Industry’.
Tombomieye said the oil and gas sector was critical to the nation’s economy, contributing 70 per cent of its revenue and 90 per cent of the country’s foreign exchange earnings.
He said there was a paradigm shift between 2010 and 2018 when some International Oil Companies (IOCs) divested some acreages to indigenous companies.
“The indigenous have since continued to operate these assets, which clearly demonstrates technology transfer and capacity building over time. Similar opportunities abound in the Upstream space, noting the recent divestment of OML 17 to Heirs Oil and Gas Limited”, Tombomieye said.
According to him, the industry also witnessed the growth of qualified Engineering, Procurement and Construction (EPC) contractors who have gained cognate experience.
He said ”The established footprint is an indication of resource availability to execute diverse scope in the oil and gas space. Investment opportunities exit within the Upstream sector for these players to further create value for the entire industry.”
Tombomieye said the available opportunities include EPC, oil block divestment, service contracts, pipe mills, fabrication yards, floating storages and offshore going vessels.
He said they also include crude transportation services, hydrographic surveys, third party financing, forward sale agreement, among others.
The COO said NNPC was working toward cost optimisation in order to achieve its $10PB unit operating cost which would improve profitability in the industry.
He said that the national oil company was also working toward achieving the 3MBPD crude oil production capacity despite the Organisation of Petroleum Exporting Countries (OPEC) cut which puts Nigeria at 1.535MBPD.