Paul McGrath, Chairman, OPTS, and Managing Director, ExxonMobil affiliates companies in Nigeria
…Association offers a good platform for energy reportage
…Nigeria remains the largest oil producer in Africa with brightest hydrocarbon prospects
…Collaboration and partnership with NNPC have been enhanced
By Olufunke Afolami
The National Association of Energy Correspondents’ NAEC, had its annual conference and awards recently in Lagos, the conference was attended by energy editors, correspondents, corporate affairs and communication officers of energy companies across the value chain including relevant stakeholders among others.
Chairman of the occasion and Chairman Oil Producers Trade Section, OPTS, Managing Director, MD, ExxonMobil affiliates companies in Nigeria, Paul McGrath, said he accepted invitation to the conference owing to the vital role and influence of NAEC on the oil industry.
The ExxonMobil MD stated thus: “My swift response was not driven just by the strength of the case made, but also because I feel that this event offers a good platform to directly express my appreciation to the professionals who are doing an excellent job of reporting our dynamic industry, and in so doing, helping industry stakeholders especially operators, communities and government, meet our collective objectives.”
McGrath asserted that OPTS of which ExxonMobil affiliate companies in Nigeria belong is delighted to identify with the leadership and membership of NAEC. Its member companies appreciate the opportunity to strengthen collaboration with the media community, which constitutes an integral block in the oil and gas industry stakeholders’ structure in Nigeria.
He extolled energy correspondents because they promote, inform, educate, critique and provide a valuable platform for healthy discourse in the oil industry. “You do a lot; and we appreciate your critical contributions.”
McGrath was of the view that the theme of the conference “Harnessing Oil and Gas Potential for National Development” is fitting, given the peculiarities of the Nigerian business environment and the clear need to optimize investments in the industry in order to maximise obtainable gains for national development.
He stated that at present, Nigeria is the largest oil producer in Africa and the country’s hydrocarbon prospects are amongst the brightest.
However, there are fixes that must be put in place if the country aspires to maintain and expand the current investment profile in Nigerian hydrocarbon industry.
“Nigeria ranks amongst the top 10 countries with highest cost of producing oil and gas equivalents per barrel. High cost is a major disincentive to investment, especially at this time of considerable global competitiveness. Operating costs are increasing due to an attendant increase in required maintenance and well work-overs. Security costs are escalating as peculiarities of the business environment require additional resources be deployed to secure our people and assets, McGrath added.”
For Nigeria to remain profitable, the OPTS Chairman said the country needs to collectively consider modalities and mechanisms for cost reduction. Governments, at respective arms and tiers, will need to institute stable and globally competitive fiscal policies, a robust legal framework and a healthy contract integrity culture.
He said operators in the industry will need to explore cost sharing options in areas of logistics, supply chain, security, technology among others. This can only happen with collaboration among relevant stakeholders and sustained advocacy by the vibrant Nigerian media.
The ExxonMobil MD acknowledged that positive results through collaboration, especially on the part of partnership has been sustained with the Nigerian National Petroleum Corporation, NNPC. “I congratulate the NNPC for the solid achievements so far recorded in resolving some seemingly intractable industry challenges, with a case in point being the Joint Venture Cash Call repayments. I am confident that working collaboratively, we can collectively achieve more for the long-term benefit of Nigeria.”
He urged the media and other stakeholders to see themselves as partners in progress, in the overall interest of peace, progress, prosperity and development of the oil industry.
The OPTS Chairman posited that over the years, the oil and gas sector has been a major driver of the economy. “Through operations and activities of key industry players, there has been significant value addition in terms of economic power of the people, manpower utilization and development, foreign exchange earnings, fiscal growth index among others. These macro benefits all translate two things, the development of the country and the empowerment of the people.”
McGrath asked if Nigeria’s oil and gas potential be harnessed better for national development? The answer is an emphatic YES! The key, however, lies in active collaboration by all stakeholders, with the media playing a key part.
He believed that the conference will broaden discussions aimed at harnessing the immense potential in the country for national prosperity and development.
Speaking earlier in the conference, NAEC Chairman, Olatunde Dodondawa asserted that undoubtedly, the oil and gas and power sector is increasingly being challenged by advancement in technology such as artificial intelligence, big data and smart robots.
Dodondawa stated further that many nations of the world are gradually but steadily moving away from consumption of fossil fuels with the manufacture of electric and solar powered and hybrid vehicles.
Besides, the prediction that the era of crude at $100 per barrel has gone is becoming a reality. Also, the world is increasingly adopting use of renewable energy for a safer and greener environment. Nigeria is not immune from these game changers, hence the need to optimize value from hydrocarbon and other resources nature bestowed on Nigeria.
He was of the view that experts will identify the issues hindering optimal exploitation and utilization of oil and gas resources and proffer solutions to them. According to the NAEC Chairman, “Outcome of the conference will certainly help the government to address the nation’s huge infrastructure deficit, poor investment inflow and boost operators’ commitment.”
These in turn will help the government achieve its aspirations to attaining 3million barrels per day oil production, 40 billion barrels oil reserves, optimum value extraction from natural gas, resolving electricity supply problems and most of all attracting the expected investment from foreign and indigenous investors across the energy sector value chain.
Besides, the Chairman expressed optimism that the forum will provide a veritable solution platform to the government as professionals will critically examine these issues, proffer solution and the way forward. He added that the rich mix and assemblage of professionals, panelists, sponsors, all other participants and energy correspondents from various media organizations that graced the event will yield desired success required in the energy sector.
The association recognized some companies and persons that have distinguished themselves in different arrears of operation in oil and gas and power industries and service. These areas include corporate social responsibility, local content development and production increase, among others.
The immense contributions of the awardees were applauded by stakeholders adding that it will encouraged and enhanced hard work among upcoming professionals in the oil industry.
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