Stakeholders highlight gains of ceding operatorship to Nigerian companies

Some stakeholders in the Nigerian oil and gas industry have said that the grant of operatorship of divested oil blocks  to indigenous companies will boost local participation in the sector and increase the nation’s oil revenue, This Day reports.

One of the stakeholders, who pleaded anonymity, claimed that the industrial action is uncalled for and is fueled by some disgruntled senior management staff of the NPDC, who are not happy that the operatorship rights to the JV assets are being transferred to the indigenous companies who all have a 45 per cent stake in the assets.

Another stakeholder, who is the  chief executive officer of one of the indigenous companies said: “All of the indigenous JV partners, Neconde (OML 42), Elcrest (OML 40), Shoreline (OML 30) , ND Western (OML 34) and FHN/Afren (OML 26) have the human capacity to operate the assets, with highly skilled Nigerian oilfield professionals; the financial capacity to tap into the equity and debt markets both in Nigeria and overseas with the ability to invest billions of Naira into the drilling of wells and multi-field developments which will increase oil and gas production dramatically and the nations revenue as a whole.”

“With the indigenous companies running these assets, skills will be developed across the oil and gas value chain; there will be provision for  sustainable employment opportunities to a large number of Nigerians and an enhancing of the multiplier effect on the host communities by maximizing the participation of local companies and contractors” he added.

In 2014 NPDC recorded a total daily average oil production of only 48,000 bopd from these JV assets, OML 26, 30, 34, 40 and 42, substantially lower when SPDC was operating them. This year recorded no significant increase in oil production.

 

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