The Nigeria International Petroleum Summit was held in Abuja, Nigeria over the 19th – 23rd of February, 2018. Here are some of the highlights from the Summit.
The Nigeria International Petroleum Summit (NIPS) is a meeting between key Nigerian political decision-makers, government officials as well as directors and specialists from the Ministry, NNPC and other relevant governmental bodies on the one part and Directors of National &International companies, multinational and multilateral organizations, the academia and other relevant stakeholders. The purpose of the Summit is to revive the interests in opportunities in Africa’s oil and Gas industry, with the hopes that it would aid its oil and gas industry in building its capacities and competitiveness in a global oil market that is increasingly demanding more in terms of efficiency and value addition. This year’s conference theme was entitled “Leading Africa’s Response to Global Oil and Gas Challenges.”
Nigeria International Petroleum Summit highlights:
Throughout the conference, attendees worked to pinpoint key issues challenging the growth of Nigeria’s oil and gas sector. Some issues identified include: uncertainty around passage of petroleum laws; cost competitiveness; low crude oil refining capability; long contracting cycle; petroleum products pricing; lack of transparency in transactions; and militancy in the Niger Delta.
Minister of State for Petroleum Resources, Dr. Ibe Kachikwu outlined the ‘7 Big Wins’, the responses to reposition Nigeria’s national economy, ramp up production, reduce costs, foster efficiency and boost the non-oil contribution to export earnings and government revenue using measures in the 7 Big Wins policy instrument. These wins include:
- improving security and ensuring environmental safety in the oil producing areas of the country in order to increase national crude oil production, attract investment and infrastructural development to the difficult terrain of the region
- a shift in focus from oil to gas
- review of old and moribund policies and laws
- reduction of importation of petroleum products by 60 per cent and becoming a net exporter of petroleum products and value-added petrochemicals by 2019
- creation of a business environment and investment drive that will accelerate income for Nigeria in the upstream, midstream and downstream sectors of the oil industry
- drive for efficiency and transparency in the operation of the oil and gas industry
- stakeholder management and international co-ordination.
Nigeria’s plans to improve on its hydrocarbon industry were unveiled, as well as its intention to become the new petroleum products refining hub of Africa. According to Dr. Kachikwu, this will be done by providing more incentives to Nigeria’s indigenous oil producers to allow them to grow their oil production levels from the current 10% he said they contributed to the national production volumes, to 25% within the next five years.
According to the minister, “Africa and African market is very key for us, as we begin to get into the way, regional markets become very protected – the Gulf coming together, America begins to pursue becoming self-sufficient, the African market holds the potential for us, whether in refined petroleum products or transfer of technology and skillsets, whether it is in taking of advantages by local Nigerian companies, we need to begin to protect the African market and utilise it to its full potentials.”
Nigerian Vice President, Yemi Osinbajo, pledged a commitment to enabling a healthier industry environment, which will be facilitated by the Petroleum Industry Bill (PIB). Furthermore, there has been a commitment to greater transparency. Dr. Kachikwu says, “We need to look at our processes, we need to look at our contractual terms, we need to review our patronage culture, we need to diversify the opportunities. When we are transparent, investors get a lot of confidence and are able to come in droves.”
There was an overall agreement that collaboration between African oil producers was important, and that Africa needed to adopt globally competitive fiscal policies to make its oil industry attractive for investments and to drive economic growth.
What do you think? Let us know in the comments below!