Nigeria to benefit from local Content in petroleum sector

Nigeria to benefit from local content in petroleum sector

Nigeria is set to benefit from the opportunities in the mainstream and downstream sectors as announced by the Federal Government.

Chief Executive of Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, revealed the facilitation of these opportunities in his presentation at the Nigerian Content Midstream and Downstream Oil and Gas Summit, recently. 

His presentation included some highlights from BP Energy, the National Bureau of Statistics, the World Energy Outlook and other projections. 

Africa is expected to contribute about three per cent to the global Gross Domestic Product between 2020 and 2030, while regions like India, China and other countries in Asia are expected to contribute seven per cent, five per cent, and 7.5 per cent respectively. 

Between 2017 and 2040, the global population is projected to increase by 25 per cent, the global economy by 50 per cent and world energy demand by about 25 per cent. 

Further, the demand for gas has been generally forecasted to increase over the next 20 to 30 years, according to Energy Outlook Reports. 

According to 2019 WEO report, Nigeria’s gas production, measured by billion cubic metres, stood at 49.3 per cent ranking above T&T with 34.6 per cent, India 26.9 per cent; Brazil 25.8 per cent, Kazakhstan 23.4 per cent and Bolivia 15 per cent. 

The NBS report noted that the Nigeria midstream and downstream make direct economic impact on the non-oil sector; hence, the dependence on the midstream and downstream sector to provide the needed energy and infrastructure to drive the growth projected to be: services contribution to the non-oil sector 53.56 per cent, agriculture 25.88 per cent and industries contribution 20.56 per cent.

According to Ahmed, opportunities in the midstream include gas, infrastructure, refining and petrochemical. For downstream, opportunities exist for clean fuel, compressed natural gas supply, as well as distribution and product supply to neighbouring and other West African countries. 

At the summit, attended by the Minister of State for Petroleum Resources, Timipre Sylva, the Executive Secretary, Nigerian Content Development and Monitoring Board, Simbi Wabote, was quoted as saying that the NCDMB was particular about maximising local content opportunities in the midstream and downstream sectors, and to provide huge employment opportunities.

His words, “This provides means to absorb outputs of our human capacity development programmes in the form of job opportunities.”

Wabote also noted some achievements in the mainstream and downstream sectors, including 5,000 barrels per day modular refinery in Imo State; 2,500 per day Duport Modular Refinery in Edo State due for commissioning this year; as well as the 2,000 barrels per day Atlantic Refinery and 12,000 barrels per day Azikel Hydro-skimming Refinery under construction, both in Bayelsa State. 

Farouk assured of NMDPRA’s collaboration with NCDMB, the continuance of functional implementation of the Petroleum Industry Act, continued engagement with the government on policies that will deepen mainstream and downstream investments, and other key contributions.

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