Mr. Ahamadu-Kida Musa receiving a plaque from Yakubu Lawal while NAEC Chairman, Olatunde Dodondawa looked on at the Association’s annual conference held in Lagos.
The National Association of Energy Correspondent (NAEC), held its annual conference in Lagos to deliberate and brainstorm on some critical issues pertaining to the energy sector with projection for the future of the oil and gas industry in Nigeria.
Speaking at the conference, the Chairman of the event, Deputy Managing Director, Deep Water District, Total E&P, Mr. Ahmadu-Kida Musa, described the theme of the conference “Petroleum Industry Governance Bill: Emerging Issues and Concerns” as relevant and timely as the Nigerian Oil & Gas Industry is currently undergoing certain reforms. Stakeholders expect the PIGB to have some far-reaching impact on the way businesses are conducted in the oil sector.
Kida expressed formally that the management of Total in Nigeria and the energy industry as a whole appreciate NAEC’s role in keeping the country’s energy sector transparent and accountable. He extolled the association’s commitment and the energy it brings to reporting and analysing issues that are critical to the success of the energy sector. “It is a well-known fact that that the relationship between the media and the corporate world is sometimes characterised by a mutual lack of trust,” Kida added. He stated further thus, “We also believe that it is important to step back from time to time, sit down at conferences like this, and have these conversations that foster understanding and appreciation of the wide range of issues that the sector is contending with.”
However, the PIGB was passed by the National Assembly and is currently awaiting assent by President Muhammadu Buhari. The PIGB is the first in a series of four proposed bills that constitute the legal framework for the petroleum sector reform of the Federal Government. The three other bills that are currently undergoing various legislative processes at the National Assembly include: the Petroleum Industry Administration Bill (PIAB), Petroleum Industry Fiscal Bill (PIFB) and Petroleum Host Community Bill (PHCB).
Kida stressed further that since the legislation is fundamental, there are bound to be some initial concerns. But these concerns can be easily addressed through dialogue and legislative public hearings. The concerns on the PIGB and other proposed bills have been articulated by the Oil Producers Trade Section (OPTS) of the Lagos State Chamber of Commerce and Industry.
According to the DMD of Total, the Total Group has been present in Africa for more than ninety years and has been involved in exploration activities in Nigeria for fifty-six years. The company has a broad and diversified portfolio in Nigeria, with activities spanning onshore, conventional offshore, deep water and LNG.
Indeed, Total is the only integrated International Oil Company with presence throughout the entire value chain of the industry in Nigeria – downstream, upstream and midstream sectors. Total has developed a strong partnership with the Nigerian National Petroleum Corporation (NNPC) and other partners.
Total upstream branch plays a significant economic and social role in Nigeria, operating nearly 15% of the country’s production. Nigeria, as one of its core areas of activities, is also crucial to the Total Group, accounting for 12% of its equity production. In the last five years, Total has invested approximately $10 billion in the country.
Despite the challenging operating environment, Total is committed to investing in the country because it believes that when Nigeria prospers, it will impact positively on the company.
Kida emphasized on the Egina Deepwater development project, which is nearing completion, it will add 200,000 barrels of oil per day to Nigeria’s production by the last quarter of 2018. In his words, “You will recall that the Egina FPSO arrived at quayside of the SHI-MCI Yard on LADOL Island, Lagos in January this year. I am pleased to inform you that we have now completed the integration of the topsides of the Egina FPSO and it should sail away to the field for hook-up operation soonest.”
He disclosed that Total, NLNG, NNPC, Shell, and Eni, signed the Front-End Engineering Design (FEED) contract for Train 7 plus project. This is a significant achievement as a completed FEED process will pave the way for Engineering, Procurement and Construction (EPC) pricing and bidding processes which are preconditions for the Final Investment Decision (FID).
In addition to ongoing projects, Total will also continue to intensify its efforts in exploration and appraisal activities. The company’s plan is to maintain aggressive exploration and appraisal wells drilling in order to play its part in increasing hydrocarbon resource base of Nigeria.
Despite being busy with projects, Total has never lose sight of the fact that it is a corporate citizen of Nigeria, and this status comes with certain responsibilities not just to its host communities but to the country as a whole.
Kida posited that as an IOC, Total shall continue to assist the authorities in providing infrastructure and access to quality health care and education to Nigerians and the communities that host its operations. The company will also work with its partners to deliver various capacity development initiatives across the country including high-level partnerships with Nigerian universities and lecturers to develop capacity and exchange of experience.
He restated that Total will remain in business by continuing to adapt to the dynamic economic environment. This will be done through cost optimisation but without any compromise on safety standards. The company will capitalize on its strengths to secure future growth by leveraging on current market conditions to extend production.
Total will remain committed to Nigerian content and will always continue to act in ways that promote these ideals.