Ugo Amadi
As the stakeholders in the nation’s downstream oil and gas sector continue to find solutions for the industry, they have discussed that Technological innovations are required in the quest for reduced costs and increased efficiency in the downstream energy market.
They also affirmed that Governments at the highest levels must always be willing to engage with industry and must prioritise opportunities for the optimal promotion of harmony between
policy and operations.
Stressing that the Downstream energy stakeholders embrace the spirit of synergy. The industry is
no longer confined to traditional boundaries; it is about collaboration, innovation,
and adaptability.
This was stated in communique releases at the end of the 17th edition of the OTL Africa Downstream Energy Week, (“OTL Africa Downstream”) Which took place in Lagos from 23rd to 26th October . Organized in collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other strategic partners.
According to the stakeholder’s Nigerian downstream energy operators must work with the government to expand trunk and distribution gas pipelines across the country; the supply and
distribution of refining capacity expansion; supportive regulations; renewable
energy integration; and workforce development are key areas that require
attention.
The downstream sector’s ability to adapt and embrace clean energy alternatives
will be a determining factor in Nigeria’s energy transition success.The reduction of harmful emissions is one of the biggest concerns of the federal
government and NMDPRA, but the regulator needs to work with all stakeholders
to address this menace in line with global regulations.
Other issues were that the potential conflict between the bio-fuel industry and National food
security. These two competing demands are clearly balanced in the National
Energy Policy as approved by the Federal Executive Council (FEC) in 2017 and
the National Biofuels Policy gazette in 2007, which will guide the smooth
introduction of biofuels into energy mix.
The NMDPRA is commended for its engagement with stakeholders and
encouraged to do even more towards moving the midstream and downstream
sector into a clean-fuel network that enables decarbonization across the value
chain while meeting the critical energy needs of affordability, safety and
reliability.
They affirmed that Success in reducing emissions will depend on the efficacy of a policy
environment that uses market forces to enable low Green House Gases (GHG)
innovation and deployment with accurate and cost- effective emissions
measurement, verification, and reporting.
Other recommendations include :To attain incident/ accidents free operations in the downstream sector, the health of workers and safety of workplace must be prioritized, Compliance isn’t static. Regulations evolve, technology advances, and best
practices change. Industry stakeholders should commit to continuous
improvement, adopting latest technologies and practices towards a sustainable
midstream and downstream sector.
The federal government has to find a way to incentivize the production of gas for
the sector to thrive with production based incentives, While tax rebates will be required to incentivize gas production, skills development is another aspect of the sector that must be taken very seriously.
There is a need to have succession planning by grooming the next crop of young
professionals to take over the oil and gas sector. Oil and gas industry is high risk and it is also incendiary, so there is a need for regulations that are clear and implementable, not regulations that stifle the industry.
In line with the 2023 OTL theme focused on synergy, there is a need for
collaborations across the value chain in the downstream sector as better
collaborations across the value chain will lead to more efficiency and better
services.
To inspire this banks’ confidence in financing investments in Nigerian gas
market, there is a need to build trust via good policies and an enabling business
environment
On Japa Syndrome: Companies must have to find a way to listen to the silence of
workers. Learn from their countenance and make conscious efforts to figure out
what is going on in their minds.
Operators must deepen mentorship and leadership development processes to
equip downstream workers with requisite skills and job satisfaction.Everyone at leadership level of energy organizations should be involved in the
fight against women discrimination and speak out to correct the problematic
issue.
With over 1.4billion cars in the world; converting them to electricity, solar or gas
would take a very long time. The oil market and pricing issues in Africa have to
be addressed.More transparency is needed in the Nigerian oil sector. Although Dangote
refinery has the potential to make the nation a hub in oil refining, the nation
must realize that transparency in pricing is key.
The existing downstream infrastructure must be improved to cater to the
expected enormous activities with the emergence of Dangote refinery and
ongoing reforms at NIMASA. Regional collaboration between navies and maritime administrations must be maintained for peace in the Gulf of Guinea (GoG) maritime region.
The judiciary and other stakeholders involved in the prosecution of seized vessels
must expedite the process of prosecution.Community policing and sensitization must be enhanced to curb pipeline
vandalism. This is essential because such criminal activities occur in terrains that
aren’t motorable.
Federal government should create funds for the establishment of small modular
refineries as part of efforts to boost economic activities and create employment
opportunities in oil producing communities.
Nigeria security agencies will be equipped to do more in securing the nation’s oil
and gas assets with more resources and personnel and Financial support will be needed to jumpstart the gas market at its early stages. As soon as the market stabilizes, government financial support is less required.
For safe operations in the gas market, Cylinder Recirculation Model is required to
reintroduce new cylinders and ensure the removal of expired and unsafe
cylinders in the homes of citizens. Africa Continental Free Trade Agreement (AfCFTA) would suffer immediate defeat if emigration of skilled resources needed to grow. African countries need
to develop policies that support migration without negative consequences.
Oil Trading and Logistics Africa (Downstream) is a Pan-African initiative dedicated to
promotion of business, policy and stakeholder relationships in downstream petroleum
markets across the continent. It achieves its goals through strategic government and
business liaison, research and advocacy.
Commenting on the conference outcome , Dr. Emeka Akabogu, Executive Vice Chairman stated Its flagship platform, the annual OTL Africa Downstream Week is the continent’s
leading business forum for market insights, emerging opportunities, products’ showcase
and recognition of excellence in the African downstream petroleum value-chain. It
features the participation of operators in the entire downstream oil and gas value chain
including refining, trading, shipping, marketing, storage, retail, infrastructure,
professional services, equipment supply and government.
The 17th edition themed: “Energy, Synergy and New Beginnings held in Lagos Nigeria
from the 23rd to 26th October 2023 at the Lagos Oriental Hotel. Given that it was the
first OTL to be held after the full, albeit stillborn deregulation of petroleum products
pricing and inauguration of the current administration in Nigeria, it was always poised
to attract increased interest.
Coupled with the foregoing, we deliberately worked towards aggregating the crosssection of the downstream and midstream petroleum value chain under a big-tent event
to begin to strategically curate industry offerings and operations, knowing that positive
competition is key to long-term sustainability of the industry.
We put together a Planning Committee that included the Nigerian Midstream and
Downstream Petroleum Regulatory Authority, Major Oil Marketers Association of
Nigeria, Depot and Petroleum Products Association of Nigeria, Nigerian Gas Association,
Nigerian Liquefied Petroleum Gas Association, Petroleum Retailer Owners Association of
Nigeria, Independent Petroleum Marketers Association of Nigeria, Ship Owners
Association of Nigeria, Women in Energy Network, Women in Oil and Gas and a range
of others.
We particularly commend the hands-on commitment of the NMDPRA in this journey.
Apart from being sponsors of the event, they took a central role in the planning and
organization. The full presence of the Authority’s leadership through the four days of
the event evidenced a clear understanding of the importance of stakeholder
consultation as part of the regulatory mandate. The message of the Authority resonates
clearly in the words of the Authority Chief Executive, Engr. Farouk Ahmed: “We need to
work together and sanitise the industry; to do that, we need a capable, willing and bold
regulator to make decisions, and, for you industry players, to be humble enough to accept
the decisions for the improvement and progress of the industry, and it is a win-win situation
for us all.”
We particularly appreciate the seriousness the Authority has attached to this event, designating
it as a key platform for its engagement with the industry, not just through the OTL Downstream
Energy Week, but also in achieving market harmony, fostering competition and facilitating
dispute resolution.
The industry has equally been very keen, signposted by no less a group than our
strategic partner for today’s event, the Major Oil Marketers Association of Nigeria. We
commend its leadership, and specially its CEO Mr. Clemet Isong who I must say, has
been a breath of fresh air for the industry, and such a pleasure to work with. With his
team, we see the value of collaborations for the industry and a bright future for the
wider industry.
In the result, no section of downstream or midstream petroleum operations was
unrepresented, with total footfall at the event over the duration of the event in excess
of one thousand two hundred delegates, exhibitors, visitors and speakers. OTL has
been firmly established as the principal facilitator and aggregator for downstream
petroleum operations certainly in Nigeria. It is the only platform, within or outside
government that has successfully brought together operators in the diverse economic
subsectors that converge under the value-chain for downstream petroleum. We are
happy about that and urge the industry to take advantage of that in deepening
collaboration and value delivery.
It is noteworthy that while OTL through its conference beams attention on the issues of
importance to the industry, OTL Africa Downstream Energy Week is not all about the
conference. It is about trade, innovation, products showcase and networking. Many
things are happening in the industry that are of interest, and from next year, we will
deliberately invite industry operators to use the OTL platform to make announcements
of significance, sign partnerships and close transformational deals.
In the course of the OTL Downstream Energy Week, industry stakeholders deliberated
on the following topics:Effective Petroleum Industry Regulation for Sustainable Development
, Towards the Gas Development Targets: Stimulating the Economy through
Strategic Actions, The Strategic Role of HR in driving organizational growth and developing
sustainable talent: A female perspective, Africa Fuels’ Update: Overview of Trends and Markets Developments, Petroleum Depots and Retail Operations: Optimizing Value in Dynamic Markets, Women’s entrepreneurial journey in the African oil and gas industry, Africa Refining: Regional Suffiency amid Global Energy Transition, Innovative Solutions and Approaches to Resolving Lingering Security and Safety
Issues in the Oil and Gas Industry, Integrated Downstream Petroleum Operations: Law, Realities and Compliance, LPG & CNG: Market Trends and Update and Renewables, Rigs and the Road to Retail: New directions for Last Mile Energy
