UGO AMADI
.As Nigerian technical capability must be central to oil and gas future, says Joan Faluyi
The Petroleum Technology Association of Nigeria (PETAN) has estimated that the country needs about $6 billion in oil and gas equipment and hardware to raise crude oil production to three million barrels per day, identifying funding constraints, inadequate infrastructure and skills gaps as major challenges to achieving the target.
PETAN Chairman, Wole Ogunsanya, disclosed this at a media roundtable organised by the association in Lagos where he called for strategic investment, improved access to financing and stronger local capacity to unlock Nigeria’s oil and gas potential.
The roundtable, themed “The State of Nigeria’s Oil and Gas Industry: Opportunities and Challenges,” brought together PETAN leadership, editors, correspondents and members of the media Association of Energy Correspondents of Nigeria (NAEC)
He said Nigeria had the resources and market to expand production but lacked sufficient wells, surface equipment and midstream pipelines to bridge the gap between existing output and the country’s potential requirements.
“So, we estimated that we need about $6 billion of equipment and hardware to get to that three million barrels of oil that we need to get,” he said
He explained that the industry’s capacity constraints had become more pressing as refining investments expanded, with the Dangote Petroleum Refinery, the planned rehabilitation of the Nigerian National Petroleum Company Limited’s (NNPCL) refineries and other proposed private projects creating additional demand for crude oil.
According to him, Nigeria currently produces about 1.7 million barrels of oil daily, while the country’s refining capacity could reach approximately three million barrels daily if the planned and existing projects achieve their potential.
He cited the Dangote refinery’s 650,000 barrels-per-day capacity, the NNPC refineries’ combined potential capacity of 450,000 barrels daily and the proposed 350,000 barrels-per-day refinery by BUA Group, alongside plans by Dangote to expand its facility.
However, he noted that the NNPC refineries still needed to be restored to operation, adding that the national oil company was working with Chinese partners on a rehabilitation arrangement.
Ogunsanya said the growing refining capacity presented an opportunity for Nigeria to sustain crude production even when international oil prices declined, rather than allowing the industry to follow the boom-and-bust pattern that had characterised its operations.
“Because we need to feed our refinery. People in Nigeria will continue to drive. Whether the oil price is high or low, the refined products are going to be exported,” he added.
The PETAN chairman argued that sustained production would require deliberate planning and investment in equipment before prices improved, allowing Nigeria to respond quickly when market conditions become favourable.
He said the country had struggled to produce enough crude despite the recovery in oil prices following the COVID-19 pandemic, while producers elsewhere had continued preparing their operations to apitalize on market opportunities.
Ogunsanya also identified financing as a major obstacle for indigenous oilfield service companies, noting that equipment purchases could run into millions of dollars, while land rigs could cost between $30 million and $40 million, swamp rigs between $160 million and $170 million, and jack-up rigs between $300 million and $400 million, depending on specifications.
In her welcome address , PETAN Publicity Secretary, Dr. Joan Faluyi stated that Nigerian technical capability must be an integral part of the conversation on the future of Nigeria’s oil and gas industry.
Faluyi said she was delighted to welcome guests on behalf of the Chairman, Engr. Wole Ogunsanya, and members of PETAN, thanking them for making time at the beginning of a new working week for a conversation that matters to the industry and to the country.
She especially welcomed media colleagues, saying they carry professional responsibility, bring the questions readers, viewers and listeners want answered, and help the wider public understand an industry whose technical decisions have far-reaching consequences.
“For PETAN, Nigerian technical capability must be an integral part of that discussion. As an association of indigenous technical oilfield service companies, we bring the perspective of businesses and professionals directly involved in delivering the work of this industry. That perspective connects investment plans and policy ambitions with the people, equipment, skills and services needed to put them into practice,” she said
.Faluyi explained that when PETAN speaks about indigenous capacity, it means the engineer solving a difficult problem, the technician maintaining critical equipment, the fabricator producing to the required standard, and the young professional gaining experience to take on greater responsibility.
“We are also speaking about entrepreneurs who invest in facilities, develop their teams and carry the responsibility of delivering work safely, reliably and competitively,” she added.
She said the opportunities and challenges before these businesses deserve attention because their ability to grow has implications for employment, skills development and the value Nigeria retains from its petroleum resources.
As the industry considers its future, she said PETAN wants practical questions asked: How can investment create more opportunities for capable Nigerian companies? What will enable these businesses to strengthen their expertise and compete on quality? How can young Nigerians gain the practical experience needed to build lasting careers in the sector?
The PETAN Publicity Secretary described the roundtable as an opportunity to strengthen understanding between the industry and those who report on it, noting that technical experience is valuable and so is the ability to explain it clearly, answer questions and listen to different perspectives. “The relationship between our industry and the media works best when there is mutual respect and room for independent judgment. We welcome your questions, including the difficult ones. They help us explain our work more clearly, examine our assumptions and focus attention on issues that deserve answers,” Faluyi said.
She expressed hope that the exchange would give everyone a clearer understanding of what Nigerian businesses can contribute, the constraints that need attention, and the opportunities that deserve serious consideration.
Faluyi thanked the PETAN Chairman for his leadership, colleagues for their support, and guests for bringing their time, experience and curiosity to the table, before inviting Chairman Engr. Wole Ogunsanya to address the theme in greater depth.
