mp2013: presentation by the federal ministry of petroleum resources

0

Moving the Oil and Gas Sector to

the Next Level

Presentation by Diezani Alison-Madueke (Mrs.) CON

Honourable Minister, Ministry of Petroleum Resources

Abuja

18 June, 2013

2013 Ministerial Mid-term press briefing

Federal Ministry of Petroleum Resources

Moving the Oil and Gas Sector to the Next Level Over the Past 2 years, we have Delivered on Mr. President’s Transformation

Agenda in Key Strategic Growth Areas

1

Governance

culture

Infrastructure

and Human

Capital

Monitoring and

Evaluation

President’s Transformation Agenda

Building sustainable industries with

indigenous equal opportunities

Delivering quality products to Nigerians

Fe

de

ral M

inis

try o

f P

etr

ole

um

Str

ate

gic

g

row

th a

rea

s

Key accomplishments 2010 - 2013

Creating oil and gas institutions of the future

Downstream Ensured stable supply of petroleum

products

Effective and efficient administration of

subsidies

Increased domestic refining

Local capacity and job creation

Indigenous, local investment in

infrastructure

Upgraded training facilities

Increased regulatory and compliance

around the employment

Gas commercialisation / Infrastructure

Repair and upgrade of Midstream oil

facilities

Upstream

Increased exploration

Sustained crude oil production

Increased upstream domestic gas supply

Midstream


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Increase Reserves and ProductionIncreased Frontier Exploration

2


Moving the Oil and Gas Sector to the Next Level

Strategic Objective: Increase Reserves and Production Upgrade of Data Processing Centre (DPC)

Before DPC Upgrade

3

After DPC Upgrade


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Grow NPDC Operated ProductionGrowth in NPDC Reserves Due to Asset Transfer

4

176

Oil reserves (mm bbl) Gas reserves (bscf)

Profile(Reserves)

1- Excludes 61 mmbbl of condensate

2- 30% risk provision has been subtracted from the expected reserves of 1600 mm bbl of oil and 6900 bscf of gas

632

431443429

2011

1,723

6031

1,1202

1009082007

2,778

2,785

1,8371,8371,809

2011

7,608

2007

4,8302

100908

New assets



Strategic Objective: Increase Reserves and Production

Sustaining Production Amidst Vandalism and Crude Theft

5

1.70

1.80

1.90

2.00

2.10

2.20

2.30

2.40

2.50

2.60

2.70

Nigeria's Crude Oil Production 2007 – April, 2013 (Bbl/d)


6President Goodluck E. Jonathan and Petroleum Minister onboard the USAN FPSO

for Project Commissioning.

Top Management of TOTAL and some Government Officials onboard USAN FPSO during

the Project Commissioning.

USAN FPSO


Commissioning of USAN FPSO

http://cambridgesafety.com/wp-content/uploads/2012/08/New-Picture-2.png





Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Grow NPDC Operated ProductionSPDC Divestment and Transfer of Government Equity to NPDC

▪ Divestment in the upstream by

SPDC/Total/Agip creating an opportunity for

participation by the Nigerian upstream

players

▪ SPDC/Total/Agip divested 8 blocks:

– OMLs 4,38 & 41 – Seplat

– OML 26 – First Hydrocarbon

– OML 30 – Heritage

– OML 34 – Niger Delta

– OML 40 – Elcrest

– OML 42 – Neconde

• NPDC, NNPC’s wholly owned subsidiary,

was assigned all of NNPC’s equity in the

SPDC divested JV blocks.

175

▪ Involved in 20 Concessions

– 5 Concessions wholly owned (OML 64, 65, 66, 111 & 119)

– Operates 5 Concessions (OMLs 11,13/20, OMLs 49/51) on behalf of SPDC/NNPC JV and CNL/NNPC JV

– Varied interests in 7 Deepwater Concessions

▪ Okono/Okpoho field (OML 119) is the flagship production, with current producing capacity above 50 Kbopd

Terrain Concession

NPDC

interest

(%)

StatusOperating

party

OML 64 100Non

producingNPDC/SIPEC

Onshore

Swamp OML 66 100Non

producingNPDC/SIPEC

OML 111 100 Producing NPDC

Land OML65 100 Producing NPDC

OML s 4/38/41 55 ProducingNPDC/

SEPLAT

OML s

26/30/34/40/4255 Producing NPDC

Continental Shelf OML 119 100 Producing NPDC

Deepwater

OPL 244 10 Exploration Agip

OPL 242 50 Exploration Nil

OPL 214 15 Exploration ExxonMobil

OPL 223 10 Exploration Elf

OPL 251 15New

InterestAshbert/NPDC

OPL 325 20New

InterestAshbert/NPDC

OPL 332 10 Exploration BG Nigeria Ltd

NPDC owned/operated acreage

NPDC involved PSC acreage

Recently Assigned acreage

Acreage with NPDC Operated NNPC JV fields

Profile(Assets & Resources)


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Grow NPDC Operated ProductionNPDC Growth and Optimisation Plan Prior to Asset Transfer

8

4

NPDC growth scenario to 250,000 bpd by 2015

SOURCE: Team analysis

0

50

100

150

200

250

161

201520142013201220112010

Growth scenario

1599

2011

1634

2010

1661

2016

1517

2015

1601

2014

1665

2013

1671

2012

OML 119

OML 111

OML 65

OML 64/66

New fields

Hydrocarbon Production

kbpd

Reserves

(P1 + P2) Mmboe

Infill (Development drilling)

OML 65 base production

Exploratory drilling

Gas monetisation

OML 111 base productionField optimisation

OML 64/66 wells

New fields

OML 119 base production


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Grow NPDC Operated ProductionNPDC Growth and Optimisation Plan Post Asset Transfers

9183

Growth & Optimisation(Oil&Gas production – forecast per source of growth)

▪ The largest

contributor

to NPDC

production

growth will

be the

taking over

of OMLs 26,

30, 34, 40

and 42

191 257 334 340 321 291 265 242 221 202 186Year

Average1

350

300

250

200

150

100

50

0

345

315

233

91

Base production

Well interventions

New development wells

Gas monetization (excluding new assets)

New assets

201520142013 202120202017 20192016 201812.2011 2012

1 Excluding potential projects beyond 2014

Kboepd

Year average1


10

12

37

13121384

3937

3443

39

333331

3023

20

1516192828

33

20%

100%

80%

60%

40%

0%

2012201111009082007

Domestic power and industry

Exported

Upstream Use

Flared

Share of total gas production

Upstream use

Export

Flaring

Power

Industry & other

Gas produced

Reaching

Nigerian

users

(less than

1,000 mmscfd)

Not

reaching

Nigerian

users

Share of gas

produced, average

2007-2011YTD

xx

Mmscfd,

percent

Gas production, mmscfd

6,600 6,250 5,050 6,850 7,850 7,911

Total gas produced,

mmcsfd

~90%

~10%

25%

27%

40%

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Increase Domestic Utilisation of GasUpstream Gas Supply: Historical gas usage in Nigeria

7,911


11

Gas supply almost doubled between 2010 and

2013. Power sector most dominant consumer

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Increase Domestic Utilisation of GasUnprecedented Growth in Gas Supply



Midstream Gas

12


13

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Link Gas to the Wider Economy

Midstream: Gas Agenda

GAS TO POWER“… we would have positioned Nigeria

firmly as the undisputed regional hub for

gas-based industries such as fertilizer,

petrochemicals and methanol.”

GAS BASED INDUSTRIALISATION HIGH VALUE EXPORT

STRATEGIC THEMES NATURAL GAS

• Consolidate Nigeria’s

position and market share in

high value export markets

• Create regional hub for gas-

based industries – fertilizer,

petrochemical and methanol

• Transform gas sector to

value adding sector

• Deliver gas for at least

threefold increase in

generation capacity by 2015

LNGRegional Pipelines

Recognizing the potential for tremendous economic growth inherent in the nation’s vast natural gas

resources, His Excellency, President Goodluck Jonathan, outlined a 3 point mandate for natural gas

comprising

• Boost in gas supply to the Power sector

• Stimulation of gas based industrialization around Fertilizer, Petrochemicals, Methanol etc.,

effectively leveraging gas as feedstock for key industries, thus creating jobs and

• Selective investment in high value regional pipeline and LNG export opportunities to boost

revenues from gas sales


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Link Gas to the Wider EconomyMidstream Gas: Emergency Gas Supply Initiative

14

Early Production Facility in OREDO


Gas Supply to Power Plants (2013-15)

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Link Gas to the Wider EconomyMidstream Gas: Increased Power Supply


Gas to Power (Longer Term View)

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Link Gas to the Wider EconomyMidstream Gas: Increased Power Supply


17

Oben- Geregu

Pipeline

Expansion of

Escravos – Oben

Pipeline

Itoki - Olorunshogo

Permanent Gas

Pipeline

Imo River – Alaoji

Pipeline

Ob/Ob – Oben (Ob3)

Pipeline

Planned gas supply

availability

Calabar-Ajaokuta &

Ajaokuta - Kano

Pipeline Systems

Expansion of Oben -

Lagos Pipeline

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Link Gas to the Wider EconomyMidstream Gas: Aggressive Gas Pipeline Expansion


18

Stringed Pipeline at OlorunshogoPipe loading

Mainline welding activities

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Link Gas to the Wider EconomyMidstream Gas: Construction of the Oben-Lagos Pipeline


19

Domestic Gas Pricing now

reviewed towards export parity,creating investor confidence in supply

development

Domestic gas pricing now significantly more attractive to investors!

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Link Gas to the Wider EconomyMidstream Gas: Commercial Framework Policy review


203D Imagery of Proposed Gas Industrial City

- Fertilizer, Petrochemicals, Methanol, Power, Gas Processing, Housing

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Link Gas to the Wider EconomyMidstream Gas: Geotechnical Surveys at Ogidigben Industrial City


21

CPTU Location

Site Activities ongoing - soil testing, geotechnical and related surveys

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Link Gas to the Wider EconomyMidstream Gas: Geotechnical Surveys at Ogidigben Industrial City


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Link Gas to the Wider EconomyMidstream Gas: Gas Supply to Non-Power Sector

22

1

Growth in Non Power Sector Demand

- Cement and Manufacturing Industries

• Dangote ObajanaCement

• Dangote IbeseCement

• Lafarge Ewekoro

• Lafarge Sagamu

• Indorama

• Notore

• Omowood

• Mix & Bake

• Purechem

• Green Gas

• Ringardas

• Abeokuta Customers

• Wempco

• WA Ceramic


23

Over 2000 taxis now run on natural gas in Benin city. 6 Filling stations owned by NNPC/NIPCO JV

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Link Gas to the Wider EconomyMidstream Gas: Compressed Gas Use in Gas



Midstream Oil (Refineries)

24


25

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Sustaining In-country Product SupplyMidstream Oil Infrastructure


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Sustaining In-country Product SupplyRefinery Rehabilitation Program

26

Strategic objective of the TAM is to drive up average utilization of refineries to 90%, thus creating domestic self

sufficiency in HHK and AGO, whilst significantly reducing imports of PMS


Removal of the external wall of the vapourising bank The external wall tube panels being removed

27

Installed frontal wall tubes Dye check of the open pass welded flats

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Sustaining In-country Product SupplyPHRC Early Works: Overhaul/Re-tubing of B03 has been Completed. B02 is

about to Commence


Completely boxed up 12E01A The cone of Combined feed exchanger, 12E01A being

dropped after decoupling

28

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Sustaining In-country Product SupplyPHRC Early Works: 12E01A (Combined Feed Exchanger) Hydrotest Completed and

in Service

Preparation for hydrotest on 12E01A/B


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Sustaining In-country Product SupplyRehabilitation of Crude Tank in PHRC

29

Jack-up for civil and mechanical works in Feb 2013 Mech works finished, and painting ongoing as at June 6, 2013

Rehabilitation of crude tank 50TK01A is ongoing

Early works Strategy preparatory for Refineries Rehab activities



Midstream Oil (Pipelines & Products

Marketing Company)

30


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Sustaining Product Supply through Facility

Upgrade

31

THE GOVERNOR OF ABIA STATE (MIDDLE) CUT THE TAPE AS HE RECOMMISSION

THE ABA DEPOT, WHILE THE MD PPMC, GMD NNPC AND SENATE COMMITTEE

MEMBER WATCH WITH INTEREST



Upgrade

32

THE HMPR, MRS. DIEZANI ALISON-MADUEKE BEING ASSISTED FROM FROM LEFT THE GOVERNOR OF

EDO STATE, MD PPMC, GED E&P AND GMD NNPC WHILE RE-COMMISSIONING THE BENIN DEPOT


33

Damaged Okrika Jetty before re-construction

New Okrika Jetty after re-design and construction

Moving the Oil and Gas Sector to the Next LevelRehabilitation Works at Okrika Jetty


34

Moving the Oil and Gas Sector to the Next LevelRe-commissioning of Okrika Jetty


35

Moving the Oil and Gas Sector to the Next LevelEmergency Reconstruction of Atas Cove- Mosimi pipeline Using HDD

EMERGENCY RE-CONSTRUCT OF ATLAS COVE - MOSIMI PIPELINE SECTION AT AREPO & IJEODODO SWAMPS USING

HORIZONTAL DIRECTIONAL DRILLING (HDD)

SITE PROGRESS PICTURE



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36

NEW LOADING FACILITIES AT THE BENIN DEPOT



Upgrade

37

EXPANSION OF CALABAR LOADING GANTRY & PUMP FACILITIES



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38

EXPANSION OF CALABAR LOADING GANTRY & PUMP FACILITIES



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39

ATLAS COVE CALM BUOY CHANGE-OUT


40

2010

31,23856,536

64,457

2011 2012

921

2,296

2,668

-

500

1,000

1,500

2,000

2,500

3,000

2010 2011 2012

Trading Turnover ($’Million)Trading Volumes (Barrels/Day)

NNPC has also enhanced its direct participation in the international trading of crude oil through an active involvement of its subsidiary, Duke Oil.

Duke Oil’s trading activity has grown significantly over the last 3 years.

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Grow NNPC’s Trading OperationsBulk Trading Activities


Downstream Oil

41


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Sustaining In-country Product SupplyRetail Strategic Plan Aspirations (Deregulated Scenario)

42

Projected NNPC Retail revenue- deregulated from 2014

Naira, billions

Market

Share 12% 13% 15% 17% 19%

# of

stations418 403 505 616 796

589495

291188151

+41%

+39%

20152012 2013 20142011

+42%

• Revenue Generation from NNPC downstream retail activities have grown significantly (by 39%) during the last 3years, growing from N 151BN to N219BN

• No of retail outlets has increased from 418 to 505 thereby, increasing NNPC’s domestic market share from 12% to 15%.NNPC targets more aggressive growth (42%) in the coming years

NNPC Retail has already become the market leader and the choice brand in the Nigerian petroleum retail business.


43

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Sustaining In-country Product SupplyImplementing NNPC Retail Growth Strategy

NNPC Retail’s Mega Station – Large Volume 24 nozzle station located in each State Capital and FCT


44

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Sustaining In-country Product SupplyNNPC Retail Floating Stations: Reaching the Riverine Communities

NNPC FLOATING MEGA STATIONS – Providing riverine communities in the Niger Delta easy access to quality petroleum products at approved prices.


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Sustaining In-country Product SupplyNNPC Branded Trucks

45


46

AN EXAMPLE OF LPG SKID FOR

FILLING OF CYLINDERS

NNPC RETAIL BRANDED LPG

CYLINDER

NNPC BRANDED LUBRICANT

CONTAINER

Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Sustaining In-country Product SupplyNNPC Retail Product Diversification


BACK UP / LINKED CHARTS

47

Moving the oil and gas sector to the next level


INCREASED NIGERIAN CONTENT AND

SUSTAINABLE LOCAL CAPACITY

48


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Increase Nigerian Participation in Oil and Gas IndustryOur efforts in local content have generated over 30,000 jobs1 and significantly deepened

the local supply chain

49


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Increase Nigerian Participation in Oil and Gas Industry

Facilities upgrade from 100% Local Materials

501 In Engineering, Fabrication, E&P and Marine transportation

Anchored in Nigerian local

content law

Indigenous companies are major

players in the industry (e.g., SCC

Pipe Mill in Abuja

Key infrastructure and investment

is now locally owned (e.g., Marine

vessels, land swamp and offshore

rigs)

ITUT/ABANG Platform

OKRIKA Jetty

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=NKR7JdE1nSsCnM&tbnid=qasnEmaUasOD7M:&ved=0CAUQjRw&url=http://africamusiclaw.com/2012/09/law-policy-video-nigerias-legal-justice-system-should-get-it-right-by-now.html&ei=vUyxUeatJ42M0wXpsoHQCw&bvm=bv.47534661,d.ZG4&psig=AFQjCNF07k0aUx3KyCtGv6Cz_4KQfyR20g&ust=1370660409997434

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=NKR7JdE1nSsCnM&tbnid=qasnEmaUasOD7M:&ved=0CAUQjRw&url=http://africamusiclaw.com/2012/09/law-policy-video-nigerias-legal-justice-system-should-get-it-right-by-now.html&ei=vUyxUeatJ42M0wXpsoHQCw&bvm=bv.47534661,d.ZG4&psig=AFQjCNF07k0aUx3KyCtGv6Cz_4KQfyR20g&ust=1370660409997434

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=B7mMGDKT3DJkAM&tbnid=SJkG4sA5e6n06M:&ved=0CAUQjRw&url=http://sweetcrudereports.com/2012/01/31/nigerias-demand-for-steel-pipe-rises-to-1-2m-tonnes/&ei=D02xUcbtN4Ws0QX1xYDIDg&bvm=bv.47534661,d.ZG4&psig=AFQjCNHXc9bpGtFNyeWIz-DJ5k2Y2d9aLw&ust=1370660444823971

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=B7mMGDKT3DJkAM&tbnid=SJkG4sA5e6n06M:&ved=0CAUQjRw&url=http://sweetcrudereports.com/2012/01/31/nigerias-demand-for-steel-pipe-rises-to-1-2m-tonnes/&ei=D02xUcbtN4Ws0QX1xYDIDg&bvm=bv.47534661,d.ZG4&psig=AFQjCNHXc9bpGtFNyeWIz-DJ5k2Y2d9aLw&ust=1370660444823971

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Bmo78TbLVBNeQM&tbnid=pTWkjRQqWdpNSM:&ved=0CAUQjRw&url=http://www.defenceweb.co.za/index.php?option=com_content&task=view&id=28572&Itemid=233&ei=X02xUcz6H4-U0QXE0YGICg&bvm=bv.47534661,d.ZG4&psig=AFQjCNH62MEo0dyyCkkbc0ClA86fTRUDLw&ust=1370660528438466

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Bmo78TbLVBNeQM&tbnid=pTWkjRQqWdpNSM:&ved=0CAUQjRw&url=http://www.defenceweb.co.za/index.php?option=com_content&task=view&id=28572&Itemid=233&ei=X02xUcz6H4-U0QXE0YGICg&bvm=bv.47534661,d.ZG4&psig=AFQjCNH62MEo0dyyCkkbc0ClA86fTRUDLw&ust=1370660528438466


Moving the Oil and Gas Sector to the Next LevelStrategic Objective: Increase Nigerian Participation in Oil and Gas Industry

Capacity Building: Federal Polytechnic of Oil and Gas Ekowe – Bayelsa State

51


HYDROCARBON POLLUTION

RESTORATION PROJECT (HYPREP)

52


53

Moving the Oil and Gas Sector to the Next Level The Hydrocarbon Pollution Restoration Project (HYPREP) provides

for hydrocarbon polluted communities

Effort to improve

environment and

socio-economic

opportunities for

affected

communities

Embraced the

community

driven (CDD)

approach to

ensure a multiplier

effect with

replicable results

Rehabilitating

the devastation

from excessive

exploration in the

area (e.g.,

drinking water

tanks across

Oghoni land)

Alongside

HYPREP, we are

documenting oil

spill sites in 9

states in Niger

Delta

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=RZs6G3c4_Gv10M&tbnid=dv6zNHr66udU1M:&ved=0CAUQjRw&url=http://nigeriamasterweb.com/blog/index.php/2013/03/01/niger-delta-science-education-and-nddc-s-push&ei=nFexUbe-AsW-0QXe-oHQDw&bvm=bv.47534661,d.ZG4&psig=AFQjCNEWYa8F8QQJFxhOEqjGzsMbHwKEhg&ust=1370663112346537

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PETROLEUM SPECIAL TASK FOTCES / PIB

54


Moving the oil and gas sector to the next level 4 special taskforces have been the catalysts driving our

ability to deliver transformative change

Special task forces

55

PIB Governance and controls Petroleum revenue National Refineries

▪ Reviewed all sections

of the PIB and

harmonised existing

different versions to

produce a draft copy to

the National Assembly

▪ Reviewed management

controls within NNPC

and other parastatals to

design a new corporate

governance code for

transparency, good

governance, best

practices

▪ Verified all petroleum

upstream and

downstream revenues

payable to

government.

▪ Integrated system

and technology

across production

chain

▪ Assessed PHRC ,

WRPC, KRPC to

improve efficiency

and commercial

viability

▪ Created several tools

to track performance,

and evaluate new

refineries


Moving the oil and gas sector to the next level The PIB will provide for a transparent regulatory framework and

commercially viable NOC to sustain a competitive oil & gas industry

56

Fulfilling the objectives of the PIB would

ensure that Nigeria builds world class

institutions of the future…

… and can sustainably deliver quality products

while serving as an example across the continent

The PIB is anchored on recreating an

industry that is open, fair and

transparent with fiscal rules of general

application and regulatory monitoring that is consistent with international best practices.

Such a reform would make Nigeria an

attractive region for oil and gas

investment by reducing the risk premium

associated with poor governance of the oil and gas

industry. What in essence I have thus far

described, is an industry that is not static in

a global economy that is dynamic. The

industry needs to find a new dynamism, which in

my view the enactment of the PIB should herald

“

”MoPR Diezani

Allison-Madueke

▪ To enhance Exploration and production of

petroleum resources

▪ To significantly increase DomGas supplies

especially for Power and industry

▪ Create a competitive Business environment

▪ To establish a fiscal framework that is

flexible, stable and competitively attractive

▪ To create a commercially viable National Oil

company

▪ To create efficient regulatory institutions

▪ To engender Transparency and

accountability

▪ Establishment of a department in the

ministry charged with Frontier Exploration

Services

▪ To promote Nigerian Content

▪ Ensure that Nigeria builds world-class

institutions of the future …


Final Summary

57


Moving the Oil and Gas Sector to the Next Level Summary of Accomplishments

58

Upstream

Midstream

Downstream

Local capacity and employment

▪ Increased exploration in the frontier basins

▪ National crude oil production peaked at 2.5mbpd

▪ An additional 180 000bpd of crude from deep-

water

▪ Transfer of SPDC fields to NPDC supporting 130

000bpd and 300 mmscfd gas

Increased upstream gas supply

▪ Deregulated downstream with a new pricing

regime backed by SURE-P

Ensured stable supply of petroleum products

Effective and efficient administration of subsidies

Increased domestic refining

Launched HYPREP to deal with hydro carbon

pollution.

▪ Stewarding enabling policy initiatives in gas

sectors.

▪ Added 3 new CPFs alongside critical gas

pipelines including ELPS, Escravos to Warri

etc. totalling 200km

▪ Established the gas aggregation company of

Nigeria (GACN) to enforce DSO

▪ Gas sales rose to ~4Bscfd as direct result of 12-

month emergency gas plan and other gas

revolution activities.

▪ Midstream Oil - Sustaining product supply through

facility upgrade

▪ Created over 30,000 jobs anchored on Nigerian

local content law

▪ Indigenous companies active in recent IOC

divestment

▪ Upgraded NigerDock fabrication and Abang and

Itut platforms from 100% local materials

▪ Established the Federal Polytechnics of Oil and

Gas in EKowe and Bonny and numerous up

grades in training facilities



Reduction in petroleum product import

59

910.22

1,053.30

715.27

422.82

0

100

200

300

400

500

600

700

800

900

1,000

1,100

Billion Naira

2012201120102009

Oil and Gas Contribution to the Federation Account (Surplus After Tax)

Oil and Gas Contribution to the Federation has grown significantly in the last 5 years

*(Jan –June)



Reduction in petroleum product import

60


Moving the Oil and Gas Sector to the Next Level Our success in mid-stream gas is anchored in the gas-revolution

program and key infrastructure developments

61

Commissioning OREDO Gas Project

mp2013: presentation by the federal ministry of petroleum resources

Documents

gas sector

bbl of oil

petroleum minister

gas institutions

npdc reserves

nigerias crude oil production

levelstrategic objective

expected reserves