reminiscences on my 40+ years in the oil & gas industry in ... · baroid nigeria limited 4....

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Reminiscences on My 40+ Years in the Oil & Gas Industry in Africa

‘Layi Fatona (Ph.D., D.Sc.. Honoris Causa)

Managing Director, Niger Delta Exploration & Production Plc

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GENERAL INTRODUCTIONS

▪ Conversation, Format & Why The Geological Time Scale?

▪ Before the Beginning – A Basement Complex of Life (My Pre Cambrian Setting)

▪ The Cambrian Ordovician – Pioneer NYSC

▪ A Paleozoic Time Setting – 1st Shell BP Working Experience

▪ The Mezozoic Equivalent – IC Post Graduate Education

THE TERTIARY BUILD OUT (TRANSGRESSIVE)▪ The 2nd Employment @ SPDC (Paleocene)

▪ Geotrex Systems (Eocene)

▪ ND Phase 1 (Oligo-Miocene)

▪ ND Phase 2 (Piocene)

▪ Late Tertiary/Early Quaternary – ND Phase 3 (Pleistocene)

THE FUTURE CENE – ND Phase 4 and Beyond

▪ Appreciations For A Professionally Fulfilling Journey….

Outline

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2The Topic - Restated will read……

Without Permission of our 3 Lovely Boys

‘Tenne, ‘Bade & ‘Tokunbo Fatona

“Extraless”

May 2019

The Geology….

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The Geology, Stratigraphy…..

The Topic - Restated will read….

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The Geology, Stratigraphy & Sedimentology of NDEP

Nigeria’s 1st Fully Integrated Energy Company

The Topic - Restated will read…..

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The Presentation –

Metaphorically will

mimic Geology in its

basic set and simple

format

The Geological Time

Scale Approach. This

is what I opt to adopt

for Today and This

Presentation

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The Basement Complex of Life

Life (Before & Up till end of UI) (‘49-’73)

B.Sc. Hons

The Geological Time Scale

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Has it Really Been 40+ Years? (46 and still going..)

Removing the Doubts on LF – The Pre Cambrian (Basement Complex Life)

‘LAYI FATONA (LF)

A Student of Geology @ the University of Ibadan

The 300 Level Geology Department Shaping us for

the Professional Future

GL 101, 201 & 301

Prof Kevin Burke, Dr (Mrs.) Durotoye, M.O. Oyawoye and Oma Rahaman

GL 102/3, 202 & 302Prof Adeleye, Deseragie, Fayose

GL 104Prof Makanjuola –The Joshua Crowd

BORN 1ST

JUNE 1949

LAWRENCE OKUNADE FATONA

ILEWO, ABEOKUTA,

OGUN STATE,

NIGERIA

CHRISTIANAH ABIMBOLA

FATONA

The UI ‘73 Mafia was

Made!

(June 1973)

‘LAYI FATONA

IN TO &

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Pioneer NYSC (Incubating the Geologist)



B.Sc. Hons


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Pioneer Youth Corper(s) of Nigeria : July 1973 – June 1974

A Geologist is ready for his life pursuits and ambition

✓ The North Central State Water Board Experiment

✓ Project Managing – Old Zaria Town Water Distribution Network System

✓ Zoba Dam Project – Soil Investigation

The Young Explorer & Graduate

of the University of Ibadan, 1973

Removing the Doubts on LF (The Cambrian Age Equivalent Setting 1973 – 1974)

Reminiscences on My 40+ Years in The Oil & Gas Industry

Learning Statements

❖ Short Impactful Life

❖ Take and use of every opportunity that comes your way in Life

❖ Don’t force or change your destiny: Not the Story of today’s NYSC!!!

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Multiple Post NYSC Employment Offers

The

Rewarding

World of the

Earth

Scientist

1. Geological Surveys Limited

2. Nigerian Mining Corporation

3. Baroid Nigeria Limited

4. Assistant Lecturer Research Position, Uni Ibadan

5. Joining A Best in Class International Oil Corporation – July 1974

Shell-BP

Development

Company of Nigeria

Removing the Doubts on LF – Ending the Cambrian Period

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The 1st Shell BP outing and

working experience




B.Sc. Hons


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My Palaeozoic (Equivalent) Era

❖ 1st SHELL-BP Outing and Working Exposure

❖ Turning Engineers to Geologists and Vice Versa

❖ A Stunning 6 Month Training at the Shell Training Centre – WARRI

❖ You were Professionally Fully Cooked at the end of it!!!

Questions & Observations

❖ Where is Today’s Nigerian Oil & Gas Training Domain?........Is it FUPRE?

❖ R&D – still missing Sadly. No Nation or Industry develops without this

❖ The Nigerian Content Management Board to the Rescue

❖ There is space to compel emerging Nigerian Independents to be the regenerating arrow head –

Leading training and Human Capital Development for the Industry

Removing the Doubts on LF – Ending the Cambrian Period

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working experience




B.Sc. Hons

IC Post Graduate Education


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The Mesozonic Equivalent Era (1975 – 1980)

of

Further Incubation & Educational Development

The Imperial College of Science, Technology & Medicine

(Royal School of Mines)

PETROLEUM GEOLOGY – Properties of the Republic of Cameroon (M.Sc.. DIC.)

&

SEDIMENTOLOGY – Of the East Midlands Coal Field (Ph.D..)

The Post Graduate Student Days at

Memory Statements

Academically Expressive and Explosive

Intensely Focused (International Melting Pot)

Proudly Nigerian “in Context”

Alas! You were just as good as the next PG student. We never had any good Embassy Representation!!!

Connected with my life Partner – Toyin Fatona

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working experience




B.Sc. Hons


2nd Employment by SPDC (1980)


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2nd Employment by and at Shell Petroleum Development Co. (SPDC) – May 1980

Removing the Doubts on LF: The Palaeocene (Equivalent)


Founder & President, Geotrex Systems Limited

First Nigerian Exploration Manager

Shell Petroleum Development Co. Nigeria (SPDC)

The Late Mentor of Many of My Times and Peers

(Mr Edward Ekuyasi Iyamu)

I as the young Exploration Geologist at my 2nd round of Employment at Shell was discovered

by the one I once described as “The Explorer’s Explorer”…Edward Ekuyasi Iyamu

Memory Statements

Professionally as a Career Period; Distinctively short, but Inspirational and Fulfilling in Dimension

Multitasking Capabilities

My Western Study Team Position with Dr Ebi Omatsola - The Professional Slave Driver “Work & Expect No Reward”

I AM FOREVER GRATEFUL OF THIS MENTORSHIP

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working experience




B.Sc. Hons



Geotrex Systems Ltd


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Taking a Leap of Faith (1986)

Resigned from SPDC to join the foremost Exploration & Production consulting Company in

Nigeria – Geotrex Systems Limited

Joined as Consulting Geologist – 1986

Appointed Senior Vice President – 1988

Appointed President, Geotrex Systems - 1990

Removing the Doubts on LF: The Eocene (Early Tertiary Time Equivalent)


This is what I have severally described as the “Gbagada Connection”. The Entrepreneurial

Instincts were playing out…..

Observation Statements and Questions

❖ What led a young professional quitting an assured Professional life at Shell

❖ Ignorance (of the consequences of failure) was BLISS!!!

❖ Follow your Hunch in Life

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The Marginal Oil

Field Conceptual

Thinking

The Early Tertiary Transgressive Time Equivalent Period Comes Fully Alive (1988 & Beyond)


◼ The January 1988 & Beyond Memo

◼ The NAPE Presentation of April 1989

Was this an Oligo-Miocene

time type Transgressive

Event?

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working experience




B.Sc. Hons



Geotrex Systems Ltd

ND Phase I


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21Reminiscences on My 40+ Years in The Oil & Gas Industry

◼THE GBAGADA CONNECTION

The Birth of an Idea (1991)

The Eocene Time Continued

THE NIGER DELTA EXPLORATION & PRODUCTION PLC.

A FINANCIAL INSTITUTION

(MIDAS BANK)

AN E&P SETUP

(GEOTREX SYSTEMS)

AN ARET

ADAMS

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The Eocene Time Equivalent

Aret’s Conclave

Exploration & Production ManagementFinance

✓ Eddy Iyamu (Late)

✓ Dr. Imo Itsueli

✓ Alex Okoli (Late)

✓ David Richards

✓ Sammy Olagbaju (Late)

✓ Chief Aret Adams (Late)

Geotrex Systems Ltd Midas Drilling Fund Multinational Expertise Ltd

Late Chief Aret Adams

Uwaifo Jones Ltd

✓ John Jones “The Marketer”

The Pioneering Founding Team at NDEP


✓ Dr. Imo Itsueli

✓ Dr. Layi Fatona

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The Eocene Time Equivalent Continues

◼ A Start Up Conceived - The Marginal Oil Field Initiative

◼ Waiting for a Presidential Consent – AN ABACHA EXPERIENCE (It was like waiting for Death to come)

◼ Shareholders Funds to the rescue – The early birds came; Feyi Soluade George, J Familusi, Ladi

Jadesinmi , The Chemur Group – Led by Mr. Goodie Ibru

Surviving in between mishaps that could have brought ruin

Goodie Ibru


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The Eocene Time Equivalent Continues

◼Fund Raising Experiences (Untold and Unshared till Now)

✓ Raising capital from the public

✓ Selling ND shares by word of mouth

✓ Street canvassing – Dignified Hustling !!!

✓ The Midas Bank Bridge Loan

✓ Public Offering (IPO)

✓ $6M Loan from Erstwhile Intercontinental Bank Plc (The Push to 1st Oil)

✓ Engr. Enuha and his Cakasa Group Rescue Plan

Femi Akinsanya

(Financial Adviser)


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Eocene Time Equivalent: The Beginning of the End

Ogbueshi Ben Osuno. A seamless Board Transitioning – A strength

The Loss of an Icon (Late Chief Aret Adams)

Late Chief Aret Adams

Chairman of the Board

1993 – 2002

Ogbueshi Ben Osuno

Chairman of the Board

2002 – 2012

And No Void…….. Thanks to


Could this have been the End Eocene times, like it was in the Geologic Time Scale

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Our Strength, Our People

◼ Putting the Cart before the Horse (so it seemed to so many)

✓ Assembling our Production facilities before anything else

✓ Re-Entry of Ogbele – 1

◼ A Rig Collapse DWC 10 – Fatality & Survival (2004)

PREPARING FOR 1ST OIL

◼ Bouncing Back to Well Re-Entry (2005)

✓ DWC – 30

✓ A Successful 1st New Well Drilled – Ogbele 3 (2007)

✓ The Bumper Harvest Years (2008 – 2009)

Rig Collapse @ Ogbele Well 1 Location - 2005

DWC 30 on Well 3 - 2007


Our Oligo-Miocene Equivalent (ND Phase I Years)

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◼ 1st revenue on 31st December 2005 at $51/bbl. vs

economic model at $17/bbl.

◼ Paying Back our Debt @ 27% Interest

◼ Drilling for Failure (Broke)

✓ Our 1st Dry Hole – Ogbele 4.

✓ $20M Down the tube.

✓ Have since effectively converted the well for

Produced Water Disposal

◼ Coping with Militancy

✓ Concept of Self Preservation

✓ Shut-Ins, Shut-Downs & Production Maintenance

1ST Oil at Ogbele Flow

Station (2005)

1ST OIL – August 28th 2005

Our 1st Major Oil Price Crash - 2007Oil price in $

Year


Our Oligo-Miocene Time Equivalent Continues

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◼ Dealing with Gas Flaring – as a challenge

◼ Commercializing our Gas Resources

✓ Negotiated & Executed 1st GSPA with SPDC JV to deliver

gas to NLNG Train 6 - 2010

✓ Commenced 12”x20km gas pipeline to NLNG manifold at

Rumuji – 2010

✓ First Gas Delivery to NLNG Bonny Plant – November 27th

2012

◼ The Gas Challenge Turned an Opportunity

◼ Diversifying our Revenue Base

◼ Dealing with Insecurity

◼ A Gas curse turns the company

around

Ogbele Gas Processing Plant

Monetizing our Gas Resources (The Billy Agha Factor)

Cause & Effect: The Gas Flare Scare!!!


◼ There is life beyond Oil Production – The Integrated

Field Development Concept comes alive at Ogbele

Preparing for our Pliocene Times

◼ Coping and Compliance with Gas Flare Penalty

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The Tertiary Time Space..

“THE GEOLOGY, STRATIGRAPHY, SEDIMENTOLOGY

AND

PETROLEUM GEOLOGY OF NDEP”

ND Phase I - Our Oligocene to Early Miocene

ND Phase II - Our Pliocene

ND Phase III - Our Pleistocene

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ND Phase I – Our Oligo Miocene Time Equivalent


Beyond 1st Oil from Ogbele

◼Growing Ogbele Reserves Base – From 5MM STOIP @ Farm Out Agreement

◼ 1st Stage: Geotrex Systems (10.6MM AUR)

o Wells 3,4 & 5 New Reserves + Maps

◼ 2nd Stage: Wells 7, 8 & 9 New Reserves + Maps

o NDPR’s 3D Seismic Acquisition, Processing & Re-Interpretation

◼ 3rd Stage: Drilling Campaign

o Wells 10 & 11 New Reserves + Maps

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working experience




B.Sc. Hons



Geotrex Systems Ltd

ND Phase I

ND Phase II


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ND Phase II – Our Pliocene End Tertiary Time Equivalent


❖ Upscaling from Ogbele Marginal Oil Field Development

Growing our Asset

Base & Nigerian

Operating Footprint

❖ In a Strategic Partnership Acreage (OML-34) Acquisition With

Acquisition of the Divested 45% Interest of Shell/Total/Agip JV

OML 34 JV with NPDC

OML 34

Produce Oil and Gas with substantial

Daily Domestic Gas Supply to the

ELPS – Escravos Lagos Pipeline

WAGP – West African Gas Pipeline

The IOC Divestment Opportunities opened a New Horizon for Further Advancement

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working experience




B.Sc. Hons



Geotrex Systems Ltd

ND Phase I

ND Phase II

ND Phase IIIThe Geological Time Scale

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ND Phase III – Our Pleistocene Holocene (Today) Time Equivalent (The Quaternary of our Existence)


Oil & Gas Exploration & Production – NDPR, ND Western

Fully Commercialized our Gas Reserves & Resources – ND Gas

Refining part of its own Production Domestically for the Nigerian Economy

Growing refining capacity from a paltry 1kBPD 11kBPD – ND Refineries Ltd

Displaying Nigeria’s Domestic Capital through;

A. NDEP’s Cash Flow (Shareholders Equity & Capital)

B. BOI Funding, guaranteed by Access Bank

On behalf of itself and 2 other Indigenous Partners (Express Pet. & Petropros International Ltd),

Successfully drilled OMA Field Appraisal & New Discovery in OPL 227, its 1st shallow

offshore well. Adding for the first 1st time Oil & Gas Reserves in the Offshore Domain

Ultimate Metamorphosis into Nigeria 1st Fully Integrated Energy

Company

Stepping Up and Out – A Sub-Saharan Adventure

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Pioneering Initiatives in the Midstream Space…..

ND Refineries Ltd

Diesel

(AGO)

1Marine

Diesel Oil

(MDO)

Aviation

Fuel

(ATK)

Heavy

Fuel Oil

(HFO)

Liquified

Petroleum

Gas (LPG)

Naptha

(PMS)

2 3

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Growing Processing Capacity from

1,000 bopd to 11,000 bopd

Increasing Product streams from 1 to 6

Ogbele 1,000 bopd Refinery

(AGO, Naptha)

6


ND Phase III – Our Pleistocene Holocene Time Equivalent Continues

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ND Phase III – Our Pleistocene Time Equivalent Continues


From the camera lens of an helicopter Pilot – April 2019

❖ Commissioning the Ogbele Refinery Expansion Project (1,000 > 6,000 > 11,000

bbls/day)

❖ Commissioning the development of our 2nd Marginal Oil Field – The Omerelu

Field Development

❖ Increasing our Gas delivery capabilities and meeting our DOM Gas Obligations

Ogbele Today

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v

1992-2000

Incorporated on 25 March 1992 (as the Midas Drilling Fund)

• Acquired its current name in November 1996• 7 August 2000, signed the 1ST ever Farm-

Out Agreement (FOA) between the NNPC Chevron JV (an IOC) and NDPR (a Nigerian Independent).

2005-2010

28 August 2005, Achieved first oil production• 2010 - attained 1 million bbls of oil production• 2010 - Completed pioneering Gas Purchase

Agreement (GSPA) with the Shell/NNPC JV• 2010 - Successful installation of 1,000 bpd diesel

Topping Plant (The Ogbele Mini Refinery)

2012-2015

2012 - Commissioned the Ogbele Gas Processing Plant ,Lead acquisition of the 45% Interest of

Shell/Total/ Agip in OML 34• 2014 - Executed Omerelu Farm Out Agreement• 2015 – Nile Delta (SS) Ltd was established • August 2015 – Attained 10th year uninterrupted

continuous production

2016 - 2019

• June 2016, assumed Lead role in the Autonomous OML 34 JV Asset Management Team (AMT)

• Effective April 2017, NDPR was appointed the operator of OPL 227 with 51%* by other JV members

• September 2017, NDPR delivered the 50th Bscf measure of gas into the Bonny NLNG Export terminal.

• January 2019 - Commenced OPL 227 Offshore Operations

• January 2019 – Attained 1 Million Man hours LTI Free on the Ogbele Refinery Expansion Project

• April 2019, NDPR delivered the 70th Bscf measure of gas into the Bonny NLNG Export terminal.

Cumulative Production (As at 7th May 2019)• Total Oil+Condensate Produced - (15.8MMbbl)• Total Gas Produced - (81.5Bscf)• Total Diesel Produced - (133 Million Litres)

Our Corporate History

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Geotrex 1995

Ogbele E6 Depth Map

The Vintage Geological Structures of Ogbele Field

5.0MM STOIIP

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NDPR 2007

2D Seismic (Computer Generated)


Proposed

Location

Ogbele-1 assumes oil

field to the crest??

PVT Analysis???

Ogbele-2

Surface Location

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NDPR 2008

2007 Seismic

Post 3, 4 & 4ST


Ogbele-4ST

Ogbele-2 Surface Location

Ogbele-3, 4

Surface

Location

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NDPR 2010

2009 Seismic

Post 5 & 5ST


Ogbele-2

Surface Location

Ogbele-1

Ogbele-3, -4 & -5

Surface Location

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NDPR 2011

2009 Seismic

Post 7 & 7ST


Ogbele-1, -7, & -7ST

Surface Location

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NDPR 2013

2012 Seismic

Post 5ST2, 6 & 9


Ogbele-1, -7, -7ST

Surface Location

Ogbele-6 & -8

Surface Location

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NDPR Current

2012 Seismic

Post 7ST2


Ogbele-7ST Surface

Location

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NDPR Current

Top D8 Sand Map

The Bridge Between Now & Our FutureCene

>>2MM Production

As at May 2019

@3k bbl/day

0% BSW

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NDPR Current

Top D7 Sand Map

The Bridge Between Now & Our FutureCene

Well 11 - New Producer

May 2019

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Ogbele Reserves

Growth

Ogbele Reserves Growth (2005 – 2019)

Total Gas

Production of

81.5Bscf

Net Cumulative

Oil Production

of 15.8MMbbls

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The Sad and Sour Phases of our Life

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The Loss of an Icon


‘’I am a force for Good. I defy the odds. I go for New Standards, and I am

continuously stepping up’’ Godwin Aret Adams - Friday 2nd August 2002.


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The Rig Collapse – Before 1st Oil (2005)



Rig Collapse @ Ogbele Well 1 Location - 2005

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Drilling of a Duster Well – Ogbele 4



Our 1st Dry Hole - 2008

Well 4 Spud Location - 2008

$20mm Down the drain

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• Onyema Ubani

A Special Tribute For

October 16th 2017

The Abduction of OU (Onyema Ubani)



Production Adviser

NDPR

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Ongoing

Abduction of 1

Nigerian and 2

Expatriate Staff of

the Drilling

Contractor



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ND Phase III

ND Phase I

ND Phase II

Geotrex Systems Ltd



• The 1st Shell BP outing and

working experience




B.Sc. Hons

FutureCene

ND Phase IV & Beyond

The Geological Time Scale – The FutureCene

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55Our Future-Cene (Future Scene) Time Space

a Truly Made in Nigeria, Pan African

Integrated Energy Company

▪ I cannot and should not end this Reminiscing experience without 1st putting NAPE as my political

constituency of natural calling, and allowing you all members without a strategic peep into NDEP’s

next geologic time space, and what this will look like.

▪ This is the time era I will call the FUTURE-CENE (Pronounced Future Scene) or NDEP Phase IV

◼ With Substantial Nigerian Producing Asset Base

◼ The Ogbele Central Processing Hub

◼ Omerelu Field – On Stream

◼ OML-34 JV Partnership with NPDC

◼ OPL 227 – Shallow Offshore Development

◼ Deeply entrenched O&M footprint in South Sudan

◼ Emerging Strong Asset Acquisition Potentials in Mozambique,

Zambia and Uganda

Allow Me to Introduce to you – The New and Future NDEP

A Stock Brokers Recommendation: Buy, Buy & Keep Buying!!!

ND

Nile Delta

SS (Ltd)

Mozambique

Uganda

Zambia

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56Our People – We Must Celebrate

From Within

• Edirin Abamwa

• Tele Dokun

• Francis ILESANMI

• David Richards

• Femi Balogun

• Titi Omisore

• Our Operations, Drilling & Completions Personnel @ Ogbele

• The Entire ND Family

• Our Service Providers

• The Early Shareholders – The Believers

• Sam Dossou-Aworet

• Chemur Group – Led by Mr. Goodie Ibru

From Outside

• Our Security People (Sheidu/Alhaji Buba/ Col. Nickoro)

• Our Lagos Office Workforce

• Femi Olaniyan

OU

• PH Office• ND Western

• Kunle Osinuga/Taiwo Segun/Eze Dan-Ekeh

• Flowstation Staff

• Nuhu Adaji• Tobin Dickson

• Felix Abili

• Jide Aworanti

• Roland Mene-Ejegi

• Oshio Adams/Seun Dania

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57My People – I Must Celebrate

From Within

• My Family

• Toyin – My Eternal Soul Mate

• Tenne

• Bade

• Toksy

• The Extraless Bunch

• Our 3 Sons

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Special Thanks to our Sponsors

WalterSmith Petroman Oil Limited

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Thank you NAPE for your

Audience and Honour

‘Layi Fatona Ph.D.. D.Sc..

May 15th 2019

The President of NAPE

The Executive and Members

Distinguished Ladies and Gentlemen

It will not be another 40 or even 70 years that I will have the opportunity of standing &

addressing an audience of this nature. However, these past 40+ years had been traumatic,

engaging, rewarding and above all professionally fulfilling

reminiscences on my 40+ years in the oil & gas industry in ... · baroid nigeria limited 4....

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