The Petroleum Technology Association of Nigeria (PETAN) has stated that Nigeria would require between $9 billion and $11 billion to boost investments in gas infrastructure and power, including the construction of over 897 kilometres of gas pipelines, building of three power plants with capacity of 3,150 megawatts each, as well as construction of gas industrial parks and western central processing facilities (CPF) in the country.
The association has also called for collaboration and assets sharing by upstream operators to create synergy and ensure reduction in the cost of logistics from $23 per barrel to $2 per barrel.
In a communiqué from the Offshore Technology Conference (OTC) held recently in Houston, Texas, United States, PETAN also added that the funds would also be deployed in the rehabilitation of the old refineries, co-location of refineries and construction of new ones to change the country’s status from crude oil exporter to exporter of refined petroleum products.
The communiqué also called on the states to be involved in the establishment of modular refineries, which must be positioned around private investors and independent producers with government guarantee and support.
The association stressed the need for assets sharing and the setting up of consortiums like Bonga South West to sustain build in-country capacities.
The communiqué, which was signed by the Chairman of PETAN, Mr. Bank Anthony Okoroafor, called on the operators to collaborate to fund projects instead of raising funds in ‘silos.’
According to the association, the operators should synergise in all assets work to reduce logistics costs from $23 per barrel to $2 barrel “by working together and sharing vessels, security and management of assets.
“We can knock down cost by 40 per cent by adopting Brazilian model – standardise facilities, standardise 150,000 barrels FPSO (Floating Production Storage Offloading) vessels across all deepwater development, instead of several capacities,” the communiqué added.
To grow the country’s crude oil reserves to 40 billion barrels by 2020, PETAN said the exploration budget should be ring-fenced, while the country should have one function steel mill in the next five years as 90 per cent of all oil and gas projects need steel.
According to the association, a steel mill will be the catalyst for building all facilities in-country.
To build all facilities in-country, PETAN argued that lead contractors in every project must have solid infrastructure in the country.
It also called for the removal of emergency in projects, adding that emergency in projects removes local content.
“We need it now mentality must stop,” PETAN said.
While charging the National Assembly to conclude the Petroleum Industry Governance Bill, PETAN called for the “harnessing of local long term funds like Pensions, Sovereign funds into Long term productive and profitable infrastructure assets like gas, power, lines, refinery, utilities as done by other pension funds in developed countries.”