OPTS4 has looked at contracting cycles across jurisdictions and Nigeria is an outlier because of our lengthy contract cycle.
Uche Usim, Abuja
The Managing Director, Shell Petroleum Development Company (SPDC), Mr. Osagie Okunbor, has described the lengthy contracting process in the oil and gas sector as the major blight stunting its growth.
Okunbor, in an interview with KPMG magazine, said there was an urgent need to review and shorten the length of the contract threshold.
According to him, the review should be done with inputs from relevant stakeholders, as it remains vital to the Joint Venture companies and the contracting circles in general.
“The contracting cycle is the third major enabler that needs to be addressed. OPTS4 has looked at contracting cycles across jurisdictions and Nigeria is an outlier because of our lengthy contract cycle.
We need to explore avenues to shorten the length and examine contract thresholds, which is a significant part of the JVs and contracting cycles”, he said.
The Shell boss also harped on the need to address security concerns in Nigeria, especially in the Niger Delta region.
He said Shell was willing to work with the Federal Government on various fronts to ensure the security of oil and gas assets and for production; even as he lamented the 2016 violence in the Niger Delta, which shrunk oil production output.
He described oil as a major economic booster that will remain relevant globally in the next decade or more.
He said: “Oil is a major component of the global and local energy mix, even more so for Nigeria, that will continue to remain relevant in the medium term. However, expectations have changed.
“The mix will not radically change. What is clear is that society expects low-carbon footprints going into the future. I think that is key and everyone, particularly those who are as big as Shell, understands that and will work with society to change.
“We are cutting our carbon footprint by a significant proportion going forward, not just in terms of what we directly produce, but also our usage and our by-products. This requires that we continue to refine our systems and processes to ensure that the carbon intensity of our production continues to go down.”
Okunbor added that the SPDC will significantly leverage technology and digitisation to further enhance its business systems, processes and operations in Nigeria.
READ ALSO: Cooking gas price to crash as FG removes VAT
“We are a part of a global business and in our sector, what differentiates us is how we commercialise technology and grow top and bottom line with technology. We pioneered deep-water exploration and production in Nigeria. We continue to push boundaries and Shell in Nigeria takes maximum advantage of the technological and digital capabilities of the Shell Group.”