Experts in the oil and gas industry have identified multiple regulatory authorities of the Federal Government and incessant risk emanating from host communities, as key factors inhibiting successful operation of marginal fields’ companies especially indigenous companies. Consequently, they have canvassed the need for government to align its various policies to avoid regulatory conflicts by its agencies which frustrates the operations of marginal field companies.
According to a communiqué issued at the end of the 2016 Africa Small & Marginal Fields Development Conference, with the theme: “Find It, Commercialise It,” held in London last week, “Participants highlighted the need for government to recognise that in order for the objectives of promoting marginal field development to be achieved fully, government it must be proactive to global issues, support marginal field operators and should not use same yard stick to bench mark or regulate marginal field operators and international oil companies. “
Meanwhile, indigenous companies were encouraged to ensure sound corporate governance by avoiding family laden organisation and anything that will dent their reputation. Other sound corporate standard practices outlined for the operators include, creating a high performance corporate culture to be a preferred place to work by their employees; building strong team with technical and organizational expertise; upholding social license and robust community relations; establishing proper internal control system; showing competency in HSE; seeking for quality alliance/partnership and; investing in human capital to ensure capacity building through quality training.“
Also, conference speakers and participants examined risk and challenges facing the development of marginal fields and what government could do to make marginal oil field operators successful. “The conference examined how to unlock the potentials of marginal oil fields from the perspective of an indigenous operator, as well as how another indigenous marginal field operator survived the storm after several pitfalls to become a success story. Participants also examined the various ways of de-risking marginal field and its uncertainties.
“Some of the challenges enumerated were on funding; shortage of foreign exchange due to low oil prices; insecurity and deferred production due to attacks by militants; fiscal issues that pertains to royalty, PPT; low oil prices and market volatility; declining foreign direct investments, FDI, due to country risks; problems of technology, equipment availability and lack of standardised processes and; failure of local banks to grow domestic investment market due to funding of International Oil Companies’ divestments. “The conference provided the platform for gaining insight on available opportunities in Africa, knowledge sharing among industry peers and networking.
According to a communiqué issued at the end of the 2016 Africa Small & Marginal Fields Development Conference, with the theme: “Find It, Commercialise It,” held in London last week, “Participants highlighted the need for government to recognise that in order for the objectives of promoting marginal field development to be achieved fully, government it must be proactive to global issues, support marginal field operators and should not use same yard stick to bench mark or regulate marginal field operators and international oil companies. “
Meanwhile, indigenous companies were encouraged to ensure sound corporate governance by avoiding family laden organisation and anything that will dent their reputation. Other sound corporate standard practices outlined for the operators include, creating a high performance corporate culture to be a preferred place to work by their employees; building strong team with technical and organizational expertise; upholding social license and robust community relations; establishing proper internal control system; showing competency in HSE; seeking for quality alliance/partnership and; investing in human capital to ensure capacity building through quality training.“
Also, conference speakers and participants examined risk and challenges facing the development of marginal fields and what government could do to make marginal oil field operators successful. “The conference examined how to unlock the potentials of marginal oil fields from the perspective of an indigenous operator, as well as how another indigenous marginal field operator survived the storm after several pitfalls to become a success story. Participants also examined the various ways of de-risking marginal field and its uncertainties.
“Some of the challenges enumerated were on funding; shortage of foreign exchange due to low oil prices; insecurity and deferred production due to attacks by militants; fiscal issues that pertains to royalty, PPT; low oil prices and market volatility; declining foreign direct investments, FDI, due to country risks; problems of technology, equipment availability and lack of standardised processes and; failure of local banks to grow domestic investment market due to funding of International Oil Companies’ divestments. “The conference provided the platform for gaining insight on available opportunities in Africa, knowledge sharing among industry peers and networking.
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