In Recent Years, The Nigerian Oil And Gas Industry Has Undergone A Remarkable Transformation Driven By The Promotion Of Local Content. This Shift Towards Fostering Indigenous Participation Is Reshaping The Industry And Bringing Numerous Benefits To Companies And The Nation. Pan Ocean Oil Nigeria Is A Prime Example Of How The Promotion Of Local Content Is Steering The Industry Towards Self-Sufficiency, Innovation, And Socio-Economic Growth.

Local Content Promotion Involves Integrating Domestic Resources Into Various Sectors, Particularly The Oil And Gas Industry. This Approach Recognizes The Crucial Role Of Local Expertise, Businesses, And The Workforce In Advancing The Industry While Reducing Reliance On External Entities. Pan Ocean Oil Nigeria Has Experienced Various Benefits From This Approach That Extend Beyond The Company Itself.

One Major Advantage Of Local Content Promotion Is The Boost It Provides To The Nigerian Economy. By Prioritizing Local Suppliers And Services, Companies Like Pan Ocean Oil Nigeria Stimulate Economic Growth. Local Businesses Thrive, Creating Employment Opportunities And Expanding The Tax Base. This Contributes To Increased Revenue For The Government, Enabling Investments In Critical Infrastructure And Public Services That Benefit Citizens Across The Country.

Collaboration plays a crucial role in the upstream oil and gas industry, offering a range of benefits that contribute to operational efficiency, innovation, risk mitigation, and sustainable growth.

Newcross Petroleum Limited, an indigenous oil and gas company in Nigeria, has solidified its gains in the oil and gas industry through joint venture partnerships and collaborations with various upstream companies and government institutions.

Using Newcross Petroleum Limited as a case study, some of the benefits that can be derived from collaboration in the Nigerian upstream oil and gas include:

• Shared expertise and resources: collaboration allows companies to pool their collective knowledge, skills, and resources. In 2007, Newcross Petroleum acquired a 40% participating interest in Egbaoma Marginal field (OML 38) operated by Platform Petroleum Limited, one of Nigeria’s leading indigenous oil and gas companies. Following the collaboration with Platform Petroleum Limited, the Egbaoma Marginal Field recorded over one million person-hours with no Lost Time Injuries (LTI). This partnership improved technical and operational success at the Egbaoma Marginal Field. <br/>
• Technology Advancement: collaboration in the upstream oil and gas industry encourages the sharing of technological innovations and best practices, essentially leading to optimised crude oil exploration. The Ase River Transport Limited (ARTL), located in the north-central part of the Niger Delta Basin, is a joint venture between Newcross Petroleum Limited and Platform Petroleum Limited. The midstream operator, Ase River Transport Limited, is responsible for transporting produced crude oil for the Egbaoma operations and other cluster members. Through the partnership, both companies achieved a valve placement at the upstream and downstream of the Ase river crossings aimed at controlling and preventing possible oil spillage.
• Regulatory Compliance: Industry regulations and environmental standards are becoming increasingly stringent in the Nigerian oil and gas industry. Collaborating on compliance strategies ensures that companies collectively meet regulatory requirements and maintain a positive reputation. Newcross Petroleum Limited operates OML 152 under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Company Limited. The collaboration enabled Newcross to fulfil all regulatory commitments for converting the asset from an OPL phase to an OML phase. Since the collaboration, eight (8) prospects have been identified within the block.
• Local Community Engagement: collaborative projects can improve stakeholder and community relationships. The mutual efforts of both companies can be directed at addressing community concerns and promoting significant resource development. The NNPCL/Newcross EP Joint Venture, in the year 2020, commissioned its first legacy project at Idama, Port-Harcourt. The construction of the block of 4 units of self-contained guest houses in the Idama community, Port-Harcourt, Rivers State, fostered the harmonious relationship existing between NNPCL/Newcross EP JV and the Idama community. The joint venture enabled Newcross EP to deliver the project promptly and encouraged peaceful coexistence among the host community.

Overall, collaboration is one of the powerful tools that enable upstream oil and gas companies to overcome challenges, utilise opportunities, and create a more robust and sustainable industry ecosystem.

Through the years, as Pan Ocean records growth with significant progress in the Nigerian oil and gas ecosystem, its interest began to mature from core business operations to embrace social programmes that better the lives of many who reside in and around the communities where it operates. Pan Ocean recognises the need to balance business and sustain healthy community relations in ways that give the communities a sense of belonging as stakeholders in their business and operations.

Through the under-listed, Pan Ocean continues to distinguish itself as the brand that keeps humanity at the centre of its operations:

Cultivating Positive Brand Recognition

 In its bid to cultivate positive brand recognition, every passing year, Pan Ocean identifies with schools, orphanages and health institutions with dedicated funds to enhance the running of their day-to-day activities. Some of those who have benefitted from Pan Ocean’s CSR intervention in the past years are:

The Holy Family Home for the Elderly of Regina Mundi Catholic Church, The Ifeoluwa Orphanage, The Lagos State Motherless Babies Home and The Hearts of Gold Children’s Hospice, among others. With contributions to the African Heritage Research Library and Cultural Centre, National Post-Graduate Medical College of Nigeria and others, Pan Ocean endears itself to stakeholders.

Growing a Community of Self-Reliant People

KPMG, the multinational consulting firm, stated that the Nigerian unemployment rate increased to 37.7% in 2022 and will rise to 40.6%  due to the continuing inflow of job seekers into the job market.

To also address the employment deficit to which the government still seeks a lasting solution, Pan Ocean, since the inception of its Skills Acquisition Intervention in September 2008, has funded entrepreneurial training and workshop opportunities for communities designed to train people in simple skills (bread baking, decoration, millinery, cooking etc) to make them self-reliant, beneficial to themselves and their society. The 3-phased programme caters to people with simple skills in candle making, face powder making, petroleum jelly making, etc, in the second phase. In contrast, the last phase focuses on the provision of participants with essential literacy tools through which they could further develop their full potential. Over 1,500 adults drawn from Ovade, Obayanto, Iguelaba, Ologbo, Abe, Ogharefe, Mosogar, Amukpe, Obagie and Otefe were beneficiaries of the programme.

Fostering Accountability to Critical Stakeholders

As the only Nigerian indigenous oil and gas firm in a joint venture with the Nigerian National Petroleum Corporation (NNPC), Pan Ocean has to earn trust through programmes that project its responsiveness to host communities and their travails. A few such joint programmes are the solar-powered borehole commissioned at Obagie Community, Edo State, and the construction of a water borehole and 15KVA generator house in Owe Community, Delta State.

Pan Ocean’s receptiveness to explore collaboration with relevant stakeholders to enable sustainable development where it operates.

These social programs provide equal opportunities for people in basic skills acquisition, enterprise and employability- which form the indices to measure community development over time.

The oil and gas exploration industry will always be a vibrant industry across the world. While the industry contributes to massive revenue generation, employment opportunities, infrastructure development, and technology innovation, amongst other things, it also poses threats and possible dangers that might require preventive safety measures.   Implementing these proactive safety measures within oil and gas exploration fields serves not only to safeguard employees but also to significantly mitigate environmental risks. To establish and ensure a safe environment devoid of risks, several essential strategies and practices can be embraced, a selection of which is outlined as follows:

• Strict Adherence to Regulations: Oil and gas exploration operates within stringent regulations designed to safeguard the welfare of employees, the environment, and nearby communities. It is imperative to uphold adherence to safety norms established by the relevant regulatory authorities in your specific region or nation, such as the Nigeria National Petroleum Corporation (NNPC) in the case of Nigeria.
• Routine Inspections and Maintenance: Consistent equipment and infrastructure inspections are essential for pinpointing potential risks. Enact preemptive maintenance routines to tackle concerns before they transform into safety hazards.
• Comprehensive Training and Education: Thorough training and education are the bedrock for safety across all industries, including oil and gas exploration. It’s imperative to conduct frequent training sessions, enlightening workers about potential hazards, emergency protocols, and the correct utilisation of safety gear.
• Emergency Preparedness: Formulate and practice clearly defined emergency response strategies to manage potential incidents like oil spills or fires effectively. Conduct routine drills to ensure all staff are adept at promptly and efficiently executing these plans.
• Use of Advanced Technology: Harness state-of-the-art technology, such as advancements in oil rig technology, to elevate safety precautions. Integrate remote monitoring systems, drones, and sensors to consistently oversee equipment and identify deviations before they escalate into critical concerns.

Ensuring safety within oil and gas exploration domains is a priority, demanding steadfast dedication and all-encompassing methodologies. Emphasising training, technological advancements, adherence to regulations, maintenance routines, emergency readiness, and the welfare of workers enables the industry to diminish risks and guarantee a safe operational atmosphere. Adopting these approaches not only safeguards employees and the surroundings but also constructs a robust cornerstone for sustained prosperity in the oil and gas exploration sector.

Deregulation in Nigeria’s oil and gas sector is expected to lead to significant changes in the industry, particularly in pricing and competition. Here are some potential outcomes of the deregulation:

Price fluctuations: Deregulation will likely lead to price fluctuations in the short term as the market adjusts to removing price controls. Prices may rise or fall depending on global oil prices, demand and supply dynamics, and market competition.

Increased competition: Deregulation is expected to encourage more private investment and market competition, leading to greater efficiency and innovation. More players are likely to enter the market, which will increase competition and potentially lead to lower consumer prices.

Improved infrastructure: With more private investment and competition, there may be more significant incentives for companies to invest in infrastructure and technology to improve efficiency and increase production. This could improve refining capacity, storage facilities, and transportation infrastructure.

Reduced subsidies: Deregulation is likely to reduce or eliminate government subsidies on fuel, which could have significant implications for the country’s budget and fiscal policies.

Increased government revenue: Deregulation may lead to increased revenue from taxes and royalties on oil and gas production. This could lead to more significant investment in social and economic development programs.

Overall, the long-term effects of deregulation in Nigeria’s oil and gas sector will depend on various factors, including global oil prices, competition, government policies, and investment. However, deregulation has the potential to bring about significant changes and improvements in the industry.