Nigerian National Petroleum Corporation says country generates over $180 billion from deepwater operations

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The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru revealed that Nigeria’s deepwater operations have generated over $180 billion, as a result of capital investment of more than $65 billion made by the players in the oil and gas industry.

Baru, who made the disclosure while delivering a paper entitled: “Deepwater Operations in Nigeria: The journey so far,” at the panel session of the Petroleum Technology Association of Nigeria (PETAN) in the ongoing golden anniversary of the Offshore Technology Conference (OTC) in Houston, Texas, noted that despite the huge investment, there are still potentials for growth amidst untapped abundant opportunities in the sector.

Represented at the event by the Chief Operating Officer, Upstream of the NNPC, Mallam Bello Rabiu, Baru was quoted in a statement saying that Nigeria remained an active player relative to other regions in terms of deepwater development.

Baru said “out of the 15 Floating Production Storage and Offloading (FPSO) units in Nigeria, seven have been deployed for deepwater operations. Nigeria ranks only behind Angola within the African deepwater operations in terms of FPSO deployment”.

He disclosed that the country has utilised each deepwater project as an avenue to upscale its unique human capital skills in different areas not limited to engineering design, project management, welding and diving.

Baru added that the local content contribution or services share in deepwater has continued to grow and improve from the sub one percent level to an aggregate contribution of over 25 percent, from engineering man-hours of less than 20,000 to over 1.1 million in recent Egina project executed by Samsung Heavy Industries for Total.

The Managing Director noted that there were 87 deepwater oil blocks in Nigeria, out of which only seven are producing and an additional six are at different phases of development.

He called on PETAN to fill the technology gap, stressing that OTC provided not just a window to the global oil and gas industry but also a gateway for Nigeria and the Nigerian oil industry to access the best of technology and contribute to national development.

Baru said NNPC would continue to support planned deepwater projects, while ensuring adequate local participation.

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