… supports NCDMB, NUPRC to weed out ‘Middlemen Business’ in Nigeria’s oil, gas sector

Oredola Adeola

The Petroleum Technology Association of Nigeria (PETAN) is collaborating with the Nigerian Content Development and Management Board (NCDMB) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to eliminate middlemen businesses and uphold the integrity of Nigerian oil and gas operators through a new PETAN seal of quality.

The Association is also advocating for increased local content in Nigeria’s oil production.

Engr. Wole Ogunsanya, PETAN Chairman and CEO of Geoplex Drillteq Limited, emphasized this initiative during a panel session on “Nigerian Content as a Business Enabler” at the ongoing NOG Energy Week Conference & Exhibition.

CEO of Geoplex Drillteq Limited stated that eliminating portfolio companies in the oil and gas industry is essential.

He expressed frustration at the notion that local content players add unnecessary costs to operations, highlighting the significant efforts to build capacity and establish billion-naira institutions that generate substantial daily revenue.

“We have provided technical capabilities to the oil and gas sector since the era when Nigeria produced 2.4 million barrels of crude oil per day under former President Olusegun Obasanjo’s administration,” he noted.

“Today, Nigeria is producing less than that because the incompetence of middlemen businesses casts a shadow on the competencies and integrity of Nigerian oil and gas operators,” the PETAN Chairman said.

Ogunsanya stressed the importance of addressing this issue for the future of local content in Nigeria.

He affirmed PETAN’s readiness to collaborate with NCDMB and NUPRC to eliminate these middlemen through the introduction of PETAN’s seal of quality.

“This seal, backed by an internationally recognized certification company, will provide an additional layer of authentication for those listed on the NCDMB’s NOGIC JQS portal and NUPRC’s National Data Repository.

“Advocating for local content, Ogunsanya highlighted that Nigerian Content has been a business enabler, enhancing local operators’ ability to offer services traditionally provided by multinationals.

He noted, “PETAN, celebrating 30 years in the oil and gas industry this year, is the sponsor of the local content law.

“We contributed to shaping the law, including the clause that mandates Nigerian companies should have first consideration in divestments of oil and gas assets in Nigeria.

“We are pleased to see that these opportunities are fostering strategic collaborations, lowering entry barriers for local operators, retaining millions of dollars’ worth of investment in-country, and building Nigerian brands that operate within and beyond Africa,” PETAN noted.

The panel was moderated by Rosario Osobase, Chairperson of the Petroleum Contractors Trade Section (PCTS) and Managing Director of Tenaris Nigeria. Other panelists included Isaac Yalah, Director of Planning, Research & Statistics at NCDMB; Engr. Abayomi Bamidele, Director of Project Certification & Authorization at NCDMB; and Osagie Okunbor, Chairman of the Oil Producers Trade Section (OPTS), represented by Cosmas Iwueze, Director of NNPC/Chevron JV and Industry Cost Efficiency Lead at OPTS.