The newly appointed Group General Manager of NAPIMS, Mr. Morrison A. Fiddi in a bid to bring Industry Executives to speed on the aspirations and thrust of the current administration convened an Interactive Session recently at the Colonades Hotel, Ikoyi, Lagos.

The forum provided the much needed avenue for NAPIMS and the Operators to articulate ways of delivering quick wins in the industry and bringing it back to the path of growth. While setting the ball rolling, the GGM NAPIMS remarked that the meeting with the Chief Executive Officers of the Operating Companies was designed in order to address the issues affecting the business as a team, hoping that the joint effort will lead to increase in reserves and producibility which in turn will drive the industry and the economy forward.

Reserve Addition

The GGM NAPIMS, Mr. Fiddi observed that since 2006 to date most of the reserve additions have been accounted for by the PSCs while the JVs have witnessed steady decline. He then advised the Joint Venture Partners to come up with deeper prospects which he believes will be viable as most of the past discoveries were on the shallow basins.

Domestic Gas Obligation to the IPPs

The GGM observed that currently the President is in charge of the Ministry of Power.

This, he said, makes it imperative for the industry to provide adequate gas to generate electricity for the nation. He appealed for total co-operation from the Operators in order to achieve between 80 – 100% of the nation’s gas requirement.

He promised that all Enablers to support any gas related project will be facilitated.

Rising Unit Technical Cost

Mr. Fiddi speaking further noted that from 2005 to date the industry has been witnessing rising Unit Technical Cost though production level has been on the decline. He enjoined the Operators to come up with cost reduction initiatives in the industry which will enhance operational efficiency and value for money.

Contracting Cycle

The GGM also announced that without circumventing Due Process, the lengthy processing time of contracts will be greatly reduced. Speaking further, Mr. Fiddi said that with the anticipated increase in the approval limits of the GGM and GED, most of the contracts within their new limits may no longer be escalated to the GEC. Another strategy adopted by the present administration is to ensure that both CRC and GEC holds weekly. That way the economy of the nation will be driven at a faster pace given the key role of the oil and gas industry.

Succession Plan

Speaking on human resource issues, the GGM, encouraged the Operators to groom the younger professionals that will move the industry forward. This, he said, could be achieved through training. He also advised Operators to desist from casualization of labour.

Community Projects.

The GGM said that the industry was almost at the verge of collapse before the amnesty initiative. In essence, he emphasized on the need to make the communities part of the industry’s business since they impact greatly on the operations in order to protect the huge investments in various projects.

The GGM advised on the Implementation of high profile, high impact projects that will affect the life of the citizenry irrespective of how remote a community may be. He said it is errorneous to think that community development is government’s business when in actual fact it is the huge investment of the partnership that is on the line. Mr. Fiddi emphasized that all Community Development Projects must be of value – He said that community projects expenses are infinitesimal when compared to project expenses.

This, he said is not a waste when compared with the quantum of investments in a project. GGM advised on the need for Synergy between NAPIMS, Operators and the Communities in the planning and implementation of community related projects. Finally the GGM warned against dealing with community leaders as individuals but to engage the whole community through sustainable community development projects. The GGM also addressed some unwholesome practices of the Operators such as contract racking, jettisoning of the NNPC Board approvals, unilateral extension of approved contracts. He appealed to the industry executives to desist from such practices.

The Managing Director of Addax, Mr. Vance Querio appreciated the GGM NAPIMS for the laudable ideas being brought on board in the Partnership and promised that if those ideas were pursued to the later most issues around contracting would be solved. Mr. Udom Inoyo Executive Director, Human Resources ExxonMobil remarked that the issue of casual employees may be difficult to eliminate completely in the industry as most of this category of employees belong to independent contractors working for the industry. On a final note, Mr. Fiddi said that the issue of co-operation and trust cannot be taken away from the Partnership as it must be a win-win situation.

The forum resolved to set up a Strategy Session to generate ideas that will generally help the industry to move forward. The GGM promised to convene the interactive forum quarterly or biannually.