members area login
Membership Number
Surname
Not yet a member? click here to join
NSChE Communiqué
COMMUNIQUE OF THE FIRST PRODUCTION/PROCESS TREATMENT CHEMICALS SEMINAR ORGANIZED BY NICHEM VENTURES LTD
Venue: Four Points by Sheraton Hotel, Oniru Estate, Victo
Date:Thursday, December 10, 2015,
eta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" /> itle>Untitled Document

COMMUNIQUE OF THE FIRST PRODUCTION/PROCESS TREATMENT CHEMICALS SEMINAR ORGANIZED BY NICHEM VENTURES LTD (CONSULTANCY ORGAN oftheNIGERIANSOCIETY OF CHEMICAL ENGINEERS) IN ASSOCIATION WITH NAPIMS (a DIVISION OF NNPC)

The above one day event held at the Four Points by Sheraton Hotel, Oniru Estate, Victoria Island, Lagos, on Thursday, December 10, 2015. The highlights and communique ensuing from the seminar are outlined below

  1. PREAMBLE

Participation in the seminar was drawn from a cross section of stakeholders in Oil & Gas Chemical Treatment, including Chemical Vendors, Major Oil Producers, Independent Oil Producers, Regulatory Agencies, etc. The Opening Session was chaired by Engr. Charles Odita, FNSChE, Managing Director of Midwestern Oil & Gas Ltd; while the two Technical Sessions for the day were chaired by Engr. EmekaEne, Chairman PETAN and Engr. OluOnakoya, FNSChE, past Chairman/Managing Director MOBIL Oil Nigeria Plc, respectively. The President of NSChE, Prof. EmenikeWami, FNSChE, was represented by the Deputy President, Prof. Sam Adefila, FNSChE. The keynote speech was delivered by Engr. James Jok, General Manager Facilities (PSC), NAPIMS, on behalf of the Group General Manager NAPIMS, Mr. DafeSejebor.

  1. OBSERVATIONS

The seminar made the following observations and noted that:

  1. Treatment chemicals play a vital role in oil & gas production and processing, for

fluids quality compliance, flow assurance, facilities integrity protection and regulatory compliance.

  1. The global production and process treatment chemicals markets are estimated to have values of 5.0-6.0 bn and $2.5 bn per annum, respectively, while the Nigerian market for both categories is estimated at about $100m and $7.0-10.0m respectively, per annum.
  2. Though the Chemical Treatment segment of Nigeria’s oil & gas industry is dominated by the leading international oilfield chemicals vendors, indigenous chemicals vendors and service providers are playing an increasingly active role.
  3. The overall prospects for chemical treatment in the Nigerian oil & gas industry are strong despite the current downturn in the industry, given its important role in the industry’s routine production and maintenance operations. The ageing of existing fields, as well as on-going new projects (e.g. TOTAL EginaDeepOffshore Development, Dangote Mega Refinery, etc) will combine to further enhance the prospects.
  4. The producing companies have in place increasingly rigorous chemical qualification processes for chemicals selection. In particular the deepwater operations call for exceptional products and quality standards given their very stringent operational requirements and KPIs. The producers are also increasingly interested in chemical vendors and service providers who have in depth capability for efficient chemical program management and exceptional competencies in chemical treatment services.
  5. The Nigerian Content Act has broadly impacted positively on Nigerian chemical vendors and this will be further enhanced by the new Nigerian Oil & Gas Industry Park Scheme (NOGPS) being initiated by the Nigerian Content Development and Monitoring Board (NCDMB).
  6. The 90% Nigerian Content requirement for treatment chemicals as contained in the Nigerian Content Act is however not considered realistic and is not attainable in the immediate future.
  7. Commendable as the Nigerian Content Fund established by NCDMB is, it is not accessible to the Nigerian chemicals vendors and has made little or no impact on their development and growth.
  8. DPR has initiated a review of its chemical certification procedure and requirements with a view to bringing them even closer to international best practices.
  9. The chemical vendors are however reeling from a sophocating regulatory environment occasioned by the combined and sometimesreplicated requirements of the different regulatory agencies, including NAFDAC, SON and DPR.
  10. Full consultations with all stakeholders by the regulators is necessary before the introduction of existing regulations, to ensure complete buy-in and ready compliance, and to avoid unintended harm on the vendors and operators.
  11. Tender timelines in the industry tend to be open ended, with the result that many tender processes last for over 2 years before conclusion, which is obviously deleterious to all parties involved in the tenders.
  12. The structure of the tenders for treatment chemicals in particular often does not fully reflect the peculiarities and technicalities intrinsic in the proper selection of these chemicals and its impact on pricing.
  13. Laudable strides have been made in the establishment of an Oilfield Chemical Research Program at the Institute of Petroleum Studies, University of Port Harcourt. This is expected to be a vital compliment to on going efforts for growth of Nigerian Content in the Nigerian oil & gas industry.

 

  1. RECOMMENDATIONS
  2. Government is enjoined to encourage and support to fruition on-going key oil & gas industry projects with potentials for large positive impact on the economy and of collateral benefit to the Chemical Treatment segment of the industry, such as the TOTAL EginaDeepOffshore Field Development and the DANGOTE Mega Refinery Project.
  3. Nigerian treatment chemicals vendors should continuously strive to strengthen their technical capabilities in order to compete effectively and position to benefit from unfolding opportunities and prospects in the industry.
  4. The NCDMB is advised to initiate formal engagement with chemical vendors and operators for review of the Nigerian Content requirement for treatment chemicals in the Nigerian Content Act, in order to better reflect reality.
  5. NCDMB is also requested to streamline the structure of the NCD Fund in order to make it more readily accessible to deserving chemical vendors and other Nigerian contractors.
  6. A wholistic review of the various legal provisions pertaining to regulation of oilfield chemicals in Nigeria is urgently desired from government, with a view to streamlining and simplifying the requirements and avoiding strangulation of the vendors.
  7. The regulatory agencies, especially NAFDAC, SON, DPR and NCDMB, are called upon to establish a culture of full consultation with all relevant stakeholders as part of their standard processes for introduction of new regulations or modification of existing regulations.
  8. DPR is requested to pursue the on-going review of the chemicals certification procedure and requirements to conclusion as quickly as possible and in particular consider an extension of the re-certification time requirement to at least 5 years.
  9. DPR is also advised to make its key instrument for regulation of the industry, EGASPIN, readily accessible to all stakeholders by copiously posting it in its website.
  10. NAPIMS, working with the producing companies and other stakeholders, should review the prevailing tender procedures in order to remove all obstructive bottlenecks and ensure that the tenders are concluded within a maximum timeline of 6 months unfailingly.
  11. The producing companies and NAPIMS are also enjoined to engage with the chemical vendors to develop a broad template which will effectively cater and accommodate for the technical peculiarities of treatment chemical tenders.
  12. Government should equip and empower the Institute of Petroleum Studies, University of Port Harcourt, to become a centre of excellence in Oilfield Chemistry research in Nigeria.

 

 

Engr. David. A. Adeyemo                                Dr.N. John Erinne
Chairman, NICHEM Ventures Ltd              Chairman, Organising Committee

 
 
First Previous
Records 10 to 10 of 10
 
 

WEBSITE  HACKED !!!

Date:November 9th - 11th 2017
Time:
Venue: PORT-HARCOURT
Theme: Nigerian Content Development: Catalyst for Industrialization Host: Rivers/Bayelsa Chapter
(c) 2010 Nigerian Society of Chemical Engineers ---------------- Contact Webmaster