Adopting a policy framework that accelerates the conclusion of contract bids and tenders is crucial to promoting hitch-free transactions in West Africa’s Upstream Sector, Jumoke Ajayi, Managing Director, Asharami Energy Limited, a Sahara Group Upstream Company, has said.
Ajayi who was speaking ahead of the 4th Annual West Africa Upstream Summit slated for June 20 – 22, 2018 at the Radisson Blu resort in Dakar, Senegal, will join heads of government and other stakeholders to discuss the future of the upstream sector within the region.
Billed as the foremost gathering of Exploration and Production (E & P) businesses, regulators and policymakers in the region, the conversations this year will centre around “Developing the Deepwater Hydrocarbon Potential of West Africa’s Exploration & Production Hotspot”.
A foremost E & P expert in the region, Ajayi will deliver a paper on “Strategies for a Production Sharing Contract (PSC) Work Program” during one of the workshops.
Production Sharing Contracts have become a more frequently adopted model for E & P transactions existing between national oil companies in West Africa and International Oil Companies (IOCs) or indigenous independents.
The model has however been beset with challenges stemming from the time and resource constraints most independent companies face in fulfilling the terms of the PSCs. These time constraints are caused by the long bidding and tendering process coupled with bureaucratic bottlenecks.
According to Ajayi, “To break the bottleneck and work within the stipulated window or less, operators must devise strategies to shorten bids and tendering process, adopt innovative technical programs, key into contractor’s availability and factor in the peculiarities associated with every stakeholder within the supply chain.”
She added: “Asharami Energy was able to develop a strategy which utilized human resources to great efficiency. We made use of the innate and acquired skill sets of our people to drive the company’s growth. Our resilience and ingenuity allowed us stay the course where other independents were greatly challenged by systemic inefficiencies. We are excited to share our knowledge with all stakeholders at the summit.”
Industry watchers are hopeful that the three-day event will enable the Upstream industry’s key decision makers in Ministries and Governments, IOCs, National Oil Companies and solutions providers adopt policies and strategies that best position the sector for operational and environmental sustainability.