By Adesina Wahab
Executive Director, Cynthian Consulting Limited, Adeboye Fajemisin, has said that an increase in the local participation in the oil and gas industry will lead to more jobs creation for Nigerians.
Fajemisin who is also the Managing Director of AEF Energy Services, in an interview maintained that there was a huge and direct link between local value creation and the economy, adding that it was only through local value creation that Nigeria can fully realise and enjoy its Oil and Gas resource potential.
“The effect of local participation is enormous on the Nigerian Economy. Increase local participation in the Oil and Gas industry would create more jobs for Nigerians, reduce capital flight which in turn reduces the pressure on Nigeria’s FX revenue and creates an entire value chain that is robust enough to attract investments from local and foreign investors and financial institutions,” he said.
He explained that in countries like Norway, local value creation had resulted in the birth of tier1 service providers and large E&P companies that could compete on a global scale with the likes of the Shell, Exxon Mobil, and Schlumberger of this world.
He maintained that the Oil and Gas industry is capital intensive, and many times the local banks are not able to support the various stages of development especially exploration in a debt capacity.
Fajemisin said, “Corporate Governance remains a big deterrent to an inflow of capital into many Nigerian owned businesses. The Oil and Gas industry is capital intensive, and many times the local Banks are not able to support the various stages of development especially exploration in a debt capacity. To be able to attract the required capital, these businesses need to tidy their processes, ensure there is a clear separation between the Business’s money and personal wealth, and engage competent hands in running the overall operations.
One of the things we do at Cynthian Consulting, for instance, is to help viable opportunities become even more attractive to investors and lenders by ensuring all potential risks are evaluated and possible mitigations identified, thereby creating a win-win environment for all operating, non-operating and financial stakeholders”.
Fajemisin said he had taken time to analyse all the fields available for the licensing rounds, study the process and requirements to qualify and he could confidently say that the intentions were right.
“This is a welcomed development and if done properly, it is expected to help achieve some of the objectives of the local content act by increasing local participation and increasing the contributions of Indigenous operators to Nigeria’s production profile. As an organisation, we have taken time to analyse all the fields available for the licensing rounds, study the process and requirements to qualify and we can conclude that the intentions are right, and it is expected to further embolden and create a new frontier in the indigenous oil and gas ownership and operatorship space.
“The reality is that some of the fields we call marginal here in Nigeria are major developments elsewhere. For instance, in the United Kingdom, some major independents don’t enjoy the kind of daily production volumes that our Indigenous operators enjoy, and the UK has managed to put Aberdeen on the map as the Oil and Gas capital of Europe where the rest of the world look to for innovations and operational excellence. With the Marginal Field rounds, we can do the same with Warri and Port Harcourt,” he said.