By Sebastine Obasi

Oando Energy Resources has highlighted reasons why collaboration is key among the indigenous companies in the oil and gas industry.

Speaking at the at the Commonwealth Businesswomen Forum, at the just concluded Nigeria International Petroleum Summit (NIPS), held in Abuja , the company said a good example of result that has been achieved through collaborations among the operators was the development of the Omogini pipeline infrastructure under a special purpose vehicle made up of MidWestern and Niger Joint venture where Oando serves as technical partner. Speaking at the event, General Manger, Commercials, Bambo Ibidapo Obe who spoke on what is common to both marginal fields and modular refineries noted that the 12 inch diameter and 51 kilometre long Omogini Pipeline which was conceived, developed and delivered in 2014 came into existence through collaborations among stakeholders in the oil and gas industry.

He explained that the infrastructure transport stabilized crude oil from producer’s field, OML 56 and then connected to Shell pipeline and further connected to forcadoes oil export terminal. According to him, the infrastructure has over the years served as alternative route to Agip oil export hub where intakes in the past hindered marginal field operators from producing at full potentials.

“From January 2015 to date, the Omogini line which has capacity of 45,000 barrels per day, has successfully moved 18million barrels of crude oil, serving and helping to ensure production evacuation uptime in the field. This serves at least four companies namely, Energier JV, PlatformPetroleum, Midwestern and Pillar Oil,” he said. He described the oil and gas industry as being inextricably linked to the Nigerian economic well being, being the mainstay of the country’s economy. “Without doubt, all the various phases of the industry have gone through various stages of evolution. From being dominated by international oil companies to a more diverse landscape of both international and local players to the development and implementation of both legal, fiscal framework to owe resource exploitation as well as recalling government policy and regulatory frameworks, just to name a few.” He also said there is need for synergy between the modular refineries and marginal field operators. “Although the oil production of marginal fields has increased, it is still very shy of the 6 per cent mark, of the marginal fields licenses awarded. Over 60 per cent of them are yet to reach commercial production.” Some of the challenges being faced by marginal fields licensees are either production ramp up, financial and evacuation constraints, community agitations and assets vandalisation just to mention a few.