For more detail information click here
INTRODUCTIONThe oil and gas sector is the principal source of revenue for the government and contains an business worth of roughly $20 billion. It’s Nigeria’s most important source of export and foreign exchange earnings and also a significant employer of labor. A combo of this wreck in crude oil cost to under $50 per barrel and post-election restiveness at Nigeria’s Niger-Delta area caused the announcement of force majeure by several global oil companies (IOC) functioning in Nigeria. Even though the above mentioned happenings contributed to the haul in the business, possibly, the significant cause is that the unfruitful existence of the Federal Government of Nigeria (FGN) as the dominant participant in the Business (possessing roughly 55 to 60 percent interest from the OMLs).While, it’s unfortunate that many IOC’s playing at the Industry divested their interests in petroleum mining leases (OMLs) and petroleum prospecting leases (OPLs) given to them from the FGN; around the reverse side, it’s a good development that native businesses obtained the divested interests at the affected OMLs and OPLs. Thus, domestic investors and businesses (Nigerians) have the chance and important part to play in the sustainable growth and growth of oil and gas market.This newspaper x-rays the roles due to Nigerians and the scope they’ve successfully discharged . This paper finds that the main factor restricting domestic investors from effectively playing their part in the sustainable development of the sector is that the presence of the FGN from the business and its own inability to meet its own responsibilities as a dominant participant in the business.The functions domestic investors play in promoting sustainable growth in the petroleum and gas sector include:Oil and gas jobs and solutions are capital intensive. Hence, financial ability is vital to drive expansion in the business. Given that the higher involvement of national investors in Nigeria’s oil and gas business, of course, they’ve been saddled with the duty to provide the capital necessary to drive business growth.At 2012, Nigerians had obtained from IOC’s roughly 80 of their OMLs/OPLs (30% of their licences) and roughly 30 of those petroleum marginal fields given in the business. From the midstream industry of the business, there are lots of indegenous owned transportation boats and storage facilities; and at the downstream industry, domestic investors are actively engaged with the sale and marketing of refined crude petroleum and its by-products throughout the filling stations situated across Nigeria, which filling channels are largely owned and financed by Nigerians.Capital is also needed to finance training and education of Nigerians from the several sectors of the business. Instruction and training are critical in fulfilling the gaps in the nation’s domestic technical and technological know-how. Luckily, Nigeria currently has associations solely for gas and oil industry related research. What’s more, native oil and gas companies, in partnership with IOC’s, today tackle parts of instruction for Nigerians in various regions of the business.However, funding in the national investors isn’t sufficient compared to the fiscal needs of the business. This inadequacy isn’t a part of fiscal incapacity of national investors, but on account of the overbearing presence of the FGN throughout the Nigerian National Petroleum Corporation (NNPC) as a participant in the sector; along with regulatory bottlenecks like pump price regulations that inhibit the retention of funds from the downstream industry.Oil and gas jobs tend to be highly technical and complicated. Because of this, there’s a high need for technically proficient professionals. To sustain the development of the market, domestic investors need to fill the potential gap through hands-on knowledge in the implementation of business projects, operation or management of existing facilities and getting the mandatory foreign certifications like ISO certificate 2015 and American Society of Mechanical Engineers (ASME) certificate. There are domestic businesses which undertake projects like mining and production of crude petroleum, engineering procurement construction, drilling, manufacture, installations, petroleum by-products transport and logistics, offshore fabrication-vessel construction and repair, welding and craft sales and promotion. Lately, Nigerians engaged in the in-country manufacture of six modules of this Complete Egina Floating Production Storage Offloading (PSO) boat and integration of these modules around the FPSO in the SHI-MCI lawn.Specialized Capacity and Move Technological capacity from the gas and oil market is mostly linked to managerial proficiency in project management and compliance, the assurance of global quality standards in job implementation and operational upkeep. Hence to develop technological proficiency starts with in-country evolution of management abilities to increase the pool of skilled personnel. A specific study found there is a huge knowledge gap between national firms and IOC’s. And’that native oil firms suffered from basic absence of excellent management, restricted compliance with international quality standards, and inferior preventive and operational upkeep approaches, which contribute to bad upkeep of oil centers.’To effectively play their role in improving the technological capability in the business, domestic firms began cooperating with IOC’s in project structure and implementation and operational upkeep. For example, as stated before, domestic firms vie with an IOC at the effective completion of in-country manufacture of six modules of their Complete Egina Floating Production Storage Offloading (FPSO) vessel and integration of these modules around the FPSO in the SHI-MCI lawn. It’s well known that since the enactment of this Oil and Gas Industry Content Development (NOGICD) Act at 2010, all jobs executed across the businesses of the Business have experienced the active participation of Nigerians. The Act guaranteed an increase in technical and technological capabilities, but also a slow process of technology transfer in the IOC’s into Nigerians. The Act in its own Program booked special Company services to national businesses. The speed of participation as well as the quality of services of Nigerians has grown tremendously with the consequence that there are currently many nationally oil servicing companies.