Nigeria can survive without oil if…NLNG boss

Nigeria can survive without oil if…NLNG boss – Nigeria had approximately 182 trillion cubic feet (Tcf) of established natural gas reserves since January 2013, generating 9th largest natural gas reserve holder throughout the globe as well as the biggest in Africa. Despite holding a worldwide prime-10 placement for established all-natural gas reserves, Nigeria produced about 1.two Tcf of dry all-natural gas in 2012, ranking it as the world’s 25th largest dry all-natural gas producer.

The majority of the natural gas reserves are positioned in the Niger Delta. Some recently created or upcoming gas projects incorporate: the Escravos Gas-to-Liquids plant, Brass LNG, Escravos gas plant development, Sonam field improvement, Onshore Asset Gas Management project, Assa-North/Ohaji South development, Gbaran-Ubie, the Idu project, and the Tuomo gas field.

In 2008, the Nigerian government created a Gas Master Plan that promoted investment in pipeline infrastructure and new gas-fired energy plants to support reduce gas flaring and offer much-needed electricity generation. However, progress is nevertheless limited as security dangers in the Niger Delta have created it difficult for International Oil Organizations (IOCs) to construct infrastructure that would assistance gas monetization.

In this interview with CHIMA NWOKOJI, at the sidelines of the Centre for Values in Leadership (CVL) forum held in Lagos, Mr Babs Omotowa, Managing Director/Chief Executive Officer, Nigeria Liquefied All-natural Gas (NLNG) Restricted, stated Nigeria can produce all the income it requires, if necessary infrastructure is place in spot and sufficient focus provided to gas exploration. Excerpts:

As a part model in CVL’s November values in leadership forum, what can you say are core values in NLNG?

Our core values in LNG are integrity, team work, excellence and caring. As an individual , over the years, I have discovered integrity to be essential worth. I have courage which is a worth that one particular requirements to have to be capable to rise. I also have the drive and perseverance and I feel these are crucial drivers to success. These values are extremely essential and I feel youths ought to commence early enough to imbibe them. Some of the values I have was imbibed right from childhood. So the issue about value is that it is a extended term factor.

If oil dries up today, can Nigeria survive on gas only

Of course in a country of about 170 million folks, we nonetheless have a lot of infrastructure that we have not put in place. I am talking about installation of new gas-gathering facilities, roads, power, transportation facilities and much more. We still need to have a lot of money to create all these facilities.&nbsp&nbsp I do not anticipate oil to dry up today. I think estimate is that we still have oil deposit that can final up to 40 to 50 years . But hopefully when we develop infrastructure and other industries, then they would be capable to contribute more to the income of the country and we ought to nonetheless be in a position to do well as a country with, or without having oil. So I believe we still want a lot of funds to develop all the infrastructure.

Does gas have the possible to create more income for Nigeria than oil?

Definitely. Like I said, we have 189 tcf of gas which were mostly identified by accident. we were looking for oil, we all of a sudden identified gas . Experts have said we ought to have at least 600 tcf. So the prospective I think is large and considerable. What is also intriguing is that we have only used gas for limited issues in Nigeria. LNG has been 1 area we have used gas and we have accomplished a bit in power as nicely. But there are Petrochemical industries and a lot of other opportunities in that market that we haven’t explored. We can get a lot of merchandise and employment from Petrochemical business. I believe as a nation we have a lot to do. The government has been pursuing a gas master plan for a whilst and it is about delivery now, so we need to have to get the Petroleum market bill passed. It is the framework for which the oil sector can move forward.

How do you engage staff in NLNG?

Our direct employees are recruited soon after a rigorous interview following the advertisement of vacancies on the company’s web site and in national newspapers. Employment and appointments are made on merit, primarily based on academic qualification, relevant operate experience and competence. Nigeria LNG Restricted supplied more than two,000 jobs every building year. General, the key sub-contractors employed about 18,000 Nigerians in technical jobs in the Base Project. About 500 expatriates played mainly supervisory roles during the Base Project and had been understudied by the Nigerians whom they worked with.

What are the opportunities in gas sector in Nigeria?

There are extremely few nations in the world that have the quantity of gas reserves we have in Nigeria , however these were located by accident. When we really begin searching for the gas, I believe that we will have about five instances much more than we have at the moment. I can say that we are richly blessed with gas as a nation. The possibilities in gas is very enormous. We have not actually utilized gas adequate in numerous regions even in the power sector and we have not even began. Currently, NLNG delivers some 7 per cent of global provide of gas.

Can you give an overview of how provide chain is managed and maintained in NLNG

NLNG encourages full participation of Nigerian Organizations in its contracting and procurement processes. I can say that when you add worth, it will speak for itself and for you. It is the worth that you produce that will make you recognized for what you are.

I feel we have a process that enables a level playing ground for these who add value. And if for any cause an intending supplier feels becoming gated out, or not provided the correct chance, such a company or particular person is encouraged to get in touch with our compliance desk. Their lines are published in the newspapers. When you really feel you have been unfairly treated, really feel cost-free to make this complain so that they could be looked at.

As an MD, I can’t know almost everything going on in the firm, but if individuals give us proof of what to appear out for, we will surely do our very best. We are operating to see how we can make a lot more cylinders and points of re-filling. All that needs a lot of logistics to be put in place from exactly where we generate the gas to distribution terminals.

From the terminals they have to be transported to exactly where they will be put to use. All that are a lot of organization. Just as in the telecommunication sector exactly where a lot of businesses sprang out from, the Liquified Organic Gas has a lot of organizations in the supply chain. You refill gas cylinders just as you refill your recharge cards. A lot more importantly, beneath the vendor finance scheme, NLNG introduced a $ 1 billion local vendors financing scheme which facilitates access to funds from participating banks by NLNG-registered suppliers of goods or contractors of services. This way, vendors get speedy access to finance for their contracts, or procurement orders, at competitive rates.

What is your assessment of NLNG in terms of Nigerian content?

The company’s overall performance on Nigerian Content material is monitored by a steering committee made up of senior management team of NLNG and also governed by a committee of NLNG Board of Directors. Through contracts, procurements and projects tied to six trains currently in operation and continuous sponsorship of different neighborhood projects, ample opportunities have been provided for Nigerian firms and contractors to supply services and provide goods to the firm. Also, in a bid to discover much more Nigerian sources, Nigerian Content surveys and vendor forums are carried out at scheduled intervals to determine indigenous businesses capable of delivering the goods and solutions necessary by NLNG.

What is the purpose for NLNG’s CSR choice of education and youth improvement?

Of course for the future of any country, the youth population is quite crucial. In Nigeria, I believe more than 70 per cent of the population are actually beneath 30 years. For us it is really critical that high quality of education will continue to be raised. This is why in our Corporate Social Duty, we have been involved in university sponsorship system that is totaling more than $ 12 million. We are involved in literature and science prize providing competition. We are also involved in so numerous activities to continue to inculcate values.

We need to have to improve on the quality of education in Nigeria. When you appear at the final results that come out from secondary schools examinations all by way of to the university, I think we have a lot of function to do and the government is continuing to function on that. Of course you also require to give opportunities to the youths. If they are given challenges and opportunities to prove themselves earlier on, it will go a lengthy way to preparing them for the future . We don’t necessarily require to wait until they get old. We have noticed a lot of of the young generation given possibilities and they have done extremely very nicely.

In view of recent developments in the country in terms of security and leadership, what opportunities do you believe the youth have in Nigeria?

I think there are couple of nations in the globe that have the kind of possibilities Nigeria has. As we can see, not just oil and gas, we have other natural sources coupled with human sources. When you see Nigerians all more than the world, there is nowhere they do not prove themselves. So the possibilities I believe are large and the economy is growing. There are nonetheless a lot of rooms to develop in several sectors. The youth in Nigeria are in a extremely fortunate position. They must have the conviction that this nation genuinely will nevertheless be the spot where they will be able to maximize there prospective into the future. And irrespective of the challenges and difficulties of nowadays, I feel the country is nevertheless meant for greatness and we will absolutely meet those aspirations like becoming the prime 20 economies in the globe. We have the prospective to be all of that. So I believe the youths should hold the dream and continue to drive in that path.

Can you give an assessment of the prospective of the oil and gas sector and its current functionality

Nigeria Liquified Natural Gas Restricted has, within a short span of time, grown in status to turn into a really dependable supplier of Liquified All-natural Gas in the Atlantic Basin, serving the European, North American and Far East markets.

Oil and gas sector have been the mainstay of the Nigerian economy for many years. A lot more than 80 per cent of Nigeria’s revenue has been from oil and gas and the foreign exchange much more than 95 per cent. But if you appear at gas for instance we have only scratched the surface. We have 189 trillion cubic feet (tcf) of gas which was located by accident. Experts will inform you that we have a lot more than 5 instances of that quantity. So there is chance in Petrochemical business which will not only create a lot of jobs but will generate a lot of items in the nation. These are nonetheless places to be explored. Even though the contribution of the oil and gas sector to the economy is substantial, there are still a lot of potential into the future not just for that market alone, but to provide the service industries and associated industries around it. A lot of excellent plans are going on towards that by the government. We need to get the petroleum business bill passed and be ready to provide on all the plans we have in spot. But the future is bright.

Contribution of the gas sector to the Nigerian economy

NLNG has generated significant revenues for the nation. The organization has contributed about four per cent of Nigeria’s Gross Domestic Item. Starting from 2014, corporate earnings tax will exceed N220 billion per annum, by far the highest in Nigeria and Sub-Sahara Africa . NLNG mops up gas that would otherwise be flared. By so doing, it tends to make significant contributions to the nation’s revenue, delivering in the last thirteen years more than $ 13billion in dividends. The company has paid more than $ 18billion on gas purchases from oil creating firms, of which the federal government of Nigeria owns 55 to 60 per cent.

In your journey to the top, what core values played substantial role

I think integrity is essential simply because it is the platform of every other issue. If you do not have integrity, a lot of other values are truly built on nothing. It is really difficult to accomplish excellence with no integrity. For instance, courage without integrity will be incorrect courage. As human beings we need to do what ever we do being aware that integrity and reliability are really essential. We need to not do items in the private distinct from what we do in public. So integrity for me is essential.

How do you reconcile the challenge of sincerity and due method

Our challenge as CEOs these days is not the politicians, or civil servants who make a single demand or the other either to employ their young children or close associates. It is easy to say no to these. That indicates that a lot of CEOs hardly have pals. The most difficult is that we are being place beneath intense stress by pals, family members members and colleagues to do items that are contrary to procedures. They ask for contracts and jobs. But that is the price you have to pay. One particular issue I have found out in Nigeria is that many of us say a lot of issues but when it comes to performing it, we do not. Numerous people would say they want Nigeria to be much better, but they really do factors contrary to what they say they want.

If created the president of Nigeria, how would you inspire the nation?

This is a huge query because Nigeria is a complex nation exactly where the job of a president is not an effortless job. We are not united in tribe and religion as we ought to be. That already poses a challenge because everything you do will often be seen from those perspectives. But I consider there a few things I think a leader should constantly be in a position to do. As a leader, you should make certain that everyone you appoint is better than you. Look for talents that are greater. If your political environment allows you to do that, then you are already half way to the journey. That gives you the horsepower to deliver exceptional overall performance. You have to also strive to be a function model in the issues you want to address. You have to be able to show that you truly mean what you say. You need to show that you really care. Most leaders that have inspired their people all more than the globe have distinguished themselves from other individuals by showing that they care. In Nigeria you learn that the quality of living is not just sufficient. A excellent leader need to have to address that really seriously and clearly. Having mentioned that, I must admit that the job of the president of Nigeria is not an simple job.

Why has generating power from gas remained a massive issue in Nigeria?

In Nigeria we have practically decreased the challenge of energy to gas provide. As if gas is the almighty remedy to energy. The nation with the biggest gas reserve in the world is Russia, but they only use 25 per cent of their gas for power. Most nations in the planet have diversified their energy sources. The most significant power plant in China is Hydro plant . That signifies energy is generated from water. We have water and also Hydro plant in Nigeria. We have Coal in the East, we have Sun not only in the north but other parts of the nation. All we want to do is to diversify towards that path. If we have sufficient Coal in the East, then develop a Coal plant, produce power from there and distribute to them alone. If there is gas in the South South, then develop that and produce power from there. If it is Sun and Hydro in the north, then concentrate on that for that part of the nation. This strategy of relying on gas to generate energy for the whole country is not a sustainable resolution. If you want to transport gas from Niger Delta to Sokoto, you require about $ 30billion . It is pricey. I consider we must diversify our supply of provide and get energy from a variety of sources.