6.

10 NIGERIA
Project:

Institutional cooperation
Cooperating institution: Department of Petroleum Resources (DPR) Goals and objectives: The objective of the institutional cooperation is to establish a base for transfer of knowledge and experience between Norwegian petroleum authorities and the petroleum authorities of Nigeria. The long-term institutional cooperation within the framework of this programme will support the development and control within the Oil and Gas sector. The programme will cover petroleum policy, methodology for administration and technology. A strategy based on existing policy, structure for administration and technology, is established. Project period: 2003 - 2007 The programme • Resource management • Production monitoring • Metering • Data management • Deep water technology • Health, safety and environment There is a need for support to assure the full implementation of the issued Regulations and Guidelines. There is also a need to ensure that the skills transferred both at the organisational and individual levels are put to use. It is the intention to transfer the relevant parts of the Norwegian experiences into the Nigerian petroleum governance process. Total budget: Norway: NOK 15 mill Nigeria: USD 300 000 contact: Mr. D. O. Irrechukwu, Head Technical Services Mr. Olu Akinyosoye, Directors Office Mr. Steinar Njå, Project Director steinar.nja@npd.no

cOUNTRY FAcTS: Official Name: Federal Republic of Nigeria Capital: Abuja Chief of state: President Olusegun Obasanjo (since 29 May 1999). The president is both the chief of state and head of government Population: 131 859 731 (2006) Petroleum sector, key figures: Average oil production: 2.52 mill bbl/day (2005) Annual gas production: 64.8 bill m3 (2005) Organisation of the petroleum sector: Ministry of Petroleum Resources, Policy and final regulatory powers Department of Petroleum Resources (DPR) Licensing, supervision and control of the petroleum sector Nigerian National Petroleum company State owned autonomous entity

NPD:

2 0 0 6 -2 0 07
Norwegian Petroleum Directorate Oil fOr DevelOPmeNt

48

6.10

Activities in 2006
The activities performed during 2006 were based on the plan adopted during the PSc meeting held in Stavanger in October 2005 and finalised during the planning meeting in Lagos in February 2006. Due to the reorganisation of DPR in 2005, the new director of Mr. Tony chukwueke wanted to emphasis the following areas for further cooperation. 1. Gas projects activities 2. Data Management activities 3. Post-Mortem of the 2005 bid process 4. Identification of skill-gaps in DPR 5. HSE activities Regarding Gas projects activities, a seminar was conducted in Port Harcourt late 2004. Based on the recommendations from this seminar several related activities have been performed in DPR and a dedicated department has been established to focus on this issue. The aim is to establish a sound gas policy for Nigeria in order to make an efficient utilisation of gas produced and to reduce flaring. In this regard, representatives of DPR have been introduced to the Norwegian gas policy and the experience gained in Norway in connection with gas production and utilisation. In November 2006 a workshop was held in Lagos discussing topics related to regulations for gas production, flaring, transporta-

tion, and metering. The workshop was attended by 15 representatives from DPR and 5 from NPD. During this workshop topics related to pre-licence activities and production monitoring were also discussed. A set of recommendations for further cooperation in this area have been drafted. A metering audit at the gas receiving facilities on Bonny Island, and a workshop on Monitoring of Deep Water Operations have been planned for some time. However, due to difficulties with timing and necessary arrangements these, activities are still pending. Data Management activities are considered to be one of the most important cooperation activities. Since cooperation started in year 2001 the data management group in DPR has been working on adopting a sound policy for information and data handling in DPR. A digital platform for information has been established both as a basis for activities inside DPR and for the planned cooperation with the oil companies for storing seismic and technical well data. Systems and methodologies for quality control, access and retrieval of petroleum administrative data are in place. Solutions are based on experience gained in Norway as well as in many other oil and gas producing countries. Formulating the data management strategy also included proposing concrete modifications of the petroleum regulations. During the spring 2006 training of 10 representatives from DPR in use of GIS

2 0 0 6 -2 0 07
Norwegian Petroleum Directorate Oil fOr DevelOPmeNt

49

6.10
(Geographical Information System) took place in the London area. In August a Workshop on pipeline data was conducted in Stavanger. During this workshop four representatives from DPR participated. Later on, in October, two experts from NPD worked together with DPR staff in Lagos to assist in setting up the right procedures for data storage and use of cultural data. In connection with the Nigerian 2005 License Bidding Round, in August 2005, Mr. Willy Olsen from Norway served as observer during the bidding process that took place in Abuja. An assessment of the 2005 bid process was conducted in Lagos late January 2006. During this assessment representatives from several oil companies and embassies in Nigeria participated, included the British, canadian and USA embassy. In general the assessment proved that the bidding process had been open and transparent. However, some points for improvement were noted and will be adopted by DPR for future bidding processes. During 2005 a reorganisation took place in DPR. The intention was to make the organisation more up-to-date and more focused on the important challenges facing Nigerian petroleum administration. NPD was in that regard asked to assist in performing an Identification of skill-gaps in DPR. On behalf of NPD, Petrad offered to perform an evaluation of the new organisation and drafted a ”scope of work” for this purpose. However due to lack of data and uncertainties connected to the new organisation the project has not yet been activated as intended. HSE (Health, Satety and Environment) is an important part of the NPD/DPR cooperation. Several activities in that regard have been conducted under the programme. A new strategy for adoption of HSE measures and monitoring of the petroleum activity has been established and current regulations will be revised accordingly. In August 2006 a workshop in Stavanger was organised and five representatives from DPR attended. The workshop was combined with special safetytraining course conducted by Falck- NUTEc. The results of the workshop and the training gave relevant information and input for the DPR participants to be utilised when drafting new HSE regulations for the Nigerian petroleum activity. A workshop and training arrangement for Oil Spill Monitoring in Norway was originally planned for. However, due to time constraint this activity has been postponed. In connection with the assessment of the 2005 bid process, a planning meeting was held in Lagos late January 2006. Several activities were then scheduled to take place during the first half of the year. However due to time constraint some activities were postponed. A PSc Meeting was arranged in Lagos late May 2006. In that connection the work programme for the rest of the year was decided. It was also decided to ask for a continuation of the programme for 2007 within the limit of funds granted. The continuation was decided in a meeting with representatives from the Norwegian Embassy in Nigeria and NORAD held in Oslo early June.

Plans for 2007
Recommendations from the 2006 activities have to a large degree formed the basis of the 2007 plan. A planning meeting was organised in Stavanger late January this year. As a result of the meeting the following activities are planned: 1. Training Need Assessment (TNA). This activity is cited as the main priority for 2007 and is planned to start February 2007 2. Data Management. This activity will include review & validation of previous work including new digital reporting formats, performing a pipeline modelling workshop, training on multi user database forms & reports as well as a study of ESI mapping & Oil spill monitoring system in Norway. 3. Resource Management. This activity will include workshop on deepwater operations monitoring involving regulators and operators in Nigeria. This will be followed by deepwater operations training attachment in Norway. Also acquisition of appropriate software/ hardware for resource assessment, project analysis & economic evaluation for crude oil and gas are being evaluated. compatibility between reservoir evaluation & economic evaluation packages are required. 4. Gas and metering. To build on the 2006 November seminar this activity will start with a workshop & interactive session in Nigeria on open access policy, gas pricing & tariff system. Further on it was agreed that NPD should evaluate and perform Qc of gas regulation/ guidelines being developed by DPR. Also an attachment programme with NPD/Gassco for hands-on training on the Norwegian solutions will be proposed. Metering will also be a part of this workshop. DPR aims at instituting comprehensive and reliable systems for metering. Gas measurement issues, allocation, and audit procedures are regarded to have first priority. 5. HSE. The development of guidelines & standards for safety practices for oil & gas industry in Nigeria is continuing. Representatives from PSA are asked to evaluate draft regulations before further training and a possible attachment programme is decided.

2 0 0 6 -2 0 07
Norwegian Petroleum Directorate Oil fOr DevelOPmeNt

50

Sign up to vote on this title
UsefulNot useful