AKHIDENO CHARLES-OIL AND GAS EVENT2013
The drive is to•Increase profit,•Reduce cost,•Increase production•Save timeThe challenges overlapAKHIDENO CHARLES-OIL AND ...
SCOPE is challenges.Every mans Mountain is his ignorance – DavidOyedepoAKHIDENO CHARLES-OIL AND GAS EVENT2013
INVESTORS PAIN The main investors challenge is havingsecurity for their investment Financial/Banking Sector not fully Gl...
 Government trading their responsibilities tothe IOC yet expecting (eg Roads)◦ Inadequate Tax Relief◦ Create enabling Env...
OPERATORS NIGHTMARE Process safety incidents can no longer betolerated. Oil is found in very unfriendly terrains andhars...
 Government trading their responsibilities tothe IOC yet expecting (eg Roads)◦ Inadequate Tax Relief◦ Create enabling Env...
 Dearth of technical and Skilled professionals◦ More attraction for professional Migration◦ Moving from coveralls to suit...
 Hands on Challenges:◦ Increasing water cuts and battle to manage produced water◦ Timely delivery of quality and original...
DISCUSSIONSAKHIDENO CHARLES-OIL AND GAS EVENT2013
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Charles Akhideno Health, Safety & Environment Lead at Shell Nigeria -Challenges in the oil and gas industry

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Charles Akhideno Health, Safety & Environment Lead at Shell Nigeria spoke at the Oil & Gas Event June 2013

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Charles Akhideno Health, Safety & Environment Lead at Shell Nigeria -Challenges in the oil and gas industry

  1. 1. AKHIDENO CHARLES-OIL AND GAS EVENT2013
  2. 2. The drive is to•Increase profit,•Reduce cost,•Increase production•Save timeThe challenges overlapAKHIDENO CHARLES-OIL AND GAS EVENT2013
  3. 3. SCOPE is challenges.Every mans Mountain is his ignorance – DavidOyedepoAKHIDENO CHARLES-OIL AND GAS EVENT2013
  4. 4. INVESTORS PAIN The main investors challenge is havingsecurity for their investment Financial/Banking Sector not fully Globalized◦ Quoted on the stock exchange◦ Cannot give ‘’Big loans’’ or handle major insurance Local bureaucratic bottlenecks Unavailability of Quality Data in publicDomain Local content development Unstable Socio- Political Systems are bestdescribed as Galloping◦ Before it used to be coups◦ Political rivalry, Court cases-AKHIDENO CHARLES-OIL AND GAS EVENT2013
  5. 5.  Government trading their responsibilities tothe IOC yet expecting (eg Roads)◦ Inadequate Tax Relief◦ Create enabling Environment/ wet Investor appetite No structure on ground to managecommunity interfaces◦ Policies-Clearly defining expectations anddeliverables◦ Go betweens to help investors understandcommunity peculiarities◦ Defined Deliverables to help curtail futurerestiveness/Help IOCs have a focused CSR Government Policies are annual in thinkingand Project Circles◦ Oil processing licenses have short life spans◦ Oil and gas investment is huge and return isusually long term driven AKHIDENO CHARLES-OIL AND GAS EVENT2013
  6. 6. OPERATORS NIGHTMARE Process safety incidents can no longer betolerated. Oil is found in very unfriendly terrains andharsh conditions There is need for cutting edge technology,skills, more experience and learning fromothers. Sustaining this call is becoming uphill despiteincreased technological advancement.AKHIDENO CHARLES-OIL AND GAS EVENT2013
  7. 7.  Government trading their responsibilities tothe IOC yet expecting (eg Roads)◦ Inadequate Tax Relief◦ Create enabling Environment No structure on ground to managecommunity interfaces◦ Policies-Clearly defining expectations anddeliverables◦ Go betweens to help investors understandcommunity peculiarities◦ Defined Deliverables to help curtail futurerestiveness/Help IOCs have a focused CSR Government Policies are annual in thinkingand Project Circles◦ Oil processing licenses have short life spans◦ Oil and gas investment is huge and return isusually long term driven
  8. 8.  Dearth of technical and Skilled professionals◦ More attraction for professional Migration◦ Moving from coveralls to suits◦ Toddling professional hops—Features of Banking /IT Proximity of OEMs◦ Difficulty of access to OEMs -(Water Maker Storey)◦ Difficulty of OEMs accessing harsh, remote, unfriendly sites egvisa◦ Certain key infrastructural support for OEMpresence/technological transfer missing Stable light Steel rolling mills The challenge of financial mechanics◦ Snail Speed funding decisions- Agreement on what to spend◦ Cash Calls bothering on integrity of commitment—Investorsbecome Santa C. Increasing Political Tension, hostile terrains, Insecurity etc◦ At a time there was a drop of production from over one millionBPD to less than 200BPD Regulatory challenges◦ Multiplicity of divergent standards◦ Duplicity of roles◦ Ambiguity in clearly defined laws
  9. 9.  Hands on Challenges:◦ Increasing water cuts and battle to manage produced water◦ Timely delivery of quality and original spares difficulty in meeting PMs andCMs.◦ Retrofitting /redesigning to meet Gas flare policy◦ Massive oil spill response/Waste management Equipment.◦ Flow lines and pipelines monitoring in remote areas/terrain(CCTV)◦ Good competition in Real time IT services◦ High level corrosion challenge External dimensions Internal corrosion◦ Dearth of certain key service providers- Some key support services anddifficult to come by and in some cases where available the few serviceproviders are unable to cope with volume of demand Logistic Bases - Land, Water and Air One-stop- shop style customized service. - With good infrastructure andoffice service. Some simple social support systems don’t exist or are best substandard. Schools Jobs for spouse Holiday resorts Medical ServicesIn how many of our countries do we have functional emergencyresponse systems- 911?AKHIDENO CHARLES-OIL AND GAS EVENT2013
  10. 10. DISCUSSIONSAKHIDENO CHARLES-OIL AND GAS EVENT2013

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