Financial Energy Review
Engr. Wole Ogunsanya, Chairman of PETAN
The Chairman of Petroleum Technology Association of Nigeria (PETAN), Engr. Wole Ogunsanya has called for the privatization of Nigeria’s oil and gas pipelines in what he termed “commonwealth solution’”, to ensure efficiency and sustainability of the nation’s critical oil and gas industry.
He made the charge at the Nigeria International Pipeline and Security Conference (NIPITECS) which took place at the Abuja Continental Hotel.
Engr. Ogunsanya explained that the commonwealth solution of privatizing Nigeria’s pipeline network stems from the opportunity the country has for the private investor to hold 51% ownership in the nation’s pipelines with the oil producers, including the NNPC Ltd. and IPPG that own the crude oil as shareholders. This model is not new in Nigeria, it’s the working model that has kept the NLNG to remain a pride of the industry even when there more room for improvement establishing more LNGs’ and increase of Gas feedstock.
“All over the world”, he submitted, life expectancy of populations is highly impacted by energy security, which ensures the availability of and access to healthcare, availability of infrastructure that enhance living standards, affordable food, better housing and education. With Nigeria’s life expectancy at 54.46 years (2023 UN Data), it means that Nigerians lack energy security. It also means that majority of Nigerians lack all these basic necessities”.
For Nigeria, the catalyst to our economic growth is oil and gas, and capacity must be built across the value chain – from finding the resources to production to refining to transporting and to the downstream. Doing this with in-country capacity will guarantee Nigeria as one of the top 20 economies in the world”, he declared.
He expressed regret that Nigeria failed to use the proceeds of its crude oil sales over the decades to build the country. He however commended indigenous companies making up professional associations like PETAN and PLAN for helping to build capacities and creating jobs in a local content drive that has multiplier effects and yielding results along the value chain of the industry and the regional economy.
PLAN, representing the “lynch pin” of the oil and gas industry without which the resources wouldn’t be effectively transported to where they are needed, be it refineries or gas plants and further to power plants, cannot be overlooked in the development of oil and gas and there is a lot to do in partnership with them to ensure energy security for all. Luckily, the collaboration with PETAN has always been on a sound footing as most members belong to both associations”, he concluded.
While speaking on a panel discussion on the topic ‘Pipeline System for Nigeria’s Decade of Gas: Challenges and Opportunities’, Engr. Ogunsanya posited that the country should use all forms of energy sources at its disposal to close the energy gap, adding that it is impressive to note an increase in the use of solar energy across the country, but charged stakeholders to invest in the solar technology rather than importing. He however pointed out that the demand for oil and gas would continue to increase, even if not at the rate we had it in the past, but it remains relevant to the development of developing countries.
He congratulated the Chairman of the Board of Trustee of PLAN, Engr. Geoff Onuoha, who, along with many other members of the Association also belong to PETAN, and pledged PETAN’s continued support for its advocacy activities which aim at creating awareness about the importance of pipelines in the nation’s critical oil and gas industry.
