How Nigeria Can Achieve $10 Per Barrel Oil Production —Stakeholders

Stakeholders in the oil and gas sector have advocated the need for operators to leverage on digital processes for optimal efficiency in the oil sector.

Speaking on Thursday at the Asset Management Operational webinar series, organised by the Integrated Data Services Limited of Nigerian National Petroleum Corporation, the stakeholders stressed the need to embrace innovations that will ensure optimal use of resources as well as reduce cost of operation to $10 per barrel.

Sophia Weaver, Manager, Production Technology, First E&P, in her remark explained that the past few years have been challenging for the sector with so much volatility exacerbated by the Coronavirus pandemic.

She said that continuing with the conventional model of operation will not yield the desired growth in the sector.

Weaver stressed the need for operators to be more responsive to fluctuating oil prices, adding that there is need to exert control over the rather high cost of operation to ensure process efficiency.

She said, “Achieving operational excellence involves transforming the way we work and digitalize our processes in areas such as oil well and reservoirs management, drilling, logistics and supply chain management.

“Process digitalization involves the use of digital data and technologies to transform existing business process into more efficient, optimised, more profitable and value adding operations.

“There is need for us to begin to see data as the new oil, data is critical to the development of the sector.”

Speaking further, Weaver said that achieving operational efficiency requires the re-engineering of traditional processes, optimisation of resources and reducing waste.

The Managing Director, Integrated Data Services Limited, Ayebateke Bariwei, stressed the need to address perennial issues associated with operational inefficiencies in the sector.

The MD said that adopting digitalised process is key to enhancing productivity, reducing waste and improving system efficiency.

“Process digitalization is about unlocking new value by using digitalised data to change the way things are done.

“Our objective is to ensure that we operate in the industry bringing the unit operating cost to $10/ barrel by 2021”.

The Chief Operating officer , Nigerian Petroleum Development Company Ltd, Western Niger Delta Edirin Abamwa, in his remark said that regulators must develop environment that encourages process digitalization and help operators thrive in the sector.

“The operation cost cannot decline in isolation, there is need for an enabling environment, incentives that enable operators modify their ways of doing business and I doubt it this current environment will make that happen.

“We still lack the adequate data to aid effective decision making by operators. We still are not traditionally set up to mitigate disaster shut down, until remedy is carried out.

“It is time to move away from the traditional ways, there are a lot if development that enable operators establish census and determine if machines are operating optimally, these are still lacking among operators today.”