09-08-04

The Federal Government of Nigeria and banks in the country have been enjoined to create the right financial and physical environment to enable a significant increase in local oil production as a follow-up to the current administration's local content policy.

Wole Ogunsanya, Managing Director of Geoplex W.A., an indigenous oil service company, declared that the country was capable of achieving up to 50 % of local content between 2010-2015, with necessary financial incentives and strictly implemented policies. Ogunsanya whose company specialises in rendering oil services to major oil companies, believes that though Nigeria cannot realistically achieve 100 % indigenisation, government needs to step up its activities to help local organisations through its policies and directives to banks on reasonable long-term loans to help obtain required equipment and home-grown expertise.

Speaking on the expanding gas sector, Ogunsanya commended various moves by government, including the West African Gas Pipeline Project (WAGP) and construction of the NLNG Trains, claiming these portrayed a great future and higher earning potential for the country.

"The fact remains that we still need development of domestic gas production, especially in the area of distribution. Former focus was on industrial use but companies have to step up, build businesses that can make gas comparable to kerosene. We need to build gas stations to boost distribution and convince Nigerians on need for gas patronage as compared to kerosene. Distribution is important."

Ogunsanya claimed that it took his organisation over a year and millions of dollars to arrive at its present situation of bidding for oil service contracts (with its attendant patronage from major oil players), while claiming that the WAGP project was capable of developing Nigeria into a regional economy and energy hub, with its consequent development for the region and continent.

Source: This Day