Exploring the Benefits Of Collaboration in the Nigerian Upstream Oil and Gas Sector

Collaboration plays a crucial role in the upstream oil and gas industry, offering a range of benefits that contribute to operational efficiency, innovation, risk mitigation, and sustainable growth.

Newcross Petroleum Limited, an indigenous oil and gas company in Nigeria, has solidified its gains in the oil and gas industry through joint venture partnerships and collaborations with various upstream companies and government institutions.

Using Newcross Petroleum Limited as a case study, some of the benefits that can be derived from collaboration in the Nigerian upstream oil and gas include:

  • Shared expertise and resources: collaboration allows companies to pool their collective knowledge, skills, and resources. In 2007, Newcross Petroleum acquired a 40% participating interest in Egbaoma Marginal field (OML 38) operated by Platform Petroleum Limited, one of Nigeria’s leading indigenous oil and gas companies. Following the collaboration with Platform Petroleum Limited, the Egbaoma Marginal Field recorded over one million person-hours with no Lost Time Injuries (LTI). This partnership improved technical and operational success at the Egbaoma Marginal Field.
  • Technology Advancement: collaboration in the upstream oil and gas industry encourages the sharing of technological innovations and best practices, essentially leading to optimised crude oil exploration. The Ase River Transport Limited (ARTL), located in the north-central part of the Niger Delta Basin, is a joint venture between Newcross Petroleum Limited and Platform Petroleum Limited. The midstream operator, Ase River Transport Limited, is responsible for transporting produced crude oil for the Egbaoma operations and other cluster members. Through the partnership, both companies achieved a valve placement at the upstream and downstream of the Ase river crossings aimed at controlling and preventing possible oil spillage.
  • Regulatory Compliance: Industry regulations and environmental standards are becoming increasingly stringent in the Nigerian oil and gas industry. Collaborating on compliance strategies ensures that companies collectively meet regulatory requirements and maintain a positive reputation. Newcross Petroleum Limited operates OML 152 under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Company Limited. The collaboration enabled Newcross to fulfil all regulatory commitments for converting the asset from an OPL phase to an OML phase. Since the collaboration, eight (8) prospects have been identified within the block. 
  • Local Community Engagement: collaborative projects can improve stakeholder and community relationships. The mutual efforts of both companies can be directed at addressing community concerns and promoting significant resource development. The NNPCL/Newcross EP Joint Venture, in the year 2020, commissioned its first legacy project at Idama, Port-Harcourt. The construction of the block of 4 units of self-contained guest houses in the Idama community, Port-Harcourt, Rivers State, fostered the harmonious relationship existing between NNPCL/Newcross EP JV and the Idama community. The joint venture enabled Newcross EP to deliver the project promptly and encouraged peaceful coexistence among the host community.

Overall, collaboration is one of the powerful tools that enable upstream oil and gas companies to overcome challenges, utilise opportunities, and create a more robust and sustainable industry ecosystem.

Ensuring Safety In Oil and Gas Exploration Fields

The oil and gas exploration industry will always be a vibrant industry across the world. While the industry contributes to massive revenue generation, employment opportunities, infrastructure development, and technology innovation, amongst other things, it also poses threats and possible dangers that might require preventive safety measures.   Implementing these proactive safety measures within oil and gas exploration fields serves not only to safeguard employees but also to significantly mitigate environmental risks. To establish and ensure a safe environment devoid of risks, several essential strategies and practices can be embraced, a selection of which is outlined as follows:

  • Strict Adherence to Regulations: Oil and gas exploration operates within stringent regulations designed to safeguard the welfare of employees, the environment, and nearby communities. It is imperative to uphold adherence to safety norms established by the relevant regulatory authorities in your specific region or nation, such as the Nigeria National Petroleum Corporation (NNPC) in the case of Nigeria.
  • Routine Inspections and Maintenance: Consistent equipment and infrastructure inspections are essential for pinpointing potential risks. Enact preemptive maintenance routines to tackle concerns before they transform into safety hazards.
  • Comprehensive Training and Education: Thorough training and education are the bedrock for safety across all industries, including oil and gas exploration. It’s imperative to conduct frequent training sessions, enlightening workers about potential hazards, emergency protocols, and the correct utilisation of safety gear.
  • Emergency Preparedness: Formulate and practice clearly defined emergency response strategies to manage potential incidents like oil spills or fires effectively. Conduct routine drills to ensure all staff are adept at promptly and efficiently executing these plans.
  • Use of Advanced Technology: Harness state-of-the-art technology, such as advancements in oil rig technology, to elevate safety precautions. Integrate remote monitoring systems, drones, and sensors to consistently oversee equipment and identify deviations before they escalate into critical concerns.

Ensuring safety within oil and gas exploration domains is a priority, demanding steadfast dedication and all-encompassing methodologies. Emphasising training, technological advancements, adherence to regulations, maintenance routines, emergency readiness, and the welfare of workers enables the industry to diminish risks and guarantee a safe operational atmosphere. Adopting these approaches not only safeguards employees and the surroundings but also constructs a robust cornerstone for sustained prosperity in the oil and gas exploration sector.

Clean Energy: Future of Powering Our World

Using clean energy has become more acceptable as people become more embracing of the negative impact of traditional energy sources on the planet. The rise of global temperatures and climate change has made it essential to transition from traditional sources to sustainable and renewable energy sources.

What is Clean Energy?

This form of energy is provided through renewable and sustainable sources such as wind, solar, hydropower, geothermal and biomass. Compared to traditional energy sources like coal, oil, and gas, known to release harmful greenhouse gases into the atmosphere, clean energy sources have little or no emissions and bode well for our world.

The Benefits of Clean Energy

Impact on Environment: The most significant benefit of clean energy is that it leaves minimal environmental impact. This is essentially achieved by reducing carbon emissions so we can significantly slow down the effects of climate change and protect the environment for even generations yet unborn.

Energy Security: As traditional energy sources become more unavailable, there is a growing need for the world to embrace clean energy sources. Diversifying our energy sources will also help to reduce dependence on foreign oil and gas and create a more secure energy future for Nigeria and the African continent.

Economic Benefits: Besides its environmental benefits, clean energy is a rapidly growing industry that creates job opportunities and drives economic growth. The International Renewable Energy Agency (IRENA) estimates that renewable energy employment reached 11.5 million in 2019. The figure was up from 11 million just the year before and is projected to have grown further since then.

Clean Energy Technologies

Solar Energy: Solar energy is one of the most popular clean energy sources, and it’s easy to see why. With the cost of solar panels dropping, it’s becoming increasingly affordable for homeowners and businesses to install solar panels and generate electricity.

Wind Energy: This is another popular clean energy source that has grown significantly in recent years. Wind turbines convert the wind’s kinetic energy into electricity, powering homes and business premises.

Hydropower: Hydropower is one of the oldest sources of electricity generation and refers to using water to generate electricity. A clean and renewable energy source, it has been in use for centuries and electricity through this source can be generated through dams, turbines and other technological sources.

Geothermal Energy: Another exciting form of electricity generation method, this has to do with generating energy from heat radiating from the earth’s core. This form of energy can be harnessed through geothermal power plants, which generate electricity by using the heat to create steam to power turbines.

Biomass Energy: One of the most unique sources of generating electricity, biomass energy is produced by burning organic matter such as wood and waste from plants and animals. This energy source can generate electricity, provide heat in homes and even power vehicles.

With the growing demand for sustainable and renewable energy sources across the globe, it has become essential that we continue to invest in and explore technology to tap further into clean energy sources. By doing so, we can reduce the environmental impact, create job opportunities and drive economic growth. We need to be more intentional and come together to ensure a cleaner future for our world.