PETAN Chairman: NUCOP will Enhance Competitiveness, Reduce Cost, Increase Profit to Investors
By Ndubuisi Michael Obineme
SAIPEC 2021 – The Chairman of Petroleum Technology Association of Nigeria, PETAN, Mr Nicolas Odinuwe has revealed that the Nigerian Upstream Cost Optimisation Programme (NUCOP) recently launched by the Federal Government of Nigeria, will enhance the petroleum sector’s competitiveness through the reduction of unit operating cost (UOC) while increasing profit to investors.
The Chairman of PETAN, Mr Nik Odinuwe made this known in an interview with our correspondent at the side-line of the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) 2021, noting that NUCOP will also address issues surrounding cost-sharing of contracts, reduce volume of contracts, and increase services among operators.
According to him, NUCOP has the capacity to help divest the high cost of upstream developments and rebalance businesses through stronger collaborations across the value chain of the Nigerian petroleum sector.
“Oilfield service providers are excited about NUCOP and are looking inward, including the support of NCDMB’s Working Capital Scheme, to ensure sustainability.
“We are also expecting the Petroleum Industry Bill (PIB) passage which PETAN made significant contributions to during the public hearings at the National Assembly to drive the much-desired investments in the oil and gas industry as it would support taxes and royalties reduction for new and existing operators’ operations.
“This will aid continuity of existing operators in the business, attract favourable returns as well as encourage new investments with competitive terms to spur economic growth.”
While speaking about the Joint Decoupled One-Off Upfront Comprehensive Technical Evaluation Process (J-DOUCTEP), he supported the proposal for the removal of long-term call-off contracts, adding that it will reduce the contracting cycle, freeing up man-hours and resources that should be allocated for other key activities in the petroleum sector.
He added, “I believe it will enhance collaboration between government and private sector key players in the industry and make it more efficient, effective and profitable.
“The industry’s standing committee of which PETAN is a part is in place to monitor compliance with the NUCOP and we will live up to the mandate.”