‘Nigeria’s gas value-chain dependent on distribution infrastructure’

Guardian, Okwuosa said: “The biggest issue as of today is how we develop the infrastructure that will enable the distribution of gas. The more we deliver, the more we encourage the upstream to produce. There has to be alignment. And in doing and building the infrastructure, we signal the offtakers to also build their systems including industries and power plants that will guarantee utilisation of the gas.”

He also advised the Federal Government to deploy modern technologies and methodologies in solving the pipeline vandalism problem in the oil and gas sector, citing Horizontal Directional Drilling as an example.

According to him, though the method was selective depending on the area, it was capable of making oil and gas pipelines invulnerable to sabotage.

“That technology is already tested in the United States and it is working there,” he said.

He further stated that beyond technology, Nigeria should identify the challenges, find the origin of the problem and deal with it.

He said this would require the efforts of “everybody, including the government, NNPC Limited, international oil companies, and in fact, all the producers.”

Okwuosa added, “It also involves all the communities. It involves governments at all levels, Local Governments, state governments and the Federal Government.

“I can tell you clearly that Local Councils are very impactful because they deal with people at the level you can see who is doing what.”

Explaining further the exceptions with the use of the HDD technology in protecting the pipelines, he said there were instances where it could be used to mitigate vandalism and solve crude oil theft, while other methods such as coating could be used in other instances.

“There are also instances where you may not be able to use the HDD, and you can actually apply technology to reinforce the pipelines with special coatings that would make it impossible for anybody to find them accessible,” he said.

Okwuosa added, “What you have to know is that it will require serious investments because it is going to cost you more to utilise these methodologies rather than use standard construction methods.

“But at the end of the day, what is important is that it is going to save you more damage. It will actually save you more, especially with regards to the products.”

Okwuosa, however, stated that Oilserv was prepared to make a difference in the delivery of emerging pipeline projects on the continent.