Business a.m.

Waltersmit­h Petroman, walking the talk in Downstream Operations!

- SUNNY CHUBA NWACHUKWU

AN INDIGENOUS OIL AND gas company, Waltersmit­h Petroman Limited, operating in Ohaji Egbema LGA of IMO state, has proven to be a classical example of the much talked about local direct investors in the Nigeria’s oil and gas industry. This is confirmed by their recently commission­ed 5,000 bpd crude oil modular refining facility; as a first stage of their investment programme and plan in the country.

Let the operationa­l capacity of the plant not discourage observers by citing the jumbo sized Dangote’s 650,000 bpd crude capacity. What matters is being focused in their programme for the economy because, the attractive­ness or its considerat­ion is on the overall impact, when other aspects of the organizati­onal policy and sustainabi­lity pillars (economic gains/profit, social responsibi­lity/dividends and environmen­tal quality) are considered in the economy, vis-à-vis the environmen­tal responsibi­lity and the corporate social responsibi­lity for the host environmen­t, alongside the gains and benefits for all the stakeholde­rs, whenever the company’s daily policies and strategies are factored into growth and developmen­t in the society. This project and the promoters/investors need to be highly appreciate­d and commended for the feat and exemplary performanc­e.

This performanc­e is a true and practical sample of actions and operations expected of players in the oil and gas sector, for the nation to tap and reap the opportunit­ies in the abundant fossil fuels deposits, especially now that the innovative technology for alternativ­e, cleaner energy sources aren’t comparativ­ely attractive yet, in terms of pricing internatio­nally. With the second phase of their plan, that shall deliver a capacity of 25,000 bpd crude and condensate refinery as an upgrade on this 5,000 bpd modular plant; by an increased capacity of 271 million liters of refined products annually (which includes Diesel, Naphtha, HFO and Kerosene), the nation’s petroleum products daily demand loads in the domestic market no doubt, is appreciabl­y lessened on the economy’s roadmap to products’ self sufficienc­y (achieving a net exporter status yet, not withstandi­ng).

These two names, Waltersmit­h Petroman and Dangote Group, among other committed and patriotic players within the sector are the eligible and qualified entities that could take over/buy up to control the management of the nation’s four comatose facilities from NNPC as proposed, come 2023. They have clearly displayed and exhibited seriousnes­s to operate in the downstream sector, with genuine intention to maintain environmen­tal sustainabi­lity in the HSE policy, as being tested since 2004 through their Exploratio­n and Production operations in the upstream activities. I also wish that Amakpe plant in Akwa Ibom and Orient Petroleum in Anambra will follow suit, without further delays.

With this pursued developmen­t now trending in that sector, Nigeria will surely overtake and recover all the lost grounds (both in the internatio­nal oil and gas market and in other sectors for non-oil export growth) economical­ly, as envisaged. This must only be achieved if, the government and the federal regulatory agencies lend the necessary supportive incentives to these local investors, with the deregulate­d policy that shall make them compete effectivel­y and thrive in the Downstream value chain of operations. I make bold to forecast that their growth and breakthrou­ghs in the continent is imminent in the light of the existence of the multilater­al trade agreements within the continent, the African Continenta­l Free Trade Agreement (AfCFTA) among others, all things being equal.

Their visionary strategy in planning, to develop energy for the future with innovative energy ideas; providing world-class energy solutions within the economy by integratin­g sustainabl­e business practices in all activities, they are destined to go places in the industry. Nigeria needs to be vigorously positioned by her efforts in carving a niche within the sub saharan Africa, as a finished products hub in the oil and gas industry in a post COVID-19 pandemic era, by leveraging on the advantages the global health challanges have offered after the total global lockdown that adversely impacted directly or indirectly on all world economies.

The newly reconstitu­ted Nigeria’s National Oil Company, Nigeria National Petroleum Company Limited (NNPC Ltd) as a fully establishe­d profit making organizati­on; ought to move with the speed of light in regaining those economic lost grounds through a conscienci­ous effort by deploying every available result oriented strategy in and around these privately owned companies as they partner to make the downstream operations be worthwhile for economic exploits, considerin­g the enormous opportunit­ies nature has offered through the richly endowed natural resources. Let the oil business be handled from now onwards with the profession­alism and dedicated patriotism the NNPC, PPPRA, DPR and PPMC staff are required of, for the economy to grow with the expected financial strength it ought to, internatio­nally.We are tired of these shameful stories and pictures of bad image through all sorts of corrupt practices in the oil sector, after sixty years of our national life. Let all the indigenous players in the oil industry start small now, as Waltersmit­h has demonstrat­ed.

Sunny Chuba Nwachukwu (FICCON, LS) Onitsha, +2348033182­105

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