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N I G E R I A
Project:
Institutional cooperation
Cooperating institution:
Department o Petroleum Resoures (DPR)
Goals and objectives:
The objetive o the institutional ooperation is to establish a base or
transer o knowledge and experiene between Norwegian petroleum
authorities and the petroleum authorities o Nigeria. The long-term
institutional ooperation within the ramework o this programme will
support the development and ontrol within the Oil and Gas setor. The
programme will over petroleum poliy, methodology or administration
and tehnology. A strategy based on existing poliy, struture oradministration and tehnology, is established.
Project period: 2003 - 2007
The programme
Resoure management Prodution monitoring Metering Data management Deep water tehnology Health, saety and environmentThere is a need or support to assure the ull implementation o the issued
Regulations and Guidelines. There is also a need to ensure that the skills
transerred both at the organisational and individual levels are put to use. It
is the intention to transer the relevant parts o the Norwegian experienes
into the Nigerian petroleum governane proess.
Total budget:
Norway: NOK 15 mill
Nigeria: USD 300 000
contat:
Mr. D. O. Irrehukwu, Head Tehnial Servies
Mr. Olu Akinyosoye, Diretors OeNPD: Mr. Steinar Nj, Projet Diretor
steinar.nja@npd.no
cOUNTRY FAcTS:
Ofcial Name:
Federal Republi o Nigeria
Capital:
Abuja
Chie o state:
President Olusegun Obasanjo
(sine 29 May 1999).
The president is both the hie o
state and head o government
Population:
131 859 731 (2006)
Petroleum sector, key fgures:
Average oil prodution:
2.52 mill bbl/day (2005)
Annual gas prodution:
64.8 bill m3 (2005)
Organisation o the
petroleum sector:
Ministry o Petroleum Resoures,
Poliy and fnal regulatory powers
Department o PetroleumResoures (DPR)
Liensing, supervision and
ontrol o the petroleum setor
Nigerian National
Petroleum company
State owned autonomous
entity
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Ativities in 2006The ativities perormed during 2006 were based on the
plan adopted during the PSc meeting held in Stavanger
in Otober 2005 and nalised during the planning meet-
ing in Lagos in February 2006. Due to the reorganisation
o DPR in 2005, the new diretor o Mr. Tony chukwueke
wanted to emphasis the ollowing areas or urther
ooperation.
1. Gas projets ativities
2. Data Management ativities
3. Post-Mortem o the 2005 bid proess
4. Identiation o skill-gaps in DPR
5. HSE ativities
Regarding Gas projets ativities, a seminar was
onduted in Port Harourt late 2004. Based on the
reommendations rom this seminar several related
ativities have been perormed in DPR and a dediated
department has been established to ous on this issue.
The aim is to establish a sound gas poliy or Nigeria in
order to make an eient utilisation o gas produed
and to redue faring. In this regard, representatives o
DPR have been introdued to the Norwegian gas poliy
and the experiene gained in Norway in onnetion
with gas prodution and utilisation. In November 2006a workshop was held in Lagos disussing topis related
to regulations or gas prodution, faring, transporta-
tion, and metering. The workshop was attended by 15
representatives rom DPR and 5 rom NPD. During this
workshop topis related to pre-liene ativities and
prodution monitoring were also disussed. A set o
reommendations or urther ooperation in this area
have been drated. A metering audit at the gas reeiving
ailities on Bonny Island, and a workshop on Monitoring
o Deep Water Operations have been planned or some
time. However, due to diulties with timing and nees-
sary arrangements these, ativities are still pending.
Data Management ativities are onsidered to be one o
the most important ooperation ativities. Sine oop-eration started in year 2001 the data management group
in DPR has been working on adopting a sound poliy or
inormation and data handling in DPR. A digital platorm
or inormation has been established both as a basis or
ativities inside DPR and or the planned ooperation
with the oil ompanies or storing seismi and tehni-
al well data. Systems and methodologies or quality
ontrol, aess and retrieval o petroleum administrative
data are in plae. Solutions are based on experiene
gained in Norway as well as in many other oil and gas
produing ountries. Formulating the data management
strategy also inluded proposing onrete modiationso the petroleum regulations. During the spring 2006
training o 10 representatives rom DPR in use o GIS
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(Geographial Inormation System) took plae in the
London area. In August a Workshop on pipeline data
was onduted in Stavanger. During this workshop our
representatives rom DPR partiipated. Later on, in
Otober, two experts rom NPD worked together with
DPR sta in Lagos to assist in setting up the right
proedures or data storage and use o ultural data.
In onnetion with the Nigerian 2005 Liense Bidding
Round, in August 2005, Mr. Willy Olsen rom Norway
served as observer during the bidding proess that
took plae in Abuja. An assessment o the 2005 bid
proess was onduted in Lagos late January 2006.
During this assessment representatives rom
several oil ompanies and embassies in Nigeria part-
iipated, inluded the British, canadian and USA
embassy. In general the assessment proved that the
bidding proess had been open and transparent. How-
ever, some points or improvement were noted and will
be adopted by DPR or uture bidding proesses.
During 2005 a reorganisation took plae in DPR.
The intention was to make the organisation more
up-to-date and more oused on the important
hallenges aing Nigerian petroleum administration.
NPD was in that regard asked to assist in perorming
an Identiation o skill-gaps in DPR. On behal o NPD,
Petrad oered to perorm an evaluation o the new
organisation and drated a sope o work or this
purpose. However due to lak o data and unertainties
onneted to the new organisation the projet has
not yet been ativated as intended.
HSE (Health, Satety and Environment) is an important
part o the NPD/DPR ooperation. Several ativities
in that regard have been onduted under the pro-
gramme. A new strategy or adoption o HSE measures
and monitoring o the petroleum ativity has been
established and urrent regulations will be revised a-
ordingly. In August 2006 a workshop in Stavanger was
organised and ve representatives rom DPR attended.
The workshop was ombined with speial saety-
training ourse onduted by Falk- NUTEc. The results
o the workshop and the training gave relevant inor-
mation and input or the DPR partiipants to be utilisedwhen drating new HSE regulations or the Nigerian
petroleum ativity. A workshop and training arrange-
ment or Oil Spill Monitoring in Norway was originally
planned or. However, due to time onstraint this
ativity has been postponed.
In onnetion with the assessment o the 2005 bid
proess, a planning meeting was held in Lagos late
January 2006. Several ativities were then sheduled to
take plae during the rst hal o the year. However due
to time onstraint some ativities were postponed.
A PSc Meeting was arranged in Lagos late May 2006.
In that onnetion the work programme or the rest
o the year was deided. It was also deided to
ask or a ontinuation o the programme or 2007
within the limit o unds granted.
The ontinuation was deided in a meeting with
representatives rom the Norwegian Embassy in Nigeria
and NORAD held in Oslo early June.
Plans or 2007Reommendations rom the 2006 ativities have to
a large degree ormed the basis o the 2007 plan.
A planning meeting was organised in Stavanger late
January this year. As a result o the meeting the
ollowing ativities are planned:
1. Training Need Assessment (TNA).
This ativity is ited as the main priority or 2007
and is planned to start February 2007
2. Data Management.This ativity will inlude review & validation o previous
work inluding new digital reporting ormats, perorm-
ing a pipeline modelling workshop, training on multi
user database orms & reports as well as a study o ESI
mapping & Oil spill monitoring system in Norway.
3. Resource Management.
This ativity will inlude workshop on deepwater
operations monitoring involving regulators and
operators in Nigeria. This will be ollowed by deep-
water operations training attahment in Norway.
Also aquisition o appropriate sotware/ hardware
or resoure assessment, projet analysis & eonomievaluation or rude oil and gas are being evaluated.
compatibility between reservoir evaluation &
eonomi evaluation pakages are required.
4. Gas and metering.
To build on the 2006 November seminar this ativity
will start with a workshop & interative session in
Nigeria on open aess poliy, gas priing & tari
system. Further on it was agreed that NPD should
evaluate and perorm Qc o gas regulation/ guide-
lines being developed by DPR. Also an attahment
programme with NPD/Gasso or hands-on trainingon the Norwegian solutions will be proposed. Metering
will also be a part o this workshop. DPR aims at
instituting omprehensive and reliable systems or
metering. Gas measurement issues, alloation, and
audit proedures are regarded to have rst priority.
5. HSE.
The development o guidelines & standards or saety
praties or oil & gas industry in Nigeria is ontinuing.
Representatives rom PSA are asked to evaluate drat
regulations beore urther training and a possible
attahment programme is deided.