First International Conference On Petroleum Refining And Petrochemicals In Nigeria holds in Port-harcourt

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Published on Monday, 30 July 2012 10:21

Written by Elombah.com

The Director of the Centre for Gas, Refining, and Petrochemicals, Institute of Petroleum Studies, University of Port Harcourt, Prof . Godwin Igwe has called on the Federal Government to encourage R & D in the oil and gas in Nigeria which is the essence of development of new things.

Speaking in preparation for the first International Conference on Petroleum Refining & Petrochemicals designed to incentivize the Nigerian stakeholders  about  the need to indigenize our downstream oil and gas processes, sponsored by the Petroleum Technology Development Fund and Centre for Petroleum Refining & Petrochemicals Institute of Petroleum Studies University of Port Harcourt to be held at Presidential Hotel, Port Harcourt, in Rivers State of Nigeria on the 29th – 30th August, 2012., the Professor in an exclusive interview with Nigeria Oil and Gas Portal, said the oil and gas industry in Nigeria needs to be independently segmented, as envisioned in the original PIB, including Research and Development. 

Below are details the details of the interview 

May we meet you? 

My name is Godwin Igwe.  I am a registered professional engineer {PE} in Texas (USA) and Nigeria {COREN}.  I am also an Author and Inventor, and currently a Professor and Director of the Centre for Gas, Refining, and Petrochemicals, Institute of Petroleum Studies, University of Port Harcourt. I am a fellow of the American Institute of Chemical Engineers, and World Bank McNamara fellow. 

Can you tell us about the conference: Who is behind the conference and how long you have been in existence? 

This is the first International Conference on Petroleum Refining & Petrochemicals designed to incentivize the Nigerian stakeholders  about  the need to indigenize our downstream oil and gas processes.

The Petroleum Technology Development Fund (PTDF) is sponsoring this Conference, and this is our first appearance on the Nigerian platform. 

With increasing demand for refining more petroleum products in the country, this conference highlights a “National Priority and National Economic Security”  issue.   Recent fuel subsidy and importation of premium motor spirit (PMS) have clearly highlighted and demonstrated that Nigeria, as a major oil producer, cannot continue to import refined petroleum products.    

What is the background of the facilitators and speakers at the conference? 

The Facilitators are stakeholders in the Nigerian oil and gas industry, e.g., PTDF, NNPC R&D, NCDMB, NDDC, PHRC, etc.

The speakers at the conference are professionals and academics experienced in the oil and gas sectors.

They will discuss, generally, in addition to the conference theme, how the simplest refineries consist of crude, vacuum, reforming and some hydrotreating capacity. The next level of complexity adds cat cracking and some additional hydrotreating. The most complex refineries add coking, more hydrotreating and hydrocracking. 

The theme of the conference says, DOMESTICATION POLICY AND LEGAL FRAMEWORK ON INDIGENOUS TECHNOLOGY DEVELOPMENT.  Do you think the Government has done enough to encourage the use of indigenous technology in the oil and gas industry in Nigeria? 

It is our objective to persuade and encourage the Government that development depends on the innovative spirit of its people.  You cannot buy it.  We need leadership, and infrastructure.  We have to see example from Qatar.  The Government has to encourage R & D which is the essence of development of new things.

We cannot overemphasize the vital role of technology in the systematic transformation of the production systems and capacities, in the development process. Development will always depend on the internal innovative capacities of a society, for it is man rather than machines that creates development. Technology transfer, therefore, becomes a myth for nonproductive nations, and a reality for the nations with new means of production, capital formation and technical knowledge. Sustained economic growth is then further ignited, accentuated and escalated by increasing technical wisdom. 

Where would the conference take place and what are the aims of the conference? 

The conference will take place in the Oil and Gas Capital city of Port Harcourt (Presidential Hotel) in Rivers State of Nigeria.  The aim of the conference is to discuss and proffer solution to the question of a) domestication policy and legal framework on indigenous technology development; b) Need to train the trainers on petroleum refining & petrochemicals; c) Opportunities and challenges of petroleum fuel subsidy; d) Sustainable refinery turn around maintenance, and e) Fiscalization policy and legal framework on indigenous technology development. 

Do you service the open market, government or corporate bodies? 

We will service the open market, government and corporate bodies interested in furthering the interest of Nigeria in downstream gas, refining and petrochemical processes. 

What is your opinion of the oil and gas industry in Nigeria? 

The oil and gas industry in Nigeria needs to be independently segmented, as envisioned in the original PIB, including Research and Development.

What role do you see the PIB playing in the oil and gas industry in Nigeria? 

The PIB will give exposure to individual skill set of Nigerians willing to improve technology development in the country. 

With increasing demand for refining more petroleum products in the country, this conference should be seen as a “National Priority and National Economic Security” issue.   Recent fuel subsidy and importation of premium motor spirit (PMS) have clearly highlighted and demonstrated that Nigeria, as a major oil producer, cannot continue to import refined petroleum products.   The conference will address the question of “Turn-around-maintenance”, and discuss the need for training qualified technical refinery/petrochemical manpower needed on instrumentation/equipment failure analysis, equipment parts and maintenance issues, thereby saving importation costs of finished petroleum products.  The conference will also deliberate on how to exploit Nigeria’s enormous oil and gas downstream processes that will result in sustained growth of our economy, and provide jobs for our citizens here, and not overseas. 

If you could change something about the industry, what would it be? 

I will immediately set up a downstream Refining & Petrochemical Parastatal/Corporation as a separate entity from NNPC, demonstrating increasing value through the entire supply chain of refining and petrochemical products. 

What is your vision for the Conference? 

To enlighten the Nigerian stakeholders, provide leadership, valuable insights and ideas.  We shall use the conference as a strategic vehicle to prioritize development of the downstream sector.  We shall provide advice and guidance to potential investors, as well as excellent networking opportunities with colleagues from around the world, and gain insights from leading experts.   

For the first time in Nigeria, this International conference on Petroleum Refining & Petrochemicals will bring together emerging technologies, state-of-the- art innovations, leading-edge companies and organizations, and hundreds of executives, engineers, managers, and scientists willing to share technical knowledge. 

How does the unemployed youth and the Niger Delta fit into your vision? 

Nigeria can benefit from using Qatar’s  leadership model for Niger Delta.   There are no taxes for their citizens, electricity is free, healthcare is free, education is free, everything is free from cradle to grave.  They transitioned from tent to urban environment within a very short time of 17 years.  Every citizen is paid a monthly dividend.  They have a GDP of $129 BB, Nigeria has $414.5BB estimated.  Qatar has natural gas and petroleum, and Nigeria has natural gas and petroleum.  Real GDP growth for Qatar 2010 was 17% versus Nigeria 6.9% 2011 estimated. 

Despite the fact that export has continued to increase over the past forty-two years, in Nigeria, emphasis has remained largely on exploration, production and exports, to the neglect of downstream investments.

Nigeria has suffered from mismanagement, inconsistent and poorly conceived government policies, and lack of basic infrastructure. 

The country’s high propensity to import means that roughly 80 per cent of government expenditures is recycled into foreign exchange.

Until we start producing, manufacturing, designing  things here, we can travel to Jericho and back, bring every conceivable experts here, as long as we remain dependent on other countries for our technology, we are not going anywhere with technological development.  We are just wasting our time and money. 

The major source of revenue for public sector expenditure in Nigeria is petroleum which amounts to about 90 per cent of the total expenditure.  As a matter of fact, the national budget of Nigeria has over the years been benchmarked on the estimated prices of crude oil on the international market.

Despite the huge oil wealth, most of Nigeria’s population remains extremely poor.  According to the World Bank, around 80 per cent of Nigeria’s oil and natural  gas revenues accrue to just one percent of the population, while the other 99 per cent receive the remaining 20 per cent of the revenues. 

Overall, Nigeria’s per capita oil export earnings are the second lowest in OPEC, next to Indonesia, at around US$212 per person (in constant $2004).  This compares to $589 per person earned in 1980, the peak year for Nigerian oil export revenues (in inflation-adjusted terms). 

The public sector has then become a channel for political patronage and accounts for more than 55 per cent of national debt and five percent of federal budget deficits. 

Is there anything you want the public  to know about  the conference? 

This conference is in response to the call for Nigerians in diaspora to return to Nigeria to assist in developing the oil and gas sector. Some of us are now here. 

The intellectual merit and significance of this conference relies on exploration of opportunities and challenges for developing African countries (specifically Nigeria) producing oil and gas, to exploit downstream product processes, to propel their developmental objectives, through establishing small and medium scale industries from refinery and petrochemical feedstocks. Tools and means necessary to accomplish this objective will be through post-graduate training programmes, consultancy, laboratory analyses, research and development, at the Centre for Refining and Petrochemicals. We are starting from a position of strength. 

University of Port Harcourt, through Institute of Petroleum Studies, is already established as a leading industry-focused research institute, giving us an excellent start towards our goal. The impact and multiplier effect of the new emerging gas and petrochemical small/medium scale industries on new jobs and standard of living, with new means of production, capital formation and technical knowledge, sustained economic growth, will then further be ignited, accentuated, and escalated, by increasing technical wisdom.

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