Total’s Nicolas Terraz Outlines Path to Future Oil and Gas Developments
… As Offshore West Africa Conference & Exhibition Ends in Nigeria
The 2016 Offshore West Africa Conference & Exhibition (OWA) took place in Lagos, from 26 to 28 January 2016. It featured technical papers, youth programmes, speeches and exhibition and was attended by industry leaders from across the Gulf of Guinea, Africa and beyond.
The theme of the 3-day conference was “Positioning for a sustainable future”.
Among the key note speakers was the Managing Director/Chief Executive of Total E&P Nigeria Ltd, Mr. Nicolas Terraz who in the face of dwindling oil revenue and other challenges currently affecting the oil and gas industry, outlined factors that are critical to surmounting the times.
“The current context is challenging for both the industry and host countries. Oil and gas companies have to adapt and generate sufficient cash flow for capital investments. Governments are facing gross revenue shortages and sometimes experiencing difficulties meeting their joint venture funding obligations,” Mr. Terraz said. He emphasised four factors critical to future development of the industry namely:
- Cost efficiency
“Throughout 2015, we faced a challenging economic environment, due to the sharp fall in the price of oil. This environment requires us to adapt and quickly take actions, whilst at the same time preparing for the future when the market situation will improve again,” Mr. Terraz noted.
He explained that:
- Investors’ confidence requires stability, attractiveness and respect of the contractual and fiscal terms.
- Cost efficiency is critical in the current context.
- Irrespective of all these issues, high safety standards must not be compromised.
The Managing Director urged delegates to see the trying times as an “opportunity to take a whole new look at the way we are doing things, with a view to being more efficient and innovative” and explore ideas in that direction.
The event was declared open by the Minister of Science and Technology, Dr. Ogbonnaya Onu, who solicited the continued partnership of the oil and gas sector for the government to meet its goals. He was represented by the Director General of the Federal Institute of Industrial Research, Oshodi (FIIRO), Dr. Gloria Elemo.
Total was a diamond sponsor of the conference and also mounted an exhibition of its key activities in Nigeria. Total employees participated actively as session moderators and also presented technical papers.
OWA: Total’s Employees Share Perspectives on Cost-efficiency in operations
As oil and gas companies seek cost-reduction measures in an era of low crude oil price, the company’s participants at the 20th edition of the Offshore West Africa Conference & Exhibition took turns to share initiatives adopted by the company on its offshore facilities to reduce cost of operations.
In their joint presentation entitled “Implementation of a Multivariate Predictive Condition Monitoring System of Critical and Essential Machineries on FPSO AKPO” Integrated Control and Safety System Engineer, Deep Water Maintenance Support, Mr. Razaq Shuaib and Mechanic Rotating Equipment Engineer, of the same department, Mr. Ohiorenoya Okhai, explained how the company’s SMARTSignal, “a predictive monitoring tool for the detection of potential failures on machines” works on the AKPO FPSO. According to them, “The system offers the advantage of saving on operational cost in the medium to long term and prevention of disruption to production and injection due to machine failures.”
In his separate presentation entitled “Supply Chain Regional Trends and Challenges for Emerging Markets,” Contracts Engineer in the Contracts & Procurement Department, Port Harcourt District, Mr. Ibrahim Oseni, urged companies operating offshore to adopt a Vessel Sharing Agreement to cut the cost of transporting equipment and other supplies to facilities off-shore.
“In the pursuit of new opportunities and lower operational costs for offshore operations in West Africa, companies must significantly improve their supply chain planning and management,” he stressed.
At the Total booth, there was an awareness session on “Lassa Fever” as well as presentations on “Vendor Registration & Management Process”, “Solar & Home Solutions”, and “HSE Technical Evaluation for Prospective Contractors”and“Obesity which attracted students, government officials, industry operators and players in allied businesses.
The 3-day conference and exhibition ended on Thursday, January 28, 2016.