6.

10

N igeria
Country facts:
Official Name:
Project:
Federal Republic of Nigeria
Institutional Cooperation
Capital:
Cooperating institution:
Abuja
Department of Petroleum Resources (DPR)
Chief of state:
Goals and objectives:
President Olusegun Obasanjo
The objective of the institutional cooperation is to establish a base for
(since 29 May 1999).
transfer of knowledge and experience between Norwegian petroleum
The president is both the chief of
authorities and the petroleum authorities of Nigeria. The long-term
state and head of government
institutional cooperation within the framework of this programme will
support the development and control within the Oil and Gas sector. The
Population:
programme will cover petroleum policy, methodology for administration
131 859 731 (2006)
and technology. A strategy based on existing policy, structure for
administration and technology, is established.
Petroleum sector, key figures:
Average oil production:
Project period: 2003 - 2007
2.52 mill bbl/day (2005)
Annual gas production:
The programme
64.8 bill m3 (2005)
• Resource management
• Production monitoring
Organisation of the
• Metering
petroleum sector:
• Data management
Ministry of Petroleum Resources,
• Deep water technology
Policy and final regulatory powers
• Health, safety and environment
Department of Petroleum
There is a need for support to assure the full implementation of the issued
Resources (DPR)
Regulations and Guidelines. There is also a need to ensure that the skills
Licensing, supervision and
transferred both at the organisational and individual levels are put to use. It
control of the petroleum sector
is the intention to transfer the relevant parts of the Norwegian experiences
into the Nigerian petroleum governance process.
Nigerian National
Petroleum Company
Total budget:
State owned autonomous
Norway: NOK 15 mill
entity
Nigeria: USD 300 000

Contact:
Mr. D. O. Irrechukwu, Head Technical Services
Mr. Olu Akinyosoye, Directors Office
NPD: Mr. Steinar Njå, Project Director
steinar.nja@npd.no

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48
6.10
Activities in 2006
The activities performed during 2006 were based on the
plan adopted during the PSC meeting held in Stavanger
in October 2005 and finalised during the planning meet-
ing in Lagos in February 2006. Due to the reorganisation
of DPR in 2005, the new director of Mr. Tony Chukwueke
wanted to emphasis the following areas for further
cooperation.
1. Gas projects activities
2. Data Management activities
3. Post-Mortem of the 2005 bid process
4. Identification of skill-gaps in DPR
5. HSE activities
Regarding Gas projects activities, a seminar was
conducted in Port Harcourt late 2004. Based on the
recommendations from this seminar several related
activities have been performed in DPR and a dedicated
department has been established to focus on this issue.
The aim is to establish a sound gas policy for Nigeria in
order to make an efficient utilisation of gas produced
and to reduce flaring. In this regard, representatives of
DPR have been introduced to the Norwegian gas policy
and the experience gained in Norway in connection
with gas production and utilisation. In November 2006
a workshop was held in Lagos discussing topics related
to regulations for gas production, flaring, transporta-
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49
tion, and metering. The workshop was attended by 15
representatives from DPR and 5 from NPD. During this
workshop topics related to pre-licence activities and
production monitoring were also discussed. A set of
recommendations for further cooperation in this area
have been drafted. A metering audit at the gas receiving
facilities on Bonny Island, and a workshop on Monitoring
of Deep Water Operations have been planned for some
time. However, due to difficulties with timing and neces-
sary arrangements these, activities are still pending.
Data Management activities are considered to be one of
the most important cooperation activities. Since coop-
eration started in year 2001 the data management group
in DPR has been working on adopting a sound policy for
information and data handling in DPR. A digital platform
for information has been established both as a basis for
activities inside DPR and for the planned cooperation
with the oil companies for storing seismic and techni-
cal well data. Systems and methodologies for quality
control, access and retrieval of petroleum administrative
data are in place. Solutions are based on experience
gained in Norway as well as in many other oil and gas
producing countries. Formulating the data management
strategy also included proposing concrete modifications
of the petroleum regulations. During the spring 2006
training of 10 representatives from DPR in use of GIS
6.10
(Geographical Information System) took place in the
London area. In August a Workshop on pipeline data
was conducted in Stavanger. During this workshop four
representatives from DPR participated. Later on, in
October, two experts from NPD worked together with
DPR staff in Lagos to assist in setting up the right
procedures for data storage and use of cultural data.
In connection with the Nigerian 2005 License Bidding
Round, in August 2005, Mr. Willy Olsen from Norway
served as observer during the bidding process that
took place in Abuja. An assessment of the 2005 bid
process was conducted in Lagos late January 2006.
During this assessment representatives from
several oil companies and embassies in Nigeria part-
icipated, included the British, Canadian and USA
embassy. In general the assessment proved that the
bidding process had been open and transparent. How-
ever, some points for improvement were noted and will
be adopted by DPR for future bidding processes.
During 2005 a reorganisation took place in DPR.
The intention was to make the organisation more
up-to-date and more focused on the important
challenges facing Nigerian petroleum administration.
NPD was in that regard asked to assist in performing
an Identification of skill-gaps in DPR. On behalf of NPD,
Petrad offered to perform an evaluation of the new
organisation and drafted a ”scope of work” for this
purpose. However due to lack of data and uncertainties
connected to the new organisation the project has
not yet been activated as intended.
HSE (Health, Satety and Environment) is an important
part of the NPD/DPR cooperation. Several activities
in that regard have been conducted under the pro-
gramme. A new strategy for adoption of HSE measures
and monitoring of the petroleum activity has been
established and current regulations will be revised ac-
cordingly. In August 2006 a workshop in Stavanger was
organised and five representatives from DPR attended.
The workshop was combined with special safety-
training course conducted by Falck- NUTEC. The results
of the workshop and the training gave relevant infor-
mation and input for the DPR participants to be utilised
when drafting new HSE regulations for the Nigerian
petroleum activity. A workshop and training arrange-
ment for Oil Spill Monitoring in Norway was originally
planned for. However, due to time constraint this
activity has been postponed.
In connection with the assessment of the 2005 bid
process, a planning meeting was held in Lagos late
January 2006. Several activities were then scheduled to
take place during the first half of the year. However due
to time constraint some activities were postponed.
A PSC Meeting was arranged in Lagos late May 2006.
In that connection the work programme for the rest
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50
of the year was decided. It was also decided to
ask for a continuation of the programme for 2007
within the limit of funds granted.
The continuation was decided in a meeting with
representatives from the Norwegian Embassy in Nigeria
and NORAD held in Oslo early June.
Plans for 2007
Recommendations from the 2006 activities have to
a large degree formed the basis of the 2007 plan.
A planning meeting was organised in Stavanger late
January this year. As a result of the meeting the
following activities are planned:
1. Training Need Assessment (TNA).
This activity is cited as the main priority for 2007
and is planned to start February 2007
2. Data Management.
This activity will include review & validation of previous
work including new digital reporting formats, perform-
ing a pipeline modelling workshop, training on multi
user database forms & reports as well as a study of ESI
mapping & Oil spill monitoring system in Norway.
3. Resource Management.
This activity will include workshop on deepwater
operations monitoring involving regulators and
operators in Nigeria. This will be followed by deep-
water operations training attachment in Norway.
Also acquisition of appropriate software/ hardware
for resource assessment, project analysis & economic
evaluation for crude oil and gas are being evaluated.
Compatibility between reservoir evaluation &
economic evaluation packages are required.
4. Gas and metering.
To build on the 2006 November seminar this activity
will start with a workshop & interactive session in
Nigeria on open access policy, gas pricing & tariff
system. Further on it was agreed that NPD should
evaluate and perform QC of gas regulation/ guide-
lines being developed by DPR. Also an attachment
programme with NPD/Gassco for hands-on training
on the Norwegian solutions will be proposed. Metering
will also be a part of this workshop. DPR aims at
instituting comprehensive and reliable systems for
metering. Gas measurement issues, allocation, and
audit procedures are regarded to have first priority.
5. HSE.
The development of guidelines & standards for safety
practices for oil & gas industry in Nigeria is continuing.
Representatives from PSA are asked to evaluate draft
regulations before further training and a possible
attachment programme is decided.