Charles Akhideno Health, Safety & Environment Lead at Shell Nigeria spoke at the Oil & Gas Event June 2013

1. AKHIDENO CHARLES-
OIL AND GAS EVENT
2013

2. The drive is to
•Increase profit,
•Reduce cost,
•Increase production
•Save time
The challenges overlap
AKHIDENO CHARLES-
OIL AND GAS EVENT
2013

3. SCOPE is challenges.
Every mans Mountain is his ignorance – David
Oyedepo
AKHIDENO CHARLES-
OIL AND GAS EVENT
2013

4. INVESTORS PAIN
 The main investors challenge is having
security for their investment
 Financial/Banking Sector not fully Globalized
◦ Quoted on the stock exchange
◦ Cannot give ‘’Big loans’’ or handle major insurance
 Local bureaucratic bottlenecks
 Unavailability of Quality Data in public
Domain
 Local content development
 Unstable Socio- Political Systems are best
described as Galloping
◦ Before it used to be coups
◦ Political rivalry, Court cases-
AKHIDENO CHARLES-
OIL AND GAS EVENT
2013

5.  Government trading their responsibilities to
the IOC yet expecting (eg Roads)
◦ Inadequate Tax Relief
◦ Create enabling Environment/ wet Investor appetite
 No structure on ground to manage
community interfaces
◦ Policies-Clearly defining expectations and
deliverables
◦ Go betweens to help investors understand
community peculiarities
◦ Defined Deliverables to help curtail future
restiveness/Help IOCs have a focused CSR
 Government Policies are annual in thinking
and Project Circles
◦ Oil processing licenses have short life spans
◦ Oil and gas investment is huge and return is
usually long term driven AKHIDENO CHARLES-
OIL AND GAS EVENT
2013

6. OPERATORS NIGHTMARE
 Process safety incidents can no longer be
tolerated.
 Oil is found in very unfriendly terrains and
harsh conditions
 There is need for cutting edge technology,
skills, more experience and learning from
others.
 Sustaining this call is becoming uphill despite
increased technological advancement.
AKHIDENO CHARLES-
OIL AND GAS EVENT
2013

7.  Government trading their responsibilities to
the IOC yet expecting (eg Roads)
◦ Inadequate Tax Relief
◦ Create enabling Environment
 No structure on ground to manage
community interfaces
◦ Policies-Clearly defining expectations and
deliverables
◦ Go betweens to help investors understand
community peculiarities
◦ Defined Deliverables to help curtail future
restiveness/Help IOCs have a focused CSR
 Government Policies are annual in thinking
and Project Circles
◦ Oil processing licenses have short life spans
◦ Oil and gas investment is huge and return is
usually long term driven

8.  Dearth of technical and Skilled professionals
◦ More attraction for professional Migration
◦ Moving from coveralls to suits
◦ Toddling professional hops—Features of Banking /IT
 Proximity of OEMs
◦ Difficulty of access to OEMs -(Water Maker Storey)
◦ Difficulty of OEMs accessing harsh, remote, unfriendly sites eg
visa
◦ Certain key infrastructural support for OEM
presence/technological transfer missing
 Stable light
 Steel rolling mills
 The challenge of financial mechanics
◦ Snail Speed funding decisions- Agreement on what to spend
◦ Cash Calls bothering on integrity of commitment—Investors
become Santa C.
 Increasing Political Tension, hostile terrains, Insecurity etc
◦ At a time there was a drop of production from over one million
BPD to less than 200BPD
 Regulatory challenges
◦ Multiplicity of divergent standards
◦ Duplicity of roles
◦ Ambiguity in clearly defined laws

9.  Hands on Challenges:
◦ Increasing water cuts and battle to manage produced water
◦ Timely delivery of quality and original spares difficulty in meeting PMs and
CMs.
◦ Retrofitting /redesigning to meet Gas flare policy
◦ Massive oil spill response/Waste management Equipment.
◦ Flow lines and pipelines monitoring in remote areas/terrain(CCTV)
◦ Good competition in Real time IT services
◦ High level corrosion challenge
 External dimensions
 Internal corrosion
◦ Dearth of certain key service providers- Some key support services and
difficult to come by and in some cases where available the few service
providers are unable to cope with volume of demand
 Logistic Bases - Land, Water and Air
 One-stop- shop style customized service. - With good infrastructure and
office service.
 Some simple social support systems don’t exist or are best substandard.
 Schools
 Jobs for spouse
 Holiday resorts
 Medical Services
In how many of our countries do we have functional emergency
response systems- 911?
AKHIDENO CHARLES-
OIL AND GAS EVENT
2013

10. DISCUSSIONS
AKHIDENO CHARLES-
OIL AND GAS EVENT
2013