The meeting point for Financiers, Investors and Oil and Gas Companies in Nigeria
The Recent Nigeria Assembly took place on the 7th & 8th of November 2017, the assembly brought international financiers and investors to Nigeria to meet and discuss how to overcome funding challenges currently facing the Nigerian oil and gas industry. Stakeholders who were in attendance and part of the speaking faculty were representatives from IOC's, Mid & Larger Caps as well as indegenous small independent gas companies.
You can now view our 2017 gallery:
The following five key takeaways were compiled from speakers thoughts, attendees feedback and panel discussions from the two day 2017 assembly:
- The Choice of the Investor:
There is no denying that Nigeria has an abundance of resources as well as the infrastructure and workforce capacity to take advantage of the opportunity. However, international investors are still somewhat deterred from investing. During the discussions titled: A View from the Outside: What is the Appetite for International Investment into the Nigerian Oil & Gas Sector?
Bridging the Gap: How do Oil & Gas companies and local banks secure international investment? It was highlighted that investors have a choice and international competition to secure their backing is fierce, therefore whilst Nigeria is a key prospect, it has to ensure that it is more attractive by meeting international standards and requirements.
The question that is now posed to stakeholders in the industry is whether they are going to raise their standards and compete internationally or allow investment to dwindle.
- Collaboration & Partnership:
A key theme throughout the two days of conversation was the strategies of ensuring successful and mutually beneficial partnerships. Moreover throughout the discussions there was a call from speakers and attendees a like, for the ocntinued efforts to increase levels of collaboration within the industry in Nigeria between IOC's and local E&Ps, as well as the more effective partnership between the finance community and the energy industry in Nigeria. This would ensure better contract renegotiation and thus opportunity for growth not only in the oil and gas service market, but also in the sector as a whole.
- Government Communication and Policy Development
In the light of recent passing of significant legislation, there were many conversations around implimentaion and improvement of policy. Many agreed that policy should be developed incrementally and integrated, unlike previous legislation which had often been introduced and then scrapped and replaced to overcome the challenges that had arisen with the policy. Moreover attendees and speakers alike agreed that there needed to be clearer avenues to communicate with government. A few suggested that writing to Senators and government representatives was often an effective method of raising issues and finding solutions.
- The Potential of Gas
Throughout the two days of conversations there was a clear optimism about the gas market in Nigeria. Arguably this was rooted in the recent passing of the National Gas Policy as well as the Ministry announcing clarifications surrounding the influence of the PIB on the gas sector in Nigeria. Whilst many suggested that the gas to power sector could be the golden ticket to restoring Nigeria's position as a leader in the international energy sector many also highlighted the potential for gas to be used in domestic commercial markets. A concern that was highlighted is the potential for international gas pricing competition to reducing Nigeria's opportunity to become an international seller of gas and for domestic users to look outside of Nigeria.
Therefore, it is key that preventitive methods are implimented to establish the secutiry of the gas for future domestic commecrial use and international pricing competitions.
- Diversification and Collaboration of the Entire Value Chain
Highlighted in the opening session of the assembly, which was co-hosted with Future Energy Nigeria, was the importance of the Nigerian energy industry to diversify and enable collaboration between the oil and gas sector and the power sector. Whilst the power sector is continuing to grow in Nigeria, many of the participants suggested that with the backing of the oil and gas sector the power sector could grow much more rapidly and more effectively.
For further analysis of discussions at the Nigeria Assembly 2017 please see the following articles:
The takeaways will be key themes at our future events in Africa including our annual Africa Assembly 2018 which will take place in Paris 6 - 7 June. To read further information about this event please visit the Africa Assembly website or contact Alex Bell, Africa Portfolio Manager +44 20 7384 8060.
"I learnt new things and met great people"
Tonye Cole, Founder, Sahara Group
"The conference was a mutually beneficial networking session for us and our clients. I met a few new African players that were not on my radar"
Bayo Adebayo, VP Global Accounts, Schlumberger
"It was a pleasure and fun participating in the meetings this year. I really had a great time being there and meeting the different group of people the assembly gave us an opportunity to see"
Adeola Olugbenga Ogunsemi, CFO, Oando Energy Resources
"The conference was very positive indeed. Well attended by high level executives, and some of the panels provided a deeper insight into the matter of Gas to Power in particular that I found extremely enriching"
Vincent Gueneau, Chairman, Kappafrik Group
"Thanks to you and the OGC team for staging yet another great networking event"
Jon Therkleson, Global Derivatives Origination and Marketing, BP
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