Oando invests $400m in 5 years in upstream sector 
There is no denying the fact that the gas industrialisation revolution launched by the President Goodluck Jonathan's administration is focused on an industrial rebirth of Nigeria, through the stimulation of gas based industries, such as fertilizer, methanol and petrochemicals. Projects under the gas revolution include the development of Africa's largest petrochemical complex by the Nigerian National Petroleum Corporation (NNPC) and its partner, the Saudi Arabian conglomerate - Xenel.
This will cost about $6bn and is planned to be in place by 2015.
It also includes two fertilizer plants to be built in partnership with the Indian conglomerate - Nagarjuna. This will consist of two 1.3 million tons per annum fertilizer plants, complemented by five discrete blending plants to be located across the country, and which has been estimated to cost about $4bn.
Another major project is the development of a billion cubic feet per day gas central processing facility which is expected to be built by a consortium led by Agip in partnership with NNPC and Oando. This facility will cost about $2bn and will provide the feedstock for the fertilizer and petrochemical plants, in addition to supplies to the power plants. The government, BusinessDay can also authoritatively reveal is also in the process of setting up an "LPG Distribution Network" that will distribute LPG to various parts of the country. LPG supplies to the network will be drawn from three gas processing facilities to be developed.
Evidently encouraged and surprised by these giant strides recorded in the oil and gas sector, especially within such a short time, oil and gas sector experts have noted that some of these projects could only be fully brought to fruition if there is policy consistency which is only achievable by policy anchors who have the passion and drive like that which the present minister of petroleum, Diezieni Allison-Madueke has brought to bear in the industry.
Analysts stated that while there are a few aspects of the sector may have been slowed down by some fundamentals, the source, nonetheless insisted that several of the administration's initiatives have allowed more Nigerians to participate in the oil and gas industry. These, he noted also include many Nigerian companies such as the Nigeria Petroleum Development Company (NPDC) which has been able to increase its stake in a number of acreages relinquished by some oil companies.
Aside government-owned establishments, some private companies have equally benefitted.Unfolding the agenda last June, Alison-Madueke had stated that the Federal Government was more focused as ever to ensure expeditious implementation of the Nigerian Gas Master Plan to attain clear-cut short-term and some medium-term objectives, as well as to position Nigeria as a major player in the global gas market by securing the Final Investment Decision (FID) of the Brass Liquefied Natural Gas, while refocusing on the Olokola Liquefied Natural Gas project.
The minister of Petroleum Resources had listed the objectives of the two-pronged action for gas to include sustainable supply of and delivery of gas to the power sector, implementation of a sustainable commercial framework for domestic gas through a review of the gas pricing to encourage investors by enabling them secure bankable agreements and the transformation of Nigeria into a regional hub for gas-based industries by signing up world class investors in the petrochemicals, methanol and fertilizers sectors.
Explaining the newly approved gas pricing regime, Allison-Madueke had said, "currently, the price of gas to power is two cents ($0.2) per mmbtu of gas, and that by the end of the year, the price of gas would increase to $1/mmbtu. Speaking on the local content act which expected to create about 30,000 jobs in relation to efforts of the present administration and the future of the industry's growth, analysts readily recall that it was only in the last one year that the Nigerian Content act which had been clamoured for, for almost ten years could only sail through the legislative processes and finally passed into law.
The passage of the act into law, interestingly, was to mark a significant landmark in the Nigerian oil and gas industry. The minister had at several for a restated that the Nigerian Content Act was not intended to indigenise the industry or nationalise assets of investors in the Nigerian economy. Rather, the Act sets out provisions that guaranteed that investments made in facilities within the country will be fully utilised and that will ensure that the rights of every investor was protected under the laws.
The targets set out in the Act presented substantial opportunities to establish new facilities in Nigeria, upgrade existing yards and develop human capital to take advantage of the imminent expansion of the industry, following the expected passage of the Petroleum Industry Bill (PIB).
The implementation of the Act in the past one year has therefore provided immense inspiration and the confidence to adopt the various pilot schemes which are already making positive and immeasurable impacts. With job creation now a priority of President Jonathan's administration, the Nigerian Content implementation has pledged to create more than 300,000 direct and indirect jobs.
