Nigeria

Nigeria_flagg
09.09.2010
   

Institutional cooperation


Cooperating institution

Department of Petroleum Resources (DPR)

Goals and objectives
The objective of the institutional cooperation was to establish a base for transfer of knowledge and experience between Norwegian petroleum authorities and the petroleum authorities of Nigeria. The programme covered petroleum policy and methodology for administration and technology. A strategy based on existing policy, and a structure for administration and technology was established.

There has been a need for support to assure the full implementation of the issued regulations and guidelines. It has been important to ensure that the skills transferred both at the organizational and individual levels are put to use.

Project period
2003–2007, extended to December 2009

Total budget
Norway: NOK 15 million
Nigeria: USD 300 000

Programme
The programme consisted of the following main components:

  • Resource management
  • Production monitoring
  • Gas utilization and metering
  • Data management
  • Deep-water development
  • Health, safety and environment

Contact
Oil for Development:
Mr. Thomas Eid, atei@norad.no

Cooperating institutions in Norway
Norwegian Petroleum Directorate (NPD)
Petroleum Safety Authority Norway (PSA)

Map

 

Map

Country facts


Official Name
Federal Republic of Nigeria

Capital
Abuja

Chief of state
President Goodluck Ebele Jonathan

Head of Government
President Goodluck Ebele Jonathan

Population
149 229 090 (2009 est.)

Petroleum sector, key figures
Average oil production: 2.17 mill bbl/day (2008)
Annual gas production: 35.0 bill m3 (2008)

Organization of the petroleum sector:
Ministry of Petroleum Resources
– policy and final regulatory powers
Department of Petroleum Resources (DPR)
– licensing, supervision and control of the petroleum sector
Nigerian National Petroleum Company
– state-owned autonomous entity

 

Brief history of the project


Cooperation between Nigeria and Norway in the energy sector started to evolve when Olusegun Obasanjo was elected president in 1999. In February 2000, a Memorandum of Understanding for cooperation in the petroleum sector and associated environmental activities was signed.

In February 2001, it was decided to continue the cooperation along two lines: one related to local content and industrial cooperation, and one related to institutional cooperation. On the Norwegian side, the NPD was asked to be responsible for institutional cooperation. In October 2003, Norad decided to support the cooperation.

Over the last years, a process to restructure the petroleum industry has taken place in Nigeria. The cooperation with the DPR has to a certain degree been influenced by this process and some of the planned activities have been delayed.

The programme was originally scheduled to be concluded in 2007. Due to postponements of several activities and unused funds from the original grant, the project implementation was prolonged and instead terminated at the end of 2009.


Activities in 2009


As planned in 2008 the intention for 2009 was to conclude the existing programme and plan for a new five-year cooperation programme.

From the existing programme a one-day industry workshop on oil production accounting was held in Abuja in August 2009. The aim was to examine the current procedures for oil accounting in Nigeria and to offer a comparative analysis of global best practices. More than 100 people attended. Participants included representatives from the Ministry of Finance, the National Assembly, the Petroleum Training & Development Foundation, the Nigerian Extractive Industries Transparency Initiative (NEITI ) and the Federal Internal Revenue Service. A comprehensive report with recommendations for further work in this area was compiled.

The intention was also to conclude the cooperation on resource assessment. Actions were taken within the DPR to streamline acreage bid requirements. More emphasis was given to assessment and evaluation of licenses before bidding. After the purchase of relevant software in 2009 the independent block evaluation process is to be fully institutionalized. Due to capacity constraints in the DPR and the NPD the intended training programme on the software was not concluded.

The results obtained since the cooperation started in 2003 were discussed during several meetings in 2009, and different possibilities for continuation of the institutional cooperation were suggested.

In the report made by the DPR the following statements were made:

The main objectives for the cooperation so far have largely been obtained. Even though the cooperation project activities for this phase were mainly seminars and workshops with occasional on-the-job interactions through visits, they have led to some concrete actions and laid foundations for better understanding of the practices applied on the Norwegian Continental Shelf.

The most important achievements in the first phase of the cooperation could be found in the progress made by the DPR on data gathering and management.

A Gas Division to regulate gas activities was established in the DPR in 2005 partly as a result of the cooperation. National gas regulations were prepared for governmental consideration in 2008.

New regulations for deepwater developments are now being drafted.

Significant achievements were also recorded in the cooperation programme activities on Health, Safety and Environment.


Key achievements in 2009


The workshop on oil production accounting gathered over 100 participants from several government institutions and civil society, including the chairman of NEITI. The debate during the workshop was frank and open, and the DPR summarized the event with a list of critical issues that needed follow-up. Improving Nigeria’s practices with regards to oil production accounting is necessary for strengthening the accountability of the upstream petroleum resource management.

Nigeria. Photo: Ole Imsland


Nigeria. Photo: Ole Imsland