Following delay in the passage of the Petroleum Industry Bill (PIB), lack of transparency and the continued decline in the prospects of oil and gas sector, operators across the West African coast, have warned about imminent crisis that may rock Nigeria's oil sector in future.Stakeholders at the ongoing Offshore West African International Conference and Exhibition (OWA 2012) in Abuja, on Monday, expressed concern about the declining trend of upstream activities in the nation's petroleum sector, stating that if adequate care was not taken, the future of Nigeria's oil and gas sector may be in jeopardy.The Managing Director, Total Exploration and Production Nigeria, Mr Guy Maurice; Managing Director, Shell Nigeria Exploration and Production Company Limited (SNEPCO), Chike Onyejekwe and other stakeholders, therefore, urged the Federal Government to boost exploration activities to guarantee the industry's future.They also expressed worry over the absence of Federal Government officals including officials of the Nigerian National Petroleum Corporation (NNPC) who did not exhibit at the conference. The Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, was expected to declare the conference open but was absent at the exhibition.Maurice, who was represented by the Executive Director, Corporate Goesciences and Business,Total Exploration and Production Nigeria, Kingsley Ojoh said: 'It is important to note that we must explore, if we want to continue from where we stopped. Exploration is the key to guaranteeing the future of the oil and gas sector; it is important for exploration to be encouraged, because there is need for replenishment.''We were doing 67 wells in the 1960s and now it has declined to three. What is going on is catastrophic.''Exploration is going down because those wells you are seeing were based on exploration we have done in the past. If we dong start aggressive exploration now, and delaying the decision to put them on stream, we have future that may be jeopardized.'I don't want to be the last generation that will experience exploration in Nigeria, there is necessity for the authority to take a decision that will harness instant exploration. There is need to promote aggressive exploration because production is cash flow basically, but exploration is the future. Compared to Brazil, Nigeria's future is not as easy because there has been no reserve replacement.'Besides, the Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCO), Chike Onyejekwe said Shell has done a lot of investment in the industry as well as pioneering some technologies that have significantly boost the industry performance, but noted that there is need for a stable operating environment.He said: 'We are proud of these initiatives and we would like to do more. But we need a stable environment. The legal, commercial and regulatory frameworks are around and any industry will either be a dampener or an enabler to the growth of that industry and the deepwater cannot be an exception to this rule.'Investors don't like uncertainties. They want stable terms and conditions. That's particularly true in energy, where projects lead time are sometimes ten year long and facilities operate for decades. Investors need the rule of law and respect for contracts. Rules that allow investors to investors to compete fairly in the market. They want good incentives and fair balance risks and rewards.'I believe the PIB is central to Nigeria and in particular to deepwater offshore exploration and production activity. Recent events suggests that the government is about to redouble efforts at getting the PIB passed. This is a good news. An investment friendly bill will enable substantial coordination, will hold immense and enduring benefits for Nigeria, the oil and gas industry and of course Shell,' he said.
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