Oil and Gas Sector

Stakeholders raise alarm over safety in oil, gas operations

As BPP decries the impact of declining crude oil revenue on projects devt

Stakeholders in the oil and gas sector in Abuja, yesterday, raised concerns over safety issues in the country’s petroleum sector, especially midstream and downstream.

From August, last year, about 30 incidents have occurred in the sub-sector, killing about 60 people and leaving 62 others with injuries.

Although the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) said it was eyeing zero accidents and fatalities, the downstream sector has been in the eye of the storm with repeated gas and tanker explosions.

Speaking at the opening ceremony of the Midstream and Downstream Petroleum Industry HSE (Health, Safety and Environment) Managers’ Forum, the Chief Executive of NMDPRA, Ahmed Farouk, admitted that safety issues remained a serious challenge in the sector, stressing that unless it is dealt with, life and property would remain in danger.

He noted that a healthy and environmentally conscious workforce and a safe workplace are a must for oil and gas businesses to thrive in Nigeria.

Farouk, who was represented by the Executive Director, Hydrocarbon Processing Plants, Installations and Transportation Infrastructure at the agency, said concerns about global warming, exponential improvements in the efficiency of renewable energy alternatives, and the policies of oil pricing have combined to post an existential threat to the global petroleum industry.

He said the development should compel the oil and gas industry to become careful in terms of the environment, health and safety issues.

He also called for innovative and practical solutions to the challenges of HSE, noting that oil and gas operations must become sustainable.

“As sweet as Nigeria’s crudes are known to be, globally, we have recently lost our most valued customers, and our gas buyers are themselves now competing with us in the same market space as suppliers.

“All of these point to one fact: if Nigeria is to continue to benefit from its vast petroleum resources, now, more than ever, is the time to build sustainability into our oil and gas value chain as well as management of its wastes,” he said.

ALSO, the Director-General, the Bureau of Public Procurement (BPP), Mamman Ahmadu, decried declining revenue from crude oil, saying it is affecting development of approved projects.

He regretted that the drop has put pressure on existing insufficient allocation for national development, saying agencies must imbibe cost effectiveness to avoid abandoned projects.

Ahmadu, who spoke in Enugu at a capacity-building workshop organised for the Tertiary Education Trust Fund (TETFund), beneficiary institutions and Bureau for Public Procurement, stated that the exercise was part of efforts to promote accountability, transparency and efficiency for effective and timely delivery of TETFUND projects.

Represented by the Director of, Special Procurement Department, Eze Obasi, he said the essence of the session was to equip participants with vital skills necessary to ensure good procurement practices are entrenched, even as he regretted that some institutions engaged contractors who do not possess proper manufacturer’s authorization to procure equipment.

Source: www.guardian.ng

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