Transcript ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE

ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining
and Petrochemicals, University Of Port Harcourt
A WELCOME ADDRESS
DELIVERED BY
Engr. TONY OGBUIGWE, FNSE, FNSChE,
Managing Consultant of PEJAD Nig Ltd,
Rtd Group Executive Director, Refining & Petrochemicals
Nigerian National Petroleum Corporation
At The
3rd International Conference on Petroleum Refining and Petrochemicals,
(Port Harcourt 2014)
Theme: " Enhancing Employment and Development Opportunities through
Gas, Petroleum Refining, Petrochemicals and Fertilizer Industries"
In
Port Harcourt, NIGERIA
WEDNESDAY, AUGUST 27, 2014
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
Protocols
I am pleased to welcome you all to this year’s conference
with the theme “Enhancing Employment and Development
Opportunities through Gas, Petroleum Refining,
Petrochemicals and Fertilizer Industries”. I congratulate the
University of Port Harcourt for successfully hosting the
maiden edition as well as last year’s conferences, geared
towards sustaining the focus on Refining and
Petrochemicals as an enabler to growing the Nigerian
economy.
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
The organizers have carefully chosen sub themes to
further engender discussion aimed at infusing the
Petrochemical Sector into the Transformational agenda
of the Federal Government in this year’s conference.
Various sub themes meant to showcase the impact of
the Petro-Chemical Industry vis-à-vis its linkages to
the Nigerian economy Include:
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
a. Employment Opportunities through our Gas,
Petroleum Refining, Petrochemicals And Fertilizer
Industries
b. Opportunities and Challenges for Entrepreneurs
on
Sustainable
Gas,
Petroleum
Refining,
Petrochemicals and Fertilizer Production
c. Economic Growth on the back of Gas, Petroleum
Refining, Petrochemicals and Fertilizer Industrial
Sectors.
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
This year’s theme is timely and apt as it captures the enhanced
role of the Petrochemicals and Refining Industry with the
foundation laying and ground breaking ceremony of the new
$1.8 billion Methanol Plant in Ibeno, Akwa Ibom state by Mr
President recently. There was also the commissioning just two
weeks ago of the Seven Energy Gas Plant in Uyo by Mr
President.
These ceremonies demonstrate and underscore the importance
of the gas and petrochemical industry as viable means for
development encapsulated in the Country’s Gas Revolution
with linkages to other sectors.
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
In a report produced by Morgan Stanley in 2012, it was predicted
that Nigeria with a GDP growth forecast for the year 2012 of
6.48% is expected to become an economic power overtaking
South Africa by 2025. That is all history now. When our GDP
was re-based last year 2013, we immediately outstripped South
Africa's economy and became the country with the largest GDP
in Sub Saharan Africa. However we must not become giddy with
glee and celebration as the reality is that unemployment
especially among the youths is still very high. It is currently
estimated that youth unemployment is about 24% and rising.
This trend must be reversed, else we are sitting on a time bomb.
Some young armed robbers broke into the house of one young
man and asked him for money.
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
When he told them he had very little though he was a graduate,
they first beat him up, then gave him N250,000 and told him to go
and buy himself arms so that he could join them as armed robbers
and feed his family. They said that they were doing what they were
doing because they had no job; that he should come and join
them. A very high GDP figure means very little if it does not
translate into jobs and well being for the youths and teeming
masses of our people. What matters is the GDP per capita, where
we stand on the human development index, in quality of life for
our people. This is the challenge for industry and the Government.
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
There are many opportunities for Nigeria to harness and maximize in the
Petroleum Value Chain. If pursued this will significantly improve the
revenue streams from the downstream sector as well as have multiplier
effects on the Nation's economy.
The importance of the petrochemicals sector is therefore obvious given
that Nigeria’s crude export to the US has declined by more than 10 times
over the last 7 years. With the shale oil revolution in the USA, they no
longer have need for our crude oil. In fact they are now exporting
finished products to us. We have found limited relief on offer from
Europe and Asian consumers waiting for a crash in price differentials
before boosting import of the slim crude oil volumes we are still
managing to produce and sell officially in competition with that being
stolen and sold fraudulently.
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
The refining and petrochemical industry provides the catalyst which ensures the
Country's growth and sustainable development through diversifying the
country's revenue stream and growth in other sectors rather us continuing to
depend on costly importation and the resultant drain on our foreign exchange
earnings.
As Industry Players congregate in this year’s conclave, practitioners in the
Petrochemical industry need to address certain key questions:
1. What is Nigeria’s strategy to effectively attain its growth potentials, through
building the required infrastructure associated with the manufacturing industry
that utilize the refined petrochemical raw materials and guarantee its
development in both GDP and Human Capital development?
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
2. How does Nigeria’s inability to implement its development plans, such as
enforcing enabling laws and fiscal regimes hamper its growth of the
Manufacturing sector to utilize the abundant feedstock from refined and
petrochemical products given that Entrepreneurs have migrated to countries
with liberal fiscal regimes, skilled manpower, strict law compliance and good
infrastructural development?
3. When would there be a policy change geared towards improving margins in
order to cover costs and allow for adequate operation and maintenance (O&M)
of the refineries, petrochemical and the distribution infrastructure; that is via
the passage of the Petroleum Industry Bill (PIB) under consideration by the
National Assembly on changes to the ownership structure and business model
of the existing refineries and petrochemicals sector to make them more
commercially driven and encourage investment in new ones?
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
4. What is the impact of the current challenges experienced by the
downstream sector given the level and sophistication of current
vandalism on the feature of Petrochemical Industry in Nigeria?
CONCLUSION
I hope that this conference will come up with recommendations for
evolving a sustainable strategy aimed at addressing these questions in
such a manner that will ensure the profitability of existing and upcoming
ventures and growth of sector in particular and Nigeria's economy in
general and consequently employment generation. I wish you successful
deliberations.
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
The refining and petrochemical industry provides the catalyst which ensures the
Country's growth and sustainable development through diversifying the
country's revenue stream and growth in other sectors rather us continuing to
depend on costly importation and the resultant drain on our foreign exchange
earnings.
As Industry Players congregate in this year’s conclave, practitioners in the
Petrochemical industry need to address certain key questions:
1. What is Nigeria’s strategy to effectively attain its growth potentials, through
building the required infrastructure associated with the manufacturing industry
that utilize the refined petrochemical raw materials and guarantee its
development in both GDP and Human Capital development?
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining and
Petrochemicals, University Of Port Harcourt
The refining and petrochemical industry provides the catalyst which ensures the
Country's growth and sustainable development through diversifying the
country's revenue stream and growth in other sectors rather us continuing to
depend on costly importation and the resultant drain on our foreign exchange
earnings.
As Industry Players congregate in this year’s conclave, practitioners in the
Petrochemical industry need to address certain key questions:
1. What is Nigeria’s strategy to effectively attain its growth potentials, through
building the required infrastructure associated with the manufacturing industry
that utilize the refined petrochemical raw materials and guarantee its
development in both GDP and Human Capital development?
ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE
Chairman, Board of Directors, Centre for Gas, Refining
and Petrochemicals, University Of Port Harcourt