{"id":9932,"date":"2025-09-04T21:08:57","date_gmt":"2025-09-04T21:08:57","guid":{"rendered":"https:\/\/naphtalipmltd.com\/agpc\/?p=9932"},"modified":"2025-09-04T21:26:00","modified_gmt":"2025-09-04T21:26:00","slug":"engr-effiong-okon-speaks-at-2025-nigeria-oil-gas-outlook","status":"publish","type":"post","link":"https:\/\/naphtalipmltd.com\/agpc\/engr-effiong-okon-speaks-at-2025-nigeria-oil-gas-outlook\/","title":{"rendered":"Engr. Effiong Okon Speaks at 2025 Nigeria Oil & Gas Outlook"},"content":{"rendered":"\n

At the recently concluded 2025 Nigeria Oil and Gas Outlook Conference in Lagos, Engr. Effiong U. Okon, FNSE, Managing Director of ANOH Gas Processing Company, joined distinguished panel to discuss one of the most pressing issues in Nigeria\u2019s energy landscape: Exits, Divestments, and the Rise of Indigenous Players in Nigeria\u2019s Oil and Gas\u201d<\/em><\/p>\n\n\n\n

Across a wide-ranging conversation, he addressed financial and infrastructural challenges in midstream gas development, the implications of IOC divestments, and the strategic shifts required for Nigeria\u2019s indigenous companies to succeed.<\/p>\n\n\n\n

On People as the Greatest Asset<\/strong><\/p>\n\n\n\n

In his opening his remarks, Okon was emphatic about what he sees as the foundation of success in oil and gas: people!<\/p>\n\n\n\n

He said, it\u2019s about people. People are your greatest asset. If you have the right people, they can put the right financial solutions in place and the right technical solutions too.\u201d<\/p>\n\n\n\n

He warned, however, that while IOC\u2019s invested heavily in talent development, indigenous companies often focus only on cash returns, with very few taking the issue of people investment seriously.<\/p>\n\n\n\n

\u201cMost indigenous companies don\u2019t spend on people. They don\u2019t invest in people. For them, it\u2019s about the cash \u2014 the challenge is they raised funding as debt or equity to acquire these assets, so it is obvious that this comes with enormous financial challenge and no business strives without financial robustness. But my biggest concern is that the wave of talent that was developed by the IOC\u2019s over the last 50 years is aging and fading out fast as these IOCs rationalize their global portfolios with some divesting from certain jurisdiction resulting is loss of traction on recruitment, talent identification and development.<\/p>\n\n\n\n

How are we going to fill that gap?\u201d For Okon, the future depends on deliberate investment in human capital: building, training, and nurturing the next generation of professionals who will drive Nigeria\u2019s oil and gas growth. This an area the indigenous, independents, marginal field operators, service companies and National Oil Company need to do more deliberately. <\/p>\n\n\n\n

\"\"
Engr. Effiong Okon stressing a point during his presentation<\/figcaption><\/figure>\n\n\n\n

On Financial and Infrastructural Challenges<\/strong><\/p>\n\n\n\n

When asked about the unique hurdles in financing and developing large-scale gas processing plants, Okon drew from his experience leading the Assa North Gas Project in Imo State<\/strong>.<\/p>\n\n\n\n

\u201cThis is really about finance and infrastructure. When the IOC\u2019s came to Nigeria, they built end-to-end systems \u2014 Shell in East and West with Export Terminals in Bonny and Forcados, Chevron in Escravos, Total in their own hub. But today, most of that integrated infrastructure is now broken into different segments and sold separately during the asset\u2019s divestment, except for the recent SPDC sale to RAEC, ExxonMobil shallow water business sold to Seplat and Eni business sold to Oando Energy Resources, where some degree of the integrated infrastructure was preserved. So, when you buy in, you inherit all the complexities.\u201d<\/p>\n\n\n\n

He recalled the difficulty his project faced with the delayed OB3 pipeline:<\/p>\n\n\n\n

\u201cImagine putting almost $850 million into the ground, and then your export route isn\u2019t ready. It is painful \u2014 very hard from a finance point of view. The banks are calling, restructuring repayments; you can\u2019t just sit idle. We had to quickly develop an alternative through NLNG, partnering with Oando Resources. That saved the early monetization phase of the investment.\u201d<\/p>\n\n\n\n

Okon explained that without control of infrastructure, projects remain vulnerable. \u201cYour business is only as strong as its weakest link,\u201d he said, emphasizing collaboration and leveraging existing assets as critical strategies.<\/p>\n\n\n\n

On financing, he recounted how ANOH raised nearly $780 million through a mix of equity from NNPCL and Seplat Energy PLC, alongside syndicated debt from seven banks. He also flagged currency risks as constant pressure:<\/p>\n\n\n\n

\u201cIn the midstream gas business, the agreements contracts are normally in dollars, but payments often come in naira for gas sales into the domestic market. Lenders don\u2019t want naira due to volatility. That\u2019s why condensates are so important \u2014 they provide dollar revenues to support repayment\u201d.<\/p>\n\n\n\n

He summarized the midstream financing playbook in three points:<\/p>\n\n\n\n

    \n
  • Infrastructure is a huge challenge \u2014 collaboration is key.<\/li>\n\n\n\n
  • Financing requires innovation and strong partnerships.<\/li>\n\n\n\n
  • Currency risks must be mitigated with dollar-earning streams.<\/li>\n<\/ul>\n\n\n\n
    \"\"
    Engr. Effiong Okon 6th<\/sup>\u00a0left with other panelists after the presentations<\/figcaption><\/figure>\n\n\n\n

    On IOC Divestments and Midstream Opportunities<\/strong><\/p>\n\n\n\n

    Turning to the much-debated IOC divestments, Okon took an optimistic view:<\/p>\n\n\n\n

    \u201cI think this is the best thing that has ever happened to Nigeria. The IOC\u2019s were never really interested in national interest \u2014 look at gas-to-power. Nigerians weren\u2019t paying for power, so why would they invest? Now Nigerians are beginning to believe in Nigeria. We\u2019re taking our destiny into our own hands.\u201d<\/p>\n\n\n\n

    He cited recent growth in midstream projects, including LPG deliveries directly into the domestic market and new FLNG initiatives.<\/p>\n\n\n\n

    \u201cThe potential is massive. Nigeria has about 600 TCF of undiscovered gas in addition to the 209 Tcf of discovered gas and we are just scratching the surface of this huge resource base that has transformed other economies like the US, Qatar, Australia, Russia where investment in gas has transformed their economy and it is cleaner than oil so good for sustainability\/ESG. From my experience as a reservoir engineer, this terrain is more gas-prone than oil-prone. With our people still in energy poverty, there\u2019s no better time than now\u201d.<\/p>\n\n\n\n

    On What Indigenous Players Need Most<\/strong><\/p>\n\n\n\n

    When asked whether financial, technical, or operational capacity was most essential, Okon reframed the debate.<\/p>\n\n\n\n

    \u201cIt\u2019s hard to pick just one. For me, it\u2019s about long-term excellence. Oil and gas is a long-term business \u2014 it takes about 3 to seven years before you even begin recovering investments. The typical Nigerian businessman wants money today and returns tomorrow. That\u2019s why many fail. What we need is patience, discipline, and excellence in all areas (operational, technical, financial, regulatory, governance, functional, etc.)  over the long term.\u201d<\/p>\n\n\n\n

    He stressed that long-term excellence requires competent boards, strong management, and strategic discipline. \u201cYou can\u2019t just raise finance and buy private jets when the funds are meant to execute annal work programme and budgets to deliver value to all stakeholders,\u201d he warned. \u201cExcellence means become the best at delivering on cost, value, and sustainability \u2014 consistently.\u201d<\/p>\n\n\n\n

    On Project Prioritization and Stakeholder Engagement<\/strong><\/p>\n\n\n\n

    Okon also weighed in on how projects are prioritized in a competitive global environment.<\/p>\n\n\n\n

    \u201cIf you work for an IOC, you\u2019re looking at a global portfolio \u2014 deciding between Guyana with 21 billion barrels, or Nigeria like for the ExxonMobil case, or elsewhere. But indigenous companies are plugged into national interest. We don\u2019t wait for decisions from The Hague or Houston. That\u2019s an edge we have.\u201d<\/p>\n\n\n\n

    Yet, he cautioned, stakeholder engagement remains the true make \u2013 or – break factor.<\/p>\n\n\n\n

    Reflecting on ANOH\u2019s operations in Imo State, he said: \u201cWe\u2019re operating in one of the most volatile parts of Nigeria, but we\u2019ve not had a single security or community incident. Why? Because even the young man from the small Assa village where our gas plant is being constructed has a seat at the table for dialogue and engagement, we listen and have honest discussions no matter how difficult. Everyone\u2019s concerns matter \u2014 jobs, contracts, inclusion. Once you shut out any stakeholder, you\u2019re asking for trouble\u201d.<\/p>\n\n\n\n

    On the Role of Young People<\/strong><\/p>\n\n\n\n

    Okon expressed confidence in the Nigeria\u2019s youth. \u201cToday, you see young startups developing IT solutions \u2014 even for pipeline security. These are smart, hungry, innovative entrepreneurs. Yes, there are cybersecurity threats, but I\u2019m not worried about our young people. They\u2019re already stepping up.\u201d<\/p>\n\n\n\n

    Conclusion<\/strong><\/p>\n\n\n\n

    In closing, Engr. Okon reiterated his central theme: people and long-term excellence.<\/p>\n\n\n\n

    \u201cAt the end of the day, it comes back to people. They are the ones who build systems, secure financing, and drive strategy. If we invest in people, pursue long-term excellence, and align technology with strategy, Nigeria\u2019s indigenous players can truly rise to the occasion\u201d, he concluded.<\/p>\n\n\n\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

    Exits, Divestments, and the Rise of Indigenous Players in Nigeria\u2019s Oil and 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