ENGR. ANTHONY UCHECHUKU OGBUIGWE, FNSE, FNSCHE Chairman, Board of Directors, Centre for Gas, Refining

and Petrochemicals, University Of Port Harcourt

A WELCOME ADDRESSDELIVERED 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 Industriesb. Opportunities and Challenges for Entrepreneurs on Sustainable Gas, Petroleum Refining, Petrochemicals and Fertilizer Productionc. 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