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N I G E R I A

Project:

Institutional cooperation

Cooperating institution:

Department o Petroleum Resoures (DPR)

Goals and objectives:

The objetive o the institutional ooperation is to establish a base or

transer o knowledge and experiene between Norwegian petroleum

authorities and the petroleum authorities o Nigeria. The long-term

institutional ooperation within the ramework o this programme will

support the development and ontrol within the Oil and Gas setor. The

programme will over petroleum poliy, methodology or administration

and tehnology. A strategy based on existing poliy, struture oradministration and tehnology, is established.

Project period: 2003 - 2007

The programme

Resoure management Prodution monitoring Metering Data management Deep water tehnology Health, saety and environmentThere is a need or support to assure the ull implementation o the issued

Regulations and Guidelines. There is also a need to ensure that the skills

transerred both at the organisational and individual levels are put to use. It

is the intention to transer the relevant parts o the Norwegian experienes

into the Nigerian petroleum governane proess.

Total budget:

Norway: NOK 15 mill

Nigeria: USD 300 000

contat:

Mr. D. O. Irrehukwu, Head Tehnial Servies

Mr. Olu Akinyosoye, Diretors OeNPD: Mr. Steinar Nj, Projet Diretor

steinar.nja@npd.no

cOUNTRY FAcTS:

Ofcial Name:

Federal Republi o Nigeria

Capital:

Abuja

Chie o state:

President Olusegun Obasanjo

(sine 29 May 1999).

The president is both the hie o

state and head o government

Population:

131 859 731 (2006)

Petroleum sector, key fgures:

Average oil prodution:

2.52 mill bbl/day (2005)

Annual gas prodution:

64.8 bill m3 (2005)

Organisation o the

petroleum sector:

Ministry o Petroleum Resoures,

Poliy and fnal regulatory powers

Department o PetroleumResoures (DPR)

Liensing, supervision and

ontrol o the petroleum setor

Nigerian National

Petroleum company

State owned autonomous

entity

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Ativities in 2006The ativities perormed during 2006 were based on the

plan adopted during the PSc meeting held in Stavanger

in Otober 2005 and nalised during the planning meet-

ing in Lagos in February 2006. Due to the reorganisation

o DPR in 2005, the new diretor o Mr. Tony chukwueke

wanted to emphasis the ollowing areas or urther

ooperation.

1. Gas projets ativities

2. Data Management ativities

3. Post-Mortem o the 2005 bid proess

4. Identiation o skill-gaps in DPR

5. HSE ativities

Regarding Gas projets ativities, a seminar was

onduted in Port Harourt late 2004. Based on the

reommendations rom this seminar several related

ativities have been perormed in DPR and a dediated

department has been established to ous on this issue.

The aim is to establish a sound gas poliy or Nigeria in

order to make an eient utilisation o gas produed

and to redue faring. In this regard, representatives o

DPR have been introdued to the Norwegian gas poliy

and the experiene gained in Norway in onnetion

with gas prodution and utilisation. In November 2006a workshop was held in Lagos disussing topis related

to regulations or gas prodution, faring, transporta-

tion, and metering. The workshop was attended by 15

representatives rom DPR and 5 rom NPD. During this

workshop topis related to pre-liene ativities and

prodution monitoring were also disussed. A set o

reommendations or urther ooperation in this area

have been drated. A metering audit at the gas reeiving

ailities on Bonny Island, and a workshop on Monitoring

o Deep Water Operations have been planned or some

time. However, due to diulties with timing and nees-

sary arrangements these, ativities are still pending.

Data Management ativities are onsidered to be one o

the most important ooperation ativities. Sine oop-eration started in year 2001 the data management group

in DPR has been working on adopting a sound poliy or

inormation and data handling in DPR. A digital platorm

or inormation has been established both as a basis or

ativities inside DPR and or the planned ooperation

with the oil ompanies or storing seismi and tehni-

al well data. Systems and methodologies or quality

ontrol, aess and retrieval o petroleum administrative

data are in plae. Solutions are based on experiene

gained in Norway as well as in many other oil and gas

produing ountries. Formulating the data management

strategy also inluded proposing onrete modiationso the petroleum regulations. During the spring 2006

training o 10 representatives rom DPR in use o GIS

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(Geographial Inormation System) took plae in the

London area. In August a Workshop on pipeline data

was onduted in Stavanger. During this workshop our

representatives rom DPR partiipated. Later on, in

Otober, two experts rom NPD worked together with

DPR sta in Lagos to assist in setting up the right

proedures or data storage and use o ultural data.

In onnetion with the Nigerian 2005 Liense Bidding

Round, in August 2005, Mr. Willy Olsen rom Norway

served as observer during the bidding proess that

took plae in Abuja. An assessment o the 2005 bid

proess was onduted in Lagos late January 2006.

During this assessment representatives rom

several oil ompanies and embassies in Nigeria part-

iipated, inluded the British, canadian and USA

embassy. In general the assessment proved that the

bidding proess had been open and transparent. How-

ever, some points or improvement were noted and will

be adopted by DPR or uture bidding proesses.

During 2005 a reorganisation took plae in DPR.

The intention was to make the organisation more

up-to-date and more oused on the important

hallenges aing Nigerian petroleum administration.

NPD was in that regard asked to assist in perorming

an Identiation o skill-gaps in DPR. On behal o NPD,

Petrad oered to perorm an evaluation o the new

organisation and drated a sope o work or this

purpose. However due to lak o data and unertainties

onneted to the new organisation the projet has

not yet been ativated as intended.

HSE (Health, Satety and Environment) is an important

part o the NPD/DPR ooperation. Several ativities

in that regard have been onduted under the pro-

gramme. A new strategy or adoption o HSE measures

and monitoring o the petroleum ativity has been

established and urrent regulations will be revised a-

ordingly. In August 2006 a workshop in Stavanger was

organised and ve representatives rom DPR attended.

The workshop was ombined with speial saety-

training ourse onduted by Falk- NUTEc. The results

o the workshop and the training gave relevant inor-

mation and input or the DPR partiipants to be utilisedwhen drating new HSE regulations or the Nigerian

petroleum ativity. A workshop and training arrange-

ment or Oil Spill Monitoring in Norway was originally

planned or. However, due to time onstraint this

ativity has been postponed.

In onnetion with the assessment o the 2005 bid

proess, a planning meeting was held in Lagos late

January 2006. Several ativities were then sheduled to

take plae during the rst hal o the year. However due

to time onstraint some ativities were postponed.

A PSc Meeting was arranged in Lagos late May 2006.

In that onnetion the work programme or the rest

o the year was deided. It was also deided to

ask or a ontinuation o the programme or 2007

within the limit o unds granted.

The ontinuation was deided in a meeting with

representatives rom the Norwegian Embassy in Nigeria

and NORAD held in Oslo early June.

Plans or 2007Reommendations rom the 2006 ativities have to

a large degree ormed the basis o the 2007 plan.

A planning meeting was organised in Stavanger late

January this year. As a result o the meeting the

ollowing ativities are planned:

1. Training Need Assessment (TNA).

This ativity is ited as the main priority or 2007

and is planned to start February 2007

2. Data Management.This ativity will inlude review & validation o previous

work inluding new digital reporting ormats, perorm-

ing a pipeline modelling workshop, training on multi

user database orms & reports as well as a study o ESI

mapping & Oil spill monitoring system in Norway.

3. Resource Management.

This ativity will inlude workshop on deepwater

operations monitoring involving regulators and

operators in Nigeria. This will be ollowed by deep-

water operations training attahment in Norway.

Also aquisition o appropriate sotware/ hardware

or resoure assessment, projet analysis & eonomievaluation or rude oil and gas are being evaluated.

compatibility between reservoir evaluation &

eonomi evaluation pakages are required.

4. Gas and metering.

To build on the 2006 November seminar this ativity

will start with a workshop & interative session in

Nigeria on open aess poliy, gas priing & tari

system. Further on it was agreed that NPD should

evaluate and perorm Qc o gas regulation/ guide-

lines being developed by DPR. Also an attahment

programme with NPD/Gasso or hands-on trainingon the Norwegian solutions will be proposed. Metering

will also be a part o this workshop. DPR aims at

instituting omprehensive and reliable systems or

metering. Gas measurement issues, alloation, and

audit proedures are regarded to have rst priority.

5. HSE.

The development o guidelines & standards or saety

praties or oil & gas industry in Nigeria is ontinuing.

Representatives rom PSA are asked to evaluate drat

regulations beore urther training and a possible

attahment programme is deided.