Mshelbila, NLNG CEO, Drives Greater Opportunities For Indigenous Players In The Onshore And Shallow Water Fields

Mshelbila

OpenLife Nigeria reports that in line with the commitment to drive opportunities for indigenous players in the onshore and shallow water fields, Managing Director and Chief Executive Officer of Nigeria Liquefied Natural Gas Limited, NLNG, Dr. Philip Mshelbila, has accentuated efforts to increase local participation and ownership, which can drive economic empowerment, job creation, and the development of local expertise in the sector.

Available information to OpenLife indicates that Mshelbila and his management team are marshalling strategic and encouraging policies favourable to local players.

It would be recalled that in mid November, Mshelbila, at the 42nd NAPE Annual International Conference & Exhibition in Lagos, expressed optimism that ongoing divestments by International Oil Companies (IOCs) from onshore and shallow water fields will enhance feedstock gas supply, allowing it to achieve production capacity.

He explained that NLNG’s gas feedstock supply only meets about 60 per cent of its potential output, stressing that the primary constraint facing the company remains gas supply.

He noted that the company relied on IOCs operating in the deepwater, independents, and other indigenous companies in the upstream sector to exploit the country’s natural gas reserves to evacuate more gas to their plants.

Mshelbila emphasised that the divestment presents an opportunity for increased local participation and ownership, which can drive economic empowerment, job creation, and the development of local expertise.

He added that Nigeria can unlock its gas resources’ full potential by investing in a resilient gas supply chain through pipeline network expansion, security measures, and a transparent regulatory framework in meeting domestic energy needs while contributing to climate goals.

“In each of the trains we’ve built, we secured commitments from our gas suppliers regarding their future investments and delivery. Yet, we continue to experience delays in gas delivery; I think the current divestment environment can be a great opportunity to address this issue.

“Initially, we were supplied by our shareholders Shell, ENI, and Total; but now we’ve shifted focus to third-party gas suppliers. We’ve recently signed agreements with ExxonMobil and are actively engaging with other third-party suppliers to diversify our gas sources,” he said.

Mshelbila, who was represented at the event by the Manager of Plant Integrity Assurance at NLNG, Henry Wilcox, stated that in ensuring sustainable production and economic growth, there is a need to focus on the expansion and development of the oil and gas sector.

He added that the nation’s potential of 37 billion barrels of proven oil reserves and over 200 trillion cubic feet of natural gas must be transformed into opportunities for citizens as population growth and economic development will drive energy demand in the coming decade.