Pan Ocean Oil Corporation (Nigeria) Limited has signal commitment to upscale its investment portfolio in Nigeria’s energy industry.
The oil firm is intensifying activities around three of its key projects, the Amukpe-Escravos Pipeline Project (AEPP), the Ovade-Ogharefe Gas Processing Plant Phases I & II and OML 147 Early Production Facility at Owa-Alidinma which analysts see as potential game changers in the oil and gas industry.
In spite of repeated episodes of recessions and major dips in oil price during the construction phase of the projects, Pan Ocean remained resolute to delivering on the projects, raising funding from public and private sources in order to berth the projects.
The Amukpe-Escravos Pipeline is a 67-kilometre x 20 inch project. A tamper-proof pipeline designed the to curb theft, it is a low-risk underground pipeline that is capable of evacuating crude oil from Amukpe to Escravos Export Terminal, with capacity to deliver 160,000 barrels of crude oil per day.
Pan Ocean was the Nigerian company that committed resources to building the AEPP pipeline when constant vandalism and downtime made it difficult for the Trans Forcados pipeline to complete the task of delivering national imperatives in the face of realities at the time.
The Ovade-Ogharefe Gas Processing Plant Phases I & II also undertaken by Pan Ocean was designed to supply lean gas to the NIPP power plant located at Ihovbor, Edo State, and liquefied petroleum gas to households across Nigeria.
With a processing capacity of 200 million standard cubic feet per day and 29 storage tanks, the facility was conceived with the view of reducing gas flaring and increasing power supply in Nigeria in an era when indigenous and foreign oil companies paid lip service to the Gas Master Plan of the federal government. Pan Ocean’s commitment to domestic gas supply and the integrity of the environment has not been in doubt.
Much like the two other projects, the OML 147 Early Production Facility was conceived by Pan Ocean to profitably increase national crude oil output and contribute to the local communities that border the project. When fully operational, the project is expected to process 11,000 barrels of crude oil and 90 million standard cubic feet of gas daily, according to a statement reported by Bloomberg in 2019.
Like many projects within and outside the oil and gas industry, delivery dates of these projects have delayed because of paucity of investable funds, however the projects remain viable and relevant to strategic national energy targets.
Similar to Pan Ocean’s three projects, the Lagos Light Rail project has missed several delivery date targets and its funding needs have varied from the original plan, however the project is still considered a national priority because of the value it will deliver upon completion. Therefore, why is Pan Ocean being penalised for her projects having not reached maturity? Surely, there should be no penalty for being a committed Nigerian company.
From all indications, Pan Ocean remains committed to the development of the oil and gas industry in Nigeria. In the wake of the outbreak of Covid 19, Pan Ocean’s top management noted that “as a responsible organisation, we must be proactive in the drive to curtail the spread of the virus and protect our most vulnerable asset.”
Also, the Chief Operating Officer of Pan Ocean, Mr. Jide Ishola charged “all employees and community neighbors to comply with preventive procedures and best hygiene practices recommended by WHO, National Centre for Disease Control (NCDC) as well as directives and guidelines from both state and federal health ministries,” thus underscoring his commitment to due process and rule of law.
Pan Ocean was incorporated in 1973 as an exploration and production company and has recorded a number of firsts in the oil and gas industry. Pan Ocean was the first indigenous company to enter into joint venture relationship with the Nigeria National Petroleum Corporation (NNPC) and was at the forefront of monitising Nigeria’s gas wealth through investment in gas processing and distribution infrastructure.