Distinguished guests,
Dear Seminar Participants,
It is a great pleasure for me, on behalf of the Norwegian Government, to welcome you to this three-day seminar on Subsea Technology here in Lagos. The interest from the Nigerian side for the seminar has been overwhelming, and I am glad that so many Norwegian, Nigerian and international specialists have been able to make the trip to Nigeria.
Let me therefore right at the outxet thank INTSOK and DPR for making the seminar a reality. Being Norwegian, I wish particularly to thank Mr Einar Holmefjord and Mr Moses Kragha of INTSOK. Your relentless efforts in preparation of the seminar illustrate why INTSOK is such an important partner for the Norwegian Government in internationalising the Norwegian petroleum industry.
INTSOK was founded by the Government and the Norwegian oil and gas industry in 1997. It has grown significantly and now represents some 150 companies in the entire value chain.
Ladies and Gentlemen,
Norway and Nigeria are two very different places, but we have one very important thing in common: we are both major petroleum producers. Last year Norway and Nigeria were respectively the eighth and tenth biggest producers of oil in the world, and the third and fifth biggest oil exporters. In both countries, the production and exportation of natural gas is becoming more important. And in both countries, petroleum exploration and production is moving into increasingly deep waters.
Moreover, in Norway as well as in Nigeria, the government is heavily involved in petroleum activities in order to protect the national public interest. We thus have a common interest in promoting cost-effective, safe and socially responsible exploration, in environmental protection and in making sure that the petroleum revenues are a blessing for the nation, not a curse.
However, there are also significant differences between Norway and Nigeria as petroleum producers. While Norwegian oil production is about to peak, the Nigerian one is still on the increase. Nigeria will indeed soon overtake Norway as an oil producer.
Moreover, compared to Norway, Nigeria has been slow to make use of her considerable natural gas reserves. Norway was the third biggest exporter of natural gas in the world last year, while Nigeria did not figure among the ten biggest gas exporting nations, although she has the seventh largest reserves of natural gas in the world.
However, the rapid development of Nigerian natural gas today is impressive. Nigeria will soon become one of the major exporters of LNG, and natural gas will be used increasingly in the domestic economy.
Another difference between Norway and Nigeria as petroleum producers is that while all of Norway’s resources are located offshore, Nigeria’s exploration activities are only slowly shifting from land to sea. The Norwegian Continental Shelf has long been one of the leading areas in the world for offshore oil and gas development. Norwegian subsea technology is indeed today at the cutting edge as regards efficiency, safety and the environment.
This is why the extensive Norwegian offshore experience should be of great interest for Nigeria. It is indeed why we are here today. One of the aims of the seminar is to share the Norwegian subsea technological experience and knowledge. Thus we hope to help build local capacity and skills so that more Nigerian goods and services may be used in the country’s petroleum-related activities.
The Norwegian experience demonstrates that the oil and gas sector can be a powerful engine for economic growth, for industry and employment, and for enhancing the country’s economic basis. The potential for such development is great also in Nigeria. Oil does not need to be a curse for the national economy. In order to make it more of a blessing, the development of local capacity and local capabilities is crucial. Nigeria has great ambitions in this regard, and we are ready to assist in growing your local content.
But we do not do this for only altruistic reasons. Quite frankly, our promotion of activities like this seminar also reflect the growing interest in the Norwegian petroleum industry to expand its business relations with Nigeria. Therefore we hope and think that both sides will benefit from the exercise.
The seminar, which is financed in part by the Norwegian embassy, is a follow-up of the now well-established co-operation between Norway and Nigeria on petroleum issues. The co-operation is based on a Memorandum of Understanding that was signed during the visit of the Norwegian Prime Minister to Nigeria in February 2000. We want the Norwegian-Nigerian petroleum co-operation to be as practical and close to the ground as possible. It takes place at three different levels.
First, at the governmental level of Petroleum directorates, there is a co-operation on capacity-building regarding resource management, safety and environmental issues.
Second, there is co-operation involving INTSOK and the DPR in order to enhance Nigerian local content. This seminar is an example of this. Another example is INTSOK’s fabrication programme in Nigeria, financed jointly by Norway and Nigeria. The aim is to enhance the expertise of Nigerian fabrication enterprises.
Third, there is co-operation at the level of individual companies on a commercial basis. The Norwegian national oil company Statoil has been present in Nigeria since the early 1990s. Now also the second Norwegian oil company, Norsk Hydro, is gaining a foothold here through its acquisition of the American company Spinnaker Exploration. In addition, a considerable number of Norwegian supply and shipping companies are active in Nigerian petroleum exploration and transportation.
The Norwegian government aims to make more of Norway’s considerable expertise in the management of petroleum resources available to developing countries. The Norwegian embassy in Abuja will soon get an experienced oil and gas advisor who will work exclusively on petroleum-related issues. For me as the new Norwegian ambassador in Abuja, petroleum-related co-operation between our two countries is a top priority.
Part of our effort is to promote transparency, good governance and anti-corruption measures in partner countries like Nigeria. In this connection, I want to take the opportunity to commend the Nigerian government on the progress made.
Norway particularly appreciates Nigeria’s active participation in the Extractive Industries Transparancy Initiative. A major virtue of EITI is that it brings together governments, intergovernmental bodies, corporations, investors and civil society in addressing the challenges and opportunities represented by substantial public revenues from natural resources. Norway, like Nigeria, is committed to making EITI a success.
Nigeria’s last bidding round was a welcome example of the increased willingness to be transparent. The Norwegian observer appointed by the Nigerian government to monitor the bidding was given full access to all relevant information.
On this positive note, I wish to conclude. I am sure you have three very interesting and useful days ahead of you. I hope that at the end of the seminar, you will not be totally exhausted, but have some energy left to help us further extend official as well as business relations between Norway and Nigeria.
Good luck with the seminar!