Extracting more value from hydrocarbons will boost Nigeria’s economy, power supply -Ekpenyong

VICTOR EKPENYONG is the founder/CEO of Kenyon International West Africa Company Limited, one of the fastest-growing indigenous companies in the oil and gas industry in West Africa. In this interview with MODESTUS ANAESORONYE he explains his journey into the oil and gas industry, how the Petroleum Industry Act will impact the economy particularly in the area of new investments and power supply. Excerpts:

How did your journey into oil and gas begin?

We started Kenyon International West Africa Co. Ltd in 2015, but before that, I had worked for a few oil-servicing companies where I gained more specific industry knowledge. During this time, I realised that many companies were not interested in customer satisfaction. They would instead, have the customer resolve their issues themselves while they make the money. When the local content law was enacted and for the original equipment manufacturers (OEMs) to remain in business, they needed to work with local partners, so most of those OEMs left the country. To paint this picture well, let me give you the scenario. When OEMs left the country, many oil-producing companies needing repairs would contact them. Instead of the OEMs proffering solutions, they would inform the companies that the model of equipment they are using was already obsolete and should be changed. In contrast, it was only a minor part that could be easily reproduced that had issues. Those days as an employee, I saw companies turn down jobs stating that the equipment was obsolete and they should contact the OEM to get newer models. I would feel so unhappy because I knew we could help customers fix their equipment for optimal production.

This customer satisfaction perspective is a core value for Kenyon International and has enabled us to build a flourishing business in the oil and gas industry. A customer of ours got so endeared to us after we were able to save an enormous cost for him after an OEM had advised them to change a model of equipment that was still durable on the premise that it was old. When the customer contacted us, we discerned what needed to be changed and reached out to a company in the US to swiftly fix and freight it, which worked perfectly well. Funnily, we did this without a Purchasing Order, but the customer was so ecstatic that the job billed to be awarded to another company was awarded to us.

Seeing our customers satisfied is what makes me genuinely happy, and this has helped Kenyon to continue to grow in leaps and bounds.

Have you always wanted to be in this field?

I do enjoy what I do. If I did not enjoy it, I wouldn’t be here. I learned early that money is not synonymous with satisfaction; genuine satisfaction comes from doing what one loves. When you do what you love, you put your energy, resources, and passion into it. Doing this will make the customers happy, and you will generate revenue in return. Money is the exchange of value.

We have enough hydrocarbon reserves in this country, yet we suffer from unstable power supply. When we gain more value from our hydrocarbon extraction, it will stimulate economic growth and boost the power supply

I am always happy whenever Kenyon delivers a successful job to our customers. This is because not just the customers but the NNPC representing our national interest will have more oil and gas production. All citizens feel the ripple effect of our work as the government earns more money and workers are remunerated. This shows the pivotal nature of our work in the economic development of Nigeria. So yes, I have always wanted to do this.

Speaking of oil servicing, the issue of vandalism is not a new threat to the oil and gas industry. How significant is this conversation to our country and the economy?

The issue of vandalism was and still is a massive issue in our nation. That is why I keep suggesting a synergy between all parties involved, i.e. the community, the operators, and the regulators. The regulators should formulate policies that ensure the safety of the environment and the community, and the operators would work on implementing them. Finally, the community will need to be sensitised by the government so they understand that the oil and gas assets belong to all and that they are also stakeholders in the grand scheme of things. Doing this will restore the dignity of the environment and prevent further pollution from vandalism.

Read also: How new gas code will unlock potentials in Nigeria’s domestic gas market

Bearing these three stakeholders in mind, we came up with an idle and isolated well management strategy as a solution to end the indiscriminate pipeline vandalism of idle wells.

One of the effects of vandalism is Oil Spillage, which can further lead to more grievous results. Take for example, the recent Nembe Oil Spillage, reportedly caused by third-party interference. As someone who is an expert in wild well-management and whose company worked on this particular spillage, how can such incidences be avoided?

As mentioned earlier, future spillages can be avoided to a great extent by implementing an idle and isolated well management strategy and a tripartite committee that comprises the regulator, operators, and host communities.

Please explain this robust idle well management plan you speak of and how it can be leveraged to secure and mitigate third-party interference and boost national revenue?

The idle and isolated well management strategy is simply a plan that helps operators keep track of their wells that have not been in use. The process lets them know what wells will need to be left idle temporarily and secure them at the surface and subsurface level. The ones that are to be abandoned so they can be decommissioned and the ones that are to be restored to production. If an idle well is secured subsurface and surface, and criminals try to vandalise it, they would be discouraged if they do not see crude oil flowing from the well. I believe this will contribute largely to restoring the dignity of our country and ensure a cleaner and safer environment for Nigerians.

What are your thoughts about the Petroleum Industry Act (PIA), and how can it boost the Oil and Gas industry to yield a more reformed economic development for the nation on a global scale?

I have acknowledged in several forums that the PIA is the best thing that has happened to the oil and gas industry. The PIA wants to overhaul the entire scheme of things in the sector and create an enabling environment for us to have foreign investors commence businesses in Nigeria. I mean, we need people to come in and invest in Nigeria, especially in gas production, because we have enough reserve. We have enough hydrocarbon reserves in this country, yet we suffer from unstable power supply. When we gain more value from our hydrocarbon extraction, it will stimulate economic growth and boost the power supply. So, without reservation, I believe that the PIA is a force of good that can help boost our economy.

What do you see as the future of oil and gas in today’s world?

The oil and gas industry is, in a way, winding down all over the world. We can see this in the sort of regulations developed economies are making. This is forcing multinationals to rebrand by presenting transition plans for cleaner energies before their licenses can be renewed.

People are moving to renewable energy gradually. Since Climate change is a problem globally and there is a pursuit for cleaner energy, we believe Africa will follow. However, in the interim, Africa may still rely on oil and gas revenue to formulate its transition plans to cleaner energy.