Could you please introduce Pan Ocean Oil Corporation?

Pan Ocean Oil Corporation (Pan Ocean) traces its roots back to a meeting between Nigeria’s first representative to the UN (who held the license for OML 98) and the New York-based Pan Ocean Oil Corporation. This led to the incorporation of Pan Ocean Oil Corporation (Nigeria) in 1972. This was followed by the discovery of commercial quantities of hydrocarbons in 1976. 

During the 2007 bid round we acquired additional assets, further bolstering our portfolio. However, the transformative period for Pan Ocean occurred between 2006 and 2010. This period was marked by challenges, particularly the shutdown of the Trans Forcados Pipeline (TFP) in Nigeria. Faced with this adversity, our leadership was tasked with finding innovative solutions to sustain our operations and address emerging issues such as militancy and aging infrastructure. The solution was to diversify into natural gas, which at the time was treated almost like a waste product. This led to the inception of our gas facility project, which positioned Pan Ocean as a pioneer in gas compression and commercialization.

By 2010, we had achieved a significant milestone by becoming the first indigenous oil company to successfully commercialize gas and sign a Gas Sales Agreement (GSA) with the Nigerian government, marking the genesis of the gas-to-power initiative. Moreover, our efforts were recognized on a global scale as we qualified for the Clean Development Mechanism (CDM) under the Kyoto Protocol, further underscoring our dedication to sustainability. Additionally, we embarked on infrastructure projects such as the Amukpe-Escravos pipeline (AEP), which would alleviate the issues caused by the aging TFP. This project not only enhanced operational efficiency but also fostered community engagement through transparent collaboration and shared benefits.

How has Pan Ocean navigated security issues and prevented pipeline losses? 

The AEP, like many infrastructure projects in Nigeria, faced security challenges, including theft, vandalism, and operational disruptions. Following the shutdown of the TFP, we realized that traditional security measures were inadequate, prompting us to engage directly with the communities along the pipeline route.

Through extensive dialogue and mutual agreements, we established partnerships aimed at securing the pipeline while ensuring community participation and support. This yielded positive results, with the AEP pipeline maintaining remarkable efficiency rates of around 97-98% today. 

What role will gas play in Nigeria’s energy transition and Pan Ocean’s future?

Gas plays a pivotal role in Nigeria's energy transition, presenting significant opportunities for both economic growth and environmental sustainability. Pan Ocean fully embraces the ‘Decade of Gas’ vision and views gas as a catalyst for economic revitalization and energy security. Although Nigeria accounts for 38% of Africa’s gas reserves, only 5% of the capital investment in gas occurs in Nigeria. The sector remains underinvested, representing an untapped potential for growth.

Pan Ocean intends to capitalize on this opportunity by expanding its presence in the gas sector and leveraging its expertise and infrastructure to drive meaningful impact. 

What steps does Pan Ocean propose for the Nigerian government to bolster the oil and gas sector? 
 
Aaddressing security challenges is paramount. A stable operating environment is essential for attracting investment and ensuring uninterrupted operations. We emphasize the need for collaborative security frameworks involving government agencies, local communities, and industry stakeholders to mitigate risks effectively.

We recognize the importance of a conducive regulatory and economic environment for the sustainable growth of Nigeria’s oil and gas sector. We advocate for a balanced fiscal regime that encourages exploration, development, and investment while ensuring fair returns for stakeholders. Clarity and consistency in fiscal policies are vital to instilling confidence among investors and facilitating long-term planning. A supportive monetary policy framework that ensures adequate liquidity and facilitates foreign exchange transactions is also essential for sustaining investment momentum. 

Can you outline Pan Ocean's priorities for the coming years?

Energy diversity is something that excites us. We remain committed to expanding our presence in renewable energy, exploring opportunities in hydrogen, and investing in R&D to drive advancements. Overall, we will always go back to what is a fundamental principle for us, which is having sustainable relationships with our partners and with our communities, ensuring that their situation is continuously enhanced. This symbiotic relationship that we have will always be the gold standard for us.