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Majorwaves Energy Report

APRIL 2020, Vol 3 No 4

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Majorwaves Energy Report APRIL 2020, Vol 3 No 4

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Majorwaves Energy Report

APRIL 2020, Vol 3 No 4

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Majorwaves Energy Report APRIL 2020, Vol 3 No 4

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…the coming of black swans Following the price war between Russia and Saudi Arabia, the negotiations across the globe championed by the U.S. and OPEC+ have been unparalleled but remain a mere scratch on the surface. The world has lost 25-30 million b/d in demand due to COVID-19, and has already registered an estimated glut of 1.8 billion barrels of crude oil. There’s an urgent need to mop up the glut and make cuts that will surpass the loss in daily demand. However, if analysis from Wood Mackenzie, is anything to go by, then China’s strategic and commercial petroleum reserves could reach 1.15 billion barrels sometime this year, equivalent to 83 days of oil demand, up from 900 million in 2019 and just 200 million barrels in 2014. That’s some succour. Based on the World Health Organization Situation Reports (SITREPs) of 24 March, London School of Hygiene and Tropical Medicine (LSHTP) estimates that, almost all African countries are likely to reach 10,000 cases in May, after hitting the first thousand in the beginning of that month. It stated that, these numbers are largely synchronised continent-wide, but real burdens are certainly higher than reports. It further added that countries like Egypt, Algeria, Nigeria and Senegal are expected to reach the first 10,000 cases of Covid-19 by mid-April, along with Morocco, South Africa and Tunisia. According to LSTHP’s model, around the end of April, the first 10,000 cases will be reached in a group of countries that includes Ethiopia, Kenya, Namibia and Equatorial Guinea. Though the global death toll stands between 2-3 per cent, Africa has so far registered 4-5 per cent average from all confirmed cases across the continent. This tells the continent is on the cusp of an outbreak that will overwhelm existing isolation centres and facilities if not taken seriously. As the continent battles the pandemic, its situation is worsened by the fall in oil price. The oil producing nations will either reach for their reserves or go borrowing to meet obligations in the interim. As they do that, transparency is key. A joint IMF and World Bank paper recently highlighted that sub-Saharan countries should dedicate efforts to sustain their public debt by improving the quality of debt transparency and management. The recent cases across Africa of hidden debts highlight low capacity in debt reporting, weak legal framework and monitoring of public debt in African countries. These are indications that the continent is highly vulnerable to the coming of some black swans.

Jerome Onoja

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Editor’s Note Publisher Joshua Bretz Managing Editor Jerome Onoja Editor Margaret Nongo-Okojokwu Business Development Stanley Etim Taiwo Olamilekan Amicable Aluu Production Solomon Obande Toma Stephen Research Analyst Simon Olanipekun Correspondents: Lagos Ikenna Omeje Abisoye Vincent Emeka Enunwah Daniel Terungwa Port Harcourt Arit Dan Emmanuel Akporhouno Stella Odogu US Omaya Joko UK Kunle Kazeem

Majorwaves Energy Report is published by Majorwaves Communications, 25B, Adebayo Doherty Street, Lekki Phase 1. Lagos Phone: +2349035477966 Email: info@majorwavesenergyreport.com www.majorwavesenergyreport.com

Majorwaves Energy Report

APRIL 2020, Vol 3 No 4

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INDUSTRY NEWS

Sylva Hands Over Ambulances to Sec. to Government of Federation … NNPC Announces Additional N10billion Petroleum Industry Donation to Fight Pandemic

he Minister of State for Petroleum Resources, Chief Timipre Sylva, has handed over five ambulances to Secretary to Government of the Federation, cum Chairman of the Presidential Taskforce for the Control of Coronavirus (Covid-19), Boss Mustapha. A release today in Abuja by the Nigerian National Petroleum Cor p or ation (NNP C) G roup General Manager, Group Public Affairs Division, Dr. Kennie Obateru, quoted the corporation’s Group Managing Director as saying that the ambulances marked the first instalment of Industry collective donation of N11billion, now shored up to N21billion. Aiteo Exploration and Production Company Limited, an NNPC Joint Venture Company partner donated the ambulances. Handing over the ambulances to Mustapha, the Hon. Minister of State for Petroleum Resources

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stated at the ceremony that the prevailing time was far from being normal, saying it was a time that called for collective efforts. Chief Sylva disclosed at the event that the support for the cause was an ongoing one, saying that whatever were received afterwards would be delivered to the committee. He said that the Oil and Gas Industry, under the leadership of NNPC, had come together to contribute their quota to the effort to stemming the pandemic. Responding, the Secretary to the Government of the Federation, Mustapha, applauded the NNPC and the entire Oil and Gas Industry for the maximum support extended to the Federal Government in the campaign against the pandemic. Conducting the two top government officials round the 190-bed facility donated by the Petroleum Industry, Mallam Kyari stated that the Thisday Dome, Abuja that would house the

bed-spaces was donated by yet another of NNPC partners, the Sahara Group. He said other NNPC’s partners, local and international, continued to implement projects capable of lasting impact in their host communities as well as across the nation’s geographical zones, describing the feat as the hallmark of “Good Corporate Citizenship”. “Aside from consignments of medical consumables and logistics facilities, we are embarking on construction of at least two permanent hospitals and a world class diagnostics centers in each of the geopolitical zones in the country. All these are over and above our regular social investments through various CSR initiatives, the Mallam Kyari stated. Mallam Kyari explained that the donation was collaborative, drawing support from the Energy Group, the private sector and a Chinese company, CCECC, to fight COVID-19 pandemic.

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INDUSTRY NEWS

The NNPC helmsman disclosed that the 190-bed facility would be ready for use in two weeksâ&#x20AC;&#x2122; time, stating that donations were in kind, that is, respective going concerns would provide the medical materials pledged following their companiesâ&#x20AC;&#x2122; procurement procedures. At an NNPC property in Utako District of Abuja, Mallam Kyari announced that the corporation had set aside a 60-bed capacity facility of the

property to support the fight against the pandemic. The NNPC GMD said the facility, located in the heart of Abuja, would equally be ready in the next two weeks. He explained that the Utako facility would be equipped with oxygen generating plants, ventilators and other medical logistics that would support the Federal Government ongoing fight against the spread of coronavirus pandemic, saying that it has 10

Intensive Care Units that would serve as back up to the University of Abuja Teaching Hospital Isolation unit in Gwagwalada. The NNPC helmsman commiserated with families of those who lost their loved ones to the pandemic, saying he was hopeful that the Industry efforts would go a long way to stemming the spread of the disease.

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INDUSTRY NEWS

Oil traders book more tankers for sea storage as global crude glut builds – sources

Coronavirus: No employee has been infected by Covid-19 - Chevron Nigeria By Ikenna Omeje

hevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Corporation and CNL, has said that none of its employees has contracted the COVID-19 (Coronavirus) infection. This was contained in a press statement issued by the company’s General Manager, Policy, Government and Public Affairs, Esimaje Brikinn, on Friday, March 20, 2020. He said, “Chevron continues to monitor the Coronavirus (COVID-19) outbreak around the world and has been utilizing the guidance of international and local health authorities. We are regularly updating our workforce and will continue to adjust plans as appropriate as we receive more information.” “Our top priority is to ensure the health and safety of our workforce and their family members, and we are taking precautionary measures to reduce the risk of exposure”, he stated. He confirmed that one of its employees, an expatriate in the company’s Escravos operation, who was recently monitored over flu-like symptoms has tested negative to the Coronavirus. Esimaje explained that, “Chevron is actively responding to the COVID-19 (Corona Virus) outbreak. Some of the preventive measures in CNL include: Daily temperature screening at the entry points to our offices and field locations, issuance of travel advisory to guide all rotational/business and personal travels, pre-embarkation screening, more utilization of non-face to face meeting tools and minimizing inviting external parties to CNL’s office.” Outlining some of the measures the company has taken to protect its workers and their families, he mentioned that advisory on simple personal hygiene, like regular washing of hands, covering cough and sneezes, are shared with the CNL workforce as safeguards for protecting themselves and their families in these times. 8

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raders have chartered at least five super tankers in the past day with options to store oil at sea as global stocks mount after the United States ditched plans to purchase oil for its emergency reserve, shipping sources said on Friday, March 27. Shipping sources said the vessels – each of which can carry a maximum of 2 million barrels of oil – were booked for storage options of at least three months to take advantage of a widening contango market structure, when cargoes for short-term delivery are cheaper than those for later delivery. In such instances, oil majors and trading houses charter ships to store oil they produce or buy cheaply from the market, betting they can resell at a profit when prices recover. Trader Vitol was among the companies that booked storage options for ships, the sources said. Vitol declined to comment. Storage included parking cargoes in the U.S. Gulf, the sources said. The U.S. Department of Energy said it has ditched plans to purchase crude for the nation’s emergency reserve due to a lack of funding from Congress. The purchases were seen as a way to absorb some of the global supply in crude markets caused by a crash in demand due to the spreading coronavirus pandemic and a flood of supply from top-producing countries. The latest charters add to earlier bookings this month for storage at sea by oil players including Royal Dutch Shell and Glencore, sources have said. “Activity is back, and owners are asking for much higher rates,” broker Clarksons Platou Securities said in a note on Friday. “The driving force is the contango play soaking up tonnage.” Daily tanker rates have rocketed to record highs of $200,000 a day over the past two weeks and reached over $178,000 a day on Friday. Traders have to pay a premium for longer term charters. The glut of oil in world markets has prompted efforts by oil players to find storage options including both on land and offshore on tankers.

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INDUSTRY NEWS

Nigeria tightens offshore oil rules after vessel workers get coronavirus

ige r ia’s p et role um regulator has ordered oil and gas companies to reduce their offshore workforce and move to 28-day staff rotations as part of measures to curb the spread of the coronavirus, according to a circular seen by Reuters. The restrictions came after the Nigerian Ports Authority (NPA) said that six workers on board an offshore rig support vessel tested positive for coronavirus late last week. Health experts are concerned about the potential for a widespread outbreak in Africa’s most populous country, which has about 200 million inhabitants. Nigeria has 97 confirmed coronavirus cases and one death from the virus. The country is keen to protect oil production, which provides 90% of much-needed foreign exchange. A coronavirus case on an offshore rig could spread quickly among workers and have a potentially devastating

impact on production. Sarki Auwalu, director of the Department of Petroleum Resources, said that only staff on essential duties would be allowed to travel to offshore or remote locations.

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Non-essential staff currently at offshore/remote locations should be withdrawn with immediate effect,” he said in a statement. The NPA said the six positive tests that the Nigeria Center for Disease Control reported on a ship late last week were all aboard the Siem Marlin, a support ship for oil rigs that was sitting offshore Lagos. The NPA said health officials accessed the vessel by helicopter. According to Reuters ship tracking, the vessel left the Onne Port Complex on the Bonny River Estuary on March 15, and in February visited the offshore terminals for Bonga and Bonny Light crude oil, two of Nigeria’s primary export grades.

The oil terminal visits were well outside the 14-day coronavirus incubation period. Nigeria has shut international airports, closed all land borders and imposed curbs on cargo vessels allowed to dock at its ports in an effort to contain the outbreak. Rivers State, in which Port Harcourt serves as the hub of Nigeria’s oil industry, closed its own borders to human traffic this week. Oil and gas companies operating in Nigeria have previously said that workers’ health and safety is their top priority. Industry sources said that a number of oil companies had already shifted from 14-day rotations to 28 days. Some are also implementing a 14-day quarantine for workers before they leave for rigs. Oil prices have fallen by two thirds since the start of the year, which has forced Nigeria to cut its budget and prompted oil companies to reduce their spending plans. Source: The New York Times

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APRIL 2020, Vol 3 No 4

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INDUSTRY NEWS

Nigeria struggles to sell crude despite price cuts

espite the significant reduction in its official selling prices aimed at wooing buyers, Nigeria is still struggling to sell its crude oil as Indian refiners are cutting back on output while European plants are considering closures. Nigeria, Africa’s biggest oil producer, relies on crude for 90 per cent of its foreign exchange earnings. Its foreign exchange reserves fell to $35.66bn on March 25 from $36.26bn on March 2, according to the Central Bank of Nigeria. The country has had to grapple with an unprecedented excess of oil triggered by the coronavirus outbreak and a price war between Saudi Arabia and Russia for market share. The Nigerian National Petroleum Corporation was reported on Monday to have cut its April official selling prices for Bonny Light and Qua Iboe, two of the nation’s major grades, by $5 per barrel to dated Brent minus $3.29 and minus $3.10 per barrel, respectively. Most producers are offloading their oil for below $20 per barrel as the coronavirus pandemic dampens demand and global supply rises amid a battle between Saudi Arabia and Russia for market share, according to traders, state oil firms,

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major refiners and prices quoted in physical markets. While some crude grades typically sell at a discount to Brent, the market environment is making that gap even wider and other grades that usually cost more than the European benchmark are now cheaper for the most time ever. The discounting is leaving revenue per barrel at a fraction of the prices factored into many 2020 budgets, which is likely to put even more pressure on government finances in some oil producing countries, according to Reuters. In extreme cases, once discounts and other costs have been applied, the value of some producers’ oil is close to $10 per barrel while Venezuela’s Merey crude sold for as little as $8 last week, according to Refinitiv data and traders. While all types of crude have been hit, so-called light and medium sweet grades are the least in demand, meaning the outlook is bleaker for countries such as Nigeria, Azerbaijan and Kazakhstan, according to traders in oil from those countries. Light grades with low density and sulphur are mostly used to make naphtha, petrol and jet fuel, refined products that are both out of favour because of the economic fallout from the pandemic and also hard

to store for long. While Moscow and Riyadh remain locked in their battle, physical oil traders said a glut might push prices even lower as more countries lock down and trade slows. Last week, Russia got as little as $18 per barrel for its benchmark export grade medium sour Urals while Saudi Arabia was selling its Arab Light in Europe for $16, according to Reuters calculations based on official Saudi prices and Urals deals. Canada’s key Western Canada Select grade was worth $15 per barrel on March 16, the last day of its monthly trading cycle, and will now probably sell closer to $10 if its last discount of $13.6 to the US West Texas Intermediate benchmark is applied. Traders said the pressure on prices and the desire on the part of sellers to offload crude quickly was evident in the way deals were being struck at the moment. “Normally, we used to discuss cargoes at bid versus offer spreads of around 10 to 20 cents for several weeks before we closed a deal. Now, we have bid versus offer spreads of $2 to £3 a barrel and they’re done immediately,” one trader at a major refining firm was quoted as saying.

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INDUSTRY NEWS

New PETAN boss affirms commitment to industry growth

ewly elected Chairman of the Petroleum Technology Association of Nigeria , Mr Nik Odinuwe, has reaffirmed the association’s commitment to the development of the nation’s oil and gas industry. Odinuwe, who was elected at the association’s annual general meeting on March 18, 2020 in Port Harcourt, Rivers State, succeeds Mr Bank-Anthony Okoroafor, that steered the affairs of PETAN over the past four years, according to a statement. Speaking at the inauguration of the newly elected officers of the association, Odinuwe said, “PETAN is reputed as the initiator of local content in Nigeria and has been championing the quest for increased local participation in the Nigerian oil and gas industry, thereby culminating in the Nigerian Oil and Gas Industry Content Development Act, 2010.” According to him, PETAN is an association of Nigerian indigenous technical oilfield service companies in the upstream and downstream

sectors of the petroleum industry. He noted that the association was formed to bring together Nigerian oil and gas entrepreneurs to create a forum for the exchange of ideas with the major operators and policymakers. Odinuwe said, “PETAN has been promoting the development of the oil and gas industry in Nigeria through the organisation and participation of Nigerian entrepreneurs in conferences, seminars, workshops and creating o p p o r t u n i t i e s fo r N ige r ia n companies to project themselves in the competitive industry.

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PETAN companies and their contractors employ over 20,000 Nigerians, of which over 60 per cent are graduates. This has a beneficial domino effect on the economy through the use of local input and the growth of local expertise and know-how.”

He also said since 2005, the association had been solely responsible for organising the Nigerian Pavilion and the exhibition of Nigerian companies at the Offshore Technology Conference in Houston, Texas every year.

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It has also created opportunities for Nigerian companies to showcase themselves in other international conferences and exhibitions loc ally and internationally,” he said. Other new executive members are the Vice Chairman, Mr Ranti Omole; the Secretary, Ms Patricia SimonHart; the Assistant Secretary, Mr Daere Akobo; the Publicity Secretary, Dr Lucky Akhiwu; the Financial Secretary, Mrs Edith Akwaeke; the Treasurer, Mr Eloka Ejeh; and the Conference Chairman, Mr Chinedu Maduakoh.

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APRIL 2020, Vol 3 No 4

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INDUSTRY NEWS

We have 60-days fuel sufficiency – NNPC

Seplat’s 2019 profit rises by 13.4% to US$270m ...Pays US$0.05 dividend per share to shareholders

igerian National petroleum Corporation (NNPC) has urged Nigerians not to engage in panic buying of Premium Motor Spirit (PMS), as the country has adequate stock of the products to last for over 60-days. Mr Mele Kyari, Group Managing Director of the corporation, gave the assurance while briefing newsmen recently, in Abuja. Kyari assured that the NNPC had the support of all stakeholders to ensure adequate supply of petroleum products in the country. He said: “There is absolutely no scarcity anywhere; our supply is robust; we have fuel that will last this country even for 60-days if assuming we do not import any. “Of course people because of the pandemic, stay at home, may try to conserve fuel, there is no need to do this.

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Maintain your normal life, we have secured all assurances that trucks will be moving freely across the country throughout this period of difficulty and supply will be sustained’’. He appealed to Nigerians not to flood fuel stations as there was no need for that. Commenting on National Association of Road Transport Owners (NARTO) order to petrol tankers drivers to vacate the depots, Kyari said that the corporation would continue to engage them.

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No restrictions; as we speak now loading is going on, trucks are moving around, no action like that will come to fruition,’’ he added.

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eplat Petroleum Development Company Plc, a leading Nigerian independent oil and gas company listed on both the Nigerian Stock Exchange and London Stock Exchange, has announces its audited results for the financial year ended 31 December 2019, posting a 13.4 per cent growth in profit before deferred taxes to US$270m. It recorded a revenue of US$698 million wit h tot al c apit al expenditure of US$125 million, US$114 million on oil and gas assets. Cash flow from operations stood at US$338 million; cash at bank US$333 million and Final dividend maintained at US$0.05 per share. Operational • Low unit cost of production at US$6.20/boe • Working interest production 46,498 boepd in line with 2019 revised guidance of 45,000 – 48,000 boepd • Liquids

production of 23,935 bopd • Gas production of 131 MMscfd • FID taken for 300MMscfd ANOH gas processing facility; first gas now expected Q4 2021 Landmark acquisition of Eland Oil & Gas PLC • Increases Seplat’s WI liquids production by 9Kbopd, increases WI 2P liquids reser ves by 36MMbbls • Loan due from Elcrest to Eland of US$414 million at year end; loan maturity 31 December 2024 • Adds upside potential from unappraised discoveries e.g. Amobe, plus new export routes • Eland achieved a record day’s WI liquids production of 17 kbopd on 17 March 2020. Outlook • Expected production of 47-57 kboepd (inc. Eland 6-10kbopd) for full year, subject to market conditions

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INDUSTRY NEWS

• 1. 5MMb bls/quar ter hedged at US$45/bbl from Q1 to Q3 2020 • Significant cash balance available • Low cost of production enables profitability at levels below current oil price • 2020 expected capex of US$100 million; US$50 million of which spent in YTD. • Manage 2020 drilling programme to suit market conditions and preserve liquidity, minimum three wells Austin Avuru, Chief Executive Officer, said: “As we enter a challenging phase for the global economy, Seplat will benefit from being a resilient company built on the solid foundations of prudent financial management and the careful mitigation of risk. We have previously been tested by crisis. We

successfully navigated the twin challenges of the 2014/2015 oil price shock, which was immediately followed by the 16-month Trans Forcados shut-in, which drastically reduced our liquids production. Thanks to our flexibility in managing cash flows we emerged a stronger and better-funded company, ready to take advantage of new opportunities. Compared to those difficult periods, today’s Seplat has more cash on its balance sheet and is even more robust and diversified thanks to our continuing investments in gas, with its long-term contracts and independence from oil price volatility. We are a low-cost producer and will continue to manage our finances prudently. With the recent addition of Eland and the availability of new pipelines, our oil business is broadening and de-risking its production fields and routes to market to assure even greater security of revenues in the future. In the coming year we will focus our investment only on the highest-returning projects, whilst carefully balancing our future needs with prevailing market realities. The challenges before us may be significant, but we are confident that the resilience and discipline of our business will help us consolidate our position as Nigeria’s leading independent oil and gas producer.” Outlook for 2020 The emergence of the COVID-19 pandemic in the first quarter of 2020, as well as pressure on oil prices in

March, have placed a premium on solid financial management that focuses upon low-cost production, robust cash management, a strong balance sheet and focused investment in high-return projects for sustainable future growth. The business is hedged against low oil prices and a significant proportion of our revenues now come from gas, which offers further protection from oil price volatility. The Company has low production cos t s an d c an re main profitable even at lower oil prices. We have significant cash resources available and will manage our finances prudently in 2020, expecting now to invest just US$100 million of capital expenditure (US$50 million spent in Q1 2020), with a target of three new wells across our portfolio. We will also continue to focus on our investments in gas and the completion of the ANOH project remains a major priority. At present we are targeting 2020 production of between 47-57 kboepd, including Eland production of 6-10 kbopd, subject to continuous evacuation being possible. Seplat has been tested in previous adverse conditions and we are confident that the stronger and more diverse business we operate today will be even more resilient against these unprecedented market events. The integration of Eland Oil & Gas PLC will position the Group strongly when the market recovers and we are pleased to report that on 17 March 2020, OML 40 produced a record 17 kbopd as recorded by its LACT. We remain optimistic about our long-term growth and success.

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APRIL 2020, Vol 3 No 4

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INDUSTRY NEWS

Nigeria reduces fuel price to N123.50 per litre

Power supply rises to 4,257MW as plants receive gas

T T

he Petroleum Products Pricing and Regulatory Agency has reduced the pump price of petrol to N123.50 per litre from the current price of N125. This comes about a fortnight after the agency reduced the pump price to N125 from N145. The reduction is based on the reduced landing cost of petrol into Nigeria which is caused by the global decline of crude oil prices. PREMIUM TIMES reported how crude oil sold for about $20 a barrel on Monday (March 30) compared to about $50 a barrel it sold for about two months ago. Abdulkadir Saidu, the Executive Secretary of PPPRA, who announced the new pump price, said all retail outlets should start selling at the new price from April 1. Earlier, the state oil firm, NNPC, announced that it had enough petrol in circulation to ensure there was no scarcity of the essential product as millions of Nigerians remain at home because of the COVID-19 outbreak. Source: Premium Times

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he Transmission Company of Nigeria has announced an improvement in power generation following the supply of gas to thermal power plants. Latest industry report from the Office of the Vice President showed the improvement in gas supply, as the resultant effect was noticed on the quantum of energy, 4,257 megawatts-hour/hour, that was sent out to power users on March 30, 2020. It was observed that the 4,257MWh/h energy was 273.48MW higher than what was generated the previous day, indicating an improvement in power generation and supply occasioned by the release of gas to thermal plants. Recently, the TCN informed the public that the power sector had in the past weeks continued to experience power supply shortage due to serious gas constraints to most of the nation’s thermal generating stations. Also, data from the Office of the Vice President showed that gas unavailability s t a l l e d t h e ge n e r a t i o n of 4,156.5MW of power on March 28, 2020 alone. The TCN had explained that gas shortage had restrained optimal generation into the grid and consequently the quantum of electricity transmitted to distribution load centres. It stated that many thermal power plants could not get gas, adding that the most affected were Geregu Gas Station, Geregu National Integrated Power Project and Sapele NIPP. But providing an update on the situation in Abuja on recently, the

TCN said the intervention of the management of Nigerian National Petroleum Corporation had helped in addressing the issue of gas availability to thermal power plants. This, the TCN s t ated, had significantly improved gas supply to gas generation stations nationwide. The transmission company’s General Manager, Public Affairs, Ndidi Mbah, said most power plants previously experiencing gas supply shortage had started generating power to the grid.

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“ If the trend continues, the problem of gas supply to power plants w ill be resolved i n a matter of hours and power d i st r i but ion c omp a n ie s a s we l l a s p o i nt l o a d consumers of electricity will be adequately ser ved,” she stated.

The TCN expressed its appreciation to the NNPC, power generation companies, distribution companies and the TCN personnel on their duty posts nationwide, as well as other sector players for the effort in sustaining the grid during this trying period. It promised to continue working hard to ensure the sustainable evacuation of electricity in order to meet the power demand of the citizens across the country.

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INDUSTRY NEWS

NPDC donates fire extinguishing system to Benin Airport

he Nigerian Petroleum Development Company, a subsidiary of the Nigerian National Petroleum Corporation, has donated a twin-agent fire extinguishing system to the Benin Airport. The Managing Director of the company, Mr Mansur Sambo, during the handover of the fire truck to the Federal Airports Authority of Nigeria on Monday (March 30), said the gesture

was part of t h e NPD C corporate social investment to its host communities. Sambo, who was represented by the company’s General Manager, Asset Management, Mr Ismail Mohammed, said, the “NPDC is presenting this fire truck to FAAN, Benin airport not as part of our corporate social responsibility but as a corporate social investment to our host communities. “The Benin Airport is also a vital root for the NPDCrelated activities and we are concerned about the safety and security of the FAAN staff and

passengers using the airport.

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We have been doing our best to help the community and other establishments within the NPDC host communities in order to touch their lives in a positive way,” he said. According to him, the company will continue to do its best to carry out its CSR activities for the betterment of the nation. Receiving the fire truck on behalf of FAAN, the Director of Airport Operations, Capt. Muye Murktar, thanked the NPDC for the kind gesture. “Airport is about safety and security, and fire service is a vital part of it. This truck is extremely expensive, and we appreciate the NPDC for it,” he said. He, however, appealed to the NPDC to extend the gesture to other airports in the country.

DPR instructs oil firms to reduce offshore workforce travel to offshore/swamp location and obtainment of offshore safety Permit 2019,” the Director, DPR, Mr Sarki Auwalu, said in a circular. He said only staff on essential duties should be nominated and permitted to travel to offshore/remote locations. Auwalu said, “Non-essential staff currently at offshore/remote locations should be withdrawn with immediate effect. “Staff rotation less than 28 days/28 days is hereby temporarily suspended. This implies that staff are required to stay a minimum of 28 days at these locations per rotation.

gainst the backdrop of the spread of the coronavirus pandemic in the country, the Department of Petroleum Resources had directed oil and gas firms to reduce the workforce on offshore platforms. “All travels to and from offshore/remote locations shall strictly be in line with the guidelines and procedure for

According to him, Sections 4.3 and 4.4 of the guidelines still apply. Auwalu said, “Representation by government agencies at offshore/remote locations shall be limited to a maximum of one person per rotation. “You are to ensure strict compliance with the above while we continue to monitor the situation and provide updates as required.”

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INDUSTRY NEWS

NCDMB outlines development programs for oil bearing communities

he Nigerian Content Development and Monitoring Board (NCDMB) is implementing several initiatives that are contributing to the development of oil producing communities, improvement of the local economy and management of conflict. The Executive Secretar y of NCDMB, Engr. Simbi Kesiye Wabote outlined these interventions in a presentation he made on recently, in Abuja to the National Defence College Course 28, on the topic “Conflict Management in the Niger Delta: An Appraisal of the NCDMB. Represented by the General Manager, Planning, Research & Development, NCDMB, Mr. Abdulmalik Halilu, he outlined six sources of conflict in the Niger Delta region to include Environmental degradation, loss of land due to oil exploration and production, Inequality between oil workers & host communities, Lack of social amenities, Low participation of host communities in oil and gas supply chain and agitation for resource control. He observed that such conflicts

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have had adverse impact on the nation’s infrastructure, economy, security and social indicators. He noted that there are three major mechanisms for conflict management, notably the use of force which is not very effective, having a developmental agenda for the region, which is the best approach and fits into the NCDMB mandate as a development agency and negotiations, which is the strategy often adopted by the amnesty program and Corporate Social Responsibility (CSR) by Operating companies, service companies, government agencies and development partners. He explained the NCDMB model for development of the Niger Delta to include four broad areas, namely funding, infrastructure development, CSR and Human capital development On funding, he said NCDMB had put the Community Contractors Fund in place under the Nigerian Content Intervention Fund (NCI Fund), which allows community contractors to access up to N20 million naira for contract execution in the oil and gas industry at five percent interest rate. On

infrastructure, the NCDMB helmsman said the Board was developing the Nigerian Oil and Gas Park Scheme (NOGAPS), where it is setting up oil and gas parks in four strategic locations in the oil producing states for ma nuf a c t ur ing e quip m e nt , components, and chemicals and for training youths. He added that the shared service model adopted for the operation of the parks will reduce start–up and operating cost of occupants thereby enhancing their competitiveness and viability. Each park location is projected to create 10,000 direct, indirect and induced jobs during construction and operations phase, he said. He also identified the gas metering and distribution facility which the NCDMB is catalysing in partnership with Shell Nigeria Gas (SNG) at Polaku, Bayelsa State. He said the plant will create over 30,000 direct, indirect and induced jobs from the several gasbased industries that will set up along the gas corridor, including LPG cylinder manufacturing, CNG/ LNG mother station distribution and power plant and pressure reduction facility.

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INDUSTRY NEWS

A provision for jetty has also been made in the complex for efficient logistics management, he added. The Board is also facilitating Research and Development through the incubation of Centers of Excellence for Deepwater operations, LNG operations and Refining & petrochemicals and has a Research commercialization model for supporting researchers convert research ideas to products that can be deployed for oil and gas industry operations, he added. The Board is also providing support for the establishment of modular refineries in the oil producing states, which is geared to induce local refining and value addition on crude oil and reduce refined products importation. The modular refinery initiative would also mitigate social vices like pipeline vandalism, crude oil theft and illegal refining while helping to create employment opportunities and jump start economic activities in the local communities. Wabote confirmed that NCDMB had invested equity in two modular refineries-the Waltersmith’s 5,000 barrels per day modular refinery in Ibigwe, Imo State, due for commissioning in 2020 and the Azikel 12,000bpd hydro-skimming modular refinery in Bayelsa due for commissioning in 2021. Speaking further, the Executive Secretar y explained that the Board’s Human capital development interventions cover Training for employment, Training for empowerment, Upgrade of technical colleges while NCDMB CSR interventions cover health care, education, infrastructure and environment management. He concluded by advising course participants on the virtues of collaboration, political will, advocacy and well-defined roadmap as panacea for conflict management and sustainable development in the Niger Delta.

COVID-19: NCDMB advises project 100 coys on business resilience

s businesses in Nigeria and across the globe grapple with disruptions and setbacks caused by the coronavirus pandemic, the Nigerian Content Development and Monitoring Board (NCDMB) has offered survival tips to Project 100 companies and other oil and gas service companies in Nigeria how to navigate through these precarious times and remain resilient The advisory is embodied in a document titled “Maintaining B u s i n e s s Re s i l i e n ce A m i d s t COVID-19,” prepared by the Project Management Office (PMO) of the Project 100 Initiative – a capacity development programme of the NCDMB in partnership with KPMG, an international consulting firm. The document was circulated to Project 100 beneficiaries as part of institutional support from the NCDMB to ensure business continuity and resilience by these start-ups. The advisory identified supply chain and operations disruptions as one of the major challenges experienced by companies in times like this. It enjoins Project 100 companies and other local businesses to identify where their key suppliers and contractors are located and develop contingency plans to ensure the sustainablity of supply. The local businesses were also advised to engage their logistics provider and develop mitigation and contingency plans in view of the restrictions and lockdown in many parts of the country. The advisory also enjoins these start-ups and local supply chain to constantly review their active contracts to understand potential vunerabilities and how best to mitigate their risks, especially the impact of force majeure. On inventory,

the Board encouraged organizations to assess their cover and consider ring-fencing for particular customers in the case of shortages. The advisory also identified the need for Project 100 companies and local businesses to develop a communication plan and engage with key customers, employees and suppliers and ensure that their staff can work remotely and safely while trying to maintain key operations. Other key nuggets included the need to pay attention to technology, Service Level Agreements (SLA) and to brace to take the shock of contract renegotiation with clients. To ensure financial stability, NCDMB advised project 100 and local businesses to revise their cash flow, working capital management and inventory forecasts alongside supply and demand forecasts. It also predicted that national governments across the globe might adopt trade protectionism, hence oil and gas companies need to get mitigation plans for supply by developing domestic alternatives. The advisory urged oil companies to review public health requirements and to assure customers that their products and services are still safe, while keeping an eye on the drop in demand and cost and profitability. Above all, the advisory listed quick win measures for Project100 companies to include maintaining business agility, emergency preparedness, good risk assessment, motivated workforce, technology savvy and prudent financial management. The issuance of this advisory is demonstrative of the resolve of NCDMB leadership to stand by Project 100 companies through thick and thin.

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INDUSTRY EVENTS

16 Ministers and Top Government Officials Confirmed to Attend Africa Oil Week, as regional collaboration becomes more important than ever

mid the current oil price crash, Africa Oil Week ( AOW ) r e m a i n s t h e trusted platform for driving growth in the African upstream, as evidenced by continental governments’ sustained support for the summit. AOW is pleased to announce the attendance of 16 ministers and top government officials to its next edition, scheduled to take place as planned (4-6 November 2020) in Cape Town. The spirit of collaboration on which AOW was founded 27 years ago is now more important than ever. As Africa competes with the rest of the world for smaller pools of capital, the onus is on governments to develop attractive operating environments and promote Africa as a destination for investment. In these uncertain times, Africa Oil Week’s mission is to amplify the message that the continent is open for business. By hosting a closeddoor “Ministerial & VIP Symposium”, AOW provides par ticipating governments with a confidential platform to discuss their national 18

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hydrocarbons and energy strategy. Meanwhile, “National Showcases” enable individual governments to present their hottest prospects to an audience of top decision-makers from: IOCs, Independent Operators, the geoscience community, OFS companies and financiers. To date, the following top government representatives have confirmed their attendance to Africa Oil Week 2020: Seidou Adambi, Minister of Water, Oil and Mines, Benin (joining for the first time); Mr Issifou Moussa Yari, Director General, Société Béninoise des Hydrocarbures; Mahamat Hamid Koua, Minister of Petroleum, Mining & Energy, Chad (joining for the first time);Jean-Marc Thystère-Tchicaya, Minister of Hydrocarbons, Republic of the Congo;Rubens Mikindo Muhima, Minister of Hydrocarbons, DRC; Yonis Ali Guedi, Minister of Energy, Republic of Djibouti (joining for the first time); Dr. Koang Tutlam Dung, State Minister for Petroleum and Natural Gas, Ethiopia; Madame Lelenta Hawa Baba Bah, Ministre des Mines et du Pétrole, Mali.

Others are: Timipre Sylva, Minister of State, Petroleum Resources, Nigeria (joining for the first time);Francis Gatare, Mines, Petroleum and Gas Board Minister, Rwanda; Alhaji Kanja Sesay, Minister of Energy, Sierra Leone; Abdirashid Mohamed Ahmed, Minister of Petroleum, Republic of Somalia; Gwede Mantashe, Minister of Mineral Resources and Energy, South Africa; Deputy Minister, Department of Mineral Resource and Energy, South Africa (joining for the first time); Director General, Department of Mineral Resource and Energy, South Africa (joining for the first time); and Emma Wade-Smith OBE, Her Majesty’s Trade Commissioner for Africa, United Kingdom. Africa Oil Week is here to support its community and remains optimistic about the continent’s oil, gas and energy future. Oil and gas have always been a resilient industry, and, even in times of crisis, Africa’s unique position presents significant opportunities.

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INDUSTRY EVENTS

OTC 2020 Postponed, CERAWeek, Canada Gas & LNG Exhibition and Conference cancelled By Ikenna Omeje

he 51st edition of the Offshore Technology Conference in Houston, earlier scheduled to hold from May 4 to May 7, 2020, has been postponed to the third quarter of this year, due to the outbreak of the coronavirus (COVID-19) pandemic. This was contained in a statement issued by the organizers on March 13, 2020, which was obtained by Majorwaves, from the official website of OTC. The statement reads: “The Offshore Technology Conference (OTC) recognizes the unprecedented global challenge associated with the current COVID-19 pandemic. The health and safety of our partners, attendees, exhibitors, staff, and community are of the utmost importance, and our hearts go out to all who have been affected. “Considering the rapidly changing guidance from governments and companies, OTC has chosen to postpone the conference from 4–7 May to the third quarter of 2020. We are actively working to confirm dates in August or September. “In the coming weeks, OTC will be communicating with authors, speakers, exhibitors, and partners to develop the new plans and ensure the conference continues to provide a platform for energy professionals to meet and exchange ideas. The statement added that, “Since 1969, OTC has been a reliable source of technology and knowledge sharing to propel the offshore industry forward. The conference has also been a key economic driver for the

city of Houston and neighbouring communities.

announced in a statement on its official website.

“By pos tponing r ather than cancelling OTC, we aim to preserve the significant work of the program committee and authors to prepare for this conference, as well as minimize the economic impact this decision has on businesses in Houston and throughout the industry.” Also, the 2020 CER AWeek energ y conference, which was scheduled to take place in Houston as well, from March 9 to March 13, was also cancelled due to the rising cases of coronavirus, according to HIS Markit, the consultancy that has held the event every year since 1981. “We do this with deep disappointment,” the group said in a statement issued Sunday, March 1 on its website. “Over the last few days concern has mounted rapidly about the COVID-19 coronavirus. The World Health Organization raised the threat level on Friday, the U.S. government cancelled a summit meeting scheduled in Las Vegas, an increasing number of companies are instituting travel bans and restrictions, border health checks are becoming more restrictive and there is growing concern about large conferences with people coming from different parts of the world. Delegates from over 80 countries were expected to participate in CERAWeek 2020.” Similarly, the Canada Gas & LNG Exhibition and Conference has been cancelled, the organizers of the conference

The statement noted that the cancellation was because of the new measures that both the provincial and federal governments in Canada have taken to curb the spread of coronavirus, which includes prohibition of mass gathering, travel restrictions and restricted entry to the country. “Following the COVID-19 control measures announced by both the Provincial and Federal governments in Canada regarding mass gatherings, travel restrictions and restricted entry to Canada for the foreseeable future, DMG Events and the Vancouver Convention Centre have made the decision to cancel Canada Gas & LNG 2020. The next event will take place from 11-13 May 2021, at the Vancouver Convention Centre. “This decision has not been taken lightly and is based on the best interests of all event participants and staff. The wellbeing of our delegates, exhibitors, visitors and staff is our absolute priority and matters of health and safety have our complete attention. “It has always been our wish that CGLNG be an important forum to facilitate market development. We want to ensure that we look after our partners and stakeholders and together make the right decisions on the future direction the event will take,” the statement reads in part.

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LOCAL CONTENT

COVID 19: NCDMB, PETAN Donate Ambulances, Medical Supplies to Three States By Margaret Nongo-Okojokwu

he Nigerian Content Development and Monitoring Board (NCDMB) has handed over ambulances, ventilators and other special medical supplies to the Governments of Bayelsa, Delta and Rivers States in support of efforts to combat the spread of Coronavirus (COVID-19) in the country. The donations were made in partnership with the Petroleum Technology Association of Nigeria (PETAN) and were received on Friday in Yenagoa, Bayelsa State and Port Harcourt, Rivers State as well as on Saturday in Warri, Delta State. The items included four ambulances, 10 Synovent E3 Ventilators, 300 Infra- Red Thermometers and 1000 Medical Face Shields. Other supplies included Hand Sanitizers, Hospital 20

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beds, Disposable coveralls, personal protective equipment (PPEs) and other relief items. Presenting the materials to the Bayelsa and Delta State Governments, the Executive Secretary of the NCDMB, Engr. Simbi Kesiye Wabote stated that the human race was going through trying times and the Board as a responsible and responsive corporate citizen decided to support the fight to stop spread of the deadly virus. Represented by the Director, Planning, Research and Statistics (PRS), Mr. Dazibah Patrick Obah, he explained that NCDMB had also sponsored several sensitization campaigns in the media, with a view to informing the citizenry on how to avoid contracting the virus. Receiving the items in Bayelsa State, the Secretary to the State Government, Rt. Hon

Konbowei Benson thanked the Board for discharging its corporate social responsibility creditably and supporting the state during this difficult period. He promised that the items will be deployed effectively in the fight against the virus. He beckoned on other corporate agencies in Bayelsa State to emulate the example of the NCDMB especially in this time of need. In Warri, Delta State, the Board donated an ambulance and other medical supplies and they were received by Hon Kelly Pinaowei, the Special Assistant on Local Government Affairs to the Governor, Sen (Dr.) Ifeanyi Okowa. He thanked the NCDMB for helping the state combat the coronavirus, admitting that the items were highly needed by the state as it had recorded cases of the virus.

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LOCAL CONTENT

At a similar event in Port Harcour t, Rivers State, the Executive Secretary of NCDMB was represented by the General Manager, Corporate Communication and Zonal Coordination, Dr. Ginah O. Ginah. He disclosed that Rivers State is one of the Boardâ&#x20AC;&#x2122;s host states

and deserves the COVID-19 relief items to help it curb the spread of the virus. The Honorable Commissioner for Health, Rivers State, Prof. Chike Princewill received the items and commended NCDMB for

assisting the state governmentâ&#x20AC;&#x2122;s fight against the spread of the virus. He conveyed the gratitude of Governor Ezenwo Nyesom Wike and assured that the items would be deployed immediately to curb the spread of the virus in the state.

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LOCAL CONTENT

Wabote institutes $50M R&D intervention fund ...Says R & D panacea for Nigerian oil and gas industry challenges

he Executive Secretary of the Nigeria Content Development and Monitoring Board, (NCDMB) Engr. Simbi Wabote has stressed the Boardâ&#x20AC;&#x2122;s commitment to change the narrative in research and development activities in the oil and gas industry with the implementation of the R&D Framework and the hosting of an R&D Fair and Conference to e n ge n d e r s t a ke h o l d e r sâ&#x20AC;&#x2122; participation. Engr. Wabote made the statement during the flagoff of the NCDMB Research and Development Fair and Conference Roadshow before the Hon. Minister of State for Petroleum Resources, His Excellency, Chief Timipre Sylva in Abuja, recently. The Executive Secretary who enumerated the achievements of the maiden edition of the R&D Fair in 2017, explained that the

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Board intends to develop an R&D specialized centre in Yenagoa with a model to convert ideas to products. He also dropped the hint that the Board is providing leadership in its drive for research development by launching a $50million R&D intervention fund to enhance the role of R&D in developing local content and for other stakeholders to contribute to the fund as most countries who have invested in R&D are optimal in their GDP. In his response, the Hon. Minister of State for Petroleum Resources, Chief Timipre Sylva commended the Board for the R&D initiative which according to him, is a good start and promised to be at the Fair and Conference to declare it open and carry out any other function that may be required of him. The Hon. Minister stated that R&D is a major pathway to job creation and the transformation of the nation from

a resource-based to a knowledgebased economy. He, however, regretted the non-responsiveness of the industry and the academia to research development and urged the industry to engage in R&D as the country is striving to move from an oil-based to a knowledge based home-grown technology after over five decades of oil production. Chief Sylva charged the industry to collaborate more with the academia to bring about home grown solutions to the nationâ&#x20AC;&#x2122;s problems. He further mentioned that the issue of climate change is a problem of carbon emission, not necessarily transition to renewables, hence, the industry should research into how it can reduce the carbon emission from oil exploration activities as the nation has far too long allowed other climes to dictate the narrative for us.

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LOCAL CONTENT Highpoint of the engagement was the decoration of the NCDMB R&D lapel pin on the Hon. Minister of State for Petroleum Resources by the Executive Secretary, Engr. Simbi Wabote. Also, the Group Managing Director of the Nigerian National Petroleum Corporation, (NNPC), Mr. Mele Kolo Kyari has pledged NNPC’s resolve to partner with relevant government agencies and NCDMB on its steering committee to make decisions that will jointly support innovations in the oil and gas industry that will be beneficial to the nation. Mr. Kyari made this known at the NCDMB Research and Development Fair and Conference Roadshow visit to him by the Executive Secretary of the Board, Engr. Simbi Wabote. He further stated that the corporation intends to constitute a team of seasoned employees to lead the initiative which clearly fits into the NCDMB objective of growing local capacities and abilities with a commitment to participate in the Board’s R&D Framework to support indigenous competencies. The GMD also informed that it had transformed its R&D initiative to have a business concept christened, “Research, Technology and Innovation”, (RTI) so that focus will be on tackling contemporary challenges to deliver value addition to the industry. He announced that a conscious and major decision has been made to have an NCDMB representative on the NNPC R&D steering committee to create an industr y broad inclusion. Responding, the Executive Secretary of the Board expressed appreciation for the focus the GMD has brought to NNPC, stating that the NOGICD Act is very heavy on R&D which led to the constitution of the NCDMB Research and Development Council and that the NNPC is a part of it. He suggested that the R&D teams from both NNPC and the Board should work together to maximize the impact of R & D outcomes in the industry. The Nigerian Content boss extended an invitation to the GMD to deliver a Goodwill Message at the forthcoming R&D Fair and Conference proposed for May 12

– 14, 2020 which will enable the NNPC boss further espouse his intention to the industry to move research and development forward. Engr. Wabote reiterated the Board’s commitment to earmark $50million to support R&D with an assurance to collaborate with the NNPC to progress research and development. In a related development, Wabote has stated that adequate research and development is the panacea to the challenges facing the oil and gas industry in Nigeria. He disclosed this during the first quarter, 2020 Nigerian Content Research and Development Council (NCRDC) meeting held in Abuja, recently. He noted that NCRDC has made adequate progress to catalyze the development of indigenous technology in the oil and gas sector. Thus, the Board is accelerating the R & D framework to drive innovation in the country through the oil and gas sector. The Executive Secretary further emphasized, “Tremendous progress has been done all this while going back to all the things we have agreed to do, only yesterday we were with the Hon. Minister of State for Petroleum Resources as part of the roadshow to the proposed Research and Development Fair and Conference.” “Also, we met with the Group Managing Director of the Nigerian Natural Petroleum Corporation, (NNPC) to brief him on the progress so far made, what we are doing today has encouraged the NNPC to wake up in terms of Research and Development, now they do not want us to run alone, by so doing they have reorganized themselves in order to be more focused and serious on research and development which we have agreed to put our efforts together to boost R&D in the oil and gas industry”, he said. During the quarterly meeting, the council deliberated on the progress report of its scheduled Research and Development Fair and Conference deliverables, programme and stakeholder participation for May12 -1 4, 2020, subject to the global situation of the COVID-19 pandemic.

NOGICD Act: NCDMB takes sensitization campaign to Enugu

he Nigerian Content Development and Monitoring Board (NCDMB) has taken its sensitization/capacity building on the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to Enugu, southeast, Nigeria . T he one-day yout h sensitization workshop was aimed at enlightening the youths in the state on the opportunities that lie in the NOGICD Act and how to take advantage of them. In his remarks, the CEO of NATEO Multi-Services Limited, Nathan Egba , advised participants to take note and also take advantage of the activities, initiatives and opportunities of the Board. The Executive Secretary of the Board, Engr. Simbi Wabote, was represented by Engr. Ginah O. Ginah, General Manager, Corporate Communication/ Zonal Coordination, NCDMB. Ginah was accompanied to the workshop by Emma Okayare, Zonal Coordinator, Imo/Abia Zone and Adebayo Joseph, Zonal Coordinator, Ogun State.

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LOCAL CONTENT

Immigration, Police seek Collaboration with NCDMB

he Comptroller of the Nigerian Immigration Ser vice, Bayelsa State C o m m a n d , M r. F e l i x Odika and the Commissioner of Police, Bayelsa State, Mr. Uche Anozia recently paid courtesy visits to the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote at the Board’s headquarters in Yenagoa. The visit of the Comptroller focused on the management of expatriates working in the oil and gas industry, while the Commissioner of Police discussed possible collaborations that would improve the protection of lives and property in the state. In his remarks, the Immigration top official canvassed for a strong synergy between the two agencies with respect to the management of expatriates working in the Nigerian oil and gas industry. He also requested for the Immigration office in Yenagoa to be connected to the independent power plant that was constructed in the state by Nigerian Agip Oil Company (NAOC) and NCDMB. Odika also commended the Executive Secretary for the various

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achievements he recorded since his appointment in 2016. Responding, the Executive Secretary confirmed that the Board had established a strong collaboration with the head offices of the Immigration Service and the Ministry of Interior and had put in place an inter-agency team that is working assiduously in that regard. He explained further: “We are not saying that expatriates should not come into the industry; they bring investment, expertise and technology. What we are saying is that jobs we think Nigerians can do, we will not give to the expatriates. That is the area we are monitoring”. On the request to be connected to the new independent power plant, Wabote clarified that the plant was built specifically to supply uninterrupted electricity to the recently completed NCDMB17 storey headquarters building and Nigerian Oil and Gas Park project at Emeyal 1, Bayelsa State. He explained that the power plant would strictly operate as a commercial venture and would be self-sustaining. He added: “We won’t be able to consume all the power from the plant, so we will also extend it to our industrial park

once it is operational, afterwards it will also be open for critical government and non-government infrastructure on a pay as you use basis.” Speaking during his separate visit, the Commissioner of Police sought stronger collaboration between the Nigeria Police, Bayelsa Command and NCDMB in the areas of protecting human lives and critical government infrastructure. The Executive Secretary while responding applauded the Nigeria Police for providing adequate s e cu r it y d u r ing t h e re ce nt governorship election in Bayelsa State. He gave assurance that NCDMB will continue to cooperate and support the Police by providing some level of logistics for it. He said: “We know the challenges you face and the limited funding opportunities you have. As agencies of the Federal Government, we do not have any choice than to support ourselves being that we have found ourselves in this state. He assured that the Board would soon relocate to its new headquarter building and provide more support to the Police thereafter.

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NIPS 2020 Photospeak

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COVER STORY

Africa: The Aftermath of COVID-19, Price War By JEROME ONOJA & JOSEPH CHANG

ith the outbreak o f C O V I D -1 9 i n Wu h a n , th e province of Hubei, Chinaâ&#x20AC;&#x2122;s demand for crude oil was stifled causing a drop of about 3million b/d as at early February because many of its factories closed. Not a lot of experts predicted the scale to which the disease would escalate. Today it has assumed a global pandemic proportion, eventually spurring a price war between Saudi Arabia and Russia which began early March as they disagreed on the modalities for production adjustment in order to stem the continued oversupply of the market. These unfortunate twin shocks of the novel coronavirus and a historic price fall are beginning

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to have devastating effects on the African continent, seeing that some countries operate a mono-product economy, with oil being the only commodity. The hardest hit will be countries like Angola, Nigeria and Libya. Others like Equatorial Guinea, Cameroon, Ghana, Mozambique and Senegal arenâ&#x20AC;&#x2122;t spared as their economic projections have been torn apart. With ongoing negotiations and eventual implementation of production adjustment among OPEC+ countries, following positive outcomes from Russia and Saudi Arabia, initiated by the U.S., we hope to see prices bounce back. But, a reflective price rise is only anticipated after the COVID-19 curve is flattened, factories around the world re-open and life returns to normal. When

would that be? How fast can African producers shake off the effect which has added to a plethora of prepandemic challenges? The global economy faces its biggest danger since the financial crisis of 2008. Going by analysis in the OECD Interim Economic Outlook Forecasts published in March 2020, prior to this twin attack, the growth rate in world gross domestic product (GDP) for 2020 was projected to be 2.4%, a drop from 2.9% in 2019. It further stated that, a longer lasting and more intensive COVID-19 outbreak, spreading widely throughout the Asia-Pacific region, Europe and North America, would weaken prospects considerably.

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COVER STORY For 2020 as a whole, IEA has reduced its global growth forecast by 365,000 b/d to 825,000 b/d, the lowest since 2011. While China’s manufacturing economy is getting back on track and local demand is improving, experts believe it will encounter extremely difficult export conditions. “It’s very possible that Q3 could have negative GDP as well as Q2, and then the question is how big is the bounce back towards the end of the year?” said Rhian O’Connor, ICIS lead analyst. “Our view is that demand for this year, and possibly going into 2021 will not return to pre-crisis levels,” said O’Connor. “We are going to see a more extended downturn than what we were expecting, and then a slower recovery than many are forecasting.” Crude oil prices will also likely be “lower for longer” even if there is a deal between OPEC and Russia or if Saudi Arabia agrees to curtail production, she noted.

In this event, global growth could drop to 1½ per cent in 2020, half the rate projected prior to the virus outbreak Downward review of global oil forecast Global demand was projected to contract by 435,000 b/d in the first quarter of 2020,

“

the first quarterly decrease in more than a decade, according to the latest monthly Oil Market Report of the International Energy Agency (IEA).

Meanwhile, other analysts are also taking down their crude oil price forecasts for 2020 and beyond. “We lowered our already-bearish oil priced deck further as coronavirus containment cuts into global oil demand, while the balance is getting longer on the supply side due to the OPEC+ schism,” said Ed Morse, global head of commodities at Citi, on a 31 March conference call hosted by the NABE (National Association for Business Economics). “We now see Brent averaging $30/bbl this year and $17/bbl in Q2.” In his base-case scenario, Morse sees Brent recovering to about $42/bbl by Q4 2021, still far below the $60+/bbl level before the crude oil crash in late February to March. Oil majors tremble, slash capex WoodMac reasoned that prices slump would force operators to cut discretionary expenditure at producing fields to protect their cash flows either at an asset level, company level or both. A member of the Wood Mackenzie’s Africa upstream team, Gail Anderson has said:

“

“The majors, on which Africa depends, have announced sweeping cuts to capital expenditure of 20 per cent-30 per cent.

Based on these disclosures and our assessment of key projects, we expect capital expenditure (capex) cuts in the region of 33 per cent for upstream Africa.” The research body also noted that producers would defer drilling, sticking only to the highest-ranked opportunities in their portfolios. Anderson added: “Operators will again seek to renegotiate contracts downwards – although there is less wriggle-room than before – and defer any advanced contracts that have not yet been signed off.” “We expect less cost stickiness, meaning the cuts will be quick and deep. During the last slump, capex in Africa fell by around 20%. This time we think a third of capex, or around US$10 billion, will be shed across the continent this year. According to the firm, Operational expenditure would come under spotlight too, with some operators looking for reductions of as much as 40 per cent. Chevron Corporation has announced the cutting of its 2020 capital budget by 20 per cent to $4 billion as part of its response to a significant drop in revenue due to the spread of the new coronavirus. “With an industry leading balance sheet and a flexible capital program, we believe Chevron is resilient and positioned to withstand this challenging environment,” said Chevron Chairman and CEO Michael Wirth. According to a new research from Norway’s biggest independent energy consultancy, Rystad Energy, ExxonMobil is also considering at least a 20 per cent investment cut, but these plans have not yet been finalized. Considering the company’s underperformance, even deeper cuts may be required to meet most of its important operational targets; it posted weak numbers for the fourth quarter of 2019, announced $20 billion worth of divestments planned for 2020, and maintains big ambitions for exploration and development in Guyana. The same report added that Shell will embrace a 20 per cent total cut strategy, but we expect that upstream budgets will only see reductions of about 14 per cent. The company is also committed to a divestment program of more than $10 billion worth of assets, which could prove challenging to conduct in the current market. It also noted that BP on the other hand has announced potential plans for a 20% cost reduction.

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COVER STORY Though the company holds a geographically diverse and resilient portfolio, it is believed that its $15 billion asset-sale target might not be accomplished. In the same vein, Saudi Aramco, the world’s largest oil producer, is slashing 2020 capex from an expected $35-40 billion range indicated in its IPO prospectus, to a level of $25-30 billion. This is also down from capex of $33 billion in 2019. Aramco’s capex plans for 2021 and beyond are also under review.

“

“As yet, no one knows precisely the impact on economic activity and energy demand from the coronavirus outbreak, especially in the longer term, and additional efficiencies may be required,”

said Aramco chief financial officer Khalid al-Dabbagh, on the company’s Q4 earnings during a conference call. Rystad Energy’s global capex for exploration and production firms (E&Ps) projected a drop by up to $100 billion this year, about 17 per cent versus 2019 levels, under its updated base case scenario of $34 per barrel in 2020 and $44 per barrel in 2021. In a low case scenario, where Brent averages $25 in 2020, global investments may plunge to around $380 billion this year, falling to almost $300 billion in 2021, a 14-year and a 15-year low respectively. It further noted that

“

more than a million oilfield services (OFS) jobs globally “will likely be cut” as the industry grapples with the oil price war and the effects of the coronavirus. The consultancy said a total of five million people are employed in the

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OFS market and contractors will look to scale down their workforce by at least 21 per cent this year alone. Grim prediction for African countries by WHO Based on the World Health Organization Situation reports (SITREPs) of 24 March, LSHTP estimates that,

“

almost all African countries are likely to reach 10,000 cases in May, after hitting the first thousand in the beginning of that month.

“Alarmingly, these (peaks) are largely synchronised continent-wide, and real burdens are certainly higher than reports. This calls for urgent action across Africa”, according to the study. “New containment measures, e.g. increased testing, contact tracing, isolation of cases, and quarantine of contacts are likely to slow, but not halt, real epidemic grow th. Increased testing may accelerate the time to reporting these numbers, as improved ascertainment increases the identified fraction of real cases, but should ultimately reduce real overall burden”, it adds. The LSTHP warns that “lags and missingness” in the official data tend to delay onset of the 1,000 and 10,000 case dates, so the real timing may likely be sooner than its estimates for many countries. Egypt, Algeria, Nigeria and Senegal are expected to reach the first 10,000 cases of Covid-19 by mid-April, along with Morocco, South Africa and Tunisia. Enhancing lockdowns through stimulus packages President Donald Trump in March signed a $2 trillion bipartisan stimulus package that is intended to address the threat of economic

disaster posed by the coronavirus pandemic. The Spanish Prime Minister Pedro Sanchez also announced the largest financial aid package in the country’s democratic history of up to €200 billion ($220 billion) to fight COVID-19. That is approximately equivalent to onefifth of the country’s GDP. Though Italy is the worst hit in Europe, its Prime Minister Giuseppe Conte’s government is ready to spend as much as €25 billion ($28.3 billion) on stimulus measures to shield the economy from Europe’s worst outbreak of the coronavirus. The U.K. wasn’t left out as its finance minister Rishi Sunak announced a budget with nearly $37 billion in fiscal stimulus on March 11. Lockdowns, stimulus packages, social distancing ad other measures are being adopted across Africa as countries are beginning to adjust to the new normal in order to beat the coronavirus. Effect on African Countries The coping mechanism of African nations to the COVID-19 pandemic and prevalent price war is largely dependent on the state of the various economies. In June 2019, a report by the World Bank Global Economic Prospect described the accumulation of public debt by subSaharan countries as unsustainable. It stated that between the period 2010-18, the average public debt increased by half from 40 to 59% of GDP, making sub-Saharan Africa the fast-growing debt accumulation continent. The repor t listed vulnerable countries with fast rising public debt in this category to include Angola, Cameroon, Equatorial Guinea, and Nigeria. NIGERIA Nigeria’s government depends on oil sales for about 70 per cent of its revenues and 95 per cent of its foreign earning. But, like analysts forecasted, key players in the oil sector in Nigeria are beginning to respond to the global industry challenge.

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COVER STORY Minister Zainab Ahmed has said. The government revenues will decline by about 40 per cent to 45 per cent this year due to the lower oil prices, Ahmed said. Nigeria will now peg the price of oil at “a worstcase scenario of” of $30 a barrel Prior to this year’s oil price crash, several international oil companies operating in the country have failed to sanction a number of projects valued at $58.4bn years after they were announced.

Muhammadu Buhari

Lekoil has said it will reduce workforce numbers as part of the “immediate and accelerated” implementation of the company’s general and administrative (“G&A”) cost reduction measures. “These measures are targeting an annual reduction of US$8.0 million or at least 40 per cent in G&A costs, which is inclusive of a reduction in staff numbers. The Company has commenced the immediate execution of these measures which will be completed within the next four to six weeks,” Lekoil said recently. Also, Nigeria’s Department of Petroleum Resources has ordered oil and gas companies to reduce their workforce and practice social distancing, tightening measures to stem the spread of the coronavirus. A few days later, Nigeria’s petroleum regulator ordered oil and gas firms to move to 28-day offshore staff rotations after six workers aboard an offshore support vessel tested positive for coronavirus.

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The West African nation plans to cut its 10.6 trillion Naira ($28billion) budget for the year by at least 1.5 trillion Naira following the twin attack of coronavirus and a plunge in the price of oil,

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari recently said, “at a crude oil price of USD 22 p/b, high-cost oil producers like Nigeria should count themselves out of the business”. According to Atlantic Council, Nigeria is expected to suffer the biggest loss in the continent with USD 15.4 billion, representing about 4 per cent of the nation’s GDP. Projects that have not reached FID, but announced, will be the first set to be affected. They include Shell’s $9.7billion Bonga South-West/Aparo, which was billed to add 143,274 b/d in extra crude production capacity at its peak flow. Other projects without the FID are ExxonMobil’s $6.2billion Bosi (126,784 b/d), Chevron’s $8.2billion Nsiko (95,685 b/d), ExxonMobil’s $8.2billion Owowo West (138,301 b/d), ExxonMobil’s $6.1billion UgeOrso (99,532b/d) and Nigerian Agip Exploration Ltd’s $9.2billion Zabazaba (146,739 b/d). According to the report, there are multiple gas projects worth nearly $5billion (led by Eni/Shell) that could achieve the FID in the coming years in Nigeria. Announced gas projects that have not been sanctioned include Shell’s $1.5billion Gbaran Phase 3, Eni’s $1.1billion SamabriBiseni and Shell’s $1.2billion Uzu. Simultaneously, in a bid to contain the novel Coronavirus, the nation’s apex bank, Central Bank of Nigeria (CBN) will increase efforts “in boosting local manufacturing and import substitution by 1 trillion Naira ($2.7 billion) across all critical sectors of the economy,” it said in the statement.

Having recorded 238 cases with 5 deaths, the bank also plans to provide a 100-billion Naira loan to health authorities. It had earlier approved a one-year moratorium on all principal debt repayments from March 1, and reduced to 5 per cent from 9 per cent the interest rate EQUATORIAL GUINEA Despite its small size, Equatorial Guinea is the third largest oil exporter in sub-Saharan Africa. The country has vast resource of gas; its petroleum sector accounts for 85 per cent of the nation’s GDP and more than 94 percent of exports. Prior to the twin attack, the Ministry of Mines, Mineral and Hydrocarbon (MMH) was targeting $1 billion in foreign direct investment (FDI) to be channelled into several crucial investment opportunities into the country’s energy sector. The inflow was targeted at modular oil refineries, an ammonia plant, a gas import terminal, liquefied petroleum gas storage tanks and other projects spanning the entire energy value chain.

Teodoro Obiang Nguema Mbasogo

As a major thrust in the country’s Year of Investment, the pursuit was to diversify the country’s energy sector, boost entrepreneurship, generate profit for investors and create jobs. In line with the country’s focus for the year were three key events and exhibitions. Plans for these have been shelved in the wake of COVID-19 pandemic.

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COVER STORY In a statement, the MMH boss reiterated commitment to the country’s investment outreach plans but acknowledged limitations as the outbreak of the virus had brought with it mounting travel restrictions.

at April, 2019 according to Standard & Poor’s credit rating for Cameroon.

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“As a result, we will continue our negotiations with investors under a more targeted approach and keep the number of conferences in Malabo to a minimum,” said Equatorial Guinea’s Minister of Mines and Hydrocarbons Gabriel Mbaga Obiang Lima. Again, U.S. upstream giants like Marathon Oil, Noble Energy and state-owned Sonagas, had planned investment in the country’s downstream sector through the construction of a methanol-to-gasoline and derivatives unit. But this also, might have to be delayed. According to World Health Organization (WHO) Equatorial Guinea has recorded 16 Coronavirus Cases since the epidemic began, without any death. To contain the pandemic, the government has deployed an initial health spending plan of 0.07 per cent of its annual GDP. In 2018 Equatorial Guinea recorded a government debt equivalent to 43.30 per cent of the country’s GDP. However, the GDP continued contracting at a rate of 4.10 per cent in 2019 from the previous year where it also registered a contraction of 6.1 percent. The country’s unemployment rate has remained unchanged at 9.20 per cent in 2019 but concerns are mounting if this figure will stay the same at the end of the year. CAMEROON C ameroon is a commodit ydependent economy with oil accounting for over 50 per cent of total exports. It recorded a government debt equivalent to 34 per cent of the country’s Gross Domestic Product in 2018, and has a rating of B with negative outlook as

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Paul Biya

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Tower Resources carrying out development in the Thali block in the country’s offshore has declared forcemajeur based on the present global crisis. The company also revealed that activity on the NJOM-3 offshore well may also be suspended. It further stated, “...however, in any event, the company remains committed to drilling NJOM-3 as quickly as possible.” Trading Economics noted that the country has registered about 658 cases infected with the Coronavirus, with 9 deaths. The authorities’ preparedness and response plan envisage COVID-19-related health spending to reach CFAF 6.5 billion (or US$11 million) over the next three months (about 0.1 percent of GDP on an annualized basis). Its economy presently enjoys a growth rate of 4.2 per cent which is expected to dip from the twin attack to the global oil industry at the end of the year. GHANA “If prices should stay around the $30 mark, then the government is less likely to get half of the revenue that it projected. Already, we’ve seen Tullow cut back it’s production. So,

aside the international fall in crude oil price that we have to match with in selling our own bit of oil that we get as a country, production is also falling in our own shores,” said Paa Kwasi Anamua Sakyi, Executive Director at the Institute for Energy Security. Tullow Oil has revised its production targets and terminated the drilling contract with Maersk Drilling for the Maersk Venturer drillship offshore Ghana. Ghana’s President Nana AkufoAddo in February said he expected Norwegian oil firm Aker Energy to make a final investment decision on the Pecan offshore development “within a month or two.” The wait is now set to be prolonged “indefinitely.” Aker Energy’s parent company Aker ASA, said in its annual report recently that given the unprecedented collapse in oil prices in the first quarter of 2020,

Nana Akufo-Addo

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Aker Energy “has decided to postpone the Pecan project indefinitely.”

“At the top of Aker’s ownership agenda is to find potential for improvement, including for the technical solution, as well as supporting Aker Energy’s strategy of exploring opportunities for transactions.

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COVER STORY Aker Energy has a constructive dialogue with the authorities in Ghana, and have a shared understanding of the challenges being faced,” Aker Energy said.

external borrowing has raised the public debt to 54.7 per cent of GDP in 2018 from 47.7 per cent in 2017 and presently has an unemployment rate of 14.6 per cent as at 2018.

Ghana Health Service has reported 287 coronavirus cases and 5 deaths. According to IMF, starting March 16, the government adopted sweeping social distancing measures and travel restrictions to avert an outbreak, including (i) suspension of all public gatherings exceeding 25 people for four weeks; (ii) closure of all universities and schools until further notice; and (iii) mandatory 14-day self-quarantine for any Ghanaian resident who has been to a country with at least 200 confirmed cases of COVID-19, within the last 14 days. The government committed US$100 million to support preparedness and response. Additional funds have been earmarked to address availability of test kits, pharmaceuticals, equipment, and bed capacity.

ANGOLA

Ghana’s economic outlook by African Development Bank (AFDB) Group showed that it continued to expand in 2019, with real GDP growth estimated at 7.1 per cent Following rising public debt and deteriorating debt service metrics, Ghana was re- classified from moderate risk of debt distress to high-risk of debt distress in its Debt Sustainability Analysis (DSA) report by the IMF and World Bank in March 2015. In 2018, the stock of public debt stood at GHS172, 875.81 million ($32 billion) comprising 49.8 per cent external debt and 50.2 per cent domestic debt. The most recent DSA in March 2019 indicates that Ghana continues to remain at high risk of debt distress. While its public debt burden is expected to peak at 62 per cent of GDP in 2019, its rate of poverty stood at 23.4 per cent in 2016/17. SENEGAL Though the country’s first offshore licensing round was launched earlier this year by the national oil company, PETROSEN not much will be expected to fall through until the global narrative changes.

Namibe Refinery Complex worth $12 billion is a project being developed by an investment vehicle set up by two Russian groups (75 per cent investment by Rail Standard Service and 25 per cent by Fortland Consulting Company) and local partners which was proposed in 2017. It was pencilled to deliver a new 400,000 b/d refinery to be built in Namibe. Project delivery date will be uncertain. Macky Sall

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Senegal has seen Cairn Energy reduce its planned investment below $330 million from the initial forecast of $400 million. Also, the $4.2 billion Sangomar deepwater offshore project has suffered immense pressure as project partner FAR Ltd fails to finalize debt arrangements. Further delay is expected with the global fall in prices. While Senegal has reported 226 Cases and 2 Deaths, according to IMF and in line with fighting COVID-19, the government has declared a national state of emergency and adopted strict containment measures, including suspension of international air travel, closure of borders, limits on inter-regional travel, bans on public gatherings, school closures, and a curfew. The government also plans to set up an emergency fund of up to FCFA 1000 billion ($1.68 billion) which is 7 percent of its GDP, financed by a mix of donor contributions, voluntary donations from the private sector, and the budget. Economic outlook by AFDB Group shows Senegal with a real GDP growth above 6.0 per cent on average since 2015. Its

Angola had included the privatization of state-owned companies and plans to reduce public debt to less than 60 per cent of GDP by 2022 from approximately 90 per cent in 2018 and, over 100 per cent in 2019. Finance Minister Vera Davis de Sousa revealed that

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the country’s oil production is expected to tumble to 1.36 million barrels per day (bpd) if the oil price stays at $35/bbl.

João Lourenço

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COVER STORY She also stated that capex would be suspended pending completion of the budget review. In an earlier st atement, she had already confirmed that the country’s economy will shrink by 1.21 per cent this year, signally a fifth year of recession Angola has reported 16 Cases and 2 Deaths from COVID-19. Passengers arriving from high-risk countries are quarantined for 14 days. According to IMF Policy Tracker on COVID-19, the government is working on a package of measures to fight the coronavirus outbreak in the country and its economic fallout. Lasting truce, survival As the U.S. mediates between Saudi Arabia and Russia, it is expected that both warring camps would tow the path of lasting peace if the U.S. leads by example. Anything else

will be superficial. Should a truce be reached between Saudi Arabia and Russia to cut production, and the U.S. joined by other non parties to OPEC+ continue to increase production, the expected effect would cancel out. The U.S. has ramped up its production from 5.4 million b/d in 2009 to 19.51 million b/d in 2019 where it is now a net exporter, and the highest global supplier of crude, until the recent crash. Thanks to shale technology. A rational deal would be one in which all major contributors to the global supply market engage in production adjustment as it will strengthen the resolve of parties to OPEC+, thus bringing back the days of decent oil prices in the global crude oil market. However this pans out, diversification away from crude

oil remains a sure way to protect the African oil producing economies from a highly turbulent oil market in the future. In the interim, surviving these twin storm will depend on how deep each country’s reserve is, or how much of its critical infrastructure and assets it’s willing to stake as collateral for more debts, just like Zambia. Otherwise, untold hardship looms. Resultant effect on oil price being expected from ongoing negotiations by the U.S., Saudi Arabia, Russia and the rest of OPEC+, would only be traceable after the COVID-19 scourge. African producers can only hope that, as they manage to contain the spread via lockdowns, travel restrictions, and social distancing, among other measures, efforts by neighbours, and countries across other regions would do so simultaneously in order to bounce back early.

MARITIME

NPA charges not highest in West Africa

ontrary to misconceptions being perpetrated, the Nigerian Ports Authority has stated that it does not charge the highest tariffs along the West African coast. This was disclosed by the General Manager, Corporate and Strategic Communications of Nigerian Ports Authority, Jatto A Adams recently in a press statement. He stated that in May 2019, Messers Crown Agents, who were commissioned by the Authority with the support of UK Aid produced the

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result of an assessment which revealed that it is cheaper to b e r t h general and container vessels in Nigerian ports than it is in Ghana and Togo. Specifically: while it costs $94,567.63 VAT inclusive to berth a general cargo vessel with GRT of 26,770, LOA at 196m and cargo of 14,100 MT in Nigerian ports for instance, ports in Ghana and Togo charge $217,879.07 and $120, 357.58 exclusive of VAT for the same types of cargo respectively. Similarly, while the Authority charges $108, 806.90 VAT inclusive on a container vessel with 39,906 GRT, LOA of 261m carrying 172×20” and 139×40” containers, ports in Ghana and Togo charge

$117,906.58 and $128,406.94 exclusive of VAT respectively. The Authority would also want to reiterate that apart from towage dues, which were reviewed to cover the cost of providing the service in 2015, our tariffs have remained the same since 1993. This is also in spite of the erroneous inclusion of Stevedoring charges, which is collected by Terminal Operators as the Authority’s component. Costs like freight rates and terminal handling charges are components outside the purview of the Nigerian Ports Authority, which has no powers to regulate economic activities at the ports. The NPA assures its customers and all port users of its commitment to the ease of doing business policy of the President Muhammadu Buhari administration and is working to enhance the competitiveness of all Nigerian ports.

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MARITIME

Coronavirus: NSC seeks free access for banks’, agencies’ staff to facilitate port operations

…Commits N10m in fight against Coronavirus pandemic

he Nigerian Shippers’ Council (NSC), por t economic regulator, has listed 21 industry players including banks, Nigeria Customs Service, Nigerian Ports Authority, Port Health Services, banks, shipping line agencies and terminal operators, whose services are required to enable seamless operations during the 14-day lockdown in Lagos. According to the Council, field and operational officers as well as essential staff of all the agencies as well as organisations involved in cargo clearance at the port shall be granted freedom of movement to and from ports, upon presentation of valid means of identification. Speaking through a statement issued in Lagos recently, Hassan Bello, executive secretary of the Council, said the present situation has indeed caused unimaginable disruption on the logistics supply chain such that users and providers of services are seemingly unable to carry out their obligations for reasons beyond their control. Stating that the Council has been inundated with complaints that banks are not offering services with respect to port operations, Bello pointed out that such a development would hamper cargo clearance from the

ports. He assured cargo owners that the attention of banks had been drawn to the notice by the Federal Ministry of Finance and Central Bank of Nigeria, which allows skeletal operations in the financial system during the lockdown, adding that port operation as indicated by the President, is also an essential service.

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“Nigeria Shippers’ Council, as Port Economic Regulator is conscious of the fact that obligations, responsibilities, duties and rights may have been frustrated. Therefore, the Council is discussing with all parties so that a balanced solution can be achieved especially on the issue of demurrage and incentives to facilitate the clearance of goods from the ports,” he said.

including Festac by Apple Junction, Okokomaiko at Alakija under bridge, Surulere by National Stadium, Oshodi at Charity bus stop and Ikeja Along Bus Stop, starting from Wednesday 1st April, 2020 at 8am to ease movement of accredited freight forwarders, who have business to conduct at ports. “As an intervention, NSC has donated protective gears for port users worth N5 million to be distributed to relevant field and operational staff. The Council also donated the sum of N5 million to be used collectively in the fight against COVID-19 in Lagos and Abuja, the Federal Capital Territory (FCT),” he added. Iju Tony Nwabunike, National President, Association of Nigeria Licensed Customs Agents (ANLCA), pointed out that only Customs broker, freight forwarders and haulage operators, who have jobs on the ground that should approach the ports this period of restriction. He further advised them to always visit the ports with their company identity cards and the NPA port pass to facilitate their movement.

He stated that buses would be stationed at strategic points

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MARITIME

COVID-19: NIMASA bans international vessels without thermal screening facilities â&#x20AC;ŚGive Guidelines To Vessels Calling At Nigerian Ports

he Director General of the Nigerian Maritime Administration and Safety A gency NIMASA , Dr. Bashir Jamoh has announced that following the current outbreak of COVID-19 and the need to mitigate the spread especially through shipping activities, , the Agency has developed Guidance to support all types of ships that operate in the Nigerian maritime domain and banned all vessels without thermal screening facilities from operating in Nigerian waters . Dr. Jamoh stated that the purpose is to help shipping companies and all maritime stakeholders to follow advice provided by United Nations agencies including the World Health Organization (WHO), the International Maritime Organization (IMO) and the International Labour Organization (ILO), as well as the Nigeria Centre for Disease Control (NCDC). According to him the outbreak has necessitated stringent measures that can help curb the spread while not totally grounding the Nigerian economy.

â&#x20AC;&#x153;

These are trying times and we must pull through together that is why we have directed that all maritime stakeholders develop risk assessments and safety intervention guidelines for their

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personnel and operations on the areas of vulnerabilities of their maritime operations that can be affected by the COVID 19 pandemic including but not limited to offshore operations such as crew/personnel changes, visits from onshore and other locations for provision of supplies, maintenance and repairs etcâ&#x20AC;? Jamoh stated. He also disclosed that the Agency would be coming up with the publication that would elaborate on the guidance which also includes schedule for ongoing offshore operations requiring new crew or crew changes from affected countries to ensure that predeparture tests for COVID 19 are conducted on such persons, and self-isolation procedures for the prescribed period are instituted for such new crew/personnel before exposure to other personnel. Dr. Jamoh also pointed out that only international marine vessel which had planned and informed of their call into a Nigerian Port not later than 1st February, 2020 may be allowed to call on such port adding that any international marine vessel or any member of its crew or passenger therein having a travel history of visiting any of the COVID-19 affected countries since 1st Feb, 2020; shall not be permitted to enter any Nigerian port from 30th March, 2020 till 12th of April, 2020. And any

further dates as may be reviewed from time to time. Additionally, only international marine vessel having thermal screening facilities for passenger and crew may be allowed on the ports and that Shipping Agent/Master of Vessels must submit all documents related to crew and passengers regarding their travel to or from the COVID-19 affected countries. The NIMASA DG, also pointed out that it was important for all passengers and crew members to fill the Self Reporting Form as prescribed by Nigerian Port Health Authorities adding that Port Health Officers (PHO) shall carry out thermal screening of all the passengers and crew members on board ship and until clearance is given by the PHO no passengers and or crew members would be allowed ashore. It would be recalled that in the fight against the deadly COVID-19 NIMASA recently has donated 20 ventilators as well as 6 fast intervention vessels to facilitate transport logistics support in the maritime sector. The Agency also donated 4 fully equipped brand-new Ambulances, 4 Hilux and four 36 sitter coaster buses to facilitate land-based logistics in the Federal capital Territory, Lagos, Delta, Rivers Cross Rivers and Kaduna States along with cash donations to some of the states who have reported cases of the pandemic.

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ENERGY WOMAN

““...we speak for all

indigenous players and not just our members.” Patricia Simon-Hart, Secretary PETAN, CEO Aftrac Ltd

atricia Simon-Hart is the founder and Managing D i rec to r of Af tra c Limited, an oil and gas service company that has been in operation for over 20 years. She is the current Secretary to the Executive Board of PETAN (Petroleum Technology Association of Nigeria) and a cofounder/ Vice President of Women in Energy Network. The former Commissioner for Water Resources and Rural Development, to the Government of Rivers State (20092015) has over 30 years of experience in Management, Public Policy and Administration. She is a die-hard entrepreneur and strong advocate of women participation in Nigeria’s oil and gas space, particularly in the service sector. As AFTRAC boss, she leads her team to blaze trails in the areas of Surface Well Testing and Coiled Tubing services, Sand Management, Process Diagnostics, Inter-well studies and a range of technology driven solutions, among

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others. Excerpts of her interview with JEROME ONOJA. You’re the CEO of AFTRAC due to your out-of-the-box thinking. As a woman, what made you veer left when everyone else was going right? I am not sure which way is left or right, I have always believed I’ve been on the “right” path, and never really considered my gender in the equation.

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I started my business looking for unique technology and services to help E&P companies optimize production operations. I was actually running away from unprofessional business practices and competition in the ICT sector at that time, and came across some amazing technology for the

upstream oil and gas sector that we worked hard to introduce. We continued to expand our services from there. There are several opportunities in an emerging economy like Nigeria. Why did you choose a difficult terrain like oil well services; secondly, why did you choose to operate from the heart of Port Harcourt at a time when it was thought to be volatile? The main stay of the Nigerian economy is Oil and Gas, and so most sectors render services to the Oil sector directly or indirectly. I happened to be in the ICT sector and my main clients were Oil (Upstream and downstream) and Oil services companies. That’s how I got involved in the Oil sector, providing ICT products and services. I then moved on to other technology which was related to their core operations, Well Services. I had a choice of going into Procurement, Projects or Services, I choose Services and Well Services as they generally go on,

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ENERGY WOMAN .

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no matter the cost of the price of oil, and the margins in procurement are usually really low and it’s highly competitive. Also with well services I could add value. Why operate from the heart of Port Harcourt? First and foremost Port Harcourt is home and I actually started operating my business from here, way before there were any security challenges. Apart from this, most oil field operations are mobilized from Port Harcourt, so it was only natural to have my head office and operations base and yard in Port Harcourt. As Secretary of Nigeria’s foremost industr y association-PETAN, you occupy a position where you contribute to shaping the industry rather than looking to the industry for what to benefit. What ideas do you hold to further entrench one of the pursuits of the NCDMB regarding in-country value retention for Nigeria’s oil industry? PE TAN has from inception worked to drive local content and indigenous participation through the entire oil and gas value chain while ensuring quality and safety standards are not compromised.

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Our vision and mission remains the same, we speak for all indigenous players and not just our members; just as the NOGICD Act and establishment of NCDMB opened up opportunities for all Nigerians. We are now pushing boundaries and looking for new horizons and opportunities for our members in other African countries... African content. Before floating AFTRAC, what was

your experience in the oil industry? My main experience was really in Information and Communication Technology (ICT); I had worked providing products and services to some E&P companies as well as the refineries and petrochemical plants. How do you get ahead in this maledominated industry? We do this by focusing on operating to the highest quality and safety standards and building local capacity; the products we promote are superior and all our well services equipment is of the highest quality. We are prompt and professional in our services delivery and we never compromise on safety. There are few women in the oil and gas space; even fewer in the leadership role. What do you think can be done to change the narrative? Also, what advice do you have for new female entrants to the industry? Yes, and it is most unfortunate. We need to change more than the narrative…we need action as the industry has a lot to gain from more women in the Energy space in general.

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A few of us have finally gotten together to promote women in the Energy sector; we established the Women in Energy Network – WIEN. We are an advocacy association working to advance women in the Energy sector, from leadership positions to building female entrepreneurs to encouraging STEM for young girls and providing mentorship. And we are running with the vision. For new female entrants to the sector I would say spend time studying the industry well and decide on the area you want to focus, you can’t

be a ‘Jack of all trades’. Then I would suggest you try and access various networks related to the sector and build relationships. Attending International Oil and Gas conferences and exhibitions is also a great opportunity to build on your knowledge and networks. Tell us a bit about your support system that helped you thrive as a mother and an accomplished entrepreneur. As a single mother of two, my immediate family were most supportive, especially when my children were still in primary school. By the time there were in Secondary school they were boarders, so it was much easier, but I still had a lot of support from my family. That really helped. Also having competent and reliable Managers in the company that could run operations seamlessly in my absence was also a contributing factor to my success, as I also had to spend considerable time away from the office to attend to my children. So

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having the ability to delegate and let go is a necessary skill.

Technology has always been a great tool I use in managing the company and working remotely while away. Being a co-founder of the Women in Energy Network (WIEN), what are your aspirations as a group for the industry? Our vision is to become the leading Women’s association that advances Women’s participation in leadership across the energy value chain.

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ENERGY WOMAN

Patricia Simon-Hart delivering an address at WIEN workshop

and access to business opportunities and finance to succeed. From your antecedents, you don’t come across as a risk-averse entrepreneur. So, what are some daring goals you have in sight for AFTRAC? Yes, I try and take on what I believe we can handle and build up competencies as we grow. So we have grown slowly but steadily and because we are risk-averse, when the shocks come we somehow are able to weather the storms. But that also has a down side.

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We are currently exploring expansion into EPC’s as well as extending our current well service offerings, but we are closing monitoring the highly volatile market and will only jump when we see its safe and secure to do so. Do you have a side hustle, like a safety net should the oil industry go south for a very long time, considering the

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lingering price war between Saudi Arabia and Russia, as well as the shale and the renewables threat. Also, do you see an imminent end to the face off? No, I don’t have a “side hustle”. I don’t think shale oil is a threat as long as the prices are low and I do not look at renewables as a threat, rather an opportunity. We are looking at renewables; solar power to be specific. I am also passionate about Public Policy and Development and

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still do a bit of consultancy in the Water and Sanitation sector. I think my passion is actually there. On the face-off I’m sure we’ll see some “give” sooner than later. There’s this notion that women are always in competition with one another. What’s your perspective? Now that’s the narrative that needs to be changed! It’s simply not true. I think WIEN is a great example of how women with one mission and vision can accomplish great things

together.

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“A woman alone has power, together we have impact” Winning PETAN elections, back to back tells you’re diplomatic and understand the rudiments of politics. Again, successful women are often described as abrasive, difficult and determined. Do you share these qualities? I do not know that I’m that diplomatic or a politician per se, but rather was elected based on competence and what PETAN as an organization needs in this season to move to the next level, and accomplish her mission in the Nigerian Oil and Gas Sector. Yes,

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successful women are indeed perceived negatively; the same qualities that are deemed to be acceptable for men are not for women.

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ENERGY WOMAN

Patricia Simon-Hart, Funmi Ogbue, Mele Kyari, Amina Maina, Charlotte Essiet

I think we need to pay attention to individual qualities and not focus on negative perceptions or try and put us in a box. What is unique about you that people hardly notice? I’m a sticker for process and do not tolerate mediocrity. Things have to be done in an organised and proper manner, but I think people know that about me. Lol. How do you relax and create a work-life balance? Christian fellowship and charity outreach programmes, I have always been sporty, I played volley ball for my state and university, I used to play squash

in my twenties and thirties, but I now play golf. I also love a good movie or series to relax my mind. What’s the Nigeria of your dreams? Nigeria could be such a marvellous place to live, but there is so much poverty, lawlessness and unfair practices. My dream is for a Godfearing nation that is inclusive in terms of economic and social development, where people are patriotic and place Nigeria before personal preferences. What’s your parting statement regarding the raging Coronavirus.

and mandatory lockdowns. For companies, remember to think safety first, protecting the lives of your employees comes before business.

“

Use this experience to start working “smart”, using technology where you can to run operations remotely. And build the extra necessary resilience in to your Business Continuity Plans. This too shall pass!

For individuals: stay safe, follow government laid down guidelines on social distancing

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INTERVIEW

“…small business enterprises hold the key to lift 100 million Nigerians above poverty line” Hon. ‘Legor Idagbo, House Committee Chairman on Local Content youth employment and opportunity for MSME in every sector of the economy remains the objective of the proposed bill. It was mentioned that the Senate is considering having another body or agency which would have the oversight function over local content activities, rather than the NCDMB having directorates to manage these sectors. Do you foresee politics getting in the way of this noble pursuit to further explore the benefits of Nigerian Content an in an already over-regulated business environment? While the organization structure of the Body that would be responsible for overseeing the implementation of Nigerian Content in every sector of the Economy is a critical success factor, our emphasis would be to

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hat’s the plan for NCDMB regarding that period between repealing the NOGICD Act and the passing of the new bill? Do recall that the PIB has taken 2 and a half decades already. We don’t intend to repeal the NOGICD Act. It is the extant law on local content. Hence, the NCDMB will still carry out its statutory duties and one of which includes the implementation of the Act. However, NCDMB can’t run the company that will oversee the proposed industrial parks; a PPP model is a more appropriate model.

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So, the Board will still be alive during that period. NCDMB would also be expected as a key Stakeholder to provide support in the engagement process and articulation of the new proposed Legislation. Mind you, PIB is in a class of its own. Lessons learnt from the attempt of previous National Assembly have been incorporated into the process of preparing the proposed Bill by the Nigerian Content Committee of Senate and House of Representative. The need to provide additional legislative support for Executive Orders 3 and 5 of the Presidency and deliver the potential benefits from the proposed legislation cannot be over-emphasised, the potential for

develop sector-specific regulations that would replicate the successes achieved by NCDMB

and leverage on existing public procurement processes. There exists a hybrid of regulatory options that are flexible to provide for sector specific self-regulations. What is paramount is that the interests of Nigerians are perfectly protected. I envisage that all stakeholders would be able to align on a fit for purpose organization structure that would be positioned to deliver on the people’s aspiration of promoting the interest of Nigerians in all the sectors of the economy. You alluded to the inability of government to sustain business ventures with particular reference to the planned industrial parks by NCDMB.Would you reconsider that position against the backdrop of Saudi Aramco, as well as NLNG?

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INTERVIEW

Ranti Omole, Hon Idagbo Legor, Engr Simbi Wabote, Patricia Simon-Hart, Abdul-Malik Halilu, & SAN…

The corporate structure of NLNG is an example of managing government’s involvement in a business ventures and forms the basis of the preference of an incorporated Joint Venture model in the proposed PIB. Facts are sacred and the performance of government in business ventures is hardly an opinion. It is important to note that

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small business enterprises hold the key to the kind of rapid economic growth Nigeria would need to lift 100 million Nigerians above the poverty line because small businesses makeup 97% of the economy and contribute 70% of the country’s job opportunity.

The a mended Deepwater Ac t hasn’t settled well with the IOCs. Understanding that this perception could further slow the rate of foreign investments coming into the country, what do you suggest as a remedy in the interim or on the long term? Allocation of resources among counterparties would always involve some form of tension, however, the scare of exit of foreign investment is further justification for the deliberate policy on Nigerian Content in every sector of the economy. The old Deep Offshore and Inland Basin Production Sharing Contract Act, 2004 denied Nigeria a lot of benefits as some deepwater oil fields that are not in high water depth were not paying royalty. Also, deepwater royalty based on increased oil price was not implemented even when oil price exceeded $20 per barrel as contained in the law. These narratives were changed in the amended Act and henceforth, there is no zero royalty. Deep Offshore Act Amendment is perhaps the greatest boost to the drive to increase public revenue. The IOCs have not been left empty handed, the Act allows for other incentives.

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It is important to note that companies are allowed to recover their capital and operational costs before oil profits are shared. The companies also get 50 per cent investment tax credit or investment tax allowance on qualifying expenditure before tax is paid.

There is a balance. The amendment was long overdue. I don’t see additional burden placed on the IOCs. What are your thoughts on the alleged duplication of functions by Ministry of Niger Delta, and the NDDC? In my opinion, it is division of function and not duplication. The division of the functions of the Ministry of Niger Delta from NDDC is like a two edged sword. Similarity abound in every sector, in the Petroleum Sector, there is the Ministry of Petroleum Resources,

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SOCIAL INVESTMENT

COVID-19: NNPC, Seplat, Shell, Total, 30 oil firms donate $30m to Federal Government

he Nigerian National Petroleum Corporation (NNPC) and 33 oil and gas companies have contributed $30 million, about N11.4 billion to enable the Federal Government fight Coronavirus (COVID-19) in Nigeria. Speaking in Abuja, Group Managing Director of the NNPC, Mallam Mele Kyari, disclosed that the donation was targeted at supporting healthcare delivery facilities in the nation. According to him, 33 partners who made the contribution were drawn from the upstream sector, from the Oil Producers Trade Section of the Lagos Chamber of Commerce and Industry (LCCI) and the Independent Petroleum Producers Group. The GMD, who said they included, Shell Group of Companies, Seplat Petroleum Development Company Plc, ExxonMobil Group, Total Group, Chevron Group, Eni Group, Addax Petroleum and Aiteo

Eastern Exploration, added that they also included Niger Delta Petroleum Resources Limited, Oando Oil Limited, Oriental Energ y Resources Limited, Pillar Oil Limited, Platform Petroleum Limited, Shoreline Natural Resources, Suntrust Oil Company Nigeria Limited, Vertex Energy Limited, Waltersmith Petroleum Oil Limited and Yinka Folawiyo Petroleum Limited, Amni International Petroleum Company, Dansaki Petroleum Development, Eroton Exploration and Production Company, among many others. The GMD, who stated that Depot and Petroleum Products Marketers Association (DAPPMA) donated N120 million for the provision of 36 ventilators and 1,500 coveralls, while MRS donated 2,000 test kits, 1,000 coveralls and N100 million for acquisition of ambulances, added: “Matrix Energy provided N360 million

for necessary medical equipment, Major Marketers Association of Nigeria (MOMAN) provided 50 ventilators and OVH Energy 200 ambulances for use. He said: “Also, Eyrie Oil donated 1,500 coveralls and laboratory equipment for one diagnostic centre, Wien, test kits and lab equipment; Bono, Mocoh and Levene oil donated N18 million each. In recognition of the impact of the COVID-19 pandemic on the Nigerian population and economy, the Nigeria oil and gas industry under the leadership of the Mele Kyari has embarked on an industry- wide collaborative intervention initiative to combat the pandemic and its attendant impact. The intervention initiative is in alignment with the ongoing Federal Government’s efforts and in collaboration with the NCDC to curb the pandemic.”

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SOCIAL INVESTMENT

Siemens trains Nigerians in engineering, field service operations

iemens Limited Nigeria has commenced the pilot phase of its graduate engineers’ training and management programme for Nigerian engineering graduates. It said the aim of the programme was to tackle the depletion of professionals and skilled field service engineers in Nigeria. In a statement through its consultant, the firm said the programme would focus on hiring, training and grooming local talents to meet the company’s business needs and its sustainability. The training, according to the firm, commenced on March 2, 2020 and would offer participants two years of world-class training from Siemens in-country/on-site facility in Nigeria and Siemens’ Technical Competency Institute at product lead centres in Europe and North America. Commenting on the development, the Vice President, Services and Digital, Siemens Nigeria, Seun Suleiman, said, “We are excited to (get) onboard these graduates to our field service department where they will be cross-trained across our product lines over the next two years.

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“ Siemens is known as an employer of choice in the power and ga s sector in Nigeria and this graduate t r a i n e e p r o g r a m m e by our ser v ices distributed generat ion oi l a nd ga s business unit was driven by ou r c om m it ment to provide a pool of young, talented and well trained ser v ice eng ineers.” He added, “This is in compliance with local content act of the Nigerian government for human capital development. It is our goal that by the end of this programme we will graduate multi-skilled engineers. “In the future, they will be able to take over from our experienced pool of senior engineers who currently demonstrate the capacity to support our fleet of over 360 gas turbines and compressors across our country.” He said the engineers would be globally certified and become experts in controls and mechanical discipline, which would be of great value

to customers and the industry in general. Suleiman said, “We are confident that in the nearest future, this programme will contribute to reducing the delay in sourcing engineers locally at short notice and ensuring affordable cost in an oil and gas market that is now ever highly competitive in pricing and retaining talents.” On the company’s commitment to supporting local capacity development, the Head, Field Service Operations, Siemens Nigeria, Pelumi Olaolu, said the firm would be joining other regions such as Germany, where the programme was already being implemented to ensure the success of the training in Nigeria. Olaolu said, “We believe that the derivatives of this programme are beyond our business values and that it will enhance employment oppor tunit y, human capital development, future managers and leaders in the industry. “The technical aspect of the programme will train the graduates in the fundamental principles and application of rotating equipment and other dimensions of energy application in gas turbines, alternators, compression, etc.”

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POWER

MD/CEO of REA tours Sura shopping complex Independent Power Plant (IPP) powered under the Energizing Economies Initiative (EEI).

he MD/CEO of REA Ahmad Salihijo Ahmad accompanied by the Executive Director (Corporate Services), and other senior management staff recently, visited and inspected the Sura shopping complex IPP, one of many economic clusters electrified under the Energizing Economies Initiative (EEI) of the Federal Government being implemented by the Rural Electrification Agency (REA).

with dedicated staff to meet the electricity needs of the customers in the shopping complex. Yewande further told Mr. Ahmad that shop owners enjoy stable electricity to power their businesses, the resultant effect of stable and reliable nature of power in Sura has made businesses in the complex to expand in their respective business es using savings that would have been spent on servicing generator sets.

The Project Manager, Yewande Osundu, received the Managing Director and team, and gave details about the project and its impact since it was commissioned. According to osundu, all customers on the Sura IPP power project have meters and enjoy a flat tariff of N54.12 across board. She added that the complex enjoys a functional state of the art customer service centre managed by the developer

The MD/CEO expressed delight at the impact of the project as enjoyed by shop owners, all of whom had since decommissioned their hitherto noisy generator sets. The MD added that this project has indeed helped to improve MSMEs in Nigeria, while also helping to cut down carbon emissions from generator sets. The MD/CEO then took a tour of the facility and commended Solad Power Holdings

on the seamless management of the facility, especially as it relates to prompt service to customers. The Sura IPP is one of the projects under the Energizing Economies Initiative of the Federal Government, officially commissioned by the Vice President of the Federal Republic of Nigeria, Prof. Yemi Osinbajo, SAN, GCON on the 26th of October 2018. The project serves 1,047 shops with clean, safe and reliable energy at the popular Sura Shopping Complex, Lagos Island, through a 1.5 megawatts gas-fired plant.

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POWER

TCN signs MoU with Ekiti State government on transmission lines and substations projects

he Transmission Company of Nigeria ( TCN) has signed a Memorandum of Understanding (MoU) with the Government of Ekiti State on the construction of the Ado Ekiti – Ilupeju and Ado Ekiti – Ijesha Ishu 132/33kV Transmission line and associated 2 x 60MVA 132/33kV substations at Ilupeju and Ijesha Ishu within the state. The MoU was signed recently, in the Deputy Governor’s office, Ekiti State. The state governor, Dr Kayode Fayemi, represented by his deputy, Otumba Bisi Egbeyemi, expressed delight that the MoU would result in new transmission lines as well as two new substations that would help ameliorate the poor electricity supply situation in the state. He stated that presently, the state has only one number 132kV transmission substation which is very inadequate for the state. He expressed optimism that the projects when completed, would provide conducive environment for industrial development in Ekiti State. He noted that his administration is deeply concerned about improving infrastructural projects, to help its citizens attain economic stability and ultimately revolutionize the state. He therefore urged TCN to look at the place of Ekiti State in its network with the view to improving TCN’s presence and boosting bulk supply to the state, to enable the government to achieve its five-

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cardinal program for its citizens. The governor assured that the state would create an enabling environment for TCN to effectively complete the project, noting that the people of the state have lost confidence in the power sector and that there is need for TCN to help build confidence again. He called on other stakeholders in the power sector to endeavour to upgrade their facilities and urged that they also develop a synergy among themselves to enable them ultimately to provide better service to electricity consumers in the state. Earlier, while welcoming the TCN team to Ekiti State, the Commissioner for Public Utilities, Hon. Dele Fagbanusi said that the MoU signifies physical attempt to reduce the perpetual low power voltage and positively impact economic activities in the lives of the 82,300 electricity consumers within the 134 communities in the 16 Local Government Areas of the state. According to him, the signing of the MoU is a result of the Governor’s commitment to finding solution to the poor power situation in the state. The state he explained, would take care of Right of Way for the transmission lines and provide land for the two substations projects, while TCN would procure all equipment, install and commission the project. He

appealed to TCN to compete the projects on time. Speaking on behalf of the MD/CEO of TCN, Mr. UG Mohammed, the Head TSPTCN, Engr. Victor Adewumi said that TCN wants to kick start the 132kV double circuit lines and the two substations projects at Ilupeju and Ijesha Ishu simultaneously. He acknowledged that the singular 132kV transmission substation in the state was grossly inadequate which is why TCN is collaborating with the state government to construct the two transmission lines and two substations. On completion of these projects, the voltage profile of electricity in the state would normalize. He noted that the collaboration with the state would ensure faster delivery of the projects which he said can be completed by the end of the second quarter of 2021. The MoU specifically put the responsibility of providing the Right of Way (RoW) for the transmission project and the provision of land for the two substation projects on the Government of Ekiti State, while TCN would be responsible for procuring the equipment, all engineering works/installation and commissioning of the substations and lines. With the execution of the MoU between TCN and Ekiti government, TCN would now commence processes leading to contract award and execution.

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POWER

New NERC order will stop Discos’ rejection – TCN

he Nigerian Electricity Regulatory Commission has introduced an order that will help stop the rejection of electricity load by power distribution companies. Managing Director, Transmission Company of Nigeria, Usman Mohammed, disclosed this to journalists while speaking on the sidelines of an extraordinary tariff review public hearing by the TCN before NERC. The TCN had complained that the country’s power supply situation was further worsened by the rejection of electricity allocation by Discos. This, however, had been refuted by the power distributors. But industry data obtained from the TCN and reported exclusively by The PUNCH on March 4, 2020, showed that Discos rejected a total of 17,657.19 megawatts of energy allocated to them by the transmission company between February 3 and February 23 this year. Reacting to the development at the recent public hearing, Mohammed said, “On load rejection, NERC is addressing the matter. The commission has already done an order that is mandating Discos that they are

going to pay for capacity, and I know that this is going to address that issue. “Very soon, you will see that this load rejection issue will become a thing of the past. The load rejection problem is actually because the Discos can drop load and increase it at will without being penalised for anything.

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But now that NERC is putting this structure to ensure that there is capacity charge for those that refuse to take the load, I think that very soon, you will see that this load rejection is going to be a thing of the past.” Mohammed further explained that the TCN did not submit any request for extraordinary tariff, rather it requested the provision of auxiliary services. He said, “Ancillary services are services that are supposed to be provided by the market to ensure that we have a stable grid. And one of them is what we call the secondary reserve, also known as spinning reserve.

reserve. The primary reserve is the frequency control, and we fought very hard to ensure that Nigeria got it.” Mohammed stated that the secondar y reser ve would support the power grid during emergencies such as the tripping of a power line or breakdown in a generation station. “We are not requesting this for the TCN but for the industry, because whenever there is a system collapse, it does not only affect the TCN but the entire sector.

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However, the reason why we are making this request is because we are the ones operating the grid.” The TCN boss stated further that any adjustment in tariff for auxiliary services would be paid by power consumers across the country. He also noted that six generation companies would provide the spinning reserves including Azura Power and hydropower Plants.

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The secondary reserve is supposed to take care of grid stability that cannot be handled by the primary

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POWER

FG, AfDB unveil project to boost energy access

he Federal Government and the African Development Bank have launched the National Electrification Project aimed at addressing critical energy access deficits by channelling private sector investments into mini-grid and off-grid solutions. The project, which would be implemented by the country’s Rural Electrification Agency, was a boost to efforts to achieve the target of universal energy access by 2030, the AfDB said in a statement recently. It said joint financing of $200m from the bank and the Africa Growing Together Fund would de-risk and scale-up private sector investment in the off-grid sector, nurturing a business ecosystem conducive to the rapid electrification of Nigeria’s off-grid communities. The Minister of State for Power, Mr Goddy Jedy-Agba, thanked the AfDB for investing in the project, and highlighted its transformative

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potential. “Imagine the impact a project like the NEP will have when it is replicated across rural communities in the country,” he was quoted as saying during the launch of the project on Tuesday. The bank’s acting Vice President for Power, Energy, Climate Change and Green Growth, Wale Shonibare, outlined the expected development outcomes of the project.

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Over 500,000 people will have access to approximately 76.5 megawatts of increased installed power of which 68MW will be solar-generated,” he said. According to him, eight universities will have access to reliable energy; 150 female students will receive training in renewable energy solutions, and 20,000 Micro, Small and Medium-sized Enterprises will be supplied with appliances and equipment. A Senior Director for the AfDB in Nigeria, Ebrima Faal, said the NEP and other bank-

supported energy projects had been carefully designed to ensure that Nigerians had better access to reliable, affordable and safe power. According to the statement, the NEP is aligned with the AfDB’s New Deal on Energy for Africa, the high five priorities and the bank’s Climate Change Action Plan. “The project is also aligned with the Federal Government of Nigeria’s Rural Electrification Strategy and Implementation Plan and the Power Sector Recovery Programme, which has the objective of increasing private investments in the energy sector,” it added.

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ACROSS AFRICA

NCDC Partners Dubawa, Africa Check to Debunk Misinformation On COVID-19

n the wake of viral false and misleading narratives about the novel Corona Virus, COVID-19, the Nigeria Centre for Disease Control (NCDC) has announced that it will be partnering Dubawa and Africa Check, two independent fact checking organisations operating in Nigeria which are signatories of the International Fact-checking Network and Facebook’s ThirdParty Fact-checkers in the country. The NCDC in a statement said since the declaration of the virus as a global health emergency by WHO, both organisations have used their media platforms to provide accurate information while detecting and dispelling misinformation on the new coronavirus. Adding that platform-and format-specific factchecking are some of the strategies adopted by the organisations to verify images, videos, audio clips and texts circulated widely on platforms including WhatsApp, Facebook and Twitter. The Director General of the NCDC, Dr Chikwe Ihekweazu said, “Misinformation and disinformation have the potential to cause panic, spread the pandemic even further and jeopardize our global efforts in

the fight against this virus. This collaboration is essential at this time as we work together to curb fake news and improve the quality of information by directing people to relevant and credible sources of information about COVID-19.” He stated that with the partnership, the three organisations commit to jointly debunk coronavirus-related misinformation, disinformation and mal-information in real time, where possible, to reduce the deluge of false information around COVID-19 in Nigeria.

a rigorous process of truth seeking. Also, the editor of Africa Check, David Ajikobi said, “While government agencies and health workers collaborate to contain the spread of the coronavirus, we believe there is also the need for collaboration in curtailing the spread of false information about the virus. Fighting misinformation and disinformation is tough and with regards to COVID-19, it’s an emergency. So, it will require the combined efforts of as many hands as possible”.

‘’This is an unprecedented challenge that affects all Nigerians, regardless of social class, ethnicity, location and religious affiliation. The number of new cases surfacing in the country shows that it is our current reality and while we must refrain from spreading panic and fear, we unduly have an obligation to the public to report on the true state of affairs so that Nigerians can take precautionary measures, the Programme Officer of Dubawa, Ebele Oputa said. A significant feature of this partnership is the ability to reach more Nigerians together to provide verified information to the public through

According to the NCDC, regular updates about COVID-19 will be shared on the social media platforms of each organisation, setting out facts and evidence clearly and in simple English to aid easy comprehension. The Centre also said that debunked information will also be reproduced as simple, easily shareable social media cards.

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A repository of all COVID-19 related debunked information will be shared on NCDC’s microsite for easy referencing. To stay updated, follow @ncdcgov on Twitter and Facebook.”

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Articles inside

COVID-19: NNPC, Seplat, Shell, Total, 30 oil firms donate $30m to Federal Government

FG, AfDB unveil project to boost energy access

“…small business enterprises hold the key to lift 100 million Nigerians above poverty line” Hon. ‘Legor Idagbo, House Committee Chairman on Local Content

Patricia Simon-Hart, Secretary PETAN, CEO Aftrac Ltd

Africa: The Aftermath of COVID-19, Price War

Immigration, Police seek Collaboration with NCDMB

NOGICD Act: NCDMB takes sensitization campaign to Enugu

Wabote institutes $50M R&D intervention fund ...Says R & D panacea for Nigerian oil