Majorwaves Energy Report Jan - Feb 2019 by majorwavesenergyreport

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Majorwaves Energy Report

January - February 2019, Vol 2 No.01 1

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INDUSTRY NEWS

APPO, African Producers Call for Unity, Cooperation and Reforms

...Announces Cape VII Congress & Exhibition By Margaret Nongo-Okojokwu

h e A f r i c a n Pe t r o l e u m P roduc er s O rga n i zation (APPO) and its member countries call for unity, cooperation and reform amongst oil producers ahead of the Cape VII Congress and Exhibition, which will take place April 1-5, 2019 in Malabo, Equatorial Guinea. APPO is inviting all interested companies / or parties to participate in this important gathering of oil and gas government and private sector leaders in Africa in 2019, with ministerial speakers from all African oil producing nations. Registration for the bi-annual event is now open. “We invite the global oil and gas industry to participate in this historic conference. Cape VII is like the Olympics of African oil and gas, it’s a time when the world comes together,” said Mahaman Laouan Gaya, Secretary General of APPO. “Africa needs unity and synergy in all sectors of its economies to boost growth. When we unite, it is easier to collaborate.” Taking place against a backdrop of greater African involvement in energy institutions, rising investment in upstream projects, a favourable oil price environment and the recent restructuring of APPO, the conference highlights regional cooperation and promotes alliances in African energy. The theme of APPO Cape VII is ‘Pathways to Shared Prosperity in the African www.majorwavesenergyreport.com

Petroleum Industry’ and is being held under the auspices of H.E. Teodoro Obiang Nguema Mbasogo, President of Equatorial Guinea. The event also shines a spotlight on key regional energy projects and initiatives such as Equatorial Guinea’s Gas Megahub, which will link domestic and crossborder gas projects; Equatorial Guinea’s LNG2Africa, which is promoting intra-African gas trade; Sudan and South Sudan’s cooperation on restarting oil production; licensing rounds in Nigeria, Gabon and the Republic of Congo; and key economic and investment reforms in Angola; APPO is currently undergoing important reforms focused on creating a united African front on the global energy stage. The organization seeks to increase regional cooperation on upstream projects, infrastructure, refineries and other major projects. It also aims to attract more members as African countries make significant oil and gas discoveries, while growing their reserves. “Regulatory and policy reforms are needed on a case-by-case basis. Countries like Ghana, Senegal and Mozambique have some of the most attractive and competitive market conditions in the world. Additionally, Africa has proven itself as a host of mega discoveries with a wealth of untapped and undiscovered potential,” said H.E. Gaya.

APPO Cape VII takes place during Equatorial Guinea’s Year of Energy, a series of events promoting Africa’s energy potential and positioning Malabo as a continental energy center. “Equatorial Guinea has a distinguished track record as a host country for events of continental i mpor tance, and th is A PPO meeting will be momentous,” said H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea, host of the conference. Speakers at APPO Cape VII include the ministers of petroleum of Algeria, Angola, Benin, Chad, Republic ofthe Congo, Democratic Republic of the Congo, Equatorial Guinea, Gabon, Ghana, Ivory Coast, Mauritania, Niger, Nigeria, South Africa, South Sudan and Sudan. The private sector is represented by international oil companies including ExxonMobil, Shell, Marathon Oil, Noble Energy, Kosmos Energy, Trident Energy, South Africa’s CEF Group, and GE Baker Hughes. Organized by Africa Oil & Power, the APPO Cape VII conference will take place on April 1-5 at the Sipopo International Conference Hall in Malabo. Registration for the APPO Cape VII Congress and Exhibition is now open. Visit www.capevii-africa. com to learn more and register.

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INDUSTRY NEWS

MAJORWAVES ENERGY REPORT DEBUTS AT AFRICA OIL WEEK 2018

NNPC Seeks Collaboration to End Cross-Border Smuggling of Petrol

he Nigerian National Petroleum Corporation, NNPC , Sunday, called for increased collaboration with members of the African Union of Transportation and Logistics Organization to address the rising incidents of cross-border leakages of petroleum products.

He said the NNPC was open to new areas of mutual collaboration with the organization while calling on transportation union members to take full advantage of NNPC’s vast business portfolio and strategic position in the West African subregion and beyond to expand business interest and areas of cooperation.

In a statement in Abuja, Group Managing Director of the NNPC, Mr. Maikanti Baru, said smuggling of petroleum products remained a blight in the nation’s fuel supply and distribution matrix. Baru, who stated this while receiving a delegation of the group led by its President, Mr. Mustapha Chaeun, at the NNPC Towers, noted that the collaboration would not only help to stop the menace but would help rid the West African corridor of other vices that are associated with the illicit fuel smuggling business.

On his part, Chaeun pledged the readiness of its members to comply with extant laws and regulations in countries where they operate. He said that the composition of the union members which encompasses groups from West, Central, East and North Africa, made it imperative for the union to work with key continental institutions like the NNPC to maximize its strategic role in the region.

Baru also charged the regional transportation union to ensure that its members comply with extant laws and regulations on speed limits, the axial weight of haulage tankers and other sundry regulations necessary to ensure the safety of high ways across the African terrain.

Editor Majorwaves Energy Repor, Margaret Nongo-Okojokwu; with H.E Mrs Irene Muloni, Uganda’s Minister For Energy and Mineral Development after the Bid rounds announcement.

“We expect collaboration on many levels: first at the level of development of our sector, the transport sector, and to enhance human resources management. On another level, there is the need for training our professional drivers that work in the transport sector,’’ he noted. *Sweetcrude Reports

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LOCAL CONTENT

L-R Engr Austin Avuru, Managing Director Seplat,; Dr ABC Orjiako, Chairman Seplat; Engr. Simbi Kesiye Wabote, ES NCDMB; H.E Dr Ibe Kachikwu, Honourable Minister for State Ministry of Petroleum Resources at the presentation of the award for Excellence to Engr Simbi Wabote by ITE Group, organisers of Africa Oil Week.

Wabote Bags Global Award for Local Content Advocacy By Margaret Nongo-Okojokwu

he Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote was conferred with a global award of excellence for outstanding contributions to sustainable local content development in Nigeria and across Africa’s Oil and Gas Industry. The award was conferred on him by the organizers of African Oil Week (AOW), at the PetroAfricanus Dinner, as part of the events marking AOW’s 25th anniversary celebration held in Cape Town, South Africa. AOW is a premier international oil and gas summit, which brings together over 70 governments, national oil companies, investors, regulators, licensing agencies and leaders of major oil and gas companies that shape the continent’s upstream hydrocarbon landscape. It’s a foremost platform for business intelligence and transaction in Africa’s upstream oil and gas industry. Reading the citation for the award, Conference Director, Africa Oil Week, Mr. Paul Sinclair, highlighted the considerations for Engr. Wabote’s selection and suitability for the award, which include his ongoing unprecedented contributions to localization of industry knowledge and expertise, monumental www.majorwavesenergyreport.com

capacity development programs in Nigeria with cross border impacts, trenchant advocacy of the imperatives of local content practice and benefits, smart regulations and rare leadership capacity to balance dialogue between international commercial ventures and national interest. He stated that in the 25years history of AOW, this is the first time an award was given for Local Content excellence by AOW/ITE Group. In his acceptance speech, Wabote expressed delight at the honour and recognition by AOW/ITE Group, noting that the award was significant as “it communicates AOW’s acknowledgment of the Board’s programmes and strategies for localizing industry knowledge and capacity development”. He paid glowing tribute to President Muhammadu Buhari for giving him the opportunity to serve his country and to champion national economic interest through local content advocacy and implementation under NCDMB banner. He dedicated the award to the entire staff and management of NCDMB for their high sense of duty, patriotism and absolute commitment to local content regime, noting “this award would not have been possible with their constant support for me”.

Other recipients of the AOW Silver Jubilee Celebration awards include to Mr. Conrad Gerber (a posthumous award received by his daughter, Laura), Barbette van Gessel, South African, Chief Executive Officer of Global Pacific & Partners, Founder and President of Global Women Petroleum and Energy Club, Duncan Clarke, Zimbabwean, Founder and Chairman of the Board, Global Pacific & Partners, a private advisory firm based in London and Mr. Samuel Dossou-Aworet, Benin Republic national, a PanAfrican Businessman, Founder and Chairman of Petrolin Group recognized for his strategic and pioneering role in the promotion and development of major oil companies and African companies in several African countries including Seplat in Nigeria. It was a night of glitz and glory, well attended by dignitaries like the former President of Nigeria, His Excellency Chief Olusegun Obasanjo, Honorable Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, Chairman Seplat, Dr. ABC Orjiakor, Managing Director Seplat, Mr. Austin Avuru, Luca Rigo de Righi (Chevron, Houston) and other representatives of oil and gas companies from various parts of the world.

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LOCAL CONTENT

London Stock Exchange Selects LADOL as A Company to Inspire In 2019 By Margaret Nongo-Okojokwu

agos Deep O f fshore Logistic Base, LADOL was selected by London Stock Exchange (LSE) as one of its Companies to Inspire in Africa 2019. The report by the LSE was launched on Wednesday at the opening of the market in London at the LSE. This is the second edition of this prestigious report which identifies Africa’s most inspirational and dynamic private, high-growth companies. The report aims to give these companies global recognition and attract foreign investment into the continent. Managing Director of LADOL, Dr. Amy Jadesimi said “LADOL is honoured to be included in London Stock Exchange’s (LSE) list of Companies to Inspire Africa. We thank the entire LSE team for all their hard work in compiling the report and today’s launch, at which I was proud to be invited to speak. LSE’s high-profile focus on real indigenous private sector companies across the African continent is an important step in highlighting the fact that Africa is already home to a thriving and growing number of leading companies. 8

The broad range of companies represented show how shallow investment understanding of our currently markets is and how many opportunities there are for investment today. We look forward to working with the LSE and cooperating with the other indigenous companies highlighted.” She explained that investment in Africa is about the market case, noting that instead of eking out low returns from investments in developed markets, international investors should focus on the many hugely lucrative market opportunities across Africa. “Investing in Africa requires a seismic change in investment strategy - international investors that want to remain relevant and viable need to immediately invest in new diverse teams and new financial instruments that will enable them to invest in Africa. Teams that use outdated and inappropriate bankability definitions will continue to struggle to tap into this highly lucrative market.” “Operating out of LADOL saves IOCs 50% on their costs in deep offshore logistics, saving billions of USD each year. This

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compelling value proposition was well known for over decade and a half, yet today LADOL is the only deep offshore support base in Lagos. A clear example of how international investors are missing out on billon dollar investment opportunities by not investing in market casebased business models in Africa,” Dr. Amy said. Commenting on 2019 report, LSE CEO, David Schwimmer said: “London Stock Exchange Group’s ‘Companies to Inspi re A fr ica’ repor t showcases inspirational and entrepreneurial businesses from across the African continent, representing a wide variety of industries and countries. It is particularly encouraging to see the increasing influence of women in leadership roles in these fast-growing companies, playing a pivotal role in shaping the future of African businesses. “These high growth companies have the potential to transform the African economy and become tomorrow’s job creators. At LSEG, we are committed to helping companies realise that potential and we are pleased to highlight and celebrate the company success stories behind one of the world’s fastest growing markets.” www.majorwavesenergyreport.com

LOCAL CONTENT

Uy i A k pat a , We st A f r ic a Regional Senior Partner, PwC, said: “Initiatives such as this help expose these companies to a global audience, and we hope will lead to further collaboration across border with London-based investors and strategic partners. It is also great to see the public sector represented here. It is an important testament to their commitment to supporting the private sector and continuing to drive improvements in ease of

doing business.” LADOL is the largest private indigenous free zone in Nigeria and a strategic special economic zone, built in a secure island, inside the Port of Lagos. LADOL has proven it is the ideal location in which to execute the largest global industrial projects. Local and international companies can engineer, manufacturer and train

in this safe sustainable ecosystem. The company says it will create 50,000 direct and indirect jobs across a range of industries. Having halved the cost of petroleum sector service provision and positively disrupted this sector, the developers are focused on creating a circular economy within the Zone and attracting non-petroleum sector companies into the Zone, starting with agriculture and technology.

WEF 2019: SA Is Ready For Business By Daniel Nongo

is accelerated.”

outh Africa’s Energy Minister, Jeff Radebe has said that his country is ready for business. The Minister who is part of South Africa’s delegation to Davos for the World Economic Forum (WEF) spoke on air with Ryk Van Niekerk on the Money Web Radio show, saying the primary goal of Team SA is to bring Investment into South Africa; he said “Our message and our intention in Davos is to make sure we give a very clear message to all investors that South Africa is ready for business. As you will recall, last year our president indicated that he needs about US$100 billion as an investment into the South African economy, so Davos is very important forum in order to ensure that investment drive www.majorwavesenergyreport.com

“However we need to make sure that this message results in actual investment into the South African economy. You will recall that in November last year there was a Presidential Investment Summit, where a l most R30 0 bi l l ion of investment was committed, that augurs well for this drive by the president. So this forum of Davos will be another avenue of ensuring that the message of investment drive is driven”, said Radebe. The annual general meeting of the World Economic Forum started in Davos Switzerland on Tuesday 22nd January 2019 and it sees more than 3 000 delegates from virtually every single country in the world engage on the world’s problems. South Africa is sending a big delegation – around 57 people will attend the event – and it will be headed by President Cyril Ramaphosa.

Speaking on the off icial title of the event which is Globalisation 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution, the Minister said “I think the theme is very appropriate, so that we can be able to focus the minds of the world about what is happening, because appropriate the Fourth Industrial Revolution is not coming, it is upon us. You will recall that last year the World Economic Forum estimated that 65% of the children in primary education will be in jobs that do not exist today. So it is therefore important for many of us, especially from the developing world, to embrace the Fourth Industrial Revolution in this country to ensure that our children, young people, are geared to what the Fourth Industrial Revolution will bring in terms of trends, even education that will prepare them for the world of work still to come.” The Minister said.

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LOCAL CONTENT

Wabote Goes Global With Nigerian Content Advocacy

n g r. Si m bi Wa b ot e , E xe c ut ive S e c r et a r y of Ni ger ia n C ontent Development and Monitoring Board (NCDMB) went global today with Nigerian Content Advocacy, when he addressed delegates to the African Oil Week (AOW) in Cape Town, South Africa at the start of the African Local Content Forum. African Local Content Forum is an innovative inclusion in the bouquet of AOW plenaries promoted by NCDMB and other partners to serve as a high profile platform for NOCs, International and Independents Oil Companies, Service Companies to generate single vision of future roadmap for African Content within the global oil and gas sector. Speaking on the topic , “How to Develop Funds for Local Content Development“, Wabote asserted that Nigerian Content Development Fund model, which is underpinned by legislation is an attractive option for both upcoming and matured oil and gas jurisdictions in the African sub-region. He outlined five key parameters required for sustainable local content practice, to wit, Regulatory Framework, Capacity Building, Gap Analysis, Research and Development, and Funding and provision of incentives. “The importance of 10

funding”, he said, “cannot be over-emphasized in any human endeavor”. Thus, he added “the authors of the Nigerian Content Act, in recognition of the importance of funding to the success of Nigerian Content, made a key provision for funding to deliver the key objectives of the law”. The funding provision, he emphasized, is not only to enable the Board to carry out its functions as a regulator “without having to go round capin-hand to solicit for fund from operators”, but also to enable it develop capacities and capabilities in-country for increased value retention. He argued that the success of the Nigerian Content Development Fund could be attributed to the following factors: A clear, unambiguous provision backed by law; a clear remittance framework, sufficient time for accretion, transparent and impactful utilization. Regardless of his advocacy for the Nigerian model, Wabote sounded a caveat, “There is no ‘one size fits all’ in local content practice”. To succeed, countries need to adopt best practices, but it is useful to tweak them to suit local circumstances, he concluded. Earlier, Tony Paul, Chairman, Per ma nent L oca l Content

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Committee, Energy Sector for the Government of Trindad & Tobago, who spoke on the topic “ Developing successful local content framework and policies to promote in-country value and shared prosperity” made the same point, “ there’s no perfect model”, countries must avoid “cut and paste” in designing their framework. Other presenters and discussants who shared their countries experiences at the African Local Content Forum include Magda Chamrai rd, former CEO, Brazilian National Agency of Petroleum, Natural Gas and Biofuels, Betty Namubiru of the Petroleum Authority of Uganda, Ranti Omole for PETAN, Tein George, Chairman, Aveon Offshore, Armando Afonso, Exxonmobil, Angola to mention but few. On the second day of African Local Content Forum at the AOW, the Executive Secretary of NCDMB, Engr. Wabote will go head to head with leading voices in the various international oil companies on the imperatives, benefits and concerns about local content practice. He’s poised to espouse the feasibility, expose the fads and allay fears. It was a rich and rewarding debate, aired live by CNBC from the conference venue. www.majorwavesenergyreport.com

LOCAL CONTENT

NAOC Donates Geosciences Workstations to 3 Universities

he Nigerian Agip Oil Company (NAOC) has donated three geosciences workstations to the University of Port Harcourt, Rivers State, University of Ibadan, Oyo State and Modibbo Adama University of Technology, Adamawa State. The workstations are equipped with nine OpendTect Software licences, worth $200,000, but were provided free by Danvic Petroleum Nigeria, with a commitment to upgrade them when necessary. The presentation ceremony was held at NAOC’s head office in Abuja recently and was attended by the Director, Planning, Research and Statistics, NCDMB, Mr. Daziba Patrick Obah, who represented the Executive Secretary, Engr. Simbi Wabote. The Managing Director of NAOC, Mr. Lorenzo Fiorillo, in his remarks at the event, stated that the initiative is part of the company’s support and collaboration with Nigerian universities to promote research and development. He described the donation as “another critical step in pursuit of this collaboration and in furtherance of ENI’s commitment to support the government of Nigeria in closing identified skill gaps in the oil and gas sector, promote capacity building and local content development.” In addition to the donation, the company organised an intensive training programme for 15 senior lecturers drawn from the three universities on the use of the www.majorwavesenergyreport.com

workstations and the OpendTect Software. Fiorillo added that the capacity building initiative is “to build the capacity of geosciences lecturers who will pass on the knowledge to their students, improve the quality of young geosciences graduates in Nigeria and close the gaps between the teaching of geosciences in the universities and the needs of the Nigerian oil and gas industry in those specific areas. “It is also envisaged that the programme would help reduce the cost of training and re-training of employable Nigerian graduates by the oil and gas industry and assist in the standardization of geosciences practice in Nigeria.” In his remarks, the Director, Planning, Research and Statistics, NCDMB commended NAOC for fulfilling its promise to develop Research and Development in the Nigerian oil and gas space. He underscored NAOC’s research initiatives, especially the 3-5 years funding, training, and equipping research initiative on deep offshore hydrate management. “We will continue to encourage your company in this regard, expecting that the outcome will be positive and economically viable.” Obah also advised the universities to use the workstations diligently, so as to derive maximum benefit from them and impart knowledge to the students. He charged NAOC to deliver on its promise to collaborate in developing the

research findings of universities selected at its Indigenous Technology and Universities Collaborative Research Forum & Exhibition held in Port Harcourt in 2017. “This beautiful initiative should not be allowed to go cold, as we have identified that the only way we can continue to function well in the global space is to actively partake in research and innovative activities.” The Director noted that the NCDMB R&D Council was constituted in October 2018 to advise the Board on matters related to the R&D. He stated that “w ith the inauguration of the R&D Council and the creation of an R&D Fund by NCDMB, we hope that we will be able to provide some interesting results from the upscaling work that is currently being mentored by us, during the next NCDMB R&D Fair and Conference.” The Managing Director of Danvic Petroleum and President of the Oil and Gas Trainers Association of Nigeria (OGTAN), Dr Mayowa Afe described the NAOC’s initiative as the bedrock of Nigerian Content, which would improve the quality of graduates from Nigerian universities and make them employable by the industry. The Vice Chancellor of the University of Ibadan, Prof Idowu Olayinka stated that the assistance by NAOC would help bridge the technology gap between universities and the oil and gas industry. “This will impact generations of graduates,” he added.

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LOCAL CONTENT

“

The benef iciaries must demonstrate baseline commitment to building business processes and systems with safety compliance being a proxy for int ern ation al s afety standards.”

Project 100: NCDMB Rolls Out Plans for Indigenous Oil and Gas Service Providers By Oladipo Adelola

ith the oil and gas industry undoubtedly t he m a i n s t ay of Nigeria’s economy, Nigerian Content Development and Monitoring Board has rolled out plans to nurture 100 indigenous oil and gas service providers, in a competitive and sustainable way through targeted interventions, into large scale players that will create high value and better develop the sector. The Project 100 which is an initiative of the Ministry of Petroleum Resources is scheduled to raise local oil and gas firms through nonfinancial interventions ways such as strategic and structured business support and also further provide additional linkages for financial interventions in terms of asset finance and working capital. According to NCDMB, in a bid to grow indigenous oil

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and gas service providers into large scale players Project 100 will focus on key areas such as local content development, local industry mobilization, econom ic tran sfor mation, i ndustr y i n novation , job creation, wealth generation and social responsibility. The Board noted that beneficiaries must demonstrate their primary business focus in providing oil and gas services especially those in high impact sectors which are important in bridging the current local content gap. “Beneficiaries shall demonstrate evidence of active business operations over a period of at least three years and ability to remain in impactful operations into the foreseeable future,” according to NCDMB. “ T he b enef ic i a r ie s mu st demonstrate baseline Majorwaves Energy Report

c om m itment to bu i ld i n g business processes and systems with safety compliance being a proxy for international safety standards.” NCDMB also acknowledged that beneficiaries must be have a good record of compliance with relevant regulatory requirements in their operating environment and also not contravened Nigeria content stipulations. NCDMB noted that the project 100 initiative will be executed over a pha se d approach starting from definition of target beneficiary segment to setup of application platform, development of selection strategy, development of project 100 intervention strategies, development of partnership c ol l a borat ion model a nd development of delivery model.

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LOCAL CONTENT

c c o r d i n g t o t he Content Board, the pre-qualification Stage will consist harnessing records of existing oil and gas industry service providers which will be done through an initial evaluation of relevant industry sectors to consider such as high impact sectors, thereafter a second-level evaluation criteria will be carried out that will evaluate, business Size and sustainability, basel i ne comm itments, reg u lator y compl iance, before selecting the Final Project 100 Beneficiaries. The Selection Stage Criteria will involve evaluating the bu si ne s s si ze a nd sustainability which we are to demonstrate evidence of active business operations and ability to remain in impact operation into the foreseeable future while the regulatory compliance will involve firms demonstrating the nobility as well as their willingness to adopt policies and procedures that support the integrity of project 100 initiatives. Recall on April 22, 2010, the Nigerian Oil & Gas Industry C o nt e nt D e v e l o p m e nt (NOGICD) Act was signed into law, paving the way for a change to how the business of Oil & Gas was done in Nigeria. This includes all activities, connected with the exploration, development, exploitation, transportation

and sale of Nigerian crude oil and gas resources. The NOGICD Act ushered in an era where in-country value became the focus. With the government now leading the charge with legislation and efficient monitoring th rough the (Niger ian Content Development & Monitoring Board (NCDMB), rapid transformation began to take place. The initial impact of the Act has seen great changes being made, with most IOCs making efforts to comply with the provisions of the Local Content Act. An initiative of which is provided amongst others, includes the opportunity for Nigerian independent operators to be given first consideration in the award of oil blocks, oil field licenses, oil lifting licenses and in all projects for which a contract is to be awarded in the Nigerian oil and Gas industry. It was against this backdrop that Total took the final i nvestment decision to develop Egina in 2013, three years after the Nigerian Oil & Gas Industry Content Development Act became law. Egina is the latest of Total’s deep-water developments, and the third project of its kind developed by Total in Nigeria, after Akpo and Usan.

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Kachikwu, Wabote, Tinubu push the Nigerian agenda at the 25th Africa Oil Week

he African Oil and Gas industry is showing signs of an auspicious future; there is renewed investor interest and burgeoning confidence in the continent and sector following continued upward movement in oil prices and recent oil and gas discoveries. This was very apparent by the host of panel discussions, country and company presentations at the recently concluded 25th edition of the Africa Oil Week (AOW) at the Cape Town International Convention Centre in Cape Town, South Africa. AOW, the continent’s leading annual oil and gas gathering,marked its 25th year with its largest delegation to date. Over 1,900 guests including CEOs, Government officials, key business decision makers and oil and gas executives from over 70 countries were in attendance to discuss ‘The Leading Business Intelligence and Transaction Platform for Africa’s Oil and Gas Sector’. The event which held from the 5th to 9th of November, provided a platform for sector participants, to share their strategies for growth, better Government participation in the sector and engage in high level discussions on the future of the continent’s oil and gas industry, focusing on current challenges and trends and proffering solutions that will provide a positive and lasting impact for all. Nigeria was well represented as Africa’s largest oil producing nation; in attendance were Dr. Ibe Kachikwu, Nigeria’s Minister of State for Petroleum, Engr Simbi Wabote, Executive Secretary of the Nigerian Content Developing and Managing Board (NCDMB) who both spoke extensively on Nigeria’s local content development approach and its overall contribution towards the African Oil and Gas industry.

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LOCAL CONTENT

Oando PLC, Nigeria’s leading oil and Gas Company led several discussions during the course of the week. In addition to being a platinum sponsor, delegates from the company provided the Nigerian business perspective on various panels. Speaking on an economic outlook panel titled: “Can Africa’s upstream play a significant role in the context of the global and regional energy landscape” Oando PLC Group Chief Executive, Wale Tinubu said “We have been substantially supported by the Government’s local content policies which have effectively enabled indigenous players step in and play a significant role in the sector. In Nigeria today, out of the 2 million barrels of oil being produced, 400,000 can be attributed to indigenous production”. Alongside Tinubu on this panel were Jens Frølich Holte, State Secretary, Ministry of Foreign Affairs, Norway; David Hicks, Senior Vice President: Upstream, IHS Ma rk it; Jasper Peijs, Exploration Vice President, BP; Mounir Bouaziz, VP Commercial/ New Business Development South America & Africa, Country Chair Dubai & Northern Emirates, Shell and Paul McDade, CEO, Tullow Oil. Paul McDade also spoke extensively on Africa’s economic outlook, he said “Africa has all the components for competitiveness, there are fantastic prospects in the exploration space, low cost production and most importantly there is a skilled workforce in Africa that any company can tap into”. Also speaking on Private Sector: Creating Equitable Frameworks and High Quality Local Supply Chains, Dr. Alex Irune, Chief Operating Officer, Oando Energy Resources said “The indigenous private sector has an important role to play in taking the knowledge and value gotten from collaborating with the IOCs and other sector players in the country, transferring that down the value chain to build efficient and effective supply chains that are able to retain value in www.majorwavesenergyreport.com

country.” Oando’s participation at the renowned conference further reinforces its position as the preferred indigenous oil and Gas Company in the country. The company has truly carved a niche for itself as an independent indigenous oil and gas company flying the Nigerian flag at global events that shape the future of the sector and the world in general. Events such as the World Economic Forum (WEF) in Davos, CERA in Houston, Oil Council, Africa Assembly, Africa CEO Forum, OPEC International Seminar, to name but a few. At these events, Oando has engaged in open and transparent dialogue with a broad range of stakeholders to analyze and proffer solutions to global issues. Local content development was a major sub-theme at AOW and public and private sector officials discussed its impact on the African Oil and Gas landscape. Speaking extensively during the session titled ‘The global private sector’s role in African socio-economic development, the Executive Secretary of the Nigerian Content Developing and Monitoring Board (NCDMB) Engr. Simbi Wabote said “Any company coming into a country to undertake business must have a positive reputation. This reputation is built on your commitment to deliver on your promise and ensure you are there for the survival of the nation as a whole. Local content is not CSR. For me it is an existential imperative for any country in terms of allowing its citizens participate in the oil and gas sector in particular.” The NCDMB has taken giant strides since the commencement of its 10-year strategic plan to increase local content in the oil and gas industry from the current 28% to 70% by 2027. The conference also discussed some of the current issues being faced by the African Upstream today. Six Ministers from South Africa, Niger, Nigeria, Sudan and Congo provided insights on their country’s exploration and production strategies during the event. They further discussed

routes to further drive growth in National Oil Companies as well as the role which oil and gas plays within economic policy and development plans. Dr. Ibe Kachikwu, Nigeria’s Minister of State for Petroleum Resources spoke extensively on the oil sector’s impact on the Nigerian economy during the Ministerial Insights: National Exploration & Production Strategies’ panel. He said “The oil sector has been a catalyst for growth in the Nigerian economy. It has also driven technology. Privately owned companies in Nigeria have gotten to a point where they can go to other African countries as investors and service providers.” The sessions covered various topics including future trends, hot spots and drilling programmes, governance, transparency and equitable growth, to future outlooks and energy transition outlook to 2050. Over the years AOW has proven to be the leading business intelligence and transaction platform and the go-to event for the development and signing of new ventures within the industry. Through their insightful and interactive presentations with over 200 speakers including Government Ministers, CEOs, Presidents, senior executives, thought-leaders and delegates, the knowledge sharing and networking opportunities at the event are bound to reinforce why African oil and gas is indeed a viable investment frontier. Speaking on their impact on the wider African oil and gas industry, conference director, Paul Sinclair said “We have invested huge pools of capital to ensure our programme and new forums bring decision makers together to nurture FID and new projects coming online. In a period of USD$70+ oil now is the time to take advantage of these green shoots of optimism in our dynamic industry”. *Premium Times

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UPSTREAM

Total’s Egina Achieves First Oil, Boosts Nigeria’s Production

rench oil major Total has started oil production from its Egina field offshore Nigeria. Total which started up production on December 29, 2018, has announced in a statement released on January 3 2019, that Egina deepwater oilfield had achieved first oil production, helping to push Nigeria’s oil output beyond 2.09 million barrels per day in December. The French oil major said the Egina field, which is located in around 1,600 meters of water depths, 150 kilometers off the coast of Nigeria, will at plateau produce 200,000 barrels of oil per day, which represents about 10 per cent of Nigeria’s production, according to a statement on its website. Total described the Floating Production Storage and Offloading unit used to develop the giant Egina field as the largest one it had ever built, saying that the project also involved a record level of local contractors. According to the statement, six of the 18 modules on the FPSO were built and integrated locally, and 77 per cent of hours spent on the project were worked locally. 16

It said startup had been achieved close to 10 per cent below the initial budget, “which represents more than $1bn of capex savings, due in particular to excellent drilling performance where the drilling time per well has been reduced by 30 per cent.” The President Exploration and Production at Total, Arnaud Breuillac, said,“Total is proud to deliver a project of this size under the initial budget and to contribute to the development of Nigeria’s oil and gas sector by generating employment as well as building industrial capability.” He said Egina would significantly boost the group’s production and cashflow from 2019 onwards, and benefit from its strong cost reduction efforts in Nigeria where “we have reduced our operating costs by 40 per cent over the last four years.” “Furthermore, some upside potential nearby remains to be developed and we are studying in particular Preowei discovery tie-back to the Egina FPSO,” Breuillac added. According to the statement, initially discovered in 2003, the Egina field is the second development in production on the

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Oil Mining Lease 130 following the Akpo field, which started-up in 2009. “The Preowei field is another large discovery made on this prolific block for which an investment decision is scheduled for 2019,” it added. Total Upstream Nigeria Limited operates OML 130 with a 24 per cent interest, in partnership with the Nigerian National Petroleum Corporation; South Atlantic Petroleum (15 per cent); CNOOC E&P Nigeria Limited, a whol ly owned subsidiary of CNOOC Limited (45 per cent), and Petrobras Oil and Gas BV (16 per cent). Nigeria’s daily crude oil production increased to about 2.09 million barrels in 2018, translating to a nine per cent rise when compared with the 2017 average daily production of 1.86 million barrels, according to the NNPC.

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UPSTREAM

CGG’s New Survey Supports Gabon’s 12th Offshore Licensing Round

Ghana’s First Oil Exploration Licensing Round Attracts Global Major

ixteen oil and gas firms have submitted applications for one or more of five Ghanaian offshore blocks in the West African country’s first exploration licensing round, its energy ministry said. The interest is a major vote of confidence in Ghana, which is keen to unlock more resources after it began pumping from its flagship offshore Jubilee field in 2010. The companies that have submitted applications are Tullow Oil, Total, ENI, Cairn, Harmony Oil and Gas Corporation, ExxonMobil, CNOOC, Qatar Petroleum [QATPE.UL], BP, Vitol [VITOLV.UL], Global Petroleum Group, Aker Energy, First E&P, Kosmos, Sasol and Equinor. The applications include expressions of interest in competitive bidding for three blocks in the Western Basin and for direct negotiations regarding another two blocks offshore Ghana, the energy ministry said in a statement. “he high level of interest shown by major International Oil Companies in our first licensing round is a vote of confidence in the Ghanaian economy,” Deputy Minister for energy in charge of petroleum, Mohammed Amin Adam, was quoted as saying. A total of 60 applications were received, but www.majorwavesenergyreport.com

two were invalidated as they were for a block reserved for Ghana National Petroleum Corporation. Ghana currently produces 200,000 barrels of oil per day (bpd), with the Jubilee field producing about 100,000 bpd. Some of the interested firms have already started boosting their presence in the country. ExxonMobil, for example, recently signed a deal with Ghana to explore for oil in the Deepwater Cape Three Point offshore (DWCTP) oilfield. Aker Energy AS, controlled by Norwegian billionaire Kjell Inge Roekke, agreed in February to buy Hess Corporation’s Ghana unit in a $100 million deal, gaining access to a 50 percent stake in the deepwater Tano Cape Three Points block. The block holds an estimated 550 million barrels of oil equivalent in contingent resources and potential for a further 400 million barrels. Ghana wants to be a petroleum hub for West Africa. It has drawn up plans to build four refineries of about 150,000 bpd each in the next 12 years. Ghana’s only oil refinery, the Tema Oil Refinery, processes about 25,000 bpd of oil, far below its capacity. *Reut

uilding on the success of its 25,000 km2 3D BroadSeis(TM) survey, which led to the recent Boudji-1 and Ivela-1 oil discoveries, CGG is extending its Gabon multiclient data footprint with a 9,800-km long-offset 2D seismic survey in an unexplored deepwater area of the South Basin. A subset of the data over the offered license blocks will be available in advance of Gabon’s 12th offshore licensing round planned for June 2019. The new 2D data will help define the full extent of existing and new plays in the region. It will also aid in understanding the thickness variations in the sediment overburden for source rock and maturity analysis. CGG’s advanced broadband processing workf low will increase the resolution and improve the characterization of the turbidite systems that represent potential exploration targets. The low frequencies delivered will provide deep penetration to enhance understanding of the nature of the deep crust. New insights from this survey will expand and update CGG’s current JumpStart(TM) integrated geoscience package. Sophie Zurquiyah, CEO, CGG, s a i d :’ T h i s s u r v e y m a r k s a continuation of our long-term successful partnership with the Gabonese Republic’s Ministry of Petroleum and Hydrocarbons to support and promote the potential of Gabon’s deep waters. Our comprehensive package of state-ofthe-art subsurface imaging and highvalue geoscience studies is a strategic resource to explore Gabon’s deepwater Atlantic margin. Exploration teams can evaluate opportunities in this highly prospective region in less time and with more confidence, for faster, safer and better drilling decisions.’ Source: CGG

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UPSTREAM

Saudi Arabia Wants to Build Oil Refinery and Petrochemical Plant in South Africa

have been supported by the South African energy ministry,” Al-Falih said.

company Denel, which was exclusively reported by Reuters in November.

The exact location of the refinery and petrochemicals plant will be finalised in the coming weeks, Radebe said.

Saudi oil would be used in the planned refinery whose construction would be led by state energy company Saudi Aramco, Al-Falih said in comments following a meeting with South African Energy Minister Jeff Radebe in Pretoria. “There have been exchanges of talks by Saudi Aramco teams and they

Saudi Arabia was also interested in using South Africa’s major oil storage facilities, Al-Falih said, adding that Saudi utility developer Acwa Power was looking at investing in South Africa’s revamped renewable energy program. He also confirmed that there were discussions about the kingdom investing in South Africa’s state defense

South African President Cyril Ramaphosa is trying to woo foreign investors to help revive a struggling economy as he prepares for a parliamentary election this year.

audi Arabia plans to build an oil ref i ner y a nd a petrochemicals plant in South Africa as part of $10 billion of investments in the country, Saudi Energy Minister Khalid A l-Falih said recently.

Majorwaves Energy Report January - Februray 2019, Vol 2 No 1

Saudi Prince Mohammed Bin Salman met with Ramaphosa on the sidelines of the Group of 20 summit in Argentina in November.

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January - February 2019, Vol 2 No.01 19

OUTLOOK 2019: Scramble for Africa’s Assets amid Slowing Global Economy By Kunle Ayodele Jerome Onoja

mid 2019 forecast of a global economic slowdown, the gradual growth and influx of electric cars by popular car manufacturing brands, AmericaChina trade war, and Brexit uncertainties, Africa has remained the attractive bride in the eyes of global investors’ A recent study by Reuters showed that, the African continent specifically Sub-Saharan Africa’s economies, will cope with tighter global liquidity this year and grow faster than it did in 2018, albeit at a lacklustre rate compared to the 20

commodity price boom heydays of a decade ago. While global economic wheels are expected to turn slower, Africa economic is expected to gain momentum. The study, via a poll suggest that Nigeria’s economy will grow 2.5 per cent this year and Kenya 5.7 per cent, noting that Nigeria’s growth was expected to peak at 2.7 per cent while Kenya was pegged at 5.8 per cent. The West African nation grew 1.81 per cent in the third quarter of 2018 and the latter 6 per cent.

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Another poll shows that South Africa would eke out 1.5 per cent growth this year; up from 1.3 per cent in 2017 and the 0.7 per cent estimate for 2018, but a far cry from the over 5 per cent it was running at more than a decade ago. “Despite a tighter global backdrop, we expect the growth recovery in Sub-Saharan Africa to persist, led by improved prospects in Nigeria and South Africa, the region’s largest economies,’’ Razia Khan, Africa research head at Standard Chartered, wrote in a note.

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lieved that Nigeria and South Africa make up almost 50 per cent of Sub-Saharan gross domestic product (GDP) in dollar terms and the World Bank projects growth of 3.4 per cent this year in the region. Some economists said growth in Sub-Saharan Africa would exceed 3 per cent. “Much of the region will continue to reap the benefits of an earlier turnaround in commodity prices, with oil economies finding some relief in higher oil prices,’’ Khan said. Ghana is expected to cut by www.majorwavesenergyreport.com

100 basis points to 16 per cent early next year. Another reason Africa’s economy will soar in 2019 is strongly linked to activities in 2018 Q4: oil producing countries in the continent such as Nigeria, Gabon, Ghana made announcement to commence licensing bid round. US has become the largest oil and gas producer, and, by 2025 according to International Energy Agency, IEA, almost every fifth barrel of oil and every fourth cubic metre of gas will come from the US. Despite America’s strong oil output, with more concentration in shale oil, oil producing countries in Africa

are pulling their weight and looking for fresh and challenging fields. Gabon: Gabon launched a licensing round to be governed by a revised petroleum code currently under preparation. Oil minister Pascal Houangni Ambouroue said the round would offer 12 blocks in shallow water and 23 blocks in deep water. Bids are due by 22 April. Roadshows will be held on January 5 in Houston, and ten days later in London. It continues February 19 in Singapore, and rounds up at the African Petroleum Producers Organisation Cape VII conference in Malabo on 1-5 of April.

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Nigeria: It deployed a novel,

ma rket-based approach to resolving the age-long issue of gas f laring. The Government announced a bid round for uptake of natural gas that is currently being flared in hundreds of sites in the country’s Niger Delta basin. The bid round is described as the first of such auction for licensing of subsurface hydrocarbon property in 11 Years. It is expected to attract a minimum of $3.5 billion in investment with an annual $1 billion retun to the federation account. The programme could trigger up to 85 projects and generate approximately 300,000 direct and indirect jobs in total. License winners are expected to take over flare sites, monetise the molecules and boost the micro and macro economy in the process. “We invite parties interested in participating in the Nigerian Gas Flare Commercialization Programme (NGFCP) to register and apply for the issuance of the Request for Qualification (RfQ) package which will lead to the submission of statements of qualification (SOQs) by interested parties for participation in the programme”, the Ministry of Petroleum Resources says in a statement through Justice O. Derefaka, Programme Manager for NGFCP. Listing criteria for the bid, the statement said: “the auction presents a significant opportunity for domestic and international developers alike to participate in the largest marketdriven flare gas monetisation program undertaken on this scale globally. 22

“Bidders will have the flexibility of choosing which flare site(s) to bid for, determine the gas price, and their end-use market or gas product, as well as the technology to be deployed. Interested parties will need to demonstrate project development experience and proposed proven technology which we expect to be in the commercial application. “Additionally, parties will need to demonstrate technical and commercial capacity. Successful bidders will be granted title to the flare gas through a gas sales/ supply agreement with the FGN.

Ghana:

Previously, Ghana had direct negotiations with oil and gas firms for acreages but decided to launch its licensing round which held on October 15, 2018. It is the first open and competitive bidding round that the country has held, offering three blocks in its offshore Central Basin. According to reports, the licensing round has already attracted interest from major exploration and production firms, which have been conspicuously, absent in Ghana’s burgeoning oil and gas sector to date. Initial indications from sources in the Ministry of Energy suggest that BP, ExxonMobil, Total, Chevron Texaco, Rosneft, Sinopec and CNOCC will all be participating in the bidding.

The tender process is specifically focused on expediting exploration activity in the Central Basin. Reports had it that Ghana is calling on firms with the financial capacity and technical competence, coupled with the timescale for

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work program activity. Fiscal terms, including royalty payments to the government and Ghana National Petroleum Corporation (GNPC) equity, is also an important issue in the tender process, as well as the equity and skills transfer to local partners under the local content aspect. Commenting on the bid round, CEO of Cowry Asset Management Company, Mr Johnson Chukwu sa id, Su b - Sa ha ra A f r ica n countries’ economic bid round announcements demonstrate the continent’s thirst to be competitive in the global economy, noting that there has also been an increased demand in African crude.

“

While there is a paradigm shift away from conventional oil, bid round announcement like in Nigeria is focused on flare gas. Gas remain competitive in the entire energy mix,” Mr Chukwu said.He explained that Angola, Ghana, and Gabon have enacted investor-friendly policies, accounting for huge attraction of major IOCs biding for these countries’ oil blocs.

Mega projects on the move Africa’s comeback on the global oil and gas map is not only due to the vast natural resources found in its soil and waters, but also to the continent being home to mega energy projects. On the upstream side, the recent inter-governmental cooperation between Senegal and Mauritania, and BP’s FID on its cross-border Greater Tortue Ahmeyim development, bodes well for the future of West Africa’s hydrocarbons industry. The project aims at extracting the 15Tcf of gas estimated to be held in the Tortue gas field, located at a depth of 2,850 metres. However,the ability of both Senegal and Mauritania to work out their differences

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COVER STORY

Petroleum Corporation (NNPC); Total Exploration and Production Nigeria Limited (TEPNG); and Nigerian Agip Oil Company Limited (NAOC), announced the Final Investment Decision (FID) on the Assa North Gas Development Project in Imo State, eastern Nigeria worth over $4bn. At peak production, the project is expected to produce 300 million standard cubic feet of gas per day.

to ensure a more sustainable development of their offshore reserves and facilities around the MSGBC Basin is a factor to watch out for. Africa’s mega gas projects are not the sole property of the continent’s West coast, with Mozambique moving forward with two landmark projects putting the Southern African nation on the global LNG map. Following the launch of the Coral South FLNG project by ENI in June 2017, a FID is now expected in the coming months for the Anardarkoled Mozambique LNG project, an onshore LNG development initially consisting of two LNG trains totaling 12.88MTPA to export the gas extracted from the offshore Area 1, estimated to contain a whooping 75Tcf. Sub-Saharan Africa’s biggest petroleum producer; Nigeria, is also moving forward with massive oil development projects in 2019. Last year already saw the launch of Total’s $3.3bn Egina FPSO, where production officially started in the first days of 2019 and is set to peak at 200,000 bopd. FID is now expected on Shell’s Bonga Southwest offshore field early this year, a multi-billion-dollars development whose production is expected to reach 180,000 bopd. Only last month, the Shell Petroleum Development Company of Nigeria Limited (SPDC) and its partners, Nigerian National www.majorwavesenergyreport.com

Final Investment Decision (FID), on deepwater Zabazaba development project worth over $13.5bn is expected to be finalized before the end of this first quarter. The oil and gas field is jointly being developed by Eni’s Nigerian subsidiary, Nigerian Agip Exploration, NAE, and Shell Nigeria Exploration and Production Company, SNEPCO. Another project worthy of note is the train 7 expansion of Nigeria’s LNG project worth over $7 billion expected to get back on course within the first quarter of this year as NLNG seeks to expand its operations and increase its production capacity from 22 million tonnes per annum (MTPA) to 30 MTPA.

Demand for African Crude

demand for Africa’s crude oil is on the rise. For instance, the demand for Nigerian crude by European customers is currently boosting market activities in West Africa, and this is expected to increase given the forecasted increase in demand for energy in Europe While Europe is eyeing Nigeria’s crude, China, once big buyer of Nigeria’s crude has found new interest in Angola. A drop in freight rates for shipping West African crude to China is partly behind the pickup, but predominantly, it is the socalled teapots that have started stocking up again after a pull during December, traders said. A shortage of distillate-rich crudes in the Mediterranean, because of the drop in Iranian exports following United States sanctions has redirected some supply of the likes of Urals, Azeri, or Caspian Pipeline Consortium (CPC) away from northwest Europe, which boasts of a number of refineries to Nigerian grades. Qua Iboe has changed hands at a premium of $1.75 to dated Brent this week, its highest in months, while supply of similar grades such as Forcados and Bonga were said to be virtually sold out. Nigeria’s Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu said the country will be producing 1.78 million barrels of crude oil per day (bpd). Kachikwu added that the country was expecting output from Egina oilfield to reach 150,000 bpd by the end of the month which could boost total production. “The work that we have at the ministry is to determine what component of that 150,000 barrels is pure crude and what is condensate.

“

If it is pure crude it raises certain other implications in terms of the OPEC quota. If it is condensates then obviously, we smile.”

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COVER STORY

“If it is pure crude it raises certain other implications in terms of the OPEC quota. If it is condensates then obviously, we smile.” With production cuts agreed by the Organisation of the Petroleum Exporting Countries, OPEC, Nigeria’s output has been around 1.74 million, excluding extremely light oil known as condensates. The minister said Nigeria produced condensates of 350,000 bpd. Kachikwu has said Nigeria aimed to produce 2.2 million barrels in 2019.

Expected Slump in Global Economy A contrary trend is expected at the global level. After seeing a growth of 3.8 percent in 2018, UBS said in its outlook for the year ahead that it expected global economic growth to slow to 3.6 percent in 2019. It believes the global economy has passed its peak and faces a slowdown driven by trade disputes and higher interest rates. “The decline in global growth will mean a weaker tailwind for global markets, which could begin to anticipate an end of the economic cycle as 2019 progresses,” the investment bank said.

The Organisation for Economic Cooperation and Development (OECD), which advises many of the world’s richest economies, recently said it has cut its 2019 global growth forecast to 3.5 percent from 3.7 percent as predicted earlier. The OECD also warned that if the United States were to hike tariffs to 25 percent on all Chinese imports, as Trump has threatened, the world economic growth could fall to close to 3 percent in 2020. US President Donald Trump slapped tariffs on many trade partners and escalated a tit-for-tat dispute with China.

Africa’s Legal frame work, policies, Infrastructures

The growth slowdown is expected to be worst in non-OECD countries, with many emergingmarket economies likely to see capital outflows as the US Federal Reserve gradually raises interest rates.

It also gave an exception by saying, “We expect robust growth in firms exposed to secular trends like population growth, aging, and urbanization. 24

The OECD cut its outlook for countries at risk such as Brazil, Russia, Turkey and South Africa. OECD chief Angel Gurria said, a full-blown trade war and the resulting economic uncertainty could knock as much as 0.8 percent off global gross domestic product by 2021, the OECD estimated. Trimming China’s forecast, OECD said its growth would slow from 6.6 percent to a 30-year low of 6.0 percent in 2020 in the face of higher US tariffs. It warned that “a much sharper slowdown in Chinese growth would damage global growth significantly, particularly if it were to hit financial market confidence”.

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Regardless of the bottle-neck situation around Nigeria’s 17-year-oldPetroleum Industry bill which has not become law, investor and multinationals are defying the odds, taking risk to invest scarce resources in challenging terrains. In spite of the patronage by multinationals and international oil companies, the level of investment could still be better. The Civil Society Legislative Advocacy Centre (CISLAC) expressed disappointment at the president’s refusal to assent to the bill and urged him to re-think his decision in the interest of the nation. In a statement signed by its executive director, Auwa Ibrahim Musa, the Centre said it was unfortunate that the President refused to assent to the bill in spite of his promise to reform the country’s oil and gas sector. CISLAC, according to him, sees the bill as a tool for addressing corruption in oil and gas sector. The Centre expressed shock that after all the efforts, time and cost incurred in the passage of the bill,

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COVER STORY

the sector is back to where it was 17 years ago. Speaking to the losses attributed to the absence of an unto date regulatory law in the sector, the statement said, “CISLAC finds it worrisome that in spite of the established losses the country incurs due to the absence of this law, which among other sources, the NEITI put at $200 billion yearly, and another $15 billion yearly in fresh investments, the President did not consider it a matter of national importance to assent to the bill.

to promote Nigerian content and to promote and protect health safety and environment. Johnson Chukwu explained that without PIB or the PIGB, major projects have be executed in the country’s petroleum industry, sighting the Egina oil field and vessel, (FPSO) as an example.

“

To showcase the work being done by Sonangol and the Angolan government to generate more investment in the country’s oil & gas industry, Angola is backing up an international conference being organized by Africa Oil & Power in Luanda on June 4-6, 2019, where it will be launching the Angolan Marginal Field Bidding Round. This will be the first official investment roadshow organized in Angola under the current administration, and one that is set to unveil a new set of reforms and investment commitments.

CISLAC considers this refusal to assent as a big failure on the part of this government and a lost opportunity to reform the sector and transform to meet up with global standards.” On its part, the Nigeria Natural Resource Charter (NNRC) has renewed its efforts to drum support for the national assembly and the presidency to take another Look at the bill. According to NNRC, the PIGB provides a strong governance basis which would help mitigate environmental harms. Mr Bank-Anthony Okoroafor, Chairman of Nigeria’s foremost oil and gas industry advocacy body, PETAN (Petroleum Technology Association of Nigeria) noted with regret that Nigeria missed a golden opportunity for not passing the PIB much earlier when oil prices were high and global investors scrambled for safe havens to invest. He urged the institution of government to come together and resolve the differences in opinions, stating that the objectives of the PIGB and the entire PIB, were to enhance exploration and exploitation of petroleum resources, to significantly increase domestic gas supplies especially for power and industry, to create competitive business environment for the exploitation of oil and gas, to establish fiscal framework that is f lexible, stable and competitively attractive, to create commercially viable national oil company, to create strong and effective regulatory institution, www.majorwavesenergyreport.com

He noted that other IOCs have taken similar giant strides embarked upon by Total with Egina field, saying “other projects are coming onstream without the complete PIG. This shows investors are not waiting on the government but this does not necessary mean that the right thing should not be done. Friendly policies are required to attract investors and allow existing ventures to strive.” Since taking office in the summer of 2017, Angolan President JoãoLourenço has been implementing a bullish reformist agenda which is drastically transforming the governance of the country’s oil & gas sector. Angola is reforming fast, but will market forces allow changes to happen at that pace and yield the results that the government is looking for? While international investors seem to think so, with Total and BP signing major agreements to boost their Angolan operations over the past few months, 2019 will tell if the international oil industry is being convinced of Angola’s return as a competitive African frontier or not.

With Uganda set to join the club of African petroleum producers by the early 2020s, efforts are on the way to develop adequate infrastructure for the evacuation of oil that will be produced from the Lake Albert Basin. The project seemed to be positively moving forward when Uganda and Tanzania exchanged the inter-governmental agreement for the 1,443km East African Crude Oil Pipeline in May 2017. However, the partners in the pipeline’s construction, French major Total, China’s CNOOC and Tullow Oil, are yet to make a final investment decision on the project. Meanwhile, the Host Government Agreements are to be signed this January, but delays in concluding the pipeline’s financial deal have already pushed back Uganda’s oil

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COVER STORY

production ambitions from 2020 to 2021. The pipeline is crucial for the further integration of the East African community and to set a positive record of joint planning, financing and implementation of landmark energy projects in the region.

2019 Outlook OPEC and some non-OPEC oil ministers met in Vienna in December 2018 and agreed to curb their output by 1.2 mb/d in order to address growing surpluses in the market. The agreement aims to achieve relative stability and to bring the market towards balance. So far, the Brent crude oil price seems to have found a floor, remaining close to $60/bbl much where it was when the ministers met. Cooperation between Russia and Saudi Arabia is now the basis of production management with these two countries having a large capacity to swing output one way or the other. For them, prices falling further would place their budgets under great stress. For non-OPEC supply, IEA has revised their growth forecast for 2019 down by 415 kb/d, partly due to expected cuts from Russia agreed in December 2018, and to lower growth in Canada. The serious build-up of stocks arising from logistical bottlenecks in Alberta led the provincial government to act very decisively to curb output.

report from OPEC. In a forecast that will dismay environmentalists – and which questions the theory that oil company reserves will become “stranded assets” – OPEC’s annual report significantly revised production estimates upwards. Most of the production increase will come from countries outside OPEC, led by explosive growth from frackers in the United States, with China and India leading the increase in demand. OPEC expects global oil demand to reach nearly 112m barrels per day by 2040, driven by transportation and petrochemicals. Despite concerns about its impact on climate change. OPEC estimates that coal usage in the OECD countries will plummet by a third by 2040, but it will increase by 20% in developing countries to reach five times the volumes burned in the west due to rising population. It added that, the world’s airlines will be the single fastest growing user of oil, increasing consumption by 2.2% a year on average, to 2040. However, the largest absolute growth is

expected to come from road transport. The number of vehicles on roads across the world are expected to leap from 1.1bn now to around 2.4bn in 2040. In its central scenario, OPEC expects just 320m of those to be electric, a number that climbs to 720m in a scenario where batterypowered cars take off rapidly. It said that if the higher prediction for electric cars came to pass, oil demand would only slip slightly to 109m bpd rather than 111.7m bpd by 2040, the report said. This means continued business for oil and gas firms engaged in Africa, at least in the nearest foreseeable future.

“

The decline in global growth will mean a weaker tailwind for global markets, which could begin to anticipate an end of the economic cycle as 2019 progresses,”

Future of Oil, Energy Demand World oil production is expected to soar to new records over the next five years, as a dramatic expansion in demand from airlines offsets the arrival of electric cars, according to a

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INTERVIEW

Aiteo is Proof that Nigerians can Run Divested Assets successfully - Dr. Onyejekwe

You graduated with an honors degree in Geology from the University of Nigeria Nsukka. What was your inspiration for studying geology? Would you say it was by choice or by chance?

Dr. Chike Onyejekwe, FNAPE, GMD Aiteo E & P

r. Chike Onyejekwe is the Group Managing Director of Aiteo Production and Development Company Limited. He is a Geologist by background with extensive depth and breadth of experience in the Oil and Gas industry spanning over 30 years. Dr. Chike has worked in various leadership and senior management positions within and outside Nigeria, covering Exploration, Development, Asset Management, Operations and Management. Along his career line, he had 5 years broadening overseas assignment to The Petroleum Development Company of Oman in the Middle East as Senior Production Geologist/Seismologist, where he was responsible for maturation of appraisal and development opportunities that added significant reserves and production to Sultanate of Oman. On coming back from Oman, he worked in different senior capacities in SPDC which include Divisional Head of Geology, Asset Development Manager, Chief Geologist, SPDC’s General Manager for Exploration before being appointed in 2008 as Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), Deep-Water operations. In 2014, Chike retired from SNEPCo and has since taken up the position of Group Managing Director of Aiteo Eastern Exploration and Production Company (AEEPCo), the largest Nigerian upstream independent indigenous Oil and Gas Company which operates the 100km Nembe Creek Trunk Pipeline and the prolific OML 29 block in Niger Delta. Dr. Chike is an alumnus of Ashridge Business School of London and Wharton school of Business USA. He speaks keenly here about his passion, career, Aiteo and the future of Hydrocarbons. Excerpts. 28

My initial career interest was Medicine or Law like every other young man at the time but before writing my WAEC I began to hear about big oil companies like Shell, Chevron, Mobil etc operating big in Nigeria with large footprints; Oil companies that were involved in discovering and producing the black Gold that net in millions of dollars both to themselves and the country; then my interest changed to wanting to study a course that will make me work in an oil company. That’s how my journey to study geology began; I applied to University of Nigeria Nsukka and got admitted. After my first year in the university, I was opportune to get a scholarship which was back dated to my first year. By some streak of fate, I ended up having all my years of study being paid for. As I got a backdated scholarship, I was refunded my year one fees which I gave back to my father to help train my younger ones, so you could say it was destiny, or by chance - I don’t know. Who were your role models in the discipline and how has this shaped you from your early days as a young

Majorwaves Energy Report January - Februray 2019, Vol 2 No 1

geologist in Shell to where you are currently as the GMD of Aiteo? I think when you talk about role models; it has to be in stages of one’s career. My role models were dependent on the different stages of my career. In the early stages of my career, my mentor was Mr.Victor Olarenwaju (popularly called “Sir Vy”) who was my supervisor at that time. He motivated me and was equally strict with me (with clear boundaries on familiarity and work), he took me as his son, was always available to mentor and teach me passionately. He was both hard and patient with me (it’s remarkable how he combined both qualities), he transited me from being just a degree geology holder to a practical geologist, made out time always to work through my errors with me; ensured I carried my learning to other projects; all aimed at bringing out the best in me and optimizing my productivity. I must admit that this discipline and coaching passion guided me through virtually all my career as I started moving up the professional and management ladder.

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Final Investment Decisioned”

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At the supervisory stage of my career, one of my role models was Late Joshua Udofia, who later became the Deputy Managing Director of Shell. He was humble, smart, delivery and quality focused, great in staff development/ matters and fighting for Nigerians (qualities that earned him the nick name General). I have to add, that he lacked patience for non-performance. He was easy to approach, totally devoid of arrogance (which is common with some senior management in many companies). Joshua was more of a goal-getter in the company and that inspired me a lot as we had similar things in common. I have other role models, but let me stop here for now. You are a geologist that has held both technical leadership and senior management positions within and outside Nigeria. There is a commonly held belief that highly technical people do not make good managers, do you agree with that? Let me first of all dissociate myself from that notion that technically proficient people don’t make good managers. If I take geologists and play back memory lane and come right up to where we are today, if I am not mistaken, Geologists have dominated senior positions in the industry and they have done excellently well in moving the industry forward. To say the least, I am one of them. Having said that, I must also admit that many technical people who don’t make good managers are mainly because they get too involved in their technical details, and they find it difficult coming out of their comfort zone. The challenge with such highly technical people is that often times they find it difficult to look at the bigger picture outside their discipline, e.g. how will what they are working on feed into other people’s deliveries and when? etc. A highly technical geologist focuses so much on the details such that after achieving 90% solution, they can end up spending so much time to complete the remaining 10%. Often times the time spent on the 10%is so much that you www.majorwavesenergyreport.com

wonder if such details are required to mitigate the risks. Let me give you another example, some geologists working on maturing a prospect are so focused on maturing those prospects, often times not considering whether -as in the case of a discovery, whether the oil can be easily “Final Investment Decisioned” (FID) in the nearest future. A technical professional aspiring to leadership position must ask themselves some business questions assuming he finds oil; can I monetize the oil? Where will it go to? Where will I flow the oil? Where will the discovery sit in the basket of company ranked projects for funding? Etc. He must be concerned about how to realize value from that asset. He must look at what can be achieved with the 90% solution with focus on the economics and end product. A management person looks at the near-term and long-term values, monetizing assets, discoveries, facilities, reserves and life cycle ROI. In subsurface evaluation, is it possible for highly competent technical professionals to drill a dry well? Oh Yes. The fact that you can mature a good prospect even with amplitude support is not a guarantee that when you drill you will find oil, there are other fluids that can give similar responses. I have heard experiences in the past where everyone was so sure, looking at amplitudes that we have oil or gas and when we drilled it was a dud well, at best it was a depleted zone . That is why Geologists put a probability of success (POS) on prospects, because of these probabilities. Normally a good exploration prospect can have between 30-45% POS (much higher in most exploratory appraisal prospects). Even with all the confident predictions, until you drill, you are never certain; this is one of the reasons geologists and reservoir engineers run risk/ probability analysis. That further tells one of the chances that a wildcat drilling might be successful or unsuccessful even after all the brilliant technical jobs have been

done. In investments, you don’t plan your Final Investment Decisions (FID) with upsides, rather you work with what you are confident of recovering, because even when you encounter hydrocarbon, you are not sure of the lateral extent of the accumulation until you appraise (to define extent and narrow down the uncertainty range between the high and the low volumes) . However, one way of recovering part of your drilling expenses in a discovery well is to do an extended well production testing. With this a company can recover part of the expenses pending when the full field appraisal is completed and Field Development Plan put in place, ready for execution. What are some of the challenges facing the Nigerian Petroleum Industry today? What solutions can you proffer? The challenges bedeviling the industry are numerous including; funding, security, human resource / experience skill-gaps, oil price volatility, the future of oil (discontinuation of fossil fuel use by certain countries) etc. We are also challenged in the sense that the United States that used to be a net importer of crude is now a net exporter. One might then ask if the world is saturated with oil. Some countries are putting timelines to banning the use of fossil fuel. As at today, can we realistically do without fossil fuel? The electric cars are gaining more attention globally but how many can afford electric cars which are very expensive. I believe that apart from other numerous bye products of oil (which are many), which the world requires on a daily basis, we need for instance, gas to power plants to generate electricity, aviation fuel, LPGs, Petrochemical feedstocks etc. Consequently, I believe that hydrocarbon will still be with us for quite some time (especially here in Africa). There are also cases of vandalization of pipelines and crude oil theft; these are sources of revenue losses to companies. For the funding, we all know the cash call funding has not been enough to carry out the planned activities of most of the Independents

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January - February 2019, Vol 2 No.01 29

INTERVIEW

and IOCs to grow production. The Alternative funding arrangement discussions (to replace cash call) is still ongoing and progressing. Until ongoing discussions and efforts are concluded, it will still be a challenge for most JV companies to raise huge funds required to execute their planned development projects to grow production to a certain number..There is so much competition for funds in the country so this will still be a challenge in the foreseeable future. What are some of the challenges you think indigenous E&Ps operating in Nigeria are facing and how can they surmount them drawing from your Aiteo experience? First of all, people need to know that Aiteo acquired 45% working interest in SPDC/JV divested block of OML 29 and NCTL. OML 29 is a world-class asset that is bigger than most IOCs operated assets in Africa and Asia. I have also to let you know that the two assets (OML 29 and NCTL) were acquired with facilities from a consortium of eight banks. It is a huge facility. When people make reference that Aiteo is producing so much, we remind them that we also have huge bank debts to contend with and service quarterly. We have an Executive Vice Chairman of Aiteo Group Mr Benedict Peters, a gifted, passionate entrepreneur who has a vision of growing the asset to become number one independent in the country, and to date he has achieved that. He has set another target for the company in our growth path of the asset. How did he achieve this? He believed in having the best technical and management personnel with proven experiences in oil and gas companies to run the asset and he went first to hire highly skilled people (across the entire workforce to the management) to position and grow the asset. When Aiteo took over the asset, we increased the production by over 100%. (from 33kbo/d at take over to 90kbo/d in 3-4 months). One thing that has been demonstrated is that Nigerians can run these assets. We have since 30

focused on growing production while also focusing on asset integrity maintenance. Most of these divested assets are old and aging; lots of asset integrity maintenance, corrosion control etc. will be required and monitored closely. We have to identify, plan in advance to carry out predictive maintenance, preventive maintenance, and reactive maintenance as operations dictate. We are also faced with the issues of crude theft which sadly has become a major revenue loss to us and the country. Do not also forget that when we took over the asset in 2015, the oil price went south so you can imagine how we survived and at the same time serviced our debts. We did not retrench our workforce. If we have made it through those periods, it tells you how resilient the company is. On corporate governance, compliance is key. We have employed highly skilled compliance personnel to look at every area of our activities to ensure all the compliances are tracked, and flagged. Just to remind you that we are just over three years old, took over the assets from Shell in 2015. Mind you without structures in place we couldnâ&#x20AC;&#x2122;t have been where we are today. We are still improving and consolidating and have further strengthened our organization with more human capital. Where do you see Aiteo E&P in the next five years? Some new companies grow their productions in the first few years and only to experience severe decline in the latter years? Aiteo is part of the Aiteo/NNPC Joint Venture (JV). We have put in place a diverse technically sound team to carry our operation. We have a five year rolling JV programmes, which defines our growth path, our yearly development projects, operations, budget, HSE activities etc, which we use to secure approvals from NAPIMS before execution. We also have a large resource base which underpins our 5 year rolling plans. Looking at our debts, we have to work this asset to meet up with facilities repayment commitments. We have a robust resource base, work programme, skilled resources, very supportive board , world class

Majorwaves Energy Report January - Februray 2019, Vol 2 No 1

asset and structure that will see us growing production rather than declining. From where I sit today as the GMD, I only see the growth of the company in many years to come and not a decline at all. . How does Aiteo manage community issues? We have a strong partnership with the communities where we operate. Most of our field staff are community members and that further shows the relationship we have built with the community working collaboratively with them. That our staff live within the community area, commute to and fro to well heads, flow stations, execute projects, etc, are clear indications that we have a good relationship with the communities and see them as stakeholders too. We employ field staff from communities and train them to deliver. Many of our contracts are given to and executed by communities, so they also see the facilities as theirs too. What are your views about evolving strategies for sustainable petroleum business in a fluctuating oil price regime like what we are experiencing now? There are no hard and fast rules. The oil business is a high risk - high reward business. There are many variables that drive the strategies, e.g., operating environment, country risks, business assumptions etc. Also, at what price or price range should one screen for profitability? There should also be focus on cost, skills, whether you are dealing with green field or brown field asset developments, eff iciency of operations etc. Whatever the strategy, full field life circle economics, profitability and sustainability of the business must be considered and reviewed continuously as at when required; such reviews allow one take advantage of low price regime to renegotiate e.g. with contractors on contract price reduction etc. Source: Aiteo

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INTERVIEW

Nigeria & Africaâ&#x20AC;&#x2122;s 1st Downstream Mobile App For Oil Marketers

petro-app

Nigeria & Africaâ&#x20AC;&#x2122;s 1st Downstream Mobile App For Oil Marketers.

ABOUT THE APP Nigeria and Africa's first downstream mobile app for monitoring activities in the entire down stream petroleum sector to actively engage marketers. Petro-App was built from the ground up using African ingenuity combined with technological innovation which will aid decision making seamless for traders and marketers. Features Gives information on product availability from all major petro deports in Nigeria, prices on the go and maximize profit, Trucks/ Tanker information for hire and delivery, price forecast, petro news, knowledge center and a feedback mechanism.

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January - February 2019, Vol 2 No.01 31

MAJOR SPOTLIGHT

Mr Andre Bassey

PETRO APP is a Game-Changer for the Downstream Sector – Bassey

aving experienced some level of frustration while carrying out daily activities in the downstream sector, the duo of Andre Bassey and Yomi Ademefun, partners at Axiom Tech Ltd, thought of a tech solution that could ease business operations by helping firms identify verifiable sources of Premium Motor Spirit (PMS), diesel otherwise known as Automotive Gas Oil (AGO), and other products; the prevalent daily rate of the product(s), inventory level of each tank farm, as well as a list of verified logistics company to truck the purchased consignment. Something similar to the famous online mall: Amazon. All these can be determined via features on the newly introduced PetroApp as Nigeria’s downstream sector braces up for the fourth industrial revolution causing sweeping changes in business models globally. Tell us about the PetroApp Andre: Petro App is a very interesting Application, designed to enable downstream marketers in Nigeria to make basic business decisions such as trying to know where their preferred depot would be; whether it is Port Harcourt, Calabar, Kaduna and wherever you may find petroleum products. One can make business decisions on where and how to reload their products, know pricing and also get a good 32

directory for getting trucks option, get forecast as well, so that they don’t make wrong decisions. The App also gives its users the relevant petroleum news from the regulators. It is going to be an improved application eventually but for now these are the basic features. Considering the fact that petroleum products users already have their markets, what’s the unique value addition?

Majorwaves Energy Report January - Februray 2019, Vol 2 No 1

Andre: We considered cost of information which is very important to them. It is usually not accurate because marketers have had to make lengthy calls to get information. But if you know there is a platform where you get correct and timely information, you’d go for it. This improves on what they already have. They have an existing structure but we are here to simplify the structure.

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How many petroleum product depots do you have on the App and what is the spread? Andre: We have a spread across 6 states including Lagos, Port Harcourt, Calabar, Delta, Kaduna, Niger. In detail, we have close to 35 depots covered. There are lots of non functional Depots so there is no need adding them. Once they come up, we will update. There is a feature on the App that talks about Logistics. Can you shed more light? Andre: There is a directory for most companies that provide haulage. We want to have a directory where you can have trusted truck ventures that will account for safety, quantity and also durability to meet your timing. All these, we have to vet and see which of them meets the standards. Aside insurance, what other criteria is needed? Andre: Standards depend on FRSC and state regulators. Some trucks are not designed to pull 33,000 liters but because we are operating here, they use this to save cost. NUPENG is responsible for all the trucks moving petroleum products. Those trucks are supposed to be ‘verified’. Yes, NUPENG already have a good directory but we are saying: “Let’s support what you are doing”. We are not just limited to NUPENG. We also work with PTD. We are saying for you to be recognized and be on board our App, you should have such certifications from the regulators. How does the App deal with the issue of adulterated products? Andre: It is a bit tricky. Sometimes, drivers tamper www.majorwavesenergyreport.com

with products and at other times, the owners tamper with it themselves. There is always a time frame for trucks to move from a location to another. Eventually, we are developing a tracking system. There is a seal on every truck. So, the moment you raise the seal, and it is broken, one expects the product would have been tampered with if not done at the destination point. The issue of Subsidy has been well talked about including Petroleum Equalisation Fund (PEF). How does this App speak to these and what value will it add? Andre: PEF is supposed to help products pricing match within the country. The fund covers the distance cost for the marketers. Unfortunately, this has been abused because there is no system to check whether these marketers actually go where they apply to go to. We have looked at an array of options to put a check on these. We are tracking the seal on the truck likewise the location. This helps accountability such that if you apply to go to a particular destination, that’s where you’ll go. It assists the government to know the fund is serving its purpose. These things can’t be achieved at a go. It is still work-in-progress at this stage. Have you test- run this App? Andre: We are test-running based on priority. There are some key persons currently using the App. The App is both on Android and Apple Play stores. The App also has a dedicated website to it. What’s the drive behind creating this App?

of loopholes that have made me lose time and money. Business is about solving problems, before getting paid. The drive is to see the downstream sector organized. Is there a way the App can solve the Apapa traffic gridlock? Andre: What we have now is that people just go to Apapa and assume there is product. What they do not know is that these depots load into the night. When we have this user base, it helps truckers decide. You don’t just deploy trucks randomly. You will know that if your truck is not scheduled to load, there is no need for you to be there. Do you think Nigerians have come to that reception stage as regards embracing technology? Andre: Nigeria has the highest number of Smartphone users in the world. It is one thing to own a Smartphone and another to know how to use it. The challenge will always be educating the users on the need to use it. Is there a need for them to use it? Yes. The world is moving at a fast speed on using technology to solve everything. It’s about time we start using technology to simplify everything. People would grow on technology because it helps make your work easier. When the marketer realizes that he doesn’t have to be at the depot everyday to find out the price of what he needs, he’ll key into it. It’s a one-stop solution for the petroleum downstream sector.

Andre: Nine years operating in the downstream sector of the economy has made one see a lot Majorwaves Energy Report

January - February 2019, Vol 2 No.01 33

SOCIAL INVESTMENT

“At Seplat, We Are Committed To Implementing People-Oriented Corporate Social Investment Initiatives” – Dr Nwachuku

r Chioma Nwachuku is the General Manager Corporate Affairs & New Business Development at SEPLAT Petroleum Development Company Limited. She is a multiskilled professional with over 20 years extensive experience spanning across various areas such as Communications, Product Development, Customer Relations, Human Resource Management and Academia.

Dr Chioma Nwachuku

hat drives your choice of social investment?

We are spurred by an enduring vision and genuine commitment to our shared value philosophy. It motivates everyone in the system from the board members to employees. Our corporate view is that the issue of sustainability is one that must be integrated in our business strategy, by extension in our social investment to ensure long-term success. We are cognizant of the longstanding developmental challenges faced by the people of Niger Delta, which affected their perception and willingness to trust exploration and production companies that operate in their domain. As a result, from inception, we took a deliberate and bold initiative to build a positive sustainable brand equity underpinned by a shared value philosophy. We have, therefore, remained committed to implementing people-oriented corporate social investment initiatives anchored on good corporate governance and partnership with our critical 34

As a lecturer she has contributed to students’ intellectual development, academic research and publications especially in the field of Communications. She has held key position in the Banking sector and telecommunications sectors both in Nigeria. Dr Nwachuku speaks with the Editor of Majorwaves Energy Report, MARGARET NONGO-OKOJOKWU; on the Social Investments Initiatives of Seplat and how much it has impacted upon the lives of people living in their host communities. Excerpts

stakeholders. Could you take us through the various forms of social interventions carried out by Seplat? Since inception, we have continued to act as a positive force among our stakeholders giving hope, providing healthcare, support to education and economic empowerment to community members particularly to the women and `youth. We have made notable progress in providing p e opl e -ba s e d h i g h -i mpac t development-oriented projects targeted at our five priority areas of health, education, community infrastructure development, youth and women empowerment as well as environmental stewardship. Our CSR programmes are well aligned with the Sustainable Development Goals and cater to the needs of various stakeholders. We have four major programmes we run on a yearly basis and other social interventions which have been incorporated as a part of our Global Memorandum

Majorwaves Energy Report January - Februray 2019, Vol 2 No 1

of Understanding. All these prog rammes are funded through the NPDC/Seplat Joint Venture. Let me share some of our very notable signature CSR programmes in two sectors. The Eye Can See (ECS) programme is a high-impact health programme and is in its seventh year of offering eye care for persons in SEPLAT’s communities. The programme provides surgeries, prescription glasses and eye medication, as well as, offering counseling and medication for persons living with hypertension and diabetes in addition to having eye problems. The programme provides premium eye care through select medical practitioners comprising Ophthalmologists and Cardiologists who diagnose and care for treatable conditions, and provide preventive care. Although, the programme is for persons in our communities we have, however, witnessed that individuals in surrounding villages and states do come to take advantage of this programme to treat their eye problems.

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SOCIAL INVESTMENT

provides the platform for educating the recipients on any selected theme.

The programme, has indeed become a high impact programme. It eliminates patients’ barriers to accessing eye care and surgery by fully funding cataract surgeries, bringing eye care services to the patients, educating communities about elimination of blindness and advocating lifestyle changes in the case of persons living with Hypertension and Diabetes. T he S afe Motherhood programme is another health prog ramme which al ig ns withSustainable Development G oa l s (SDG) goa l 3 wh ich establishes a transformative new agenda for maternal health towards ending preventable maternal mortality. The programme was launched in 2011 and provides free ante natal screening, laboratory investigations, drugs and delivery kits while preventing malaria th rough the distr i bution of insecticide treated nets; malaria in pregnancy is a contributor to increasing maternal mortality. Safe Motherhood programme also

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Safe Motherhood since inception has focused on: Providing delivery kits, insecticide treated nets and food supplements to expectant women; providing an interactive platform to learn about danger signs, hygiene and nutrition in pregnancy and the importance of breast feeding; vaccination and deworming of children; Introducing Child Spacing and the benefits of family planning; revitalizing primary health centres by driving traffic to them and educating traditional Birth Attendants on modern and safe delivery methods. SEPLAT, upgraded the Female and Children’s Ward at Central Hospital Sapele by renovating and supplying medical equipment as an extension of the Programme to ensure recipients of the programme and other expectant women access a good hospital at time of delivery. On Education, SEPLAT’s drive to encourage academic excellence in our youth gave rise to the introduction of two signature CSR programmes - Pearls Quiz and National Scholarship; both programmes are designed to improve the quality of education in our host states and the nation at large. PEARLs which stands for Promoting Exceptional And Respectable Leaders is SEPLAT’s educational CSR programme aims to reward academic excellence engendering the spirit of competition amongst public and private secondary schools. This programme remains well received and we have the confirmation that it directly impacts academic performance as students while preparing for this competition are encouraged to read their syllabus intensively. The programme is currently deployed at Delta and Edo States, our host states.

SEPLAT’s drive to further encourage and motivate academic excellence saw the introduction of a National Scholarship Programme for students in tertiary institutions in Nigeria in 2014. The SEPLAT JV National Scholarship Undergraduate scheme is merit based and is designed to provide scholarship to indigent students. In the past 4 years, SEPLAT has awarded scholarship to indigent students’ at various universities nationwide thereby providing opportunities for indigent students to fund their studies. SEPLAT also has in place, since commencement of operations, postprimary scholarship programme for indigenes in its host, impact, access and pipeline communities.

Among these, which is the choice one you’ll always refer to? Which of them has been very effective? With the success and remarkable impact recorded through our signature CSR programmes, our operating community members look forward to the implementation seasons of those programmes. Seplat healthcare programmes, which are provided free to people who have little or no access to efficient healthcare facilities have helped in saving many lives while offering solutions to longstanding health challenges.Our education programme in particular the Seplat PEARLS Quiz which promotes learning, builds competence and enhances productivity has been quite effective and well appreciated. During the 2018 PEARLs Quiz finals,

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January - February 2019, Vol 2 No.01 35

SOCIAL INVESTMENT

His Excellency Governor Ifeanyi Okowa of Delta State, speaking through his commissioner for Basic and Secondary Education Mr. Chiedu Ebie stated ‘ it is commendable that Seplat over the last seven years has successfully held this competition and has been awarding scholarships in secondary and tertiary schools”. His Excellency, Mr. Godwin Obaseki, Executive Governor of Edo State, recently celebrated Students of Presentation National High School and University Preparatory Secondary School (UPSS), both in Benin City, Edo State, for emerging winners of the 2018 NPDC/SEPLAT PEARLs Quiz in the first and third place category, respectively. Governor Obaseki, while hosting Students of the winning Schools in his Office at Government House, Benin City, Edo State, gave cash prizes to the Students for their exceptional performance at the competition. So you can tel l that these programmes have all been very effective which is why till date we continue to deploy them so as to close their needs in our communities. The most impactful truly may be difficult to say. The Eye Can See programme could be in view of the sheer numbers of recipients and its immediate impact on a visually impaired person whose sight is restored therefore freeing the person to be less dependent on others. But this would be a close call as the Seplat’s Pearls Quiz also offers sustainable benefits which go directly to the participating students and the winning schools where we use their prize money to implement projects selected; for example, build/renovate a library or a computer laboratory. What has been SEPLAT’s strategic plan as regards social investment since inception and what does the next 5 years hold? As a deliberate corporate strategy, we consistently deploy stakeholderi n c l u s i v e c o r p o r at e s o c i a l responsibility and sustainability practices that are designed to meet stakeholder expectations and deliver solutions to identified societal challenges. Our long-term sustainability aspiration is to create and deliver shared value to our 36

critical stakeholder groups. Driven by this shared value philosophy, we work to ensure the sustainability of our business and our critical stakeholders. We will stay true to our commitment to impact the lives of members of our host communities and other stakeholders.

scholarship scheme; a major drop in maternal and infant mortality rate as the women embrace orthodox medicine through Safe Motherhood and access to better equipped functional health centres.

Awesome! So how do you measure the effectiveness of your social investment spend?

Of course, there are always areas to be improved upon; absence of amenities that could improve the quality of outcome of our programmes bothers us. For example, access to health centres for ante natal, eye care and other ailments when our health programmes are not in session. We have tackled this problem by renovating two health centers but more needs to be done. Also, we continue working on embedding sustainability in our social intervention so that the communities take up ownership of programmes and social investments. Any improvement with the literacy level in the communities will enable them effectively buy into programmes that improve their ability with skills acquisition, training and employment. We are constantly working on how to promote sustainability, for example ensuring our targets particularly the women and youth become selfreliant through our interventions.

We run periodic evaluation of our social investment programmes to access the benefits versus the spend. This social impact assessment is carried out by an independent body. But also important is an assessment of how well our programmes achieve the set objectives. Ultimately, any initiative should positively impact the lives of recipients and the community at large. What would you say has been the significant impact of your social investment plan on your host communities? Since inception, we have touched the lives of thousands of host community members and other stakeholders with people – based interventions. We have continued to deploy high impact community projects and programmes which have improved the living conditions of many families. An evaluation of the impact of our CSR programmes amon g sta keholders showed impressive results in the areas of health, education, infrastructure development and others. It also showed a positive perception of SEPLAT among stakeholders and their willingness to continue to partner with us. It has continued to engender trust, mutual respect and understanding between us and our various publics. The success of social investment has also brought very real and measurable business benefits. Indeed, it has contributed immensely to our sound corporate citizenship profile which has given us a competitive advantage. The impact of our Social investments in the host communities has been massive and quite impressive, they include: Improved health and quality of life generally enhanced; greater awareness in preparation for WAEC as a result of the Pearls Quiz; indigent undergraduates are assisted through university with the

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Are there areas for improvements?

How important is it for companies, especially Independents, to engage in social investment in their host communities? What advice would you give? I believe most companies know the relevance of undertaking social investment in their host communities. For us at Seplat, we have built strong relationships with our key local communities, promoting trust and confidence amongst our various stakeholders, ultimately resulting in a stable operating environment. What has worked well for us is remaining resolute with our commitment to creating a shared value. This has continued to motivate us undertake cor porate socia l i nvestment initiatives that improve the living conditions of our local communities.

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UPSTREAM

This exercise will be Uganda’s second competitive bidding round since the new petroleum law introduced transparency in the licensing of new players. In the first competitive round in 2016, the country issued only two licences — to Nigeria’s Oranto Petroleum for the Ngassa block and Armour Group from Australia for the Kanywataba area — for four years from 2017.

Uganda to Launch Next Oil Exploration Bidding Licence Round In May - Muloni says they are preparing the Ugandan National Oil Company to start participating in Exploration and other Activities By Margaret Nongo-Okojokwu

ganda, which is developing oil deposits but has yet to begin production, will launch its next bidding round for oil exploration licences in May this year. Energy Minister Irene Muloni, who led a Ugandan delegation to the Africa Oil Week conference in Cape Town November last year, said that technicians in the ministry were processing data on the oil blocks due for licensing, to be shared with the interested bidding companies. Muloni has said that the second bidding round or oil exploration in the Lake Albert Basin will be conducted in the first half of 2019, citing that data and bid documents are being prepared in readiness for the second bidding round. ‘Uganda is committed to developing its petroleum sector across the entire value chain, and clear strides to move the country’s key assets from the exploration phase into the development phase have been made. Uganda offers opportunities for companies looking to explore, develop and utilise its petroleum assets.’ she said Uganda’s delegation included Ernest Rubondo, the executive director of the Petroleum Authority of Uganda, and the chairman of Uganda Chamber of Mines and Petroleum, Elly Karuhanga who discussed Uganda www.majorwavesenergyreport.com

as a petroleum destination during the country’s Roadshow in Cape Town. Standard Bank Group Global Head of Oil and Gas Mr. Dele Kuti described Uganda’s financial sector as attractive for oil and gas investment. The upstream Tilenga and Kingfisher projects were also highlighted during the AOW with a presentation from Mr. Philips Obita, Head Development and Production at the Uganda National Oil Company – UNOC. Uganda also had a session at the African Local Content Forum. PAU’s Manager National Content Ms. Betty Namubiru, Stanbic Bank – Uganda Mr. James Karama and GIZ Ms. Julia Mager showcased Uganda’s local content initiatives in the regulatory framework, enterprise development and skills development, respectively. Minister Muloni also addressed a press conference during the week and reiterated Uganda’s preparedness for petroleum production. She appreciated the Joint Venture Partners in the industry, CNOOC Uganda Limited, Tullow Oil plc Uganda Operations and Total E&P Uganda Limited for the investment and support in Uganda’s oil and gas sector, so far.

Oranto is becoming a major player in African oil, with activities in a number of countries including South Sudan, where the company was issued an exploration licence for Block B3 in March last year, and has already completed an aeromagnetic survey. “We are waiting for interpretation of this data to inform where drilling will be done,” says Oranto South Sudan country manager George Olugbenga Adesanya. Mr Adesanya said the firm will spend $500 million over six years in South Sudan to develop the more than 24,000 square kilometre Block B3. The work plan includes seismic studies, minor and major drilling. Besides Uganda and South Sudan, Oranto also holds exploration licences in Equatorial Guinea, Sao Tome and Principe, Senegal and Zambia and now, according to Mr Adesanya, the company wants to expand its presence in the East African oil and gas exploration sector. Uganda discovered 6.5 billion barrels worth of hydrocarbon deposits 12 years ago in the Albertine rift basin near its border with the Democratic Republic of Congo but production has been repeatedly delayed by disagreements with oil companies over field development strategy and tax disputes. “We will have a road show first and then we will start the bidding round in May next year,” Rubondo, told reporters on the sidelines of the Africa Oil Week conference. Total and China’s CNOOC are aiming to begin production in Uganda in about two years’ time.

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LOCAL CONTENT

PETAN Recognizes Outstanding Industry Leaders at Annual Dinner By Jerome Onoja

he Petroleum Technology Association of Nigeria (PETAN) recently held its annual Dinner/Award night in Port Harcourt, Rivers State. Guests at the occasion included representative of the Governor of Rivers State:NyesomWike; that of the Minister of State for Petroleum Resources, D r I b eK ach i k w u ; wh i le the Executive Secretary of Nigerian Content Development a n d Mo n i t o r i n g B o a r d , EngrSimbiWabote was there in person. A lso i n attendance were C - s u it e exe c ut ive s f r om International Oil Companies, Nigeria National Petroleum Corporation, independents, multinationals and indigenous 38

service companies. Mr Austin Avuru, Managing Director of Seplat delivered the keynote address titled: “Forging Ties, Driving Growth Stability Through Nigerian Content Cooperation.” Via his presentation, the industry stalwart emphasised the need for collaboration among industry stake holders in identifying opportunities and in service delivery towards enhancing local capacity building and securing a continued growth in the oil sector and across linkage industries. PETAN’s industry award is a prized possession by its winners and outstanding players in Nigeria’s petroleum sector often

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look forward to recognition by the body yearly.The event also provides a unique platform for close interaction between leading Nigerian oil service companies, senior executives in international oil companies, government policy makers and top political leaders to share ideas on the Nigerian oil industry in a relaxed and conducive atmosphere. Some of the honoured awardees include: Shell Petroleum for Local Content Operator Award; Seplat Petroluem for PETAN Capacity Development Award; Sterling Bank for Local Content Bank of the Year; Nigeria Agip Oil Company (NAOC) for PETAN Corporate Social Responsibility Award; www.majorwavesenergyreport.com

LOCAL CONTENT

L a ser En g i ne er i n g a nd Resources Consultants for Distinguished Achievements Award (Corporate) and Oilserv Group for Di st i n g u i she d Achievements Award (Corporate) too. Others are; Engineer EmekaOkwuosa for Distinguished Pioneer PETAN Member Per Excellence; Mr Anthony Ellis for PETAN C h a i r m a nâ&#x20AC;&#x2122;s O ut s t a n d i n g Ach ievement Recog n ition Award; Mr Stephen Aribeanafor Lifetime Achievements Award; EngrSimbiWabote for Local Content Personality of the Year;

and Yusuf Matashi for The Aret Adams Award for Excellence. The Minister of State for Petroleum Resou rces, Dr Emmanuel Ibe Kachikwu gets the Distinguished Leadership Award and the NNPC GMD, Dr Maikanti M Baru bags the Oil and Gas Personality of the Year Award. PETAN is made up of Nigerian indigenous oilfield service companies and was founded to utilize the technical knowhow acquired in the oil and gas industry by Nigerians as a

springboard for economic and technological advancement. PETAN companies employ over 20,000 engineers and other technical personnel with a direct employment of about 80,000 people. PETAN companies offer 250 distinct technical services to the Nigerian oil industry and many of these companies now parade similar services in Mauritania, Ghana, Cameroun, Equitorial Guinea, Congo, Gabon, Chad, Angola, South Africa, the Middle East, South East Asia and the United States.

From Left:Mr Bank-Anthony Okoroafor,Mr Leemon Ikpea. Mr Austin Avuru and Mr Ernest Azudialu.

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FINANCING ENERGY

Oilserv Limited Bags 2018 Industry Achievement Award By Jerome Onoja

ilserv Limited bagged the 2018 Distinguished Ach ievement Awa rd (Corporate) at the 2018 Annual Oil Industry Achievement Dinner and Awards of the Petroleum Technology Association of Nigeria (PETAN) an association of indigenous technical oilfield ser vice compan ies in the upstream and downstream sectors. The Chairman of Oilser v Group, Engr. Emeka Okwuosa ably represented by the Group Chief Finance Officer, Mr. Chris Okonkwo was also honored with the Distinguished Pioneer PETA N Mem ber sh ip Per Excellence Award in recognition of his unwavering support and commitment to the growth of the organization since inception.

‘Since 2008 till date, Engr. Emeka Okwuosa has single handedly sponsored the PETAN Panel Session held annually at the Offshore Technology Conference (OTC) in Houston, Texas, USA’’ said Vice President PETAN, Engr. Wole Ogunsanya, while presenting the award at the dinner in Port Harcourt on Saturday, November 30. The annual PETAN Panel session is an event that brings together stakeholders, Captains of Industry, government officials and CEO’s of Oil companies in Nigeria to deliberate and articulate ideas on relevant developments, trends and challenges in the energy sector. M r. Austi n Av u r u, CEO SEPLAT while presenting the Distinguished Achievement

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Award (Cor porate) stated that the works of Oilserv especially on the OB3 Project for NNPC, a 67km x 48inch gas transmission Pipeline Project, speaks volumes about indigenous expertise and capabilities which Oilserv is known for in the EPC business. Commenting on the awards, Chioma Orji, External Relations Supervisor, Oilserv said ‘’ It’s a well-deserved honor. The contributions of Oilserv in the development of oil/gas infrastructure, human capacity building and Research and Development in the energy sector cannot be overemphasized and it earned us the recognition we enjoyed today. I also see the awards as a call to do more and keep the flag flying’’.

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LOCAL CONTENT

L-R: Executive Secretary, Nigerian Content Development and Monitoring Board, Simbi Wabote; General Manager, External Relations, Shell Petroleum Development Company (SPDC) Igo Weli; and SPDC’s General Manager, Contracting and Procurement, Antony Elis, at the Recent Petroleum Technology Association of Nigeria Award Night in Port Harcourt where SPDC emerged local content company of the year.

Shell Emerges Local Content Operator of the Year at PETAN Awards

h e S h e l l Pe t r o l e u m Development Company of Nigeria Limited (SPDC) has emerged the Local Content Operator of the Year 2018 at the Annual Oil Industry Achievement Awards Dinner of the Petroleum Technolog y Association of Nigeria (PETAN), an association of indigenous technical oilfield service companies in the upstream and downstream sectors. This marks the record third time Shell Companies in Nigeria have won the PETAN award, having clinched same award in 2013 and 2015. She l l’s G ene r a l Ma n a ge r, Contracting and Procurement, Antony Ellis, also bagged the PETAN Chairman Outstanding Achievement Recognition Award for promoting the course of Nigerian oil service companies. Both awards were given after careful evaluation of the contributions of the international and national oil companies, to local content www.majorwavesenergyreport.com

development. “The awards are in recognition of Shell’s sustained effort in shaping direction of local content implementation in Nigeria through support for local asset ownership, growth of indigenous companies and human capacity development at all levels,” said PETAN Chairman, Mazi Bank-Antony Okoroafor, while announcing the awards at the dinner in Port Harcourt on Saturday, November 30. Executive Secretary, Nigeria Content Development a nd Monitoring Board, Simbi Wabote, presented the corporate award which was received by SPDC’s General Manager External Relations, Igo Weli, on behalf of the Managing Director of SPDC, Osagie Okunbor. Commenting on the award, Weli said, “We are motivated by these gestures to continue to pursue in-country value addition in the oil and gas sector in alignment with the government’s aspiration in local

capacity development.” The awards are the latest in the recognition of Shell’s pioneering role in Nigerian content development. In 2016, PETAN had honoured SPDC with the Distinguished Achievement Award (Corporate) while the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), Bayo Ojulari, received PETAN’s Professional Award in the same year for his notable contributions to the development of Nigerian content in the oil and gas sector. In addition to awards from PETAN, Shell Companies in Nigeria have also been honoured in Nigerian content development by the Nigeria Oil and Gas (NOG) Conference, the Nigerian A s so c i at ion of Pet r oleu m Explorationists (NAPE), the Nigerian Chamber of Shipping and at the Social Enterprise Report and Awards (SERAs.)

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Members of the newly inaugurated Executive Board with Dr Ibe Kachikwu at the centre

Kachikwu inaugurates APPO Executive Board The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, recently inaugurated the executive board of the African Petroleum Producers’ Organization (APPO). Kachikwu, who is currently the Chairman of APPO, said that the main purpose of inaugurating the board was to institutionalize the reforms needed in the organization’s structure as well as to recapitalize the fund of the organization which proposals were already embodied in its documents. The inaugurated members of the Executive Board of Appo are Dr. Folashade Yemi-Esan (Nigeria); Nigerian Delegate – Dr. Folasade Yemi -Esan (Permanent Secretary, Ministry of Petroleum Resources, Nigeria; Salissou Moussa Diakite, Nigerien; Valérie Commelin, Chadian; Epigat Fernand, Gabonese; André Joseph Okondza, Congolese; Doukoure Ousmane, Ivorien; and Chananti Sahgui Tiatti, Beninese. The Minister in his remarks advised that the operational blueprint should be studied as

more inputs were welcome ahead of the Council of Ministers of African Petroleum Producers’ O rga n i zation for thcom i n g meeting. At the time Kachikwu took over in APPO, the reforms identified included an increased sy nerg y that wou ld help mobilize the investment needed to facilitate and deliver the major infrastructure required by the continent, such as transborder gas and oil pipeline, joint refineries, gas plants and others. On the APPO fund for Technical Cooperation, Kachikwu said it was undergoing recapitalization to enable it better fulfil the role for which it was established. He recalled the Nigerian Vice President, Prof Yemi Osinbajo stressed that it could be remodelled after similar institutions that had succeeded, like the OPEC Fund, where even non-OPEC members can begin to invest. He said: “It is time for us to open up the APPO. The APPO fund ought to operate as an autonomous entity, independent from the APPO secretariat, in the same way that the OPEC fund operates

independently of OPEC itself. “Add itiona l to the above structural and Funding reforms, we’ve been addressing the issues of economic diversification to address the needs of a post-oil era” Kachikwu, therefore, urged the inaugurated Executive Board members to deepen reforms needed in the organization’s structure Earlier in his remarks, the Secretary of APPO, Mahaman Laouan Gaya, the body was created to serve as a platform for cooperation and harmonization of ef for t s , c ol l a borat ion , sharing of knowledge and skills among African oil-producing countries. With its headquarters in Brazzaville, Congo, the O rga n i zation cha n ged it s name from African Petroleum Producers’ A ssociation to African Petroleum Producers Organization (APPO) in 2017. Among members of APPO are Nigeria, Algeria, Ghana, Congo, Chad, Benin, Cameroun Gabon, Egypt Libya, South Africa, Mauritania and Sudan. Source: The Sun

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VISION

To be the premier agency of government responsible for promoting, securing and sustaining investments in the nation’s oil and gas free zones

MISSION

To be the premier agency of government responsible for promoting, securing and sustaining investments in the nation’s oil and gas free zones

OGFZA Incentives • •

• •

Round the clock operation 24/7. Ability to hold duty free stock in a strategic location central to West Africa Sub Saharan region, enabling streamlined procurement logistics with reduced inventory requirement. Computerised Free Zone Inventory Management System (CFIMS). Direct access to sea and same day turn-around to supply vessels operations.

• CUSTOMS Incentives • • • •

•

IMMIGRATION Incentives • • •

Fast-tracking of Immigration Procedures. STR Visa is regularised at the arrival of applicant at the free zone. Free Zones expatriates are allowed free movement in and out of the Free Zones.

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•

No customs duty applicable within the free zones. No customs duty payable for goods exported from the free zones to other countries. No custom duty payable on goods in transit from any part of entry in Nigeria to the free zone. Goods may be stored indefinitely, sold, exhibited, broken-up, packed, graded, reloaded, divided or otherwise manipulated. Goods may be consumed in the free zones.

TAX FREE & FINANCIAL Incentives • • •

No federal, state and local government taxes levies and rates. 100% foreign ownership. 100% Repatriation of profits and dividends.

Majorwaves Energy Report

•

100% Repatriation of foreign capital investment. No import and export license required. 75% import duty rebate on products on special nature where there is no local capacity.

Contact us: Marble House Federal Ocean Terminal P. M. B. 5474 Onne Port Complex Onne, Rivers State. E-Mail: contact@ogfza.gov.ng +2349091111184 +2349091111185

www.ogfza.gov.ng January - February 2019, Vol 2 No.01 43

gas development:

our

success story is

Nigeria's success story...

Chevron Nigeria Limited (CNL), has an aggressive gas development strategy that builds a profitable gas business through a portfolio of domestic, regional and export supply projects that fulﬁll the NNPC/CNL Joint Venture Domestic Gas Supply Obligation and support the Nigerian Government’s Gas Master Plan. We have been the highest supplier of high quality domestic gas in Nigeria since 2015 and will continue to explore opportunities to maintain this position. We have since 2008 also reduced continuous gas ﬂaring in our operations in Nigeria by over 90%. We led the development of the West African Gas Pipeline project through which Nigeria supplies gas to Benin Republic, Togo, and Ghana. All these prove that in the area of natural gas development, Chevron's success story is Nigeria's success story.

Majorwaves Energy Report January - Februray 2019, Vol 2 No 1