Majorwaves Energy Report June 2020 by majorwavesenergyreport

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Majorwaves Energy Report JUNE 2020, Vol 3 No 6

www.majorwavesenergyreport.com

Majorwaves Energy Report JUNE 2020, Vol 3 No 6

www.majorwavesenergyreport.com

Majorwaves Energy Report JUNE 2020, Vol 3 No 6

www.majorwavesenergyreport.com

Majorwaves Energy Report JUNE 2020, Vol 3 No 6

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A man who wants to lead the orchestra must turn his back on the crowd. -Max Lucado As the spread of novel Coronavirus Disease (COVID-19) in Nigeria continues to rise, President Buhari-led administration are resolute to keep the economy from further collapse. Through the state-owned company, NNPC, and its partners, it announced the signing of a multi-billion dollar EPC deal with SCD JV Consortium for NLNG Train 7. While our cover story brings details on some of the multiplier effects of the Train 7 project to the Nigerian economy, we re-established the self-styled president’s commitment to keeping the economy afloat, through another story. The AKK gas pipeline project; another multi-billion dollar investment. Nigeria’s foremost indigenous EPC giant has moved to site in readiness to commence the construction of this massive infrastructure. Engineer Simbi Wabote and his team have continued to develop Nigerian content and to create room for employment generation. This time around, we took stock of activities at the Emeyal 1 site where the Bayelsa industrial park is being constructed by the NCDMB. Upon completion, it will generate a minimum of 2,000 jobs. In July edition, we hope to bring you developments from other projects under the NOGaPS programme by the Board. A research has reported that, globally, women make up less than 1 per cent of CEOs in the oil and gas space. That fraction is even lesser in Nigeria, for obvious reasons. However, Engr Stella Okene (Ph.D) has shown that gender is not a barrier to doing exploits in the Nigerian oil and gas space. She’s our pick for June as the Energy Woman. You’ll be thrilled by this interview. We also bring you reports from Across Africa. And lastly, we encourage you to register for our webinar themed: Optimising Local Content through Regional Integration in a post Covid-19 Africa. In this new normal, Africa needs to look inwards to explore its endowment, using developed capacity and skillset from within the continent. After all, who is more familiar with the African terrain, than Africans? Enjoy your read and please stay safe, so we can avoid a second wave of the virus. Cheers.

Jerome Onoja

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

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

Majorwaves Energy Report JUNE 2020, Vol 3 No 6

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INDUSTRY NEWS

Shell fixes date for release of 2nd quarter 2020 interim dividend announcement

ExxonMobil reduces gas flaring in Guyana

ExxonMobil has reduced its gas flare in Guyana from 80 million cubic feet to 2 million cubic feet per day but retuned 15 million cubic feet per day because of COVID-19 pandemic.

oyal Dutch Shell Plc has fixed Thursday, July 30 for the release of its second quarter results and second interim dividend announcement for 2020.

In the first quarter results and first interim dividend announcement for 2020, the oil giant on April 30, cut its dividend to shareholders for the first time since World War II, because of slump in the oil prices amid the COVID-19 crisis. The board at the company reduced its first-quarter dividend by 66 percent from $0.47 at the end of 2019 down to $0.16 per share. “Shareholder returns are a fundamental part of Shell’s financial framework,” Chad Holliday, chair of the board of Royal Dutch Shell, said in a statement. “However, given the risk of a prolonged period of economic uncertainty, weaker commodity prices, higher volatility and uncertain demand outlook, the Board believes that maintaining the current level of shareholder distributions is not prudent.” It also reported that net income attributable to shareholders on a Current Cost of Supplies (CCS) basis and excluding identified items which is used as a proxy for net profit, came in at $2.9 billion for the first quarter of 2020. That compared with $5.3 billion in the first quarter of 2019, reflecting a year-on-year fall of 46%. Speaking on the announcement, Shell CEO Ben van Beurden told CNBC, “Given the continued deterioration in the macroeconomic outlook and the significant mid and long-term uncertainty, we are taking further prudent steps to bolster our resilience, underpin the strength of our balance sheet and support the long-term value creation of Shell.”

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Flaring offshore at ExxonMobil’s Liza-1 reduced significantly however glitches in the reinjection process have continued and it rose to about 14 million cf per day as COVID-19 restrictions delayed staff from rectifying the issue, Head of the Environmental Protection Agency said. Guyana is said to be the new bride for investment by the International Oil Companies (IOCs). This is attributed to the favourable legislative framework in place for the Multinational. ExxonMobil had signed before the pandemic a huge investment spending for that country upstream project. According to the Environmental Impact Assessment (EIA) approved by the Environmental Protection Agency (EPA), Liza Phase One, flaring is permissible at various intervals until 2040. ExxonMobil however pointed out that flaring in Guyana would actually be temporary and non-routine. In fact, its subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) intends to re-inject all operationally, produced gas under routine conditions, except that which will be utilised for FPSO operations. It was further noted that a flare system will be provided for the collection and safe disposition of produced hydrocarbon gases resulting from unplanned, non-routine relief and blowdown events. The EIA states that relief events occur to prevent overpressure scenarios in the process equipment. It further clarifies that blowdown events occur to depressure the facilities in a controlled manner as a result of emergency shutdown events. In addition, the EIA states that temporary, non-routine flaring will occur during equipment maintenance, process upsets, and start-up.

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INDUSTRY NEWS

Bonga Oil Export Terminal shut for maintenance

igeria’s Bonga crude oil export terminal which is operated by Shell Nigeria Exploration and Production Company (SNEPCo) has begun its routine maintenance according to reports by Reuters on Tuesday. In a statement by released by Shell, the maintenance on the Bonga floating, production, storage and offloading unit (FPSO) began on May 21. The terminal will be shut down for 2 weeks and is expected to be done in record time.

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The scope includes statutory recertification and critical asset integrity activities and will run until July during which there will be a few days of total shut down,” the company said.

The maintenance activity is expected to improve sustained production and reduced unscheduled production deferments. The routine upkeep, on the other hand, will involve inspections, recertification, testing, and repair of equipment as well as engineering upgrades with Nigerian companies amongst others. The crude oil terminal repairs appear to be behind schedule as Shell had planned to carry out maintenance on the facility earlier on, with the expectation that it will be ready for use in March 2020. Bonga was scheduled to load four cargoes in June, or 127,000 barrels per day (bpd), up slightly from 123,000 bpd this month. This, however, will be put on hold until the crude oil terminal completes its routine checkup. Considering the fact that Bonga

FPSO vessel is the heart of the crude oil terminal point with a production capacity of 225,000 barrels of oil and 150 million standard cubic feet of gas per day, the current maintenance activity represents a temporary setback amid the uncertainty in the global oil market. For Nigeria, its crude oil output and overall bpd production could drop further, leaving the oil sector vulnerable during the maintenance exercise. Although Shell emphasises that only a few weeks will be needed to carry out the routine maintenance on Bonga, concerns have been voiced against an extended time frame, which could jeopardize the overall daily output in the country.

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INDUSTRY NEWS

Sylva commends Saudi Arabia over output cut

he Minister of State for Petroleum Resources , Chief Timipre Sylva, has expressed gratitude to the Saudi Arabian Government over its recent voluntary cut of crude oil production output. This was disclosed in a statement signed by the General Manager/ Special Assistant on Media to the Honourable Minister, Garba Deen Muhammad. According to the statement, Sylva noted that difficult sacrifices like the one Saudi Government is making to stabilize the prices of crude will facilitate global economy recovery quicker than anticipated.

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It is by difficult sacrifices like this one the Saudi Government is making that the world economy can recover faster than expected. It is not an easy decision and that is why I feel compelled to express appreciation and support to Saudi Arabia for its leadership role

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in both OPEC, and OPEC+,” he said. Saudi Arabia had on Monday voluntarily cut its oil output by an additional 1 million barrels a day (the lowest in 18 years) as part of its bid to stabilize the oil market. This cut has lowered the country’s output down to 7.5 million barrels a day for June delivery. The Minister said that the current recovery of crude oil prices being witnessed in the last few days is as a result of the collaborative efforts of the Organization of Petroleum Exporting Countries (OPEC), OPEC+ and Saudi Government.

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The gradual revamp of crude oil prices in the last few days is a consequence of these actions by OPEC, OPEC+ and the effort of the Saudi Government.” He assured Saudi Government of Nigeria’s commitment to the production cuts agreement of

OPEC+ in spite of obvious technical and other challenges facing the country. Recall that OPEC+ adjusted downwards its overall crude oil production by 10.0 mb/d, for an initial period of two months effective from 1 May 2020, and terminating on 30 June 2020. Subsequently, in the ensuing 6 months period starting from 1 July 2020 to 31 December 2020, the total adjustment as agreed will be 8.0 mb/d. This will be followed by a 6.0 mb/d adjustment for a period of 16 months, from 1 January 2021 to 30 April 2022. The baseline for the calculation of the adjustments was the oil production of October 2018, except for the Kingdom of Saudi Arabia and The Russian Federation; both have the same baseline level of 11.0 mb/d. The agreement will be valid until 30 April 2022. However, the extension of the agreement will be reviewed during December 2021.

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INDUSTRY NEWS

Kyari meets newly-recruited 1,050 NNPC graduate trainees.

he Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mallam Mele Kyari, has met with the national company’s newly-recruited 1,050 graduate trainees.

The graduate trainees who assumed duty officially on Monday, May 4, 2020, have been working virtually. In a virtual meeting held on Thursday, the GMD charged the latest recruits to come up with out-of-the-box ideas and help NNPC deliver on its mandate. Kyari was seen in a video posted on the official twitter account of the corporation (@NNPCgroup) welcoming the graduate trainees on board while reassuring them of an enjoyable period of service.

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This is a company you’ll love to work for. But more than that, you’ll stay here (and build a very fulfilling career). I’ve been around here for 29 years, and I’ve enjoyed every moment of it,” he said. NNPC in February this year said it had completed its 2019/2020 employment exercise and has recruited 1,050 graduate trainees. The 2019/2020 recruitment exercise kicked off on 13 March 2019, with calls for application placed via nationwide adverts in the national dailies & online media, followed by the shortlisting of qualified candidates which commenced from 27 March, 2019. On 1 June 2019, the candidates sat for Computer Based Testing (CBT) across the Country, and subsequently an Interview in July 2019.

DPR receives OGTAN award.

he Oil and Gas Trainers Association (OGTAN) on Friday, presented an award of appreciation to the Director of the Department of Petroleum Resources (DPR), Engr. Sarki Auwalu MNSE, upon paying him a thank you visit. The delegation of OGTAN led by their President, Dr. Mayowa Afe, said the visit was to appreciate the Director for his well acclaimed presentation titled, ’The Nigerian Oil and Gas Landscape: A world of opportunities for investments and partnerships ‘ at the recently held OGTAN webinar series. Addressing them, Auwalu assured the visitors of his continued support for the association and promised to use available resources to promote the mandate of OGTAN in the oil and gas industry. In his remarks, the OGTAN President on behalf of the association thanked the Director for his participation while noting that registration for the webinar was unprecedented. He also promised to continue to liaise with DPR for the development of the oil and gas sector especially in the area of capacity building. Other members of OGTAN delegation include the Publicity Secretary, Mr Dapo Omolade and General Manager. OGTAN, Mrs Carol Egejuru.

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INDUSTRY NEWS

Eni launches new Portal

ni, the owner of the subsidiary, Nigeria Agip Oil Company (NAOC), has la un ch e d a n ew supplier portal and collaborative environment, known as EniSpace. EniSpace is a platform combining communication, collaboration channels and open innovation instruments with traditional procurement processes which was created as a common space for Eni’s suppliers to involve them in the company’s energy transition. In a press release issued on Wednesday, introducing the project, the company said, the project is the result of a close collaboration with suppliers who have actively contributed to the development of the new platform to make it more accessible and easier to use. “The interactive platform will become a showcase for those who collaborate, or wish to collaborate, with Eni. It’s a whole new way of thinking: particular attention was given to usability in the design process to get a more direct, immediate and intuitive browsing experience and give users an opportunity to keep up to date with the status of applications, qualifications or tenders, manage their own data in self-service mode, or access specific channels to share

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and discuss experiences.” According to the company, the EniSpace is divided into four sections. The first section is called JUST, which stands for Join Us in a Sustainable Transition. It is dedicated to suppliers at the heart of Eni’s energy transition. It is an invitation to all current or potential suppliers, as well as companies involved in the production chain, to participate in the company’s energy transition. The initiative was inspired by the United Nations’ 17 Sustainable Development Goals (SDGs), and aims to involve suppliers in Eni’s process for a fair and sustainable energy transition and in the realworld implementation of principles of environmental protection, social growth and economic development in the relationship between Eni, its suppliers and all the actors in the supply chain. The second section focuses on continuous updates on “Business Opportunities”. Describing this section the company said, “By using the search bar or browsing through the areas, grouped by type, users can discover the products and services that Eni is seeking, add their own company to the product categories or to the

“special sector” suppliers, keep up to date with active calls for tender and receive information on how to apply.” Innovation Match is the third section. It is dedicated to proffering innovative, principled and sustainable ideas and solutions. Current suppliers or new companies that want to collaborate with Eni (start-ups, big players, medium-sized enterprises, research centres) can make use of this section. The last but not the least is Agorà. It is a virtual market square created for sharing experiences and best practices in line with JUST principles. It will serve as a space where suppliers can compete, exchange views on their experiences and the solutions they consider most innovative, principled and sustainable. “Contests related to different topics will be launched on occasions to stimulate open discussion of new ideas through clear and transparent exchanges. Therefore, this dedicated space on the new website aims to give a voice to suppliers who wish to get involved, valuing their excellence and concrete market experience. This is a unique element in the approach to supplier relationships which distinguishes Eni and its new portal,” the company stated.

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INDUSTRY NEWS

Gas underutilization despite increasing reserve worrisome – DPR

igeria produces 8.3 billion standard cubic feet of gas per day (bscfd) despite having 203 trillion cubic feet of gas reserves, the Director of the Department of Petroleum Resources (DPR), Sarki Auwalu, has said. Mr Auwalu made this known on Wednesday, in his presentation on, “The Nigerian oil and gas landscape: A world of opportunities for investments and partnerships,” at the Oil and Gas Trainers Association of Nigeria (OGTAN) webinar series. The Director expressed concern over the low utilisation of gas in-country despite the her huge gas reserves, stating that the Federal Government aspires to ensure that the country monetises gas and eliminates routine flaring this year while also introducing new alternatives to PMS (otherwise known as petrol) through Liquefied Petroleum Gas (LPG) or Compressed Natural Gas (CNG). “Nigeria produces 8.3bsfcd of gas despite gas reserves of 203tcf. The country exports 41 per cent of its gas; uses 31 per cent in oil fields

and plants for fuel, gas lift and reinjection; while 18 per cent is utilised in the domestic market for power and 10 per cent flared.

About 200 percent of proven reserves produced in Nigeria in 1970 replaced by new reserves. The oil and gas sector remains critical in driving the economy.

“There are opportunities for investment, especially in the areas of acquisition, brownfield optimisation, among others, going by gaps identified by the DPR. The Nigerian Gas Flare Commercialisation Programme (NGFCP) scheme has been over-subscribed. We are hoping that opportunities in the gas space will be taken by investors as the government is clear about its intentions and programmes,” he said.

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On the importance of oil and gas industry to the country’s economy and the future of energy due to the impact of COVID-19 pandemic, the DPR Boss said, “The industry has grown over the years from exploration licences granted to many companies to have strong national aspirations. We have nine basins that are critical to the nation, both for oil and gas. We have the technical capacity to produce 2.79mmb/d.

DPR’s licence remains an enabler of investments. We are also trying to ensure that standards are being followed through conformity assessment and technology adaptation,” he added. Regarding the issuance of guidelines for bid rounds for marginal fields operation, Auwalu said DPR is yet to issue guidelines, adding that such exercise cannot be held in secrecy. In his remarks, the President of Oil and Gas Trainers Association of Nigeria (OGTAN), Dr Mayowa Afe, commended Auwalu for his efforts in improving local capacity in the industry. He stated that COVID-19 pandemic has affected the mode of business operations and admonished industry players to adapt to the new realities.

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INDUSTRY NEWS

OPL 245 Scandal: UK Court strikes out Nigeria’s suit against Shell, Eni

court in the United Kingdom (UK) has ruled against Nigeria in the $1 billion suit it filed against Royal Dutch Shell and Eni, citing lack of jurisdiction over the case. This was disclosed by an oil campaigner at Global Witness and also journalist, Barnaby Pace, who monitored the sitting and tweeted proceedings via his Twitter handle @pace_nik. According to him, the judge also denied Nigeria permission to appeal against the judgment. The ruling which was given by Justice Christopher Butcher, at a virtual hearing on Friday, is a set back to the long standing trial on the Oil Mining Lease 245 also referred to as Malabo oil deal of 2011. Shell and Eni argued that the $1 billion lawsuit brought by Nigeria should not go ahead while there is also a claim for damages as part of similar suits against both companies ongoing in Milan. The defendants of the respective companies asked the court to decline jurisdiction under article 29 of the recast Brussels Regulation, since the Italian case against them is on-going.

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“

Justice Butcher’s written ruling finds the English case and the Italian proceedings have the same parties, same essential facts or cause of action, and considered broadly the cases have the same object in mind - redress for alleged bribery by Shell and others,” Barnaby tweeted. The Federal Government, through its lawyers, agreed with Shell that they will pay 60 percent of Shell’s legal costs. But argued that the defendants; Shell, Eni & EVP have racked up an “excessive” £3m in costs, compared to £850k by Nigeria. They called the defendants’ approach “heavy handed” and said it is not appropriate for the defendants to claim costs for issues they dropped. It should be noted, however, that the UK ruling does not affect the ongoing Italian proceedings where the Federal Government has a separate legal claim. Reacting to the ruling on Friday evening, Eni in a press release said,” Eni is pleased to note that the High Court of Justice in London rejected its jurisdiction on Opl245 matters, dismissing the lawsuit

filed by the Federal Government of Nigeria. Opl 245 therefore remains under jurisdiction of the Italian Court only, where the judgement is pending.” The company recalled that “in October 2019 the U.S. Department of Justice, and most recently the U.S. Securities and Exchange Commission closed its investigations of Eni with respect to OPL 245 matters without taking any action.” OPL 245, which was formerly owned by Malabo Oil and Gas, was transferred to Shell and Eni after the management of both companies paid $1.1 billion to Nigerian government through accounts alleged to be controlled by a former Nigerian Petroleum Minister, Mr Dan Etete. From accounts controlled by Mr Etete, about half the money ($520 million) went to accounts of companies controlled by Alhaji Aliyu Abubakar, the owner of AA oil Limited. The money, anti-corruption investigators and activists suspect was meant to bribe top officials of the government as well as officials of Shell and Eni.

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INDUSTRY NEWS

North Sea: Shell, Total, others to assign spending to decommissioning in five years. By Ikenna Omeje

n the next five years, Shell, Total, Repsol and Premier Oil are expected to assign 10 percent or more of their North Sea spending to decommissioning activities says Rystad Energy. According to the independent energy research and business intelligence company, as a result of the cutting down of exploration and production budgets due to Covid-19 pandemic, it is estimated that the total accumulated value of the global pool ofAjumogobia decommissioning projects from now to 2024, could appreciate. “Energy companies have been slashing exploration and production budgets since the Covid-19 pandemic took hold and sent oil prices tumbling, but, with few profitable investment alternatives, operators are now likely to increase spending in decommissioning work. Rystad Energy estimates the total value of the global pool of decommissioning projects that will accumulate through 2024 could reach $42 billion”. The UK is poised to lead the way with nearly 80 percent of total estimated expenditure on Northwest European decommissioning in the next five years, followed by Norway with 14% and Denmark with 4 percent.

The pool of removal projects in the region for that period is estimated at about $17 billion. By comparison, decommissioning costs in the US for the same period are estimated at $5.7 billion,” Rystad said. The company says that with an average asset age of 25 years, the Northwest European decommissioning market could grow up to 20 percent in annual commitments from now to 2022 if the current low oil prices persist and that only about 15 percent of North Sea assets have been decommissioned to date, but in the coming five years it is expected that an average of 23 assets would cease production annually. “The high market share of the UK can be largely attributed to its rapidly maturing production levels, as almost 80 percent of the country’s oil and gas assets have produced more than 75% of their available resources. A d d i t i o n a l l y, l a c k l u s t e r e d exploration results, growing regulator y stringency and a prolonged low oil price environment may lead operators to fulfil their asset retirement obligations in the absence of any lucrative competing investments. “Some of the leading assets that will drive the decommissioning market in the region include the Brent, Ninian and

Thistle fields in the UK and Gyda in Norway. Shell’s Brent project would emerge as the single largest asset ever decommissioned globally, representing an outlay of nearly $3 billion alone over the coming decade. Ninian and Gyda would collectively present contracting opportunities worth nearly $2 billion. “The increased spending on decommissioning may limit the room for operators to invest in other segments such as exploration, development and enhanced oil recovery projects. Leading players such as Shell, Total, Repsol and Premier Oil are expected to assign 10 percent or more of their North Sea spending in the next five years to decommissioning activities,” it added. Commenting on this, energy service analyst at Rystad Energy, Sumit Yadev, said, “A protracted low price environment can potentially motivate operators to leverage low contract prices and commit to their asset retirement obligations, thus spurring decommissioning activity in the Northwest Europe region. This will also provide welcome opportunities for contractors in an otherwise gloomy oilfield services market.”

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INDUSTRY NEWS

Total declares a dividend of €2.68 per share for the financial year 2019 By Ikenna Omeje

rench oil giant, Total, has declared a dividend of 2.68 euros per share for the financial year 2019, after a shareholders’ meeting held on Friday under the chairmanship of Mr Patrick Pouyanné. The company stated that in the year under review, its first two interim dividends was 2.68 euros per share and the third interim dividend was 0.68 euros per share paid on October 1st, 2019, January 8, 2020 and on April 1st, 2020, living the company with 0.68 euros to be paid per share as final dividend. According to the company, the share price of new shares to be issued as payment of the final dividend is set at €28.80, a price which it said is equal to 90 percent of the average opening prices of the shares for the twenty trading days preceding the shareholders’ meeting.

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“The Shareholders’ Meeting of TOTAL S.A., held today at its registered office under the chairmanship of Mr Patrick Pouyanné, declared a dividend of €2.68 per share for the financial year 2019. Given the first two interim dividends of €0.66 per share and the third interim dividend of €0.68 per share paid respectively on October 1st, 2019, January 8, 2020 and on April 1st, 2020, the remaining final 2019 dividend to be paid amounts to €0.68 per share. “The Shareholders’ Meeting also decided that shareholders will be given the option to receive payment of this final dividend in cash or in new shares of the Company, each choice being exclusive of the other. “The share price of new shares to be issued as payment of the final dividend is set at €28.80. This price is equal to 90% of the average opening prices of the shares for the twenty trading

days preceding the Shareholders’ Meeting, reduced by the amount of the final dividend and rounded up to the nearest cent. The shares issued will carry immediate dividend rights, be admitted for trading on Euronext Paris and be fully assimilated with existing TOTAL shares. “If the amount of the final dividend for which the option is exercised does not correspond to a whole number of shares, the shareholders may opt to receive either the number of shares immediately above, by paying a cash adjustment on the day they exercise their option, or the number of shares immediately below, plus a balancing cash adjustment,” the company said. It added, “Shareholders and holders of American Depositary Shares (“ADS”) will be given the option to receive the dividend either in cash or in new shares, by instructing their financia advisors.

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Nigerian NewsDirect, Wednesday, June 3, 2020

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LOCAL CONTENT

AKK Pipeline Project: Nigeria’s EPC Giant, Oilserv Ltd commences massive project. By Jerome Onoja

igeria’s indigenous oil services firm, Oilserv limited, has mobilised men, materials and heavy duty equipment to its Ajaokuta site in commencement of work towards delivery of the 614km gas pipeline. This is the latter part of the Engineering, Procurement and Construction (EPC) work scope awarded the firm on the AjaokutaKaduna-Kano gas pipeline project. Consistent with its declaration of 2020 as the year of gas, the nation is finally on the verge of unlocking huge economic benefits arising from its natural gas endowment. The lack of basic transmission infrastructure had hindered the nation from harnessing its huge endowment of gas reserves. Ranked 9th globally in terms of proven gas reserves, its renewed zest for optimizing the natural resource is focused on producing sufficient gas for power generation. Also central to its agenda is the intent to stimulate rapid industrialization using gas as feedstock for fertilisers, 16

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ammonia and other petrochemical plants. Speaking to newsmen, recently, at its Port Harcourt base, chairman of Oilserv, Engr. Emeka Okwuosa, r e a f f i r m e d t h e c o m p a n y ’s commitment to leave no stone unturned in its partnership with NNPC to fulfil the dreams of 200 million Nigerians, by delivering the AKK project to global quality and standards. In his words, “The capability of Oilserv has been honed in the course of successful delivery of landmark EPC contracts such as lot B of the 48inch OB3 gas pipeline system, which is currently being commissioned. “Simultaneously, we’ve begun haulage of equipment to site for the AKK project, and will commence construction shortly because we plan to deliver way ahead of scheduled time.” At a separate occasion, the Group Managing

Director of NNPC, Mele Kyari had noted that, “the AKK project is key to resolving the power deficit challenge of the country. Its multiplier effect on the economy and provisions of jobs will be unprecedented. NNPC will give all necessary support to the contractors to enable them deliver the project within time and within budget”. Oilserv was awarded the engineering, procurement, construction, installation, testing, and commissioning of the first segment of the 614km x 40inch gas pipeline, which runs from Ajaokuta to mid-way between Abuja and Kaduna. The indigenous giant has gone ahead to register significant progress within a short space of time, including the ongoing detailed engineering design, topographical and geotechnical surveys, haulage and stacking of line pipes in preparation to commence construction activities.

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LOCAL CONTENT

Regulators warn against illegal use of expatriate permit

he Ministry of Interior, the Nigerian Content Development & Monitoring Board (NCDMB) and the Department of Petroleum Resources (DPR) have warned against the illegal use of expatriate permit.

positions which in several cases had been denied quota and earmarked to be occupied by Nigerians. This practice circumvents laid down statutory approval processes and compliance requirements for obtaining Expatriate Quota Positions’’

The trio disclosed that Manpower Supply Companies that have been issued Statutory Oil and Gas Industry Service Permits by the DPR to supply ‘Nigerian Professionals Only’ are engaged by operators and contractors to supply expatriates in the Nigerian Oil and Gas Industry. According to the regulators, the permits clearly indicate that they are not to be used to deploy expatriates under any circumstance or guise.

They therefore, maintained that stakeholders in the Nigerian Oil and Gas Industry are to note the following; Companies (operators, service providers among others) engaging manpower suppliers with permits for supply of “Nigerian Professionals Only” are to ensure that no expatriates are deployed under such manpower supply contracts under any guise (whether on EQ, TWP or other processes)

‘‘It is also disturbing that operators and major service providers promote this illegal practice by entering into contract agreements with these manpower supply companies to source expatriates for

Companies seeking to engage expatriates in the Nigerian Oil and Gas industry must ensure that they obtain the relevant approvals from NCDMB before applying for Expatriate Quota, TWP or other entry permits from Ministry of

Interior, the Nigeria Immigration Service or other agencies of government; Companies deploying expatriates in the Nigerian Oil and Gas Industry are to ensure full compliance with the guidelines and requirements of the Ministry of Interior and NCDMB including registration on the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGICJQS) as well as biometrics enrolment of all expatriate personnel in their employment; NCDMB said it will intensify its monitoring and evaluation activities to identify companies violating the statutory provisions of the DPR manpower supply permits and perpetuating illegal expatriate deployments with a view to invoking appropriate sanctions and penalties as specified in the Immigration Act, 2015 and Immigration Regulation, 2017 as well as the NOGID Act.

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LOCAL CONTENT

NCDMB Targets 2000 Jobs As NOGaPS Bayelsa Nears Completion

igerian Content Development and Monitoring Board (NCDMB) has reassured Nigerians of its commitment towards the completion of the Nigerian Oil and Gas Park Scheme (NOGaPS) project at Emeyal, Ogbia, Bayelsa. The Board recently shared a video showing the current state of work at the NOGAPS Emeyal 1 site with engineers and other site workers seen working. Various segments of the construction activities being carried out showed different levels of progression of the work, ranging from 25 to 60 per cent completion, presently. Executive Secretary of the NCDMB, Engr. Simbi Kesiye Wabote had on July 2019 stated that about 2,000 jobs are projected to be created when the park commences full operation. This is in addition to serving as a capacity development center, and hub for on-the-job training for youths in the community. To actualise this purpose, he charged

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Daniel Terungwa the youth to contribute their quota to safe and timely completion of the project by ensuring security is not compromised. ”I expect utmost cooperation from all as you play your roles and be part of history that will place your community on the map of oil and gas manufacturing activities. Such roles include checkmating any individual or group that wants to derail this wonderful opportunity from coming to fruition in your community.” he added.

The Parks are expected to support the actualization of the Equipment Component Manufacturing Initiatives (ECMI) by providing shop floors where Nigerian Companies can set up manufacturing shops. The Scheme has been moved from mere plans on paper to actual construction in Emeyal, Ogbia local government of Bayelsa; Odukpani in Cross River; and at Ikwe, Onna Local Government Area of Ibom State, with more to come.

The NCDMB Boss also stated that NOGAPS was approved by the Federal Executive Council, and underlines President Muhammed Buhari’s commitment towards ensuring the comprehensive development of the Niger Delta region. Nigerian Oil and Gas Park (NOGAP) is a manufacturing hub built by NCDMB to produce oil and gas equipment, tools and spare parts to be utilized in the Nigerian Oil and Gas Industry.

NOGAPS concept is driven by the NOGICD act which include maximising the market share and participation of Nigerians in oil and gas activities, maximising the utilisation of Nigerian made goods and services, and Nigerian owned assets. It also has provisions for properly integrating oil producing communities into the oil and gas value chain, as well as linking the oil and gas sector with numerous ancillary service sectors and the entire economy at large.

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LOCAL CONTENT

NCDMB Condoles with Family of Late Dr. Maikanti Baru.

Disclaimer of Fake Facebook Accounts of ENGR. SIMBI WABOTE Chukwunonso Mordi

Chukwunonso Mordi

he National Content and Development Monitoring Board (NCDMB) condoled with the family of the immediate past Group Managing Director (GMD) of the Nigerian National Petroleum Company (NNPC), Dr. Maikanti Baru, on his death. Mr Maikanti Baru died late Friday night after a brief illness in a hospital in Abuja. The sad news was announced through a press release on NNPC’s Twitter handle by the spokesperson, Kennie Obateru. Majorwaves Energy Report noted the condolences offered by NCDMB via twitter. It reads, “NCDMB condoles with the family of the immediate past Group Managing Director (GMD) of the Nigerian National Petroleum Company (NNPC), Dr. Maikanti Baru, on his passing Friday night. Our heart also goes out to his colleagues at @ NNPCgroup. May Allah forgive him and have mercy upon him”. Dr. Maikanti Baru was former NNPC GMD (July 4th 2016-July 7th, 2019) after which he retired upon attaining the statutory retirement age of 60 on July 8th, 2019. He was an oil marketer and the 18th GMD of the corporation. Born in 1959, he led a career in engineering, rising through the ranks at the NNPC before he was eventually appointed to lead the organisation by President Muhammadu Buhari in 2016. At NNPC, he served in various positions, including Engineering Manager, Nigerian Engineering and Technical Company limited (NETCO) from May- November

1991; Manager, Operations of procurement Management Services (PROMAS) 1991-1993; General Manager, Gas Division, National Petroleum Investment Management Services (NAPIMS)1993-1999, and many other positions. Mr Baru was a member of several professional groups and organizations, including Nigerian Society of Engineers, where he was a Fellow; Member, Council of Registered Engineers of Nigeria (COREN); Fellow, Nigerian Institution of M e c ha nic al En gin e e rin g (NIMechE); Member, Nigerian Gas Association (NGA); Chairman, NGA Advisory Board; Member, Institute of Directors of Nigeria; Member, Financial Reporting Council of Nigeria (FRCN); Honorary Fellow, Nigerian Fellow, Nigerian Society of Engineering Technicians; Honorary Fellow, Nigerian Environmental Society(NES); Honorary Fellow, Nigerian Association of Petroleum Explorationists (NAPE). Fellow, Occupational Safety and Health Association (OSHA) UK. He was a recipient of many awards and honours including the 2017 award of Excellence of the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) in recognition of his resourcefulness and responsiveness to labour and industrial relations issues in Nigeria’s oil and gas industry. The current GMD of NNPC, Mele Kyari, tweeted, “he was of exemplary character and disposition. Dr. Maikanti Baru will be greatly missed”.

The Nigerian Content Development and Monitoring Board (NCDMB) orecently released a statement, via Twitter and Facebook, in which the attention of the public was drawn to the four fake Facebook Accounts bearing the name of the Executive Secretary, Engineer Simbi Kesiye Wabote, FNSE, FIPS. The statement which was signed by the Manager, Corporate Communication NCDMB, Naboth Onyesoh reads ‘’Members of the public are hereby notified that Engr. Wabote Simbi does not operate any Facebook account and those using his name and image are fraudsters. Consequently, we disassociate the Executive Secretary from any post made from those accounts and we caution unsuspecting members of the public against interacting with the accounts under any guise’’. ‘’The ICT team have reported the fake accounts and are working to get them closed forthwith.’’ They added, ’’For the avoidance of doubt, Engr. @wabote_simbi only operates Twitter and Instagram accounts and can always be reached on these two platforms. Members of the public should please take note’’. Engineer Simbi Kesiye Wabote was appointed as the Executive Secretary of the NCDMB by President Muhammadu Buhari (GCFR) on the 29th of September, 2016. In that capacity, his assignment is to steer strategic, national programs towards successful implementation of local content objectives as captured in the NOGICD ACT, while bringing his global experience to bear.

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NERC NEWS

62% of electricity customers in Nigeria are unmetered - NERC

he Nigerian Electricity Regulatory Commission (NERC) has said that 62.37 percent of registered electricity customers in Nigeria are unmetered, as of the last three months of 2019. The commission stated this in its 2019 fourth quarter report, which was released on Friday, June 5, 2020. According to the commission, out of the 10,374,597, representing 62.37 percent, registered customers it has in its record, only 3,918,322, representing 37.77 percent, have been metered, adding that registered and metered customers increased by 7.23 percent and 0.59 percent respectively, due to the on-going customer enumeration exercise being carried out by Distribution Companies (DisCos). “The metering gap for end-use customers is still a key challenge in the industry. The records of the Commission indicate that, of the 10,374,597 registered electricity customers, only 3,918,322 (37.77%) have been metered as at the end of the fourth quarter of 2019. Thus, 62.37 percent of the registered electricity customers are still on estimated billing which has contributed to customer apathy towards payment for electricity.

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“In comparison to the third quarter, the numbers of registered and metered customers increased by 7.23 percent and 0.59 percent respectively. The increase in registered customer population was due to the on-going customer enumeration exercise by DisCos through which unregistered consumers of electricity were brought unto the DisCos’ billing platform. Similarly, the increase in metered customers was attributed to the roll-out of meters under the Meter Assets Provider (MAP) scheme,” the report said. During the period under review, the commission said it continued the monitoring of DisCos in respect to its target to close the metering gap in the Nigerian Electricity Supply Industry (NESI) by December 2021, noting that it approved 26 Meter Asset Providers (MAPs) as at December 31, 2019. “A review of the customer population data in Figure D indicates that only Abuja and Benin DisCos had metered more than 50% of their registered electricity customers as at the end of December 2019. The Commission continued its monitoring of DisCos’ implementation of and compliance with the provisions of the MAP Regulations to fast-track meter rollout, with the target of closing the metering gap in NESI by December

31, 2021.

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To this end, the Commission during the quarter approved the preferred MAPs for the DisCos that had finalised their procurement process to contracting MAP(s). In total, the Commission had approved 26 MAPs as at December 31, 2019.” On operational performance during the period, the commission stated that, “the total electric energy generated was 8,101,193MWh –1.46 percent more than the energy generated during the preceding quarter. Within the same quarter, the industry recorded a peak daily generation of 5,157MW. The available plant generation units on bar decreased to 63 from the daily average of 66 units recorded in the preceding quarter. However, despite the decrease in the available generation units in the fourth quarter, the total electric energy generated increased by 1.46 percent with 5.44 percentage points increase in generation capacity utilisation.” The report also analyses the state of the NESI, covering both the operational and commercial performance, regulatory functions, consumer affairs as well as the Commission’s finances and staff development.

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POWER

Edo State to test-run CCTEC-Ossiomo Power Plant in a couple of weeks.

he Edo State government has said that the 55 megawat t s CC TECOssiomo Power Plant will be ready for test running in a couple of weeks. This was disclosed in a statement by the Special Adviser to the Governor on Media and Communication Strategy, Mr Crusoe Osagie. Osagie said the installation of 33KVA lines and a substation at the Edo State Secretariat complex were all completed and that the test running of the plant is next on the government’s agenda. The Edo State Government had signed a Power Purchase Agreement (PPA) with CCETC – Osssiomo Power Company for the supply of power to public offices and utilities in the state, including the Government House, hospitals and street lights. This will free up power for other uses in the Sapele Road axis, where the distribution infrastructure of

the company passes through. The arrangement will also break the monopoly of the Benin Electricity Distribution Company (BEDC), paving way for a fair electricity market in the state. The plant is also expected to power the Benin Industrial and Enterprise Park, a N20 0bn industrial park being pioneered by the Governor Godwin Obasekiled administration in Iyanomo axis of Benin. Osagie stated that, “The 55MW CCETC-Ossiomo power project is unique and critical. Aside from the fact that it is a fulfilment of Governor Godwin Obaseki’s promise to bring investors into the power sector and improve the sector for optimal performance, the success of the project also provides the state government a good partner in industrialising the state.

a number of legacy projects in the state, such as the Benin Enterprise and Industrial Park as well as the Utesi Industrial Cluster. “The project showcases the commitment of the Governor Godwin Obaseki-led government to the welfare of Edo people. For this project, the company laid 104 high tension poles from Ologbo to the Benin By-pass, which indicates the level of investment made in ensuring a solid infrastructure is put in place for the success of the project.

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With the test run, some government offices and streetlights on the Sapele Road corridor would be powered from the plant. We are sure this is a sign of more good things to come,” he added.

“The power station would power

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POWER

Siemens Deal: Buhari approves funds for first phase commencement

resident Muhammadu Buhari has approved the release of funds for the first phase of the Federal Government electricity deal with Siemens. The Electricity Road Map agreement signed between Federal Government and the Germany-based company aims at achieving 7,000 megawatts, 11,000 megawatts and 25,000 megawatts of electricity for the country by 2021, 2023 and 2025 respectively. Speaking after the signing, Buhari said, Nigeria is still on the journey to achieving reliable, affordable and quality electricity supply necessary for economic growth, industrialisation and poverty alleviation. “Our goal is simply to deliver electricity to Nigerian businesses and homes. “My challenge to Siemens, our partner investors in the Distribution Companies, the Transmission Company of Nigeria and the Electricity Regulator is to work hard to achieve 7,000 megawatts of reliable power supply by 2021 and 11,000 megawatts by 2023 in phases 1 and 2 respectively.

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“After these transmission and distribution system bottlenecks have been fixed, we will seek in the third and final phase to drive generation capacity and overall grid capacity to 25,000 megawatts.” The President stated. In a series of tweets on the twitter account of the presidency, @ NGRPresident on Wednesday, Buhari asked the Ministry of Power, Finance and the Bureau of Public Enterprises (BPE) to finalise the engagement with the company for work to begin on the project. The presidency tweeted, “President Buhari has directed the Ministries of Power and Finance, and the Bureau of Public Enterprise (BPE) to conclude the engagement with Siemens AG to commence the preengineering and concessionary financing aspects of the Presidential Power Initiative.” “The Presidential Power Initiative (PPI) is a power infrastructure upgrade and modernization Programme agreed to by Nigerian

government and Siemens AG of Germany, with the support of the German Government. “Under the PPI, the Nigerian government will on behalf of the other shareholders in the Electricity Distribution Companies. Invest in infrastructure upgrades in the form of improved payment systems, distribution substations, transformers, protection devices, smart meters, transmission lines, etc. “The funding for the PPI will be secured under concessionary terms (up to 3-year moratorium and 12-year repayment at a reduced interest rates) through the German Euler Hermes cover, which the Nigeria government will on-lend as a convertible loan to the other shareholders in the DisCos.

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President Buhari has approved the release of funding for the first part of Phase 1 of the PPI, to kick-off the pre-engineering and concession financing work streams.”

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COVER STORY

NLNG train 7: the multiplier effect

By JEROME ONOJA AND AMOS IKE

t is stale news that the Final Investment Decision (FID) for the Nigerian Liquefied Natural Gas Train 7 project has been taken and Engineering, Procurement and Construction (EPC) has commenced. This article focuses on the possible impact of the project on Nigeria’s economic development, especially with the looming global economic downturn; the impact on the nation’s quest to deepen gas export and domestic consumption; job creation and; impact on indigenous servicing firms among others. Nigeria had in May defied the global economic challenges brought about by the COVID-19 pandemic and signed a multi-billion dollars Engineering, Procurement and

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Construction (EPC) deal with the SCD JV Consortium to effectively flag off the commencement of work on the Nigerian Liquefied Natural Gas (NLNG) Train 7 project. The significance of the deal stems from the fact that, while other multinational oil companies were scaling down on their investments, with

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majority of them discontinuing pending projects, the Federal Government, along with investors in the NLNG forged ahead.

NLNG is an incorporated JointVenture owned by four shareholders; the Federal Government of Nigeria, represented by Nigerian National Petroleum Corporation (49 per cent), Shell Gas B.V. (25.6 per cent), Total Gaz Electricite Holdings France (15 per cent), and Eni International N.A. N.V. S.àr.l (10.4 per cent). Specifically, during the signing of the EPC deal, Minister of State for Petroleum Resources, Chief Timipre Sylva, had stated that the COVID-19 pandemic would not discourage further investments in the Train 7 project, and insisted that the government and its partners had agreed that the project must continue despite the devastating impact of the pandemic on the global oil and gas industry

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COVER STORY Mr Mele Kyari, had disclosed that proper consultations were done with all stakeholders involved, hence the optimism that the project would survive despite COVID-19 impact on the global oil market. He said, “Ever y situation and consideration have been taken into account in taking a Final Investment Decision (FID) and releasing the EPC contract today. What that means is that despite this difficulty we are seeing in the global market and the prospect of economic growths being revised downward, this project will survive.

Mele-Kyari

and by extension, the Nigerian economy. He had stated that: “We cannot say that any project is immune to the global pandemic but projects like this one must go on. COVID-19 is a medical and economic problem. And

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unless projects like this go on, the economic situation will really not improve. So for us, projects like this will help us to also overcome the pandemic.”Also, Group Managing Director of the NNPC,

“That is why we and our partners confidently agreed to release the EPC for the contract. We have no doubt that this project will survive. By the way this project will come to play in five years’ time. “So it could come at a time when the global economy would have been completely reversed. I see no much difficulty with this project going forward.” Similar views were held by the chief executive officers of the other partnering companies who were present at the various signing ceremonies to kick-start the project. The decision of the partners to continue with the project is mainly as a result of the immense benefits the project holds for the company and for the country, especially during the period of the COVID-19 pandemic.

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the best way to cushion the effect of the looming economic recession, is for the government, as well as private organizations, to increase expenditure.

The Train 7 project has provided a veritable means for the government and the company to increase their spending, as the project would ensure that economic activities continue, bringing to life most of the fabrication and construction yards thereby recording increased number of activities. Servicing companies would also be engaged, as well as food vendors, insurance and banking sectors among many others. Upon completion, the project is expected to support the Federal Government’s drive to generate more revenue from Nigeria’s proven gas reserves of over 200 trillion Cubic Feet (Tcf) and further reduce gas flaring in the country’s upstream oil and gas industry. Specifically, Managing Director and Chief Executive Officer of the NLNG, Engr. Tony Attah, stated that the project represented yet another milestone in NLNG’s journey towards achieving its vision of being a global LNG company, helping to build a better Nigeria. He added that on completion, Train 7 would increase NLNG’s production capacity by 35%, adding another eight million metric tonnes of LNG to the current sustained 22 million metric tonnes production capacity of the existing plant, and generate huge value for the company, shareholders and the country. Train 7 project is expected to

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create immediate employment opportunities for more than 10, 000 Nigerians, and would attract foreign direct investment of about $25 billion to the country.

The project would have a multiplier effect on the Nigerian economy, as it would keep Nigeria prominently on the list of the top seven suppliers of global LNG, an enviable position for an African country to achieve in the face of evolving technological advancement which is managed by highly skilled Nigerian professionals of varying competencies.

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COVER STORY As to date, the NLNG has converted about 191.5bcm (billion standard cubic metres) or 6.8tcf (trillion cubic feet) of Associated Gas (AG) to Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs), thus reducing gas flaring by upstream companies from over 60 per cent when it commenced operations, to less than 20 per cent currently.

Engr. Tony Attah,

Some very quick wins from the Train 7 project for Nigeria is the

The Federal Government and its partners in the NLNG disclosed that the Train 7 project was designed to aid speedy development of other LNG trains, noting that the target was to expand the facility to a minimum of 12 trains, which had been the vision of President Muhammadu Buhari for the NLNG.

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creation of jobs for its teeming youths by netting up to 12,000 direct jobs at the construction phase as well as the associated skills acquisition through a deliberate effort at technology transfer. Riding on the back of a robust Nigerian Content plan endorsed by the Nigerian Content Development Monitoring Board (NCDMB), 55% of the Engineering activities for Train 7 is scheduled to be carried out in-country also 55% of all procurement for execution of the project will be undertaken by Nigerian vendors.

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One hundred per cent of the construction and installations is also scheduled to happen in Nigeria,

boosting Nigeria’s Gross Domestic Product (GDP), while attracting huge Foreign Direct Investment to her economy. Other benefits to be derived include the emergence of upstream and other associated projects that are expected to bolster Nigeria’s economy. The project would also help in monetization of flared gas and trigger gas-based industrialization especially.

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Muhammadu Buhari

The project would also have a huge impact on host communities, local content and indigenous capacity utilization, going by the promise that majority of its construction and installation works would be undertaken in Nigeria, presenting a massive opportunity to grow local capacity utilization in the country.n For instance, the NCDMB said it had engaged the NLNG on

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the need to involve host communities’ contractors and other indigenous companies in the project.

The NCDMB also stated that it had undertaken a verification of all the indigenous contractors shortlisted for jobs on the Train 7 project to prevent sharp practices and to ensure that host communities’ contractors were also captured. In addition, the NCDMB has also appealed to the NLNG to evaluate the capabilities of the beneficiaries of the Project 100 programme and engage them in the execution of the Train 7 project and other related services. The NCDMB noted that the involvement of the Project 100 Companies in its supply chain would be a major boost in the quest to collectively support local companies to become large enterprises and deepen Local Content practice in Nigeria’s oil and gas industry. It listed the areas of competencies of the Project 100 beneficiaries to include exploration, subsurface and seismic services, fabrication and construction, FrontEnd Engineering Design (FEED), detailed and other engineering services, marine services and operations and inspection, testing and certification. Other key areas of their competencies, the NCDMB said, are inspection, hookup and commissioning, material and procurement, project management and consulting, well drilling services and petroleum technology as well as maintenance and modification among others. Furthermore, it is envisioned that with the success of the Train 7 project, the

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government would be encouraged to revisit the other LNG projects in Nigeria, like the Olokola LNG and Brass LNG projects. The OKLNG and Brass LNG project had failed to get off the ground, mainly due to political interests, paucity of funds, feedstock gas supply to the facilities, lack of confidence in the Nigerian economy,

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COVER STORY The Train 7 project would also bring about an increase in the production of Liquefied Petroleum Gas (LPG) for domestic consumption. Some companies are already gearing up to commence the production of LPG cylinders. Specifically,

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Engr. Simbi Kesiye

especially by some investors who had earlier shown interest in investing in these projects; and lack of commitment by successive governments to proceed with the project. It is envisaged that on completion of the Train 7 project and with the successes of the project, the Federal Government would see the need to revisit the abandoned NLNG projects. In the same vein, the new liquefaction unit of the Train 7 is expected to add approximately 4.2 million tonnes per annum (Mtpa) capacit y, while the expansion project would include debottlenecking of the existing six trains that increases the processing capacity by 3.4Mtpa. Also, the NLNG Train 7 is expected to spur other projects in the country, as it is stated that an

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additional $5 billion would be required to build wells and pipelines to supply additional feed gas to the LNG facility. These tasks would be contracted out and consideration would be given to indigenous firms that have displayed capacity to undertake such significant projects.

Techno Oil, said it had built the first fully indigenous automated LPG cylinder manufacturing plant at Kajola, Lagos, Nigeria, with a capacity to produce over five million pieces of high quality LPG cylinders annually. It said the cylinders are in different sizes of 3kg, 6kg, 12.5kg, and 50kg and so on, adding that with the commissioning of the plant, LPG cylinders would no more be imported into Nigeria. In addition, the NCDMB had entered into a partnership with RunGas Prime Industries Limited to

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of Nigeria signed an Electricity Road Map with a German-based company, Siemens. Speaking during the signing, President Muhammadu Buhari tasked Siemens and other stakeholders in the power sector to work hard to achieve 7,000 megawatts of reliable power supply by 2021, and 11,000 megawatts by 2023. Buhari, also recently, directed the Ministries of Power, Finance, and the Bureau of Public Enterprise (BPE) to conclude the nation’s engagement with Siemens AG over regular power supply, and to immediately start the preengineering and concessionary financing aspects of the Presidential Power Initiative (PPI). PPI is the power infrastructure upgrade and modernization Programme agreed to by the Federal Government and Siemens AG of Germany, with the support of the German Government, and with the ultimate aim of modernizing and increasing the Nigerian electricity grid capacity from its current capacity of about 5 GW to 25 GW, over three phases.

establish a 400,000 cooking gas cylinders per annum manufacturing plant in Polaku, Bayelsa State. The factory, as was stated, would produce Type 3 Liquefied Petroleum Gas, LPG, composite cylinder. This is in addition to the many other projects that would be springing up, especially with the increase in gas exploration and supply. One of the sectors that would be a major beneficiary of the increase in gas supply is the electricity sector. Already, hinging on the proposed Ajaokuta-Kaduna-Kano (AKK) gas pipeline, the Federal Government is envisaging a proliferation of power plants between states that the AKK pipeline would transverse between Kogi and Kano states. Hinging its hopes on increased gas supply, the Federal Government

Zainab Ahmed,

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Under the PPI, Nigeria, on behalf of the other shareholders in the Electricity Distribution Companies (DisCos), will invest in infrastructure upgrades

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COVER STORY in the form of improved payment systems, distribution substations, transformers, protection devices, smart meters, and transmission lines among others. The funding for the PPI would be secured under concessionary terms (up to 3-year moratorium and 12-year repayment at concessionary interest rates) through the German Euler Hermes cover, which Nigeria will on-lend as a convertible loan to the other shareholders in the DisCos. Buhari also approved the release of funding for the first part of Phase 1 of the PPI, to kick-off the pre-engineering and concession financing workstreams. The agreement was expected to make the entire electricity value chain attractive, increase the domestic consumption and boost investments in the gas sector of the Nigerian economy. It is also important to note that with the NLNG Train 7 project, would arise the promotion of gas based industries, which some experts argued hold more opportunities for Nigeria than the NLNG project. For instance, the several derivatives that can be obtained from processing natural gas are key ingredients in the manufacturing of goods, such as Ammonia, used in the production of fertilizer, plastics and carpets; Methanol, used in producing paint, photography film, disinfectants, dyes, automobile parts and preservatives; and Ethylene, for the production of paint, synthetic motor oils and lubricants. In addition, another natural gas derivative; propylene, can be used for the production of phones, auto parts, plexiglass, coatings, cosmetics, ropes, PVC plastics and bathtubs. At an online training for CSOs and media, organised by African Initiative for Transparency, Accountability and Responsible Leadership (AFRITAL), with Support from Facility for Oil Sector Transformation II (FOSTER), an energy expert,

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Dr Solomon Adeleye, stated that several intervention studies had been concluded and proven domesticating gas, can promote value-added schemes and create jobs. 28

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be created is over 1 million.”

Dr Solomon Adeleye

According to him, one of these studies is the ‘cost benefit analysis of NLNG Train 7 versus Domestic Gas Based Industries.’ He said, “In the last four years, Afrital has continued to sensitise government on the trends in hydrocarbon industry. A major concern is the population growth rate.

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According to the National Bureau of Statistics, growth rate is about 3% while unemployment is about 12% per year. The indication is that there is need to create jobs for 122 million people in the next 10 years. “If Nigeria utilises its gas effectively, it has a potential of creating about six million jobs every year through the Gas Based Industries (GBI) and other companies that will spring from these industries. “Findings from the study show that Train 7 will utilise 1.27 billion cubic feet per day (BCF/D) with an investment of $3.6 billion. The economic benefit that will be derived is about 15% and a total of 4,211 jobs will be created. “On the other hand, if 0.5bcf/d of gas is used in the domestic GBIs, with an investment of $9.5 billion, the economic benefit that will be derived is about 120% and total jobs that will

According to him, investment in domestic GBIs has the potential to alleviate the current and future unemployment burden of the rapidly expanding population. However, he noted that Nigeria is not effectively utilising its gas resources, especially as the importance of gas to the local industry cannot be over-emphasised. It is increasingly becoming more relevant in this Covid-19 era and the potential movement toward zero oil. Adeleye said, “Gas is such a resource that is capable of providing varieties of petrochemicals used every day. If these can be produced locally, it means Nigeria will be saving on foreign exchange used to import these goods and gain foreign exchange from exporting these goods to regional markets in Africa. “It also means there are sufficient gas reserves to become a regional petrochemical power and derive geo-political benefits. Also, its importance cannot be disputed because Nigeria’s population is exploding and a low hanging fruit solution to this is kick starting gas industries so jobs can be created to meet the growing population. “What has not been brought to the fore is the economic and financial value of gas compared to oil.

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If the 1.27bscf/d NLNG acquired from associated and non-associated gas fields for Train 7 had been put into domestic industries and processing plants, Nigeria would have been able to provide over three million jobs

and create vibrant value chains and industries that would have sustained its people as opposed to about 4,000 job that would be created from Train 7 which is basically an export project.” Irrespective of the above,

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COVER STORY

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it is expected that going forward, indigenous firms would be encouraged to form consortia like Korean and Japanese companies,

to boost their capacity, which would put them at an advantageous position to bid for big-ticket projects like the NLNG Train 7 project, thereby, ensuring 100 percent local content in the country. This is the goal of the Federal Government and the NCDMB, who had stated that in the medium to long term; it is targeting 100 percent domiciliation of Floating, Production, Storage and Offloading (FPSO) vessel integration in Nigeria. This can only happen, in the short term, when indigenous firms form consortia to domicile technology in-country and grow their individual capacity.

To this end, if significant portion of the fabrication work of the NLNG Train 7 plant is scheduled to be done in-country, in the near future, indigenous firms, especially those involved in the project, are expected to have been able to grow their capacity to be able to fully domicile such projects in-country. After developing indigenous capacity, the Nigerian consortia can now extend their services outside the country, to other West African countries, then to other African nations and the world at large, thereby becoming multinational. Already, with six operational LNG processing units, NLNG’s existing facility has the capacity to produce 22Mtpa of LNG and 5Mtpa of liquefied petroleum gas (LPG) and condensates.

LNG storage tanks, four 65,000m³ refrigerated storage tanks, three 36,000m³ condensate storage tanks, a common LNG processing fractionation plant, a common condensate stabilisation plant, and ten gas turbine generators with a combined capacity of more than 320MW.

Trains one, two and three have the capacity to produce 3.33Mtpa of LNG each, while trains four, five and six can produce 4Mtpa of LNG each. Other facilities at the terminal include four 84,200m³

Total Secures $15 billion funding for Mozambique LNG project

rench oil major Total has secured approximately $15 billion in financing for the Mozambique Liquefied Natural Las (LNG) project, which is estimated to be worth more than $20 billion. Total, along with 20 lenders, have reached an agreement for the first phase of senior debt funding of $14.4 billion. Total expects the financing

to be closed in the third quarter of this year. The signing of the $15 billion financing deal was scheduled for June and involves banks including, the Standard Bank Group, Société Générale SA and Rand Merchant Bank. The U.S. Export-Import Bank has approved the $4.7 billion loan to the project, and the Japan Bank for International Cooperation will provide $3 billion. Total acquired Anadarko’s 26.5% interest in the LNG project in September last

The facility has two LNG export jetties, 23 dedicated LNG ships and a materials off-loading jetty. It is, therefore, a consensus among stakeholders that the NLNG Train 7 project would expand Nigeria’s existing gas infrastructure, boost domestic gas consumption and export, create job opportunities, grow Nigeria’s GDP and bring about a general improvement in all of Nigeria’s economic indices.

ACROSS AFRICA year for $3.9 billion. The project is expected to produce 12.9 million tons of LNG per annum, with first LNG expected to come on stream in 2024. Offshore Area 1 contains more than 60 trillion cubic feet (tcf) of gas resources, of which 18 tcf will be developed with the first two trains. Approximately 90% of the LNG production from the project is already sold to Asian and European buyers. Other partners in the joint venture include the state-owned energy company ENH, Mitsui from Japan, PTT from Thailand and India’s ONGC Videsh, Bharat Petroleum Resources and Oil India. Operations at the Mozambique LNG project have been suspended to contain the spread of COVID-19.

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ACROSS AFRICA

Angola Oil & Gas 2020 confirms new dates

he Angola Oil & Gas (AOG) Conference & Exhibition 2020 will take place in October 14 -15, 2020 in Luanda for its second year. AOG 2020 is the focal point of an international investment drive aimed at bringing new deals to the table and signing up new entrants to Angola’s oil and gas industry. The new dates for the second edition of the conference and exhibition comes after Angola’s Ministry of Mineral Resources, Petroleum and Gas, together with event organizer, Africa Oil & Power (AOP), took actions to ensure the safety of delegates, speakers and participants during the COVID-19 pandemic and also announced the postponement of the event. “We have been monitoring the global COVID-19 pandemic closely

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and felt that it would be in everyone’s best interest to push the dates of the conference to the end of the year. Despite COVID-19’s impact on the global energy industry, confidence in Angola’s oil and gas sector remains on an upward trajectory,” says James Chester, Acting CEO of AOP. The reappointment of H.E. Diamantino Pedro Azevedo as Minister of Mineral Resources, Petroleum and Gas by Angolan President H.E. João Lourenço, coupled with the work that has been put into reviving Angola’s energy sector over the last few years, represents a continued vote of confidence in the country’s energy sector despite the global COVID-19 pandemic. The Minister has implemented

a series of reforms that have streamlined investment in Angola’s oil and gas sector, adopting new rules and procedures for public tenders involving oil and gas contracts, establishing a formal field abandonment process, incentivizing marginal field development, revising natural gas statues and expanding existing development zones. “With new projects coming on stream, an upcoming licensing round and the launch of gas monetization initiatives, to name a few, confidence in Angola’s energy sector is at an all-time high, spearheaded by government’s initiatives to continually progress the industry,” Chester adds.

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ACROSS AFRICA

Equatorial Guinea awards new Gas Master Plan contract

ccording to the African E n e r g y C h a m b e r, E q u a to r ia l G u i n e a continues to lead the development of natural gas production and monetisation in the Gulf of Guinea, with the award of a new contract for a new Gas Master Plan to support the ongoing development of its offshore Gas Mega Hub. In collaboration with Marathon Oil Corp and EG LNG, the Ministry of Mines and Hydrocarbons (MMH) has awarded a contract for the development of a Gas Master Plan to the British company Gas Strategies. The work is part of the development of Equatorial Guinea’s Gas Mega Hub, for which Definitive Agreements towards the monetisation of the Alen unit were signed in April 2019. The offshore gas mega hub will be

the first of such venture offshore Africa and aims at pooling stranded gas across the Gulf of Guinea by maximising existing infrastructure at Punta Europa. While key facilities there, such as EG LNG and Marathon’s methanol plant, have traditionally been relying on gas feedstock from the Alba Field, declining output required to gather gas from additional fields and reserves in the region. “Equatorial Guinea has given natural gas a priority in terms of development and monetisation, and we believe gas is the key to industrialisation and jobs creation,” declared Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons. “With key initiatives such as LNG2 Africa, the ongoing offshore Gas Mega Hub and the Year of Investment 2020, we are going to complete

key gas projects in upstream, midstream and downstream that will further diversify our economy, provide opportunities for our local companies, and create jobs for our citizens,” he added. Under the development, Punta Europa is set to become a gas processing centre for all stranded gas fields in the Gulf of Guinea, and could open up economical avenues to monetise offshore gas in Cameroon and Nigeria as well. The new Gas Master Plan represents an important step towards the realisation of this vision, and will help in accelerating and coordinating offshore gas developments, which could eventually lead to the construction of additional liquefaction capacity on Punta Europa.

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MARITIME

COVID-19: NIMASA designates Seafarers, Dockworkers as essential workers

he management of the Nigerian Maritime Administration and Safety Agency (NIMASA) has designated Seafarers and Dockworkers as essential workers who should be exempted from travel restriction. This is in line with the newly endorsed protocols by the International Maritime Organisation (IMO) designed to lift barriers to crew changes, occasioned by the COVID-19 pandemic. According to a press release by the Head, Corporate Communications, NIMASA , Philip Kyanet, “The exemptions are contained in a new guideline developed and published by the Agency to support essential services in Nigeria’s shipping sector. The guideline states that the jobs of dockworkers at the country’s seaports, terminals, and jetties are essential to the national economy and, therefore, dockworkers should be granted passage between their places of abode and the seaports/ terminals and jetties to perform their duties. “The advice also declares that seafarers are on essential duty and as such exempted from the curfew and travel restrictions, which may hinder necessary movement for crew change. It directs companies employing the services of seafarers

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to provide special and dedicated means of transportation to convey the seafarers, adding that such transport system must be disinfected within the recommended minimum hours.” “The guideline specifically provides for the mandatory use of facemasks within all terminals and jetties, mandatory temperature checks on all staff before access to terminals, and denial of entry to persons who present temperature above 38°C. It makes it mandatory for all dock labour employers to develop risk assessments and safety intervention guidelines for all personnel and operations in the areas of vulnerability within their maritime operations that can be affected by the COVID-19 pandemic, including cargo handling, access control, and roistering procedures. “Dock labour employers are also to devise methods of ensuring that dockworkers absent from their duties for issues relating to COVlD-19 are quarantined and compensated for the suspension of earnings they suffer as a consequence. Furthermore, all dock labour employers are to ensure that buses deployed during the COVID-19 pandemic carry a 50 per cent maximum capacity in line with Federal Government directives, and

all passengers wear facemasks. Such buses must have hand sanitisers for all drivers’ and passengers’ use and be frequently disinfected.” Speaking on the guidelines, the Director-General of NIMASA, Dr. Bashir Jamoh, said the latest advice was meant to contain the COVID-19 pandemic while also supporting the continuation of the economy. The release quoted him as saying, “Like President Muhammadu Buhari said no economy can survive total lockdown. If you look at it critically, maritime is an essential duty, with the major actors being seafarers and dockworkers. This is why we continually come up with guidelines to ease their operations so that activities in our ports will not suffer.” The DG emphasised the prohibition of loitering around port premises and charged dock labour employers to ensure social distancing of two meters is maintained between people in the workplace and other public spaces within and around port terminals. The guideline is in sync with those issued by the United Nations agencies, including the World Health Organisation (WHO) and International Labour Organisation (ILO), as well as the Nigeria Centre for Disease Control (NCDC).

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MARITIME

NIMASA investigates fire outbreak at Wellhead Offshore Ondo.

he Nigerian Maritime Administration and Safety Agency (NIMASA) has sent an investigative team to ascertain the cause of the recent fire incident at a wellhead offshore in Ondo State. The Director-General of NIMASA, Dr Bashir Jamoh, disclosed this in a statement signed by NIMASA Head of Corporate Communications, Mr Philip Kyanet, on Thursday in Lagos. The incident involved a barge belonging to Michharry and Company Nigeria Limited, an offshore and onshore facilities provider for the oil and gas industry. Jimoh noted that the officers from the Maritime Safety and Seafarers Standard Department (MSSSD) and Marine Environment Management (MEM) Department of the Agency

would conduct both on-the-spot assessment and detailed analysis of the incident.

industry and the economy will be the beneficiaries of the outcome of our work on this incident.

The DG said, “As the national agency statutorily responsible for ensuring a clean, pollution-free, and friendly marine environment for safe shipping activities, NIMASA has swung into action with our standard procedures to get to the root of this fire incident. A team of officers from the relevant departments of the Agency has been dispatched to the site. We will do a thorough analysis of the situation with a view to unravelling the cause of the fire and preventing future occurrence. “As the maritime industry regulator, we would also not hesitate to mete out sanctions where necessary to deter abuse. Certainly, the Nigerian maritime

“Additionally, we advise operators in the country’s maritime domain to always report incidents at their locations to NIMASA in good time and shun actions capable of endangering their own safety and operations as well as those of others.” Jamoh also advised maritime stakeholders to keep away from the areas affected by the fire for safety purpose and to avoid anything that can jeopardise or hinder the on-going investigation.

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ENERGY WOMAN

Engr. Stella Okene

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“…for me, it’s more of work-life integration than worklife balance” -Stella

ngr. Stella Okene (PhD) is a trained Petroleum Engineer and an inexorable business entrepreneur. This wife and mother is the astute Group Chief Executive Officer (CEO) of Stelog Group of companies, which comprises Stelog Limited, an oil and gas company; Stelog Gas Limited; Stelog Exploration and Production Company; as well as Trinicle Limited. Stelog Limited specializes in mudlogging, wireline services, directional drilling, MWD and LWD, completion, well testing, intervention services, rig supply and hoisting, among others. Stella, who is a professional member of SPE (Society of Petroleum Engineers) and NAPE( Nigeria Association of Petroleum Explorationists), also sits on the BOARD of several companies such as Villa Integrated Services Limited, Stelog Kenya, SSnerg Houston Texas, amongst others.

ENERGY WOMAN That’s an interesting question. Firstly, I’m a core Petroleum Engineer. A graduate of University of Port Harcourt. When I completed my NYSC program with Chevron Lekki (Lagos), I eventually delved into entrepreneurship. I think I got that entrepreneurial drive from my late mum. By the way,

“

let me unequivocally state here that I’ve always been someone with great ambitions. While I was developing several businesses, there was still a missing link to my ultimate desired goals and satisfaction. Indeed, my businesses at the time had recorded successes on various fronts but there was a fervid vacuum in my mind that needed to be filled, which was connected to my core Petroleum Engineering field. At that time, my desire was to have a corporate organization like Schlumberger and H a l l i b u r t o n . I ke p t reiterating to myself that someday I would have an entity like them, or even bigger. And so, I decided to take the leap. I then sculpted my goals and mapped out various strategies that would enable me achieve my vision and targets.

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Having nurtured the idea of plunging deep into the ocean of core oil and gas services, I often endeavored to attend oil Drilling, completion, production and intervention are core and gas conferences such oil services and often associated with the male figure. How as the annual Offshore did you find yourself in here? Design or chance? Technology Conference (OTC) in Houston Texas, SPE and NAPE In this interview with Jerome Onoja, she covered some interesting aspects of her work, life, Nigerian Content and her future aspirations.

conferences in Nigeria and others. I also joined some professional organizations like SPE (S ociet y of Petroleum Engineers) and NAPE (Nigeria Association of Petroleum Exploration). That exposed and inspired me to a great extent. Importantly, let me add here that for people who are interested in developing their entrepreneurial potentials in the oil and gas sector must strive to first understand the industry very well, and then develop an “entry plan” because our industry is highly technological and capital intensive. When I found “an entry” which was mudlogging services, my company (Stelog) then par tnered with Weatherford. In fact,

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it was Stelog that engineered Weatherford’s SLS (Surface Logging Services) to be brought into Nigeria. Then, I began to gradually i nv e s t i n p r o c u r i n g mudlogging tools and equipment. And in 2008, Stelog Limited was created and our first contract was won in 2012. Since then, we have been growing in leaps and bounds as God Almighty gives us the grace. We have been able to expand our services from the initial mudlogging operations to wireline, rig hoisting and supply, completions, well testing, directional drilling/MWD/ LWD and MOPU (mobile offshore production unit) services.

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ENERGY WOMAN

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The game changer to our success has been effective partnering and collaboration with multi-national service companies like Weatherford, Halliburton, General Electric (GE), Baker Hughes and Schlumberger as well a few Indigenous companies, on several intrinsic oil drilling, production, completion and intervention services. The journey to success is undoubtedly torturous, particularly when operating in a male-dominated terrain as well as in an environment like ours where access to fair finance facilities is extremely difficult. It’s like swimming in shark infested water. Howbeit, I’m a very resilient go-getter and go-giver. My strength has always been on God’s divine enablement. My goals, passion and determination enhance my fortitude and focus to achieve our corporate objectives.

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Success is no respecter of gender; it appears where there is ambition, effective planning, diligence, determination and discipline. Therefore, it is apt to say that Stelog currently renders several core oil services by design as a result of my skills, vision, determination, focus and forthrightness. Are there technologies today that have presently changed the activities and efficiencies around well operations, globally? Kindly highlight some. Absolutely! There are several new advanced technologies presently that have changed the activities and improved the efficiencies of drilling, production and completion campaigns, which invariably enhances production and revenue outputs. These technologies reduce environmental impact of oil exploration and production activities. 36

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They play a pivotal role in meeting production targets as they make oil and gas operations easier, particularly in challenging wells. The application of some new digital technologies is gaining fervid momentum at the moment, especially the applications of artificial intelligence (AI) and advance information data technologies which have become game-changers. Emerging technologies in robotics, artificial Intelligence, analytics, unmanned autonomous vehicles, drones and automation, autonomous under water vehicles and remotely operated aerial drones including other hard and software tools have the potential to improve operations in oil and gas industry by reducing costs and increasing safety, efficiency and speed.

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These technologies would help oil and gas companies to access and obtain products from challenging conventional and non-traditional sources as their operations are already very expensive and risky due to volatile fields. Are some of these technologies already deployed locally? Do you see us domesticating any of them pretty soon in Nigeria? Some of these advanced technologies which would certainly have substantial impact in oil and gas operations are already in Nigeria. Technologies such as drones, robotics

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ENERGY WOMAN (autonomous underwater surveillance, big data and AI are already being deployed locally). Drones are increasingly playing a big role across several industries. Their simple flight interfaces, flexibility and ease of adding sensors and accessibility, makes them a musthave for the oil and gas industry.

for offshore opportunities as new technologies evolve. For instance, Stelog is currently working in some shallow waters as well as deep offshore. Indigenous operators such as Britannia-U, First E & P, Oriental Energy, Amni International, etc are currently operating offshore and they are doing excellently well.

The drones continue to have more capabilities due to ever-increasing sensors and better technology on board. Drones are now performing monitoring, surveillance, and inspections of a wide variety of onshore and offshore structures and thereby enabling companies to detect signs of problems and avert disasters.

There are also several other indigenous companies that are upcoming and capable and prepared for offshore oil and gas campaigns in Nigeria. That is in fact one of the core objectives of the Nigerian Oil and Gas Industry Content Development ACT (NOGICD ACT) which is the facilitation of the indigenization of oil and gas exploration operations, both onshore and offshore. One of the fundamental essences of the said ACT is to enhance the strategic utilization of indigenous companies, manpower and resources in developing the sector as well as the Nigerian economy.

“

Robotics or autonomous underwater vehicle surveillance are equipment deployed subsea to install, maintain and activate surveillance on subsea drilling tools and equipment.

These new digital technological breakthroughs will make oil and gas operations in Nigeria more efficient and cost effective. And yes, these technologies can be seamlessly domesticated. Stelog is currently in the process of doing that because there are many challenges in the oil and gas industry in Nigeria that, these new technologies can provide solutions to, particularly in offshore operations and very difficult fields. These technologies offer new ways of achieving oil exploration and production goals as they can improve on transparency and accountability in the overall operations. At Stelog, we are currently promoting some of these technologies which are property rights created by patents and trademarks.

What role do you see Nigerian service companies playing in the marginal fields, considering the coming of bid rounds? The current marginal fields bid rounds being coordinated by the Department of Petroleum Resources (DPR) is a welcome development as it avails indigenous service companies and investors the opportunity to participate in petroleum upstream activities. The service companies are pivotal to all oil and gas exploration activities. So

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I fervidly encourage very competent service companies to put resources together in order to participate in the upcoming marginal field bid rounds.

Right now, most indigenous services companies have been negatively impacted by the Covid-19 scourge. The development of marginal fields is quite challenging and capital intensive. Indigenous service companies interested in the said “bid rounds” will be taking huge risks. So, they would essentially require proficient evaluation of the fields as their entrée into the marginal field basin would certainly boost Nigeria’s crude oil production output and revenue as well as create more employment opportunities for Nigerians in particular. For you, what’s the best advice for operators and for service companies in this post COVID-19 era? Covid-19 pandemic is indeed horrendous. Its resultant effect has had a debilitating impact on people’s lives and businesses world over. As you are aware, it led to the fall in oil prices a few months ago, apart from the impact of the Russian and Saudi Arabia price war. Fortunately, the said fallen oil prices are gradually crawling back upwards.

How prepared are indigenous companies for the deep offshore opportunities in Nigeria? Indigenous companies are already key players and doing very well in offshore operations. Some are prepared and others preparing

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ENERGY WOMAN The pandemic has indeed led to huge financial loses and jobs. Several international oil companies (IOCs) and service companies have had to suspend and/or even cancel ongoing contracts and projects. Some have insisted on discount offers from their contractors. Many have had to review their budgets and spending.

“

Obviously, the adverse impact of Covid-19 pandemic would not be short-lived until vaccines are produced and made available. Timeous and apt steps must be taken by operators and service companies to engage with regulators and other stakeholders to prevent a collapse of the oil and gas industry through fair policies and strategies that would support the continuity of operations in the sector.

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I therefore vociferously posit that the operators and service companies should be considerate in their demand for discounts on existing contracts as this may inevitably lead to huge unemployment and debts. Furthermore, women empowerment should take the front burner at a crucial time like this. Women participation in the oil and gas industry is absolutely expedient as it is said:

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“empower a woman, empower a nation” Also, operators and ser vice companies should restructure their payment schedule or policies to make it easier for their contractors to serve them more efficiently. Delay of payments for services rendered often has a counter-productive impact on contractors, vendors and the Nigerian economy.

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“

And lastly, financial institutions particularly in Nigeria should please learn to do professional banking and be less selfish. Short term finance facilities and very high interest rates are injurious to the Nigerian economy. Most Nigerian banks strive to reap where they failed to sow; they want your money but would hardly support your ideas and effort to create wealth. Not a few Nigerian banks are presently shying away from oil and gas sector financing due to the fall in oil prices. Banks should learn to be loyal to their customers and partner or stand by them, come rain, come sunshine.

Value creation and technology transfer should be sacrosanct. I’m optimistic that when the Petroleum Industry Governance Bill (“PIGB”) would have been passed into law eventually, that would be the game changer for immense advancement in the oil and gas industry in Nigeria.

Tell us your assessment of local content progression in the service sector with specific areas of improvement in terms of technology transfer.

What was that motivating factor that kept you among the few in STEM and eventually among the 1 per cent standing female CEOs in the oil industry?

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Undeniably, one of the best things that happened in the oil and gas industry in Nigeria is the NOGICD Act,

which has promoted and increased the participation of indigenous companies in the sector. This ACT plays a very essential role in development of the sector as consideration is given to local operators which enhances the advancement of the Nigerian economy. It has created more employment opportunities, capacity and skills development, it has also provided openings for other professionals like lawyers, auditors, medical practitioners, etc, to also participate in service delivery. And of course, it opened a bigger window for foreign investment inflow. The Nigerian Content Development and Monitoring Board (NCDMB) is doing a good job. However, they can still do better because the industry is still largely foreign-technology driven which defeats the core objectives of the Act with regards to technology transfer. Yes, the ACT has enhanced local participation but what truly is the VALUE that indigenous participation has added thus far?

Local participation is not a license for mediocrity to brazenly dance shamelessly in the market place.

I’m not sure how you got your “1 per cent standing female CEO’s” statistics. Anyway, that’s on a lighter note. But I recall that when I graduated from high school or secondary school as we call it in Nigeria, I was very hard working and studious. My late father had arranged for me to commence work with a commercial bank in Port Harcourt but

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a day before I was to start work, I refused and wept bitterly because I wanted to further my education at that time, and not to work. And so, my late mother stepped in to ensure that I had my heart’s desire to proceed to the University. Frankly, without sounding immodest, I can honestly aver that my brain was very hot, and I was innately science inclined. I eventually got admission into the University of Port Harcourt where I studied Petroleum Engineering, in a class that was overly dominated by young men. So,

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I was naturally STEM inclined and also endowed with a selfmotivating mechanism

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ENERGY WOMAN

“

What our clients seek from us are excellent service delivery. They pay for excellent value added, not mediocrity. For instance, you engage people to render certain professional or other services but you’d have to monitor and follow through all the way, in order to accomplish your desired goals. You interview an individual who applies for the position of an accountant and you ask him or her trivia questions like: 8 x 8 or 8 x 6 or 9 x 6 and he or she doesn’t even have a clue. Not a few graduates who seek employment are truly not qualified. Our educational system is so poor in Nigeria. So,

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I would say that managing difficult personality traits is the most difficult aspect of my work.

Nevertheless, I’m always determined to overcome such hurdles or challenges as best as I can. What is your projection for Stelog 10 years from now?

to succeed in any venture I undertake. What’s the most interesting part of your job? There are several very interesting aspects of my job as Group CEO which avails me the opportunity to be involved directly or indirectly with every aspect of our businesses and services, particularly being able to collaborate effectively with my employees as a team. However,

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the most interesting part of my job is discovering new business and technology frontiers, just like our recent venture into marginal field as well as gas commercialization and utilization.

What is the most difficult bit of your work as an engineer? Success is turning difficult situations around. I appositely always view difficult situations as opportunities to achieve success. I would say the most difficult aspect of my work is managing difficult people. Of course, humans have different personality traits and for an entrepreneur, it is expedient to strive to understand the personality traits of people. Unfortunately, Nigeria has deteriorated to a place where complacency and mediocrity is the norm. People do not hunger to achieve excellence.

By the year 2030, I’m very optimistic that Stelog Group would have achieved its goal of becoming a distinguished conglomerate that would competently and effectively deliver oil wells from drilling to completion and production phases.

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In ten years’ time, we aspire for Stelog to effectually be able to commercialize gas for our gas and exploration company as well as to be an operator of marginal field(s).

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ENERGY WOMAN

INSIDE OPEC

Nothing is impossible for those who dream and follow through to achieve their goals with inexorable determination.

resilient practice, we can achieve great successes.

Any succession plan in place, in particular skills transfer for ladies?

The Nigeria of my dreams is a Country where the culture of primitive corruption would have been effectively decimated; a Country where nepotism would be anathema; a country with leaders of great inspiring vision and dignity; a nation where graduates would have great prospects of employment or a support system to undertake entrepreneurship; a country where basic amenities such as regular electricity supply, reliable medicare, good roads, security of lives and properties, uninterrupted water supply, etc are not uncommon to the common man; a relatively safe society like we had in the ‘70s, the ‘80s and even the ‘90s; a country that would be designated as developed and not a developing one; a country devoid of religious and ethnic bigotry; a country that would attract huge foreign investors in droves; one of unity and peace.

Certainly. The inadvertent lack of succession plan has inevitably led to the demise of many successful businesses over the years and that is indeed unfortunate. We can be mentored even from the mistakes of successful people. Yes, there is a succession plan for Stelog Group which is being developed but that is a very confidential piece of information I’m not dispose to make public at this time. How do you manage work-life balance, as a woman CEO? Well,

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for me, it’s more of work-life integration than work-life balance.

It’s all about ef fective time management and planning. With the advent of technological advancement in communication, work-life can efficiently be managed. With facilities and platforms like mobile telephones, email facilities, WhatsApp and Zoom, it’s easier now to plan effectively and manage one’s business and personal life. Essentially, I often endeavor to set my work and personal life priorities right; I set targets and engage diligent people to cater to the aspects that I may not be able to handle personally. Most of us desire for our lives to be richly filled with meaningful work and relationships. Work-life integration is a valuable framework that would help us achieve that goal. But the key to prioritizing what we value most is in the execution. One may not be able to attain perfection in achieving all our goals but with

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What’s the Nigeria of your dreams?

And I dare say that

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if Singapore can transform from what it was a few decades ago to the developed country that it is today, then I appositely believe that Nigeria can be great again because our country is endowed with immense natural and human capital resources. Our problem has always been poor leadership.

OPEC output cuts: Oil prices responding positively – Barkindo

s a result of the agreement bet ween Organization of Petroleum Exporting Countries (OPEC) and OPEC+ to cut production output, which took effect from May 1 2020, the Secretary- General of OPEC, Mohammed Barkindo, has said oil prices are responding positively to the agreement. Reuters reports that oil prices have more than doubled since hitting a 21-year low below $16 in April. So far in May, OPEC+ has cut oil exports by about 6 million bpd, this indicates a positive compliance with the deal. OPEC+ had initially agreed to an output cut of 9.7 million barrels (approximately 10 million barrels per day) in its 9th and 10th Extraordinary Meetings held on April 10 and 12 via videoconference, to stabilize the oil market. Barkindo further stated that, “The oil markets have responded positively to the historic agreement, as well as its robust implementation by participating countries.” “All in all there is a gradual but steady convergence of the fundamentals of supply and demand,” he added. As at 9:48 pm (WAT) 20 May, Brent crude, the global oil price benchmark, sold for $35.86. West Texas Intermediate (WTI) and OPEC Basket sold for $33.57 and $28.43 respectively.

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INFRASTRUCTURE

Mambilla Power Plant not among three FG Priority Projects Beneficiaries - Garba Shehu

he Senior Special Assistant to the President on Media and Publicity, Garba Shehu has said that Mambilla Power Plant in Taraba State is not part of the three Federal Government priority projects to benefit from the $311 million repatriated Abacha loot. The fund, which was recently received by the Federal Government of Nigeria, is to further consolidate works on the Second Niger Bridge, AbujaKaduna-Kano Expressway, and Lagos-Ibadan Expressway, based on the tripartite agreement between the Federal Government, the United States and British Territory of Jersey government. This was contained in a statement issued by Shehu on Wednesday. He had earlier in another statement included Mambilla Power Plant as part of the projects to benefit

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from the fund but noted that the inclusion of Mambilla Power Plant was a mistake. The statement reads, “The recently repatriated Sani Abacha loot will go towards three of the Federal Government’s five priority projects, excluding the Mambilla power and East-West road projects.” “In an earlier statement, I had mistakenly noted that the Mambilla was one of five priority projects to benefit from the $311 million Abacha loot under the Presidential Infrastructure Development Fund (PIDF) managed by the Nigeria Sovereign Investment Authority (NSIA). That error is regretted. “Although the Mambilla and EastWest expressway are regarded under the PIDF as priority projects, I have ascertained that they are exempted from the agreement signed between the Nigerian,

United States and British territory of Jersey governments.

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According to the document, only the second Niger bridge, Abuja-Kaduna-Kano expressway, and Lagos-Ibadan expressway will benefit from the repatriated funds. The funds are domiciled in the NSIA.” The Hydroelectric Power Plant is a 3,050 MW hydroelectric power project. When completed, it will be the largest power-generating installation in the country, and one of the largest Hydroelectric Power Plants in Africa. The $5.8 billion project was conceived in 1982 but has been facing legal and funding challenges.

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