Majorwaves Energy Report March 2021 by majorwavesenergyreport

MARCH 2 0 2 1 VOL 4 NO 3

MAJORWAVES

NGN2,000 10 Ghc US $5.00

www.majorwavesenergyreport.com

ENERGY REPORT

LOCAL CONTENT

SUSTAINABILITY

NCDMB Inaugurates 2nd Batch of Project 100 Companies COVID-19: Shell Donates $10 Million to COVAX FG Seeks Asset Manager for Infra-Co NIMASA Receives Buhari’s Approval to Disburse $200m Cabotage Vessel Financing Fund

INFRASTRUCTURE

Nigeria's Burgeoning LPG Market

Chevron Announces First Gas from Alen Field Oﬀshore Equatorial Guinea AAer Steep Drop in Early 2020, Global Carbon dioxide Emissions Have Rebounded Strongly

“ IWD 2021: Nigerian Women in Energy #ChooseToChallenge ” Majorwaves Energy Report MARCH 2021, Vol 4 No 3

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

CONTENTS MARCH 2 0 2 1 VOL 4 NO 3

MAJORWAVES

NGN2,000 10 Ghc US $5.00

www.majorwavesenergyreport.com

ENERGY REPORT

LOCAL CONTENT

SUSTAINABILITY

INFRASTRUCTURE

Nigeria's Burgeoning LPG Market

Chevron Announces First Gas from Alen Field Oﬀshore Equatorial Guinea

NNPC Spent N173.38bn on JV Oil Assets in Two Months

AAer Steep Drop in Early 2020, Global Carbon dioxide Emissions Have Rebounded Strongly

“ IWD 2021: Nigerian Women in Energy #ChooseToChallenge ”

Seplat FY’20 Results Show Strong Cash Position of $259m Despite $100m RCF Repayment

NLNG Bags Gas Company of the Year Award

NCDMB Inaugurates 2nd Batch of Project 100 Companies

Nigeria’s Burgeoning LPG Market

APWEN Abeokuta Honours Female Motor Mechanic

African Local Content Fund Initiative Launched in Angola

Customers with Faulty Meters Shouldn’t Get Estimated Bills – NERC

FG Approves $526m for Power Projects, N190m for UI Microscope

Seplat Positively Impacting People, Environment With Its Sustainable Commitments

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

LPG use in Nigeria as at 2015 only stood at about 400,000 MT, indicating a penetration rate of just five per cent of the 170 million population at the time. Though a mere scratch of its capacity, the country committed to commercializing its gas resource and has since registered some remarkable progress. From 635,452.061MT recorded in 2018, consumption of LPG grew by 60.5 per cent, which took it to 840,594.37 MT in 2019. A year later, it maintained the steady and sustained pattern of growth, culminating in over one million metric tonnes of LPG domestic consumption milestone in 2020. That number placed the country 1st in West Africa and made it one of the leading LPG consuming nations on the continent. The laudable feat showed Nigeria’s consistency with its plan to meet the five million MT by 2022 target, set in the Nigeria Gas Policy (NGP) of 2017. It is also a clear indication that the country holds a massive potential for investors who would take the plunge and invest in the nation’s gas market with over 200 million people to cater for. Our cover story is dedicated to a few peculiarities with the LPG market in Nigeria; find details on page 24. Also, we bring you reports on Nigerian Content Development and Monitoring Board (NCDMB) Project 100; and the agency’s quest to promote invention amongst young adults in tertiary institution via the second edition of its Science and Technology Innovation Challenge (STIC) programme. We are also glad to inform you of a huge feat with Nigerian Maritime Administration and Safety Agency (NIMASA). Indigenous ship owners can heave a sigh of relief following President Buhari’s approval to disburse the Cabotage Vessel Financing Fund (CVFF) after a long wait of about 18 years! These and more you will find in this edition. Enjoy!

Jerome Onoja

...................................................................................................................................................................................................................................................

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 MARCH 2021, Vol 4 No 3

INDUSTRY NEWS

NNPC Spent N173.38bn on JV Oil Assets in Two Months

he Nigerian National Petroleum Corporation spent a total of N173.38bn on oil and gas assets being developed through joint ventures with private firms in October and November 2020, its latest monthly report showed. The NNPC, which represents the Federal Government in the JVs, has an obligation to make cash call payment for the development of the assets. The nation’s oil and gas production structure is majorly split between the JV (onshore and in shallow waters) and the Production Sharing Contracts in deepwater offshore. Under the JV arrangement, both the NNPC and the private firms contribute to the funding of operations in the proportion of their equity holdings and generally receive the produced crude oil in the same ratio. The Punch reports that the NNPC’s cash call payment rose to $271.88m (N103.04bn) in November from $185.58m (N70.34bn) in October, according to the report. In October, the dollar allocation to the JV cash call account was

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

$21.89m while the naira portion was N62.04bn ($163.69m). The dollar allocation to the JV cash call account rose to $73.27m in November while the naira portion increased to N75.27bn ($198.61m). The corporation said the total export receipt of $125.71m was recorded in November as against $54.09m in October.

According to the report, in November, the NNPC remitted the sum of N169.74bn to the Federation Account Allocation Committee. “From November 2019 to November 2020, total NNPC remittances to FAAC is N1.77tn; out of which Federation and JV with government priority projects received the sum of N788.45bn and N983.36bn respectively,” it said.

It added that the proceeds from crude oil amounted to $73.27m while gas and miscellaneous receipts stood at $29.66m and $22.78m respectively.

The federation crude oil and gas lifting is classified into equity export and domestic, both of which are lifted and marketed by the NNPC and the proceeds remitted into the Federation Account.

The NNPC said, “Of the export receipts, $52.43m was remitted to the Federation Account while $73.27m was remitted to fund the JV cost recovery for the month of November 2020 to guarantee current and future production.

The equity export receipts, after adjusting for the JV cash calls, are paid directly into the Federation Account domiciled in the Central Bank of Nigeria.

“Total export crude oil and gas receipt for the period November 2019 to November 2020 stood at $3.28bn. The sum of $1.89bn was transferred to JV Cash Call as first-line charge and the balance of $1.39bn was paid into Federation Account.”

Domestic crude oil of 445,000 barrels per day is allocated for refining to meet domestic product supply. Payments are effected to the Federation Account by the NNPC after removing crude and product losses, pipeline repairs and management costs incurred.

INDUSTRY NEWS

Energy Transition: Oil Prices Could End Up $10 Lower in Future – Rystad By Ikenna Omeje

il prices could end up $10 lower in the future than they otherwise would if the transition to cleaner energy speeds up, a Rystad Energy analysis has said. This is as a result of the consecutive downturns that exploration and production companies (E&Ps) have faced during the past decade, which have accelerated the energy transition, adding to growing social and regulatory demands for greener energy solutions. In an analysis marathon that has generated a series of three commentaries and a report to its clients, Rystad Energy assessed the way E&Ps are navigating the energy transition, based on energy diversification, portfolio resilience and decarbonization. “This oil price downside risk is by far the biggest factor in determining the resilience of global E&P upstream portfolios, along with the potential for rising costs for emitting carbon dioxide.,” the company said in a release recently. The independent energy research and business intelligence company providing data, tools, analytics and consultancy services to the global energy industry, said it has studied the portfolio resilience of the top 25 non-national oil and gas companies and found big differences in how

robust they are to the risks of lower commodity prices and increased CO2 taxes. “While the average portfolio value at risk due to volume (stranded assets) is normally very low, on average contributing less than 1 percent to the reduction in valuation, the value at risk due to price has the largest impact, contributing to an average reduction of 30 percent. The value at risk due to cost (CO2 tax) is low for most companies, mostly below 10 percent. As a result, up to 30-40 percent of the net present value of an average portfolio is at risk as a result of the energy transition,” it said. According to Rystad Energy, there is a large span for the price risk among the different companies. For some companies the value is reduced by around 50 percent when the long-term oil price falls by $10 per barrel. It noted that companies with a large price risk are typically oil sands companies or shale/tight oil companies. “The reason these companies are most affected is that their portfolios normally include assets with high breakeven prices. On the opposite side of the scale, most majors have a reduction in value due to price risk in the range of 20-25 percent. Mature assets and high gas content help reduce the risk for these companies.

some companies stand out with a high value. Oil sands companies have the highest cost risk, causing the value of their portfolio to decrease by around 30% in an example of a CO2 tax of $100 per tonne. “Eni, Shell, Equinor and Total all have very similar scores with modest value at risk. ExxonMobil has a higher revenue risk than its peers, primarily because its portfolio includes several large, capital-intensive projects such as Permian tight oil and its Guyana assets. “Producers with less profitable projects, like oil sands and shale/tight oil, are typically punished both along the revenue and cost dimensions. The key reason for this is that the profitability of these projects is very sensitive to price and cost changes. In addition, oil sands projects normally have high CO2 emissions, which increases their cost risk,” it said. Commenting on the analysis, the release quoted the Head of Upstream Research at Rystad Energy, Espen Erlingsen, as saying, “The energy transition risks vary depending on each individual E&P company. Equinor, for example, whose risk is relatively smaller compared to other peers, could see the value of its upstream portfolio reduced by $21.8 billion, almost 30%, with an oil price decrease of $10 per barrel and a CO2 tax.“

“When it comes CO2-related costs,

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

INDUSTRY NEWS

Seplat FY’20 Results Show Strong Cash Position of $259m Despite $100m RCF Repayment ...ANOH Gas Project to be Delivered in H1’2022 By Ikenna Omeje

eplat Petroleum Development Company Plc , a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), has announced its audited results for the financial year ended 31 December 2020, recording a revenue of $530.5 million with increased operational efficiencies and further reduction in costs. In a statement on Monday March 1, 2021, the Company said it reported a final dividend of $0.05 per share recommended ($0.10/share for full year) and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $265.8 million, operating profit of $121 million (before noncash impairments and unrealised fair value losses). Strong cash position of $259 million after $100 million RCF {Revolving Credit Facility} repayment, $58 million dividends paid in the year, and $150 million capex. Net debt stood at $440 million with most maturities after 2021.

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

Commenting on the results, which were released to the NSE and LSE on Monday,the Chief Executive Officer of the Company, Mr Roger Brown said: “2020 was a challenging year for the Company but Seplat has once again shown its resilience and ability to overcome challenges and deliver production in line with guidance, operating with minimal incidences of COVID-19 cases. “From the $330 million of cash generated from operations, we have increased our capital investment, invested in ANOH and voluntarily paid down $100 million of debt, further deleveraging the balance sheet. Despite seeing the lowest oil prices in our 10-year history, we have continued to honour our commitment to shareholders of a regular income stream on their investment, by maintaining a total dividend of $0.10 per share for the year.” The SEPLAT CEO explained: “Gas is the lower-carbon feedstock for affordable electricity for Nigeria’s

yo un g a n d ra pidl y- g row in g population. Seplat is leading Nigeria’s transition away from spending scarce foreign currency on imported, expensive, high-emission dieselgenerated electricity and we believe this will provide the necessary baseload for a functioning electricity grid that will allow renewable energy to take its place, as we see in the developed world, which in large parts is still fueled by coal. The energy transition in Nigeria must balance both the environmental and the social agenda. “Our flagship ANOH project, with the Nigerian Gas Company, is now fully funded and we have made excellent progress in difficult times, with major gas processing units expected to arrive in Nigeria in Q3 2021, installation to commence before the end of the year, mechanical completion and pre-commissioning in Q1 2022 and first gas flowing to customers before the end of H1 2022, at a lower expected cost of up to $650 million.”

INDUSTRY NEWS “ We remain commit ted to providing shared value for all of our stakeholders. During the year, with our Government partners, we provided medical beds and other palliatives to our communities and we have committed to constructing a 200-bed infectious diseases hospital. Seplat continues to focus on employment opportunities for communities, education, healthcare and knowledge transfer and local capacity development,” Brown added.

NNPC Denies Non-Remittance of N4.76trn into Federation Account, Disagrees with Reps on Act Interpretation

On its outlook for 2021, the company said it expects to produce an average of 48,000 -- 55,000 boepd, considering the impact of OPEC+ quotas, adding that it has enormous cash resources and will continue to manage its resources discreetly this year. “For 2021 we expect to produce an average of 48,000 – 55,000 boepd, taking into account the impact of OPEC+ quotas. We continue to hedge against oil price volatility and expect a higher proportion of revenues to come from long-term gas contracts at stable prices. “We have significant cash resources and will continue to manage our finances prudently in 2021, expecting to invest $150 million of capital expenditure across the full year. We remain confident that our ongoing cost-cutting initiatives and prudent management of cash will enable further reductions in debt, whilst supporting dividend payments and investment for growth,” the company said. It added, “Following its successful funding, the completion of the ANOH project remains a major priority. Although we expect some COVID-19 related delays to push completion into early 2022, following a cost optimisation programme we now expect the project to cost no more than $650 million, substantially below the $700 million budget previously stated at Final Investment Decision (FID).”

h e Nige ria n Natio nal Petroluem Corporation (NNPC) has denied non remittance of N4.76 trillion to the federation account as claimed by the 2016 report of the Office of Auditor -General of the Federation (OAGF). Mr Umar Ajiya, NNPC Chief Financial Officer, said this when he appeared before Senate Committee on Public Accounts to defend queries raised by AOGF against the corporation. Umar said that the issue in question had to do with domestic crude that NNPC lifted to either refine and sell in exchange for refined products imported to the country. Meanwhile, the House of Representatives Committee on Public Accounts, on Tuesday, March 9, 2021, disagreed NNPC on the interpretation of its Act.

The disagreement was on the sections of the Act that dealt with remittance of funds to the Federation Account by the corporation. The committee invited NNPC Group Managing Director, Mr Mele Kyari, to explain the financial operations of the corporation in 2015, following a query by the office of the Auditor General of the Federation. The auditor general had queried NNPC for deducting N865 billion from N2.4 trillion generated by the agency in 2015. Explaining, Kyari said NNPC actions were backed by provisions of the law, which allowed it to make deductions of running costs from source. “What we do is backed by the provisions of the law. First, the NNPC Act is very clear that we should submit revenues net of our cost.

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

INDUSTRY NEWS “There is also an informed decision of the Supreme Court and also the Attorney General of the Federation, that the position is correct and supported by the provisions of the law,” he said.

PIB Will Address Production Sharing Contracts Issues on Gas –Sylva

However, the Chairman of the Committee, Oluwole Oke (PDP-Osun), said the NNPC was a corporation owned by the country. The lawmaker said the NNPC was expected to operate and make profit for the nation and that it was not acceptable for it to spend what it generated as running costs. Oke said that there was need to come up with a bill that would make money available for the running cost of the agency, while remitting everything generated to the government. “We need to read the provisions of the NNPC Act along with sections 80 and 81 of the Constitution of the Federal Republic of Nigeria to be able to decide which is superior and which we are to follow. “We will set up a sub-committee of legal minded members to read through the judgement of the Supreme Court on this matter vis-a-vis the letter from office of the Attorney General. “We need to make an informed position of the matter. If the Supreme Court has taken a position, we need to be mindful of such. “If we are in disagreement, the best option we have is to go into legislation, because it means the court has clearly interpreted the provisions of the law. Sources of law are judicial precedents. “That is the way we can come up with an enactment, amendment, or repeal. So I want to suggest that we reserve ruling on the query bordering on deductions at source,” he said. Oke said the committee would rule on the matter after a critical study of the law books and Supreme Court ruling.

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

he Minister of State for Petroleum Resources , Chief Timipre Sylva, says the Petroleum Industry Bill (PIB) currently before the National Assembly will resolve the issues under the Production Sharing Contracts (PSC) on gas. Sylva made this known at a National Assembly Public Hearing organised by the Joint Committee on Gas Resources, Petroleum Resources, Upstream and Downstream, recently, in Abuja.

“There have been a lot of discussions on how we can change the terms, I believe that most of these issues will be addressed in the PIB, especially the issues around gas terms which we all believe were not properly captured in the document. “Already, the NNPC is engaging in a lot of discussions around the PSC, most of them are commercial discussion and they are bringing good progress.

The hearing was on the topic: “Inclusion of Gas Terms in Production Sharing Contracts by the Nigerian National Petroleum Corporation (NNPC).”

“But of course, knowing that the PIB is in sight, and the National Assembly invited us for this, we felt that we are making progress and I believe that the PIB will be able to resolve some of the issues that will come up in the discussion,’’ Sylva said.

He said that issues on gas terms were not captured under the PSC especially with the commercial aspect.

He noted that part of the reason gas was not captured in the PSC was because it was not the focus in the exploration activities at the time.

“ Issues on gas terms were not captured in the PSC because at the time, the offshore was just a frontier territory, today, it is no longer frontier, it is a proven territory.

According to him, the new push for gas is what is needed for economic development in the country. Sylva said that government had in December 2020

INDUSTRY NEWS rolled out auto gas initiative and would soon inaugurate tax force that would ensure full implementation to make Nigerians use gas in their cars. “In terms of domes tic household usage, we are also pushing for penetration, especially in the rural areas. The general idea is to make sure that gas is pushed to the fore in Nigeria, “ he said Sylva urged the National Assembly to live up to its promise of the passage of the PIB in April to help the growth of the oil and gas sector and the country at large. In his remarks, the Speaker of the House of Representatives, Hon. Femi Gbajabiamila, said that in November 2019, the House resolved to take necessary action to achieve focused utilisation of abundant natural gas resources. “To that end, the House appointed a joint committee made up of the committees on Gas Resources, Petroleum Resources (Downstream) and Petroleum Resources (Upstream) to engage with stakeholders, review statutes and make recommendations to the House of Representatives, and to the Federal Government. “The Public Hearing we have gathered for today is an important part of the joint committee’s assignment. “It is also an opportunity for stakeholders across the oil and gas sector and the country to present information, and contribute ideas that will help the joint committee arrive at the proper conclusions and propose effective solutions. “This Public Hearing ought to have happened and the joint committee’s assignment should have been completed

long before now. However, we had to adjust plans and make modifications to accommodate the new realities imposed due to the emergence of the COVID-19 pandemic,’’ he said.

Eni Announces the Sale of Its Assets in Pakistan By Ikenna Omeje

The minister said that Nigeria’s natural gas resources had existed almost as an afterthought both as a matter of policy making and as a focus of investment and exploration. “Given the potential of natural gas for industrialisation, job creation and revenue generation for government, this is a significant error that ought to be corrected with all urgency,” he added. Also, the Group Managing Director of NNPC, Malam Mele Kyari, said that the 1993 PSC was designed around award of crude oil that was why the framework for gas was weak. Kyari said that adequate proposal had been made in the current PIB to capture all that was necessary in gas terms. He said that the non associated gas in the country needed fiscal response than the associated gas. According to him, good fiscal environment and pricing framework are the two things needed to ensure that the PSC will work. In his remarks Lead Chairman of the Committee, Hon. Nicholas Mutu, said that the committee would focus on ensuring that Nigerians benefit from huge deposit of gas. Mutu said that the review o f c o n t r a c t te r m s to accommodate cost was neccessary to ensure gas was utilised for economic development.

talian energy giant, Eni, on Tuesday said it has reached an agreement to sell its shares in its entities in Pakistan to Prime International Oil&Gas Company, a newly established company formed by former Eni’s local employees team and Hub Power Company Ltd, the largest Independent Pakistani Power Producer. According to a release by Eni, the activities covered by the agreement include interests in eight development and production leases in the Kithar Fold Belt, and the Middle Indus Basins and four exploration licenses in the Middle Insud and the Indus Offshore Basins. Eni’s main permits were in Bhit/Badhra (40% of working interest) and Kadanwari (18.42% of working interest). Other shares were in the permits for Latif (33.3%), Zamzama (17.75%) and Sawan (23.7%). “This agreement aligns to Eni’s wider strategy of reshaping and simplifying the company’s portfolio, extracting additional value from its strategic assets and disposing non-core businesses as per its Strategic Plan 2021-2014,” the release noted.

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

INDUSTRY NEWS

Shell Strikes A $926 Million Deal to Sell Oil Assets In Egyptian Desert Mordi chukwunonso Esther

airn Energy reshuffled its portfolio, selling $460 million of assets in the U.K. North Sea and buying projects in Egypt’s Western Desert from Royal Dutch Shell Plc. In a report by Bloomberg, both deals, announced recently and seen completing in the second half of 2021, follow a pickup in oil and gas acquisitions after 2020’s pandemicdriven slump. Cairn’s retreat from the North Sea comes after several other international producers have withdrawn from the aging region. Meanwhile its purchase in Egypt enables Shell to chalk up proceeds in an ongoing divestment program. “Cairn needed to rejuvenate its investment case, and this move does that,” Al Stanton, an analyst at RBC Capital Markets, said in a note. “However, shareholders are faced with a steep learning curve” and Egyptian assets typically provide “limited oil-price leverage.” Cairn tumbled as much as 7.4% in London trading, and was down 5.9% at 187 pence as of 8:23 a.m. local time. The deal in Egypt, back on after delays

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

last year, consists of Shell’s interest in 13 onshore concessions and in Badr El-Din Petroleum Co. The U.K.’s Cairn, together with Cairobased Cheiron Petroleum Corp., will buy the assets for $646 million and make additional payments of as much as $280 million by 2024, “contingent on the oil price and the results of further exploration,” Shell said in a statement. The deal “will enable Shell to concentrate on its of fshore exploration and integrated value chain in Egypt, including seven new blocks in the Nile Delta, West Mediterranean and Red Sea,” the Anglo-Dutch oil major said. Cairn, in turn, is selling its stakes in the U.K.’s Catcher and Kraken fields to Waldorf Production U.K. Ltd. for $460 million with a further uncapped contingent consideration dependent on oil price and production performance. The fields are moving “into decline phase,” the company said. Cairn will keep some exploration operations in the North Sea, including the Nelson project in partnership with Shell.

Nigeria’s Gas Development Can Support West African Market-Ubong, New NGA President

ewly inaugurated President of the Nigeria Gas Association (NGA), Ed Ubong, has said there is abundant gas resources in Nigeria to meet the energy demand of over 350 million people and the industrial needs in the West African sub-region “Nigeria, which ranks as the 9th largest gas reserve in the world and clearly the largest in West Africa, therefore needs to develop this resource base and connect the existing local supply and demand with physical and virtual pipeline infrastructure, while also exploring closer integration of roads, seaports and rail infrastructure,” Ubong said at the recently concluded NGA’s 12th International Conference and Industry Awards in Lagos. Ubong who is also the Managing D ire c to r, S h ell Nige ria G a s Limited, however advocated an improved investment climate for the gas sector to further develop infrastructure along the gas value chain and enable the expansion of the gas networks to cover the West Africa countries.

INDUSTRY EVENT Speaking on his vision for NGA, Ubong said the association would continue to promote the utilisation of natural gas as the preferred energy source in Nigeria for the benefit of the nation and the various stakeholders in the Nigerian gas value chain. These include upstream gas producers, transporters, gas-based industries, power generation and distribution companies, virtual pipeline operators, LPG market players, industrial and manufacturing customers and the energy professionals who provide critical support for the sector “The regulatory framework is a key determinant of success of the gas industry. So, the NGA will continue to work with government and regulators to ensure the right laws are in place to create an enabling environment for the sector to thrive over the next decade. Time is of the essence as the Energy transition is on”, he said. He described the 2020 council of the NGA as the first council in Nigeria’s decade of gas, and pledged the commitment of NGA under his leadership to work closely with all stakeholders to accelerate gas development and domestic gas utilisation over the next 10 years, in line with the gas ambition of the Federal Government. Ubong restated that Shell’s investments in the Assa North Gas Project; four unitized gas fields; Brass Fertilizer Company; and the cluster development of Okpokunou/Tuomo West gas project, multiple NLNG trains, were aimed at supporting government’s drive for national development and energy sufficiency. Incorporated in 1998, Shell Nigeria Gas (SNG) is a fully owned Shell company for the downstream distribution of gas to over 120 industries and manufacturing plants in Nigeria. The company’s over 150-kilometre gas transmission and distribution network serves several distribution systems, including Agbara-Ota industrial cluster in Ogun State, the Aba Cluster in Abia State, and the Port Harcourt Cluster in Rivers State.

NLNG Bags Gas Company of the Year Award

he Nigeria Liquified Natural Gas Limited (NLNG) has won the Gas Company of the Year Award at the recently concluded 12th Nigerian Gas Association (NGA) Biennial International Conference and Awards event. The company made this known in a statement by Dr Sophia Horsfall Manager, head, Corporate Communications and Public Affairs, in Abuja, recently. She said NLNG was recognised for its outstanding contributions to the gas industry in Nigeria. “This is coming on the heels of the World LNG Summit and Awards in December 2020, where NLNG was adjudged to be one of the two organisations that have made most outstanding contribution to the industry globally,” she said. She quoted the General Manager, External Relations & Sustainable Development, Mrs. Eyono FatayiWilliams, as saying that the award was a clear validation of the growing relevance and importance of natural gas as a game-changer in Nigeria. “It is indeed the Decade of Gas. Gas is undoubtedly the future. Gas is cleaner, cheaper, more abundant and the smartest partner to renewables for

sustainable development. “Our success story is a testament to what is possible in this Decade of Gas. This is time for Nigeria to diversify its economy from oil and to fly on the wings of Gas,” she said. She added that NLNG’s Train 7 would provide about 12 billion dollars in Foreign Direct investment to Nigeria and over 12,000 jobs at the peak of construction. “Still, even at that, our ambition is to ramp up to Trains 8, 9, 10 and more, with the support of our shareholders and the Federal Government. “The transformative effect of this increased use of our nation’s abundant gas reserves on its economy will be wholly positive and thoroughly beneficial,” Fatayi-Williams said while receiving the ward. She stated that the company firmly believes that gas development would translate to more jobs, cleaner and cheaper energy, more industries, more food through fertilizer, cheaper transportation, and a much better quality of life for all Nigerians. She further commended the NGA for recognising NLNG’s resilience and excellent delivery amidst the COVID-19 pandemic, and dedicated the award to a better and prosperous future for Nigeria.

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

INDUSTRY EVENT

Shell Invests to Support Nigeria’s Domestic Gas Ambition for Industrialization

eading energy company, The Shell Petroleum Development Company of Nigeria Limited (SPDC), has restated commitment to support the Federal Government of Nigeria’s goal of using the country’s proven gas reserves to trigger economic activities for gas-based industrialization. S PD C ’s Ma na gin g D ire c to r and Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor, said Shell’s support is shown in the company’s multi-billion dollars investment in four of Nigerian National Petroleum Corporation’s (NNPC) ‘Seven Critical Gas Development Projects’. Speaking at the Nigerian Gas Association’s 12th International Conference and Awards, held virtually on February 25, 2021, under the theme,“Powering Forward: Enabling Nigeria’s Industrialization via Gas”, Mr. Okunbor said, “Shell has invested in the Assa North Gas Project; Four Unitised Gas Fields; Brass Fertilizer Company; and the Cluster Development of Okpokunou/Tuomo West (OML 35/62) to support the government’s drive for national development.”. He said, “I am very happy that NNPC and the Nigerian Content

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

Development and Monitoring Board have taken key roles in these projects. These are positive steps.” He commended the government’s recent progress in gas development and stated support for NNPC’s aspiration to grow domestic gas usage in Nigeria to 5 billion cubic feet of gas per day from its current 1.7 billion cubic feet of gas per day by 2022. Okunbor said, “Nigeria has launched out on a few audacious and, frankly, great projects to essentially drive our ambition as a country in this regard. Let’s find a way to make sure that we stay the course and begin to put our efforts in a consistent manner towards downstream where our country can get ultimate benefit for gas.” He counselled for robust engagement in discussions for an agreeable price framework in order to attract investments in the country’s rich gas sector. “A robust pricing framework would be very helpful to unlock Nigeria’s proven gas reserves, especially for Power, Agriculture and Industrial sectors.” Okunbor said the current pricing regime does not quite fit the wider

framework of what the gas industry does. “We want to incentivize methanol and fertilizer production, which is extremely important, to gear up our agricultural sector but the price regime now in that sector is lower than the kind of prices that you have for supply to the Power sector and industrial establishments”, he said. “To make domestic gas work, we do need a right price regime. It might just mean that some sectors are supported more than others that can naturally carry themselves. The Petroleum Industry Bill provides that framework.” Okunbor said. He urged policy makers to strike a careful balance between trying to raise funds – in terms of the kind of taxes and royalties that are put on gas – and understanding that this is actually much more of a resource that drives national development. “Gas is by far more important as a catalyst for development, he said.” With over 200 trillion cubic feet of gas proven, the world’s 9th largest proven gas reserves, Osagie said Nigeria can satisfy both domestic and export markets of gas if the right policies and processes are put in place and the country continues to drive those policies, processes and gas infrastructure.

ANGOLA’S OIL & GAS CONFERENCE

15-16 JUNE LUANDA, ANGOLA

ANGOLA OIL & GAS 2021 CONFERENCE & EXHIBITION ATTRACTING VALUE-ADDED

INVESTMENTS

THE ENGINE FOR SUSTAINABLE

ENERGY GROWTH IN ANGOLA

Account Executive mariana@africaoilandpower.com

www.angolaoilandgas2021.com JEAN-PIERRE DE CARVALHO

International Sales Director jp@africaoilandpower.com

KATIE BROCK

Event Director k.brock@africaoilandpower.com

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

LOCAL CONTENT

NCDMB Inaugurates 2nd Batch of Project 100 Companies By Margaret Nongo-Okojokwu

h e N ige ria n C o nte nt Development and Monitoring Board (NCDMB) has inaugurated 4 0 companies as part of its Project 100 Supplier Development Programme. The Board started Project 100 in January 2019 with 60 companies with the goal of nurturing 100 wholly owned oil and gas service providers, in a competitive and sustainable way through targeted interventions, into larger scale players that create high impact. The Executive Secretary of the NCDMB, Engr. Simbi Kesiye Wabote inaugurated the new batch of companies in a virtual event. He stated that the successful implementation of Project100 would increase contributions of the oil and gas sector to the nation’s Gross Domestic Product (GDP), create job opportunities and access to market, increase industrialization opportunities, increase retention of industry spend and substitute imports in the industry.

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

He confirmed that the 40 new beneficiaries were selected from the Nigerian Oil and Gas Industry J oint Q ua li f ic atio n Sy s te m (NOGICJQS) – the industry database of competencies which has 4,340 active service companies. 609 applications were received, out of which 40 companies got selected he said. Wabote listed the benefits that would accrue to the new Project 100 companies to include bespoke development plans to improve critical business capabilities and access to market opportunities with oil and gas operators on industry projects. He also identified access to critical industry and operational insights, information and data and participation in local oil and gas opportunity fairs and strategic events and advocacy for policy recommendations that would unlock some of the challenges identified by the beneficiaries. Other oppor tunities include technical and business performance

improvement capacity programmes, collaboration with critical industry stakeholders for participation in relevant global oil and gas events, R&D collaboration, opportunity to benefit from the US$50m Nigerian Content R&D Fund and opportunity to access the US$350m NCI Fund, particularly the US$30 million Working Capital Product, for qualified organizations. The NCDMB Chief Executive gave a scorecard of the implementation of Project 100 so far. He reported that the first 60 Beneficiaries have benefitted from key interventions, one of which is the successful inclusion of 46 beneficiaries in the supplier data base of the Nigerian Liquified Natural Gas (NLNG) and collaboration with a beneficiary on the setup of a technology solution Centre for Refinery and Petrochemicals. The companies also benefitted from development and implementation of bespoke development plans to

LOCAL CONTENT improve their critical business capabilities and attended several access to Market Workshop sessions with major oil and gas operators. There was also sponsorship to oil and gas conferences in Nigeria and overseas, in addition to trainings on Subsea Systems and FPSO, Project Production Management and Business mentorship. The General Manager, Research, Statistics and Development, NCDMB, Mr. Abdulmalik Halilu confirmed that the new 4 0 beneficiaries were selec ted through a transparent process run in two phases. He said the firms are wholly owned by Nigerians without international affiliations except for

technical partnerships. The primary service areas of the beneficiaries are fabrication and construction, well and drilling services, installation, hookup and commissioning, marine operations and logistics services and materials and procurement. Other areas of their operation are inspection, testing and certification, feed, detailed engineering and other engineering services, Health, Safety and Environment and Surveying and Positioning Services. Chairman of the Petroleum Technology Association of Nigeria (PE TA N), Mr. Nik O dinuwe commended the NCDMB for

sustaining the Projec t 10 0, describing it as noble initiative that can accelerate Local Content aspirations of government and other stakeholders. He appealed to the Board and other stakeholders to challenge, engage and expose the selected companies with real growth opportunities to ensure the success of the initiative. He also requested the Board to collaborate closely with PETAN in the implementation of Project 100. The PETAN lead regretted that only few members of the association made the list of 40 companies and charged other member companies to follow the conditions listed by the Board to qualify for similar vendor development programmes.

Nigeria, Morocco Sign 5 MoUs on Hydrocarbons, Agriculture ...NCDMB, NNPC to take equity in Ammonia plant

he Federal Government and the Kingdom of Morocco has signed five strategic Memorandum of Understandings (MOUs) that

would foster Nigerian – Morocco bilateral collaboration and promote the development of hydrocarbons, agriculture, and commerce in both countries.

The Minister of State for Petroleum Resources, Chief Timipre Sylva led

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

LOCAL CONTENT the Nigerian delegation to the agreement signing ceremony at Marrakech, Morocco, while the Chief Executive Officer of OCP Africa Mr. Anouar Jamali signed for the Kingdom of Morocco. Under the agreement between OCP, NSIA and the Nigerian National Petroleum Corporation (NNPC), Nigeria will import phosphate from the Kingdom of Morocco and use it to produce blended fertiliser for the local market and export. Nigeria will also produce Ammonia and export to Morocco. As part of the project, the Nigerian Government plans to establish an Ammonia plant at Akwa Ibom State. The Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote and the Group Managing Director of NNPC, Mallam Mele Kyari were part of the delegation and they confirmed that their organisations would take equity in the Ammonia plant when the Final Investment Decision (FID) would be taken. Other members of the delegation included Governor of Akwa Ibom, Mr Udom Gabriel Emmanuel; Governor of Jigawa State, Mallam Muhammadu Badaru Abubakar and Managing Director of Nigeria Sovereign Investment Authority, Mr Uche Orji. The Minister confirmed that the project will broaden economic opportunities for the two nations and improve the wellbeing of the people. He added that the project will also positively impact agriculture, stimulate the growth of gas-based industries and lead to massive job creation. He revealed that President Muhammadu Buhari had mandated the Ministry of Petroleum Resources and it agencies and other government agencies to give maximum support

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

for the project. “He mandated me to ensure that at least the first phase of this project is commissioned before the expiration of his second term in office in 2023,” he added. The MOUs that were signed were for the Support of the 2nd phase of the Presidential Fertilizer Initiative; Shareholders Agreement for the creation of the Joint venture company to develop the multipurpose industrial platform and MOU for equity investment by the NNPC in the Joint Venture and support of the Gas. Other agreements are Term sheet for gas sales and aggregation agreement and MOU for land acquisition and administrative facilitation to the establishment of the multipurpose industrial platform for gas sales and aggregation agreement. The Executive Secretary of NCDMB described the bilateral agreement as significant to the Nigerian economy as it would accelerate Nigeria’s gas monetisation programme through establishment of the Ammonia plant in Nigeria and improve our balance of trade which is currently skewed in favour of Morocco, through the export of Ammonia. The agreement would also improve Nigeria’s per capita fertiliser application through importation of phosphate derivatives from Morocco, he added. Wabote challenged the relevant parties to focus on accelerating the FID, assuring that NCDMB is would take equity investment for long term sustainability of the project. He also canvassed for the setting up of a project management oversight structure to ensure project requirements and timelines are met. He also submitted that “there is also need “to determine manpower needs for construction and operations phase of the project and develop

training programmes that will create the workforce pool from Nigeria and Morocco and design collaboration framework between Research centres in Nigeria and Morocco to develop technology solutions for maintaining the ISBL and OSBL units of the Ammonia complex.” He also harped on the need to “leverage on Research & Development to develop innovative fertiliser blends that meet nutritional requirements of Nigeria’s native soil and develop project sustainability plan, to ensure seamless integration of host communities unto the project.” Wabote affirmed that NCDMB is committed to support the Minister of State for Petroleum Resources to realise the Presidential Fertiliser Initiative and will focus its support on taking equity investment and maximising in-country value addition from the project. In his remarks, the GMD of NNPC confirmed that the corporation would take equity in the project and assured of NNPC’s commitment to deliver gas to the Ammonia plant. He added that NNPC was aligning itself to the emerging energy transition and would be diversifying its portfolio. Governor of Akwa Ibom promised that the state would be a good host to the project, adding that the state controls 36 percent of Nigeria gas reserve and therefore deserves to host the project. He said the state was an investment heaven in terms of peace and has the longest shoreline in the country (109km). He also confirmed that land has been designated for the Ammonia project and any other support needed to actualize the project would be provided on schedule.

LOCAL CONTENT

15 Teams Emerge Regional Semi-Finalists in Nigerian Content Science and Technology Innovation Challenge By Margaret Nongo-Okojokwu

professionals from reputable organisations will work with NCDMB and Enactus Nigeria to mentor the six finalists to test their assumptions and perfect the business cases for their innovations. “This strategy is a necessary step towards ensuring that the students’ innovations transition into fullfledged profitable enterprises that will create jobs for Nigerians, while creating sustainable wealth,” Ajayi said.

ifteen teams have emerged as regional semi-finalists in the first Nigerian Content Science and Technology Innovation Challenge (STIC) which was opened to all higher institutions in Nigeria in November 2020. The competition is sponsored by the Nigerian Content Development and Monitoring Board (NCDMB) and its implementing partner-Enactus Nigeria and the semi-finalists are from higher institutions across the country, five respectively from the North, West and South/Eastern regions. Each team in the competition is made up of two undergraduates and their schools include University of Ilorin, University of Jos, Federal University of Agriculture, Makurdi, Federal University, Dutse, Usman Danfodio University, Tai Solarin University of Education, University of Ibadan, Yaba College of Technology. Other successful institutions are Anchor University, Lagos, Babcock University, Cross River University of Technology, Niger Delta University, Federal Polytechnic, Nekede, Alex Ekwueme Federal University and Federal University of Technology, Owerri.

According to the Country Director of Enactus Nigeria, Mr Michael Ajayi, the semi-finalist teams will now advance to the ‘proof of concept’ stage of the competition, where each team will be given N500,000 (Five Hundred Thousand Naira only) to develop a functional prototype of their innovative ideas. According to him, “these will then be presented to a panel of judges at the in-person regional final competitions which will be held in the Northern, Western region and the South/East region respectively. “During this event, the representatives of the participating institutions will be expected to demonstrate, using their functional prototypes, how their proposed innovation works to solve identified problems, and also demonstrate to the panel of Judges, how the innovation will continually create opportunities for job and wealth creation if accelerated and transformed into business ventures.” A total of six regional finalists – two from each region will emerge from the 15 teams after the regional competition and will proceed to a one-week bootcamp where seasoned business development

The Nigerian Content STIC is a n e n te r p r is e - d e ve l o p m e n t program designed to challenge undergraduates of all accredited Nigerian tertiary institutions to stretch their ingenuity and apply science & technology, to create home-grown , innovative, and technologically driven business solutions that address some of the Country’s most pressing everyday problems, accelerate reverseinnovation and create wealth, while also providing job opportunities for the growing numbers of the unemployed people in Nigeria. The dedicated online portal for the competition-www.stic.org.ng was open from November 19th, 2020 until January 31st, 2021, during which time a total of 511 entries were received from undergraduates in 129 tertiary institutions across all 36 states of Nigeria, and the Federal Capital Territory (FCT). The Country Director confirmed that the process of arriving at the 15 teams for the regional semi-final was very rigorous. He stated that a panel of 63 individuals from diverse fields, ranging from business development to information technology, business strategy and social enterprise development committed over 156 man-hours to complete a 3-stage screening process over a period of 3 weeks. Apart from the handsome money for the winning team, the NCDMB will also award N20million investment towards the development of a research and development centre in the institution that the winning undergraduates represent.

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

LOCAL CONTENT

Wabote Hails Outgoing OGTAN President By Margaret Nongo-Okojokwu

Lagos State Government Signs JV Agreement With CIG Motors By Ikennqa Omeje

The Governor of Lagos State, Babajide Sanwo-Olu, says that the state government has formally sealed a Joint Venture Agreement with a Chinese firm — CIG Motors Limited — for the establishment of a vehicle assembly plant in the state.

This was part of the bilateral agreements reached by the state government and Chinese Investors’ Community when the governor visited China in November, 2019.

he Executive Secretary Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote has commended the outgoing President of the Oil and Gas Trainers Association of Nigeria (OGTAN), Dr Mayowa Afe for bringing vibrancy to the association and recording notable achievements in the past four years in office.

He maintained that some of the ongoing programmes would need to be prioritised and brought to fruition so that OGTAN can grow into a formidable organisation that would add immense value to the oil and gas sector. He also advised oil trainers to brace up to energy transition and prepare their members to be relevant in the emerging energy dynamics.

In a tweet on Thursday, the governor also stated that he unveiled “Lagos Ride” — a new e-hailing system that will deploy 1,000 unit of brand new SUVs within the metropolis.

Wabote gave the commendation recently when he received the OGTAN President at the Board’s liaison office

Wabote stated that the Board had built an enviable reputation for delivering on any project it was involved in. He cited an example with the development of modular refinery which was previously unachievable until the Board partnered with Waltersmith Petroman Ltd to deliver proof of concept with the modular refinery at Ibigwe, Imo State.

“At the unveiling of ‘Lagos Ride’, a transportation scheme that will deploy 1,000 unit of brand new SUVs within the metropolis, we also signed a JV Agreement to set up a Vehicle Assembly Plant with CIG Motors in Lagos,” he tweeted via his official Tweeter handle @jidesanwoolu.

Some of the projects initiated by the OGTAN president include categorization of training companies, institution of quality among the members, registration of new members and provision of specialized trainings for the members. The Executive Secretary challenged the incoming President of the association to sustain some of the current initiatives with a view to firmly position OGTAN and impact positively on the oil and gas sector.

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

The outgoing OGTAN President lauded the NCDMB for the unflinching support it provided the association over the years. He stated that the incoming president of the group had been fully involved in the affairs of the association and would be supported to deliver on ongoing and new programmes of the group.

According to the governor, the establishment of the plant would revive industrialisation, drive up skilled youth employment, and create wealth, boost tourism, and encourage technology sharing, adaptation, and advancement.

“The Lagos Ride scheme is another innovative policy of our administration targeted at making life easier for Lagosians, improving mobility and creating a seamless multi-model transportation system. “The scheme is in fulfilment of our desire to give residents better transportation choices. The modern ride service is one of the State Government’s socioeconomic intervention programmes, which will be professionally managed in line with global best practice.”

LOCAL CONTENT

Stanbic, CNOOC Seal Deal to Collaborate on Oil, Gas National Content

DPR Sealed 86 Illegal Gas Plants in Lagos Mordi chukwunonso Esther

he Department of Petroleum Resources (DPR) says it shutdown Liquified petroleum gas (LPG) plants in Lagos state in 2020 for operating illegally.

The Head, Public Affairs, DPR, Paul Osu, made this known in a statement issued recently in Lagos. Osu said LPG (cooking gas) plants were shut down for non-compliance with international safety standards. According to him, the plants were also operating without prerequisite approval or licence from the regulatory agency. Osu said some of the sealed plants were operating under high tension electrical installations and other unapproved locations. He noted that the move was aimed at reducing the occurrence of gas explosion and fire incidents in Lagos State. Osu said the DPR would continue to clamp down on such illegal plants while at the same time sensitising the public on the need for safe usage and distribution of gas.

Tony Otoa, the Chief Executive, Stanbic Business Incubator (left) and a CNOOC official after signing the MOU.

NOOC Uganda Limited and Stanbic Business Incubator Limited (SBIL) have signed a Memorandum of Understanding (MoU) to facilitate a partnership and collaboration that will significantly contribute to the development and sustainability of national content in the oil and gas sector. Tony Otoa, the Chief Executive, Stanbic Business Incubator and Chen Zhuobiao, the President CNOOC Uganda Limited signed the MoU in Kampala that will see both parties focus on enterprise development, training and information dissemination, as well as the strengthening of their mutual relationship. The MoU shall promote national content capacity building, through among others, facilitating training on different business aspects, sharing information and enterprise development. The MoU shall also facilitate technology transfer and create employment opportunities amongst Ugandan contractors in

goods and service provision to the oil and gas sector. Otoa, the Chief Executive, SBIL stated: “We hope to enhance capacity building initiatives of business enterprises, which will in turn improve livelihoods. With the support of CNOOC Uganda Limited, we shall reach out to the suppliers of related businesses who shall meet and share experiences and take advantage of possible synergies.” CNOOC Uganda Limited is committed to national content development and participation to ensure sustainable development of the oil and gas industry. “Upon signing this MoU, we are optimistic this partnership shall ensure value addition in the Ugandan economy through the utilisation of Ugandan human and material resources for the provision of goods and services to the petroleum industry in Uganda,” added Chen Zhuobiao, the President CNOOC Uganda Limite Source: The Independent, Uganda

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

LOCAL CONTENT LOCAL CONTENT

African Local Content Fund Initiative Launched in Angola

he African Local Content Fund Initiative launch was led by a consortium of advisors and driven by Energy Contracts Specialist from the UK, Arvy Nahar and Managing Partner, SENCORPO Lda- Emanuel Leopoldo.

Queiroz, expressed hope that ALCFI would provide solutions for sustainable legacy on the management of revenues from oil and gas production in Africa, knowing that Angola is Africa’s second-largest oil producer after Nigeria.

FAFEC 2021 was the third in the series of what has become the premier platform for financial solutions to elevate the development of Angola’s mineral resources and hydrocarbons.

Participants were from countries including the UK, Angola, the United Arab Emirates, Mexico, South Africa, Nigeria, Ghana, and Libya.

The finance and petroleum event with the theme, ‘Knowing the problems, presenting the solutions’’, featured experts, business leaders, and other stakeholders from 10 countries. It held physically in Angola and virtually, on Monday, March 15 to Friday, March 19, 2021, at the Talatona Convention Centre, Luanda. Angola’s Minister of Justice, Friday Francisco Manuel Monteiro de

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

The event provided the global community an opportunity to analyse the best formula to trust and invest in businesses, human capital, and Africa’s oil/energy resources. Apart from Wofai, Monteiro de Queiroz, and Nahar, the roll call of speakers also included: Executive Chairman – The Corporate Group United Arab Emirates – Adel Al Awadhi; President, LCF & Associates – Angola, Lourdes Caposso Fernandes; Co-Founder – M Aerospace Mexico – Juan Carlos

Munguia; Employment Creation and Social Lead – MPAMOT South Africa – Thea Weeks; Auditing Strategic Controller – ATECH Dubai – Roberto Francisco and CEO – New DiScoveryBS South Africa – Ndzavi Derrick Others were the Managing Director – Western Bell Oil & Gas Nigeria – Aham Ndubuisi; CEO – Solar Taxi Ghana – Jorge Appiah; Director – Institution of African Natural Resources South Africa – Thoba Karl-Halla; Secretary-General, Angola India Chamber of Commerce – Caetano Capitao and Managing Director of Angola Integrated Services – Emanuel Bo Dontoni. Also present were, President – Association of Contracting Companies of the Oil Industry of Angola – Braulio Brito, Managing Director – Cimel Oilfield Services – Marcia Pita and Founder – Inga Rose Angola – Berta Issa and Reverend Adilson De Almeida. Source: thenationonlineng.net

LOCAL CONTENT

Ghana: Increase Local Content in Oil, Gas Industry – Energy Minister to Petroleum Commission local content in Ghana’s oil and gas industry. As Minister, Dr Prempeh noted that he is in a good position to protect the interests of the government, and for that matter, Ghanaians and assured the commission of his support to them to ensure that entities that come to do business in Ghana deal fairly.

nergy Minister Dr Matthew Opoku Prempeh has charged the Petroleum Commission (PC) to increase the level of

The Minister was also pleased to learn that that various projects such as sponsoring welders to attain world class certification are ongoing.

“I am confident of the strong leadership at PC and looking forward to bolder actions from you,” Dr Prempeh stated. The Minister who is also the Member of Parliament for Manhyia said these when a team from the Petroleum Commission, led by its Chief Executive Officer, Mr. Egbert Faibille Jnr, met with him and his team at the ministry to provide an update on their activities in the petroleum upstream sector, and to discuss some of their pertinent challenges. Top of Form Source: ghanaweb.com

Guyana Ministry Wraps Up Stakeholder’s Engagement on Draft Local Content Policy The sequence of consultations occurred from Wednesday, 3rd March 2021 to Thursday, 25th March 2021. The MNR consulted over 180 public and private sector agencies and firms who are involved either directly or indirectly in the growth and development of Guyana’s hydrocarbons sector.

he Ministry of Natural Resources (MNR) has concluded a series of strategic engagements with various stakeholders on the revised draft Local Content Policy (LCP). This policy initiative responds to commitments made by His Excellency Dr. Mohammed Irfaan Ali for Guyanese to play a greater role in the advancement of the petroleum sector which will allow for more benefits to be received by the people of this country. The revised policy document seeks to put into context the current and evolving state of Guyana’s oil and gas sector and to enable an improved level of local business participation through value-addition, access to opportunities and capacity building within the energy sector for Guyanese.

These included (1) the oil and gas industry such as the operators, subcontractors and local suppliers, (2) workforce enhancement such as education agencies, labour union and regulatory bodies, Tertiary, Professional and Technical & Vocational Education and Training (TVET) providers (3) manufacturing and fabrication services (4) business development and support, (5) financial services (bank and nonbanking), (6) audit and accounting, (7) shipping, warehousing and onshore services (8) hospitality (9) housing and infrastructure, (10) regional and international trade (11) other economic sectors such as tourism and agriculture, (12) special and vulnerable groups such as women and indigenous people (13) environmental and civil defense, and (14) legal services. The meetings were held through both virtual and physical formats, where written feedback was encouraged.

The general focus of the stakeholders’ response to the draft document fixated primarily on the state of the current capacity of Guyanese (businesses and skills) and expectations for better participation and benefits from the sector, the identification of opportunities that exist for Guyanese to participate in the industry and the need for transformation in key related sectors such as education and finance to support business enhancement that will cater for the needs of the growing petroleum economy. The Ministry of Natural Resources is also encouraging all interested stakeholders on the draft Local Content Policy to submit their comments and feedback by Wednesday, 31st March 2021. All contributions received are taken under constructive consideration for the preparation of the next phase of the work on the policy. Stakeholders will be reengaged on completion of the policy to ensure that the final document is aligned to our national objectives of local participation, benefits, enhancing business growth, increased revenuegenerating systems, and local ownership along the value-chain of the oil and gas sector. Source: Ministry of Natural Resources press release

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

Nigeria’s Burgeoning LPG Market By Ikenna Omeje and Jerome Onoja

iomass is the major energy source in Nigeria , contrib utin g about 78 percent of the country’s primary energy supply. According to the International Centre for Energy and Environmental Development (ICEED), over 70 per cent of households in Nigeria use firewood as a source of cooking energy,

“

a development which has led to deforestation, climate change and caused the death of over 93, 000 Nigerians yearly.

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

With Federal Government’s plans to aggressively promote the use and development of Liquefied Petroleum Gas (LPG) market in Nigeria, some of these concerns would soon be a thing of the past. Though the government is trying to accelerate LPG penetration, but this rooted culture of using firewood, sawdust and charcoal as cooking energy sources over a cleaner and safer LPG is likely going to continue if issues around enabling laws, LPG infrastructure, gas pricing, among others are not addressed. Speaking with Majorwaves Energy Report in November 2019, the

Executive Secretar y, Nigeria Liquefied Petroleum Gas Association (NLPGA), Mr. Olakunle Taiwo Oyebanjo, bemoaned low patronage of LPG, popularly known as cooking gas in the country, saying that only 10 percent of Nigerians use LPG for cooking. However, Nigeria is not alone in this. As at 2018, around 3 billion people, according to the World Health Organisation (WHO), still cook using solid fuels (such as wood, crop wastes, charcoal, coal and dung) and kerosene in open fires and inefficient stoves, adding that most of these people are poor, and live in low- and middle-income countries.

COVER STORY WHO said, “These cooking practices are inefficient, and use fuels and technologies that produce high levels of household air pollution with a range of health-damaging pollutants, including tiny soot particles that penetrate deep into the lungs. In poorly ventilated dwellings, indoor smoke can be 100 times higher than acceptable levels for fine particles. Exposure is particularly high among women and young children who spend the most time near the domestic hearth.”

The Federal Government in October 2019, confirmed the removal of Value Added Tax (VAT) on LPG in Nigeria, a measure it said was targeted at growing the LPG sector. Speaking on the efforts being made by the Federal Government to deepen LPG penetration, the Vice President, Prof. Yemi Osinbajo, in 2019 had explained that

Noting the negative impacts of these cooking practices, WHO said that “3.8 million people a year die prematurely from illness attributable to the household air pollution caused by the inefficient use of solid fuels and kerosene for cooking.” Giving the breakdown of the 3.8 million deaths, WHO said 27 percent are due to pneumonia, 18 percent from stroke, 27 percent from ischaemic heart disease, 20 percent from chronic obstructive pulmonary disease (COPD), and 8 percent from lung cancer. SETTING UP COST FOR A PLANT As at 2017, it costs an average of N250 million to construct an LPG plant in Nigeria. Most of the equipment for construction comes from Asia, Europe and America, and considering the current exchange rate and inflation pressures, it is expected to be higher now than it was 3 years ago.

Mr. Olakunle Taiwo Oyebanjo,

Prof. Yemi Osinbajo

“

the present administration is targeting a 40 percent adoption rate (i.e. 13.8m households) in 5 years, and 73 percent adoption in 10 years (33.3m households).

Apart from the construction costs, there are other approvals from government agencies that are mandatory in setting up an LPG plant. These verifications include the Department of Petroleum Resources (DPR) approval, which costs about N20,000 per 100 Metric Tons; the Environmental Impact Assessment (EIA); Town Planning approval; Fire Department approval; and a Police Report. Summarily, these approvals are estimated to cost about N5.4 million extra.

He said, “We believe that the subsector can create up to 2 million new direct and indirect jobs in Nigeria. Our determination to prioritise the LPG sector development culminated in the Federal Executive Council’s approval of the National Gas policy in 2017, with dedicated input for the enhancement of the LPG sub-sector. Our driving vision has been to transform the subsector from a commodity sector based on export to a value creation sector based on domestic utilisation and industrialization.”

INCENTIVE FOR INVESTORS VE RS U S D I S CO U R AG E M E NT ARISING FROM VARIOUS POLICIES

Also, according to the President of NLPGA, Mr. Nuhu Yakubu, in his address at the 2019 Nigeria LPG Summit, the policies and incentives

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

COVER STORY British Chamber of Commerce (NBCC), said with Nigeria being a gas country and having a proven reserve of about 203TCF, it was time to use the product to drive the nation’s human capacity development and economic growth.

of the Federal Government have led to over 30 percent cost reduction for infrastructure development. Engr Tony Attah

“

“The removal of 5 percent VAT on LPG and 25 to 30 percent import duty waiver on LPG equipment and appliances, has ushered in the best time, season and reason for investment pull into Nigeria’s LPG market,”

he said. To support the Federal Government’s effort to deepen LPG penetration in Nigeria, the Managing Director, Nigeria Liquefied Natural Gas (NLNG) Limited, Engr Tony Attah, in November last year, promised to increase its allocation of LPG to the domestic market from 350, 000MT to 450, 000MT by 2021. Attah, who made the announcement during a webinar organised by the Oil and Gas Group of the Nigerian-

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

NLPGA further stated, “It is noteworthy, that in spite of fluctuating foreign exchange rates and a COVID-19 battered economy, the stakeholders have managed to stabilise the general affordability of the product in order not to overwhelm an already pauperised population. “This feat of maintaining price stability at huge cost to operators amidst massive investment in infrastructure has been made possible because of LPG being a fully deregulated product.

Mr. Nuhu Yakubu,

He noted that the removal of 5 percent VAT and 25 to 30 percent import duty waiver on importation of LPG equipment and appliances, has given investors a reason to invest in the Nigerian LPG market.

LPG despite the product being deregulated.

He had said: “In 2007, the total consumption of LPG in Nigeria was about 50, 000MT. Today, it is about one million metric tonnes and NLNG’s contribution is 350, 000MT. “We have approached our board to get a mandate to increase NLNG’s contribution to 450, 000MT from next year. That is a very positive contribution from NLNG.” However, despite these incentives, there are also some discouragements. For instance, NLPGA in September last year, kicked against moves by the Petroleum Products Pricing Regulatory Agency

“Equally exciting are several measures in order to further catalyse sectoral growth through such actions as: the waiver on VAT on LPG and LPG equipment; waiver on import duty on importation of LPG equipment; and, quite recently, the various strategic consultations to deepen gas utilisation by strengthening Autogas (LPG/ CNG), Gas to Power applications and initiatives. “In fact, the declaration of 2020 as the “Year of Gas” by the Minister of State for Petroleum Resources was an added impetus to the drive to achieve gas expansion.” If allowed, the levy could jeopardize the National LPG Expansion Plan, the National Gas Expansion Programme and other important schemes of the Federal Government.

“

(PPPRA) to impose 2,050 percent increase in administrative levy, despite the deregulation of the LPG sector.

In a directive to its members, the association stated: “It has come to the attention of the Executive Committee that the PPPRA has continued to circulate directive to levy administrative fee on

Chief Timipre Sylva

COVER STORY S A F E T Y S TA N D A R D ENLIGHTENMENT

A major concern in the Federal Government’s drive to deepen LPG usage in the country, in line with the National Gas Policy, is the adulteration and low standard sales and distribution of LPG components. The current aggressive campaign for the use of LPG by the Federal Government in recent years and the increasing adoption of LPG by Nigerians, has led to proliferation of gas plants and roadside retail outlets. In January this year, the PPPRA in a statement said the domestic consumption LPG, exceeded 1 million Metric Tonnes (MT) in 2020. It said the consumption rate made 2020 the first year in the nation’s history when LPG consumption reached the 1 million MT threshold. “Nigeria consumed 840,594.37 MT LPG in 2019, indicating an increase of 60.5 per cent over 635,452.061MT recorded in 2018,” the statement said. “This steady and sustained pattern of growth culminating in the over one million metric tonnes of LPG domestic consumption milestone in 2020 has placed the country 1st in West Africa and one of the leading LPG consuming nations on the continent. “With this laudable feat, the country is on track to meet the five million MT by 2022 target, set in the Nigeria Gas Policy (NGP) of 2017,” it said. This increasing rate of consumption has also encouraged influx of cylinders. With the challenges at the country’s border, some shylock importers have continued to import expired and substandard gas cylinders, which are used cylinders that are corroded without any indication of expiry dates.

“

In 2018, the Nigerian Customs Service (NCS) released an impounded 40-feet container of substandard cylinders to the Standard Organisation of Nigeria (SON)

for further action in a brief ceremony at the Federal Operations Unit (FOU) Zone A office of the NCS in Ikeja, Lagos state. Fear of imminent accidents resulting from the use of sub-standard cylinders could scare potential users of gas and undermine efforts to encourage Nigerians to switch over from biomass and other dirty energy sources such as kerosene to the use of gas, which is cleaner, cheaper and environmental-friendly. In addition, there is low sensitization campaign on how to identify substandard or fake cylinders. SON could do a lot more in this regard. Effort should be made by SON to educate Nigerians on what to look out for when purchasing a cylinder, such as the date of manufacture, capacity of the cylinder and most importantly the SON logo and unique serial/identification number displayed on the cylinder to ensure traceability in the case of eventuality. INFRASTRUCTURE The

“

Federal Government had set a target to achieve LPG consumption of five million tons by 2023 with a target to get 60 million homes on board,

which will increase household LPG consumption from 750,000 tons to two million tons by 2021 through increased general acceptability and awareness, among others. In line with its target, it constituted the National Liquefied Petroleum Gas Expansion Plan, to advance consumption of gas in-country. According to the Programme Manager, NLPG plan, Mr. Dayo Adeshina, in an interview with The Nation last year,

Mr. Dayo Adeshina,

“

at least $6 billion is required to develop infrastructure to enable the country achieve the 2023 target of five million tons of LPG consumption. In production sector, he said that about $500 million is required to build the infrastructure for LPG production from associated gas, including liquefied natural gas and natural gas liquids, while in product transportation sector like rail, shipping, including other vessels as operated by the NLNG, NNPC, Inland Waterways and Railways, an estimated $1.5 billion is required for the infrastructure. Other sectors include storage, manufacturing, bulk breaking and bottling, which will require investment of $500 million; bulk breaking and bottling, where major marketers and small and medium enterprises (SMEs) can operate, an investment of $750 million purchasing of cylinders, refilling of LPG in smaller cylinders and bottles, estimated 10,000 trucks and about 3000 filling plants is required; distribution and marketing, $800 million investment is required; while investment in end-users infrastructure will require $2 billion.

VIRTUAL PIPELINES In 2018, Nigeria made a giant stride in the drive for optimization of the nation’s vast gas resources with the

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

COVER STORY execution of a novel contract between the Nigerian National Petroleum Corporation (NNPC) and a private firm for the activation of virtual gas pipeline network for power generation. The project which would be facilitated through the installation of Mini-LNG plants is designed to supply, in the first instance, about 84 million standard cubic feet of gas per day (mmscf/d) by transporting gas from production fields using customized cryogenic tankers to areas that are not easily accessible through pipelines. The innovative gas supply technique would also further develop Nigeria’s energy sector and consequently help revitalize the manufacturing, textile and housing sectors through provision of affordable energy source. The project was initiated in line with President Muhammadu Buhari’s Ec o n o m i c G r o w t h Re c ove r y Plan (ERGP) which in part aims to accelerate non-oil revenues, improve transpor tation infrastruc ture, drive industrialisation, stabilise the macroeconomic environment, achieve agriculture and food sufficiency and ensure energy sufficiency.

PROLIFERATING LPG FACILITIES NATIONWIDE In recent years, a number of LPG facilities have been built while others are ongoing. Some of these projects include Rungas Cylinder Manufacturing plant, Technoil LPG terminal and Rainoil LPG facility. Rungas Prime Industries partnered w i t h T h e N i g e r ia n C o n te n t Development and Monitoring Board (NCDMB) in 2019, to establish Africa’s first Composite Cylinder Manufacturing Industry The groundbreaking ceremony for the project, which is located at Polaku, Bayelsa State, was held in August last year. The plant is expected to begin full operations this year, and will produce 400,000 type 3 LPG composite cylinders at minimum capacity and 1 million at maximum capacity per

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

annum. In March, Minister of State for Petroleum Resources, Chief Timipre Sylva, officially inaugurated the company’s second plant at Alaro City in Lagos. Meanwhile, Techno Oil Limited in November last year commissioned a landmark 8,400-tonne capacity LPG Coastal Terminal at Kirikiri in Apapa, Lagos, which now puts the total number of LPG depot in the country at 12. The facility is the fifth of such a terminal to be built in Lagos, Nigeria’s economic hub, which is also home to leading private oil and gas companies. The automated LPG terminal was built by CAKASA Nigeria Ltd. in collaboration with a foreign technical partner that signed a deal for the building of the terminal on Nov. 4, 2016. Also, in June 2019, Vice-President Osinbajo commissioned the company’s cooking gas manufacturing plant, also located in Lagos. The cylinder plant has a 5 million annual production capacities and the biggest of its type in West Africa. Similarly,

“

Rainoil in August last year, also launched an LPG facility with a tank capacity of 8000 metric tonnes at Ijegun, Lagos. The facility also offers a fleet capacity of about 40 LPG trucks that would ensure product distribution to bulk buying customers owning LPG filling facilities. CARBON CREDIT LPG has a comparatively lower ratio of carbon to hydrogen when compared to other hydrocarbons. Its use for energy as against other sources helps reduce greenhouse gas emissions while improving the livelihoods of

communities, preserving biodiversity and wildlife. Consequently, major projects in the supply chain of LPG ought to generate carbon credits. With the awareness of several globally functional carbon markets, capital investments for retrofitting equipment in order to enable the use of LPG, ought to be financed through certified emissions reduction (CER) credits under the clean development mechanism (CDM) system as sponsored by the United Nations or some other similar schemes. The CDM allows emissions reduction projects in developing countries to earn CERs, each equivalent to a ton of CO2, that can be traded and sold, and used by industrialized countries to meet their emissions reductions targets under the Kyoto Protocol.

“

A typical scenario where a fuel switch programme earned carbon credits from the UN was seen in Peru, and it offers a learning curve to Nigeria’s series of initiatives under the NGEP. The Peru conversion is the first fuel switch to pass CDM muster because RYCOPESA came up with a methodology that can serve as a reference price for carbon. The LPG conversion project is the brainchild of RYCOPESA, a wholly-owned Peruvian subsidiary of Repsol, CONCLUSION The opportunities with gas in Nigeria is endless. From investments to deliberately mine the resource, through processing, distribution, export, infrastructure, manufacturing of cylinders, erecting plants and retailing, the willing investor has a wide array of options to invest in one of Africa’s gas rich provinces. However, there’s an urgent need to convert existing policies to enabling laws in order to elicit the confidence every investor needs in a growing market.

POWER

Customers with Faulty Meters Shouldn’t Get Estimated Bills – NERC

nder no circumstances should a customer be placed on estimated billing on account of the failure of a power distribution company to install a replacement meter, the Nigerian Electricity Regulatory Commission (NERC) has said.

Customer Meters, with Order No. NERC/246/2021.

According to NERC, DisCos must desist from such acts henceforth, as a lot of customers had raised complaints about this.

It said the customers complained that the meters were not inspected by the DisCos prior to the issuance of the meter replacement notices

This directive was contained in a document by the commission on Structured Replacement of Faulty/Obsolete End-Use

Other complaints, according to NERC, include “the removal of meters and being placed on

In the document, NERC said it started receiving complaints from metered end-use customers in the fourth quarter of 2020 that they had been served meter replacement notices by Discos.

estimated billing as new meters were not installed on their (customers) premises.” It further stated that customers complained of not being able to vend on the new meters as activation tokens were not issued, as well as failure or refusal to transfer units from the old meter to the new meter, among other concerns. To address these complaints, the commission ruled that Discos should grant priority to the metering of unmetered customers under the National Mass Metering Programme..

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

POWER

FG Approves $526m for Power Projects, N190m for UI Microscope

he Federal Government on Wednesday approved $526 million for power projects in Abia, Imo and Benue.

The Federal Executive Council at its weekly meeting also approved N190.5 million for the purchase of a microscope by the University of Ibadan. Minister of Power, Sale Mamman and Minister of State for Education, Mr Emeka Nwajiuba, made these known to journalists at the end of March 10, 2021 meeting of the Council. Mamman said that 506 million dollars was approved for the extension of transmission lines in Umuahia, Abia and Mbano in Imo. He said additional local content of N34million was approved for the transmission line projects. “The cost for the extension of transmission lines in Abia and Imo States is $506,324.40 million plus N34,034,000 local content cost,’’ he said. The minister stated that the Council also approved 8.6million dollars for the construction of three substations at Zaki-Biam, Benue and Bichi and Kanyi in Kano State. “On the amount for the construction of three sub-stations in Zaki-Biam, Benue State and Bichi and Kanyi, Kano State – the one in Zaki-Biam 30

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

is 8.6 million dollars offshore and N2.08 billion onshore. “The second one in Bichi is $9.6 million plus N1.7 billion local content cost, while the one in Kanyi, Kano State, is$ 9.5 million plus N1.7 billion,’’ he said. On his part, Nwajiuba said the Council approval for the purchase of the microscope was part of Federal Government’s efforts to revitalise and reposition the nation’s education sector. “In continuation of efforts by the Federal Government to revitalise and reposition the education sector, Council passed a resolution granting the request of the University of Ibadan to acquire a new microscope. “This is a microscope which is totally directed at enhancing whatever material, looking at nuclear composition of its molecular nature. “This is in our premier university. The Department of Anatomy at the university has been at the forefront of this coordinate research in Nigeria for many years since its inception in 1948. “The first of such equipment was given to us in 1967 by the Japanese government, but it has become obsolete. “The Federal Government has had the opportunity to review many of

the requests from the university authorities, including those of the Academic Staff Union of Universities,’’ he said. The minister explained that before now, PhD students of the varsity had to travel abroad to conduct research involving a microscope and it has now become very expensive to do so. “The request by the University of Ibadan has been approved so that we can stop spending the kind of money we spend sending PhD and further research students abroad on the basis of lack of this particular equipment. “If Universit y of Ibadan is empowered to do this, and acquires this equipment, it will become the fulcrum for many other research faculties around the country. “Everybody, including researchers from neighbouring West African countries will be able to access it. “Our experience at the Tertiary Education Fund showed that many of the research requests had to do with non-availability of particular equipment in the country. “The Federal Government, in its holistic attempt to address both its economic and social values as well as upgrade our educational targets, approved this to be able to address then challenge,’’ Nwajiuba said.

SOCIAL INVESTMENT

COVID-19: Shell Donates $10 Million to COVAX

hell, in supporting the fight against the COVID -19 pandemic, has made a $10 million donation to COVAX, the global initiative to make vaccines more widely available. The UN Secretar y- General, António Guterres, had called for a global effort to get all people in every nation vaccinated as soon as possible. “No one is safe unless everyone is safe”. The WHO has also adopted the phrase: “With a fast-moving pandemic, no one is safe, unless everyone is safe.” COVAX is co-led by Gavi, the Vaccine Alliance; the World Health Organization (WHO); and the Coalition for Epidemic Preparedness Innovations (CEPI). It aims to provide free COVID-19 vaccines to at least 20% of the populations of the world’s 92 poorest countries by the end of 2021. Ghana was the first country to receive vaccines through the COVAX scheme in February.

C O VA X b r i n g s t o g e t h e r government s, global health organisations, manufacturers, scientists, private sector, civil society and philanthropy to ensure people all over the world have access to COVID-19 vaccinations. The initiative co-ordinates efforts to centralise financial donations, order vaccines in bulk and ease distribution to vulnerable people around the world. “Global equitable access to a vaccine, particularly protecting health-care workers and those most-at-risk is the only way to mitigate the public health and economic impact of the pandemic,” according to COVAX. The pandemic has already caused the deaths of 2.5 million people, disrupted the lives of billions more and destroyed many livelihoods. Shell supports this global approach to vaccinations as it helps to protect people, health-care systems and economies, while prioritising those that need the vaccine most. The donation of $10 million is symbolic of

the estimated cost of vaccinating all Shell staff, their families, contractors and the 500,000 forecourt workers in Shell retail stations. The money will also be used to help lowerand help middle-income countries combat the effects of the COVID-19 pandemic on their populations and their health-care systems. “Shell is a member of society in the 70+ countries where we work,” says Shell’s Vice President Health, Dr Femi Oduneye. “All those countries need vaccinations as part of the global effort to manage the pandemic, and that’s what we are supporting by partnering with governments, NGOs and our peers in the industry.” Shell has spent around $46 million on COVID-19 contributions, largely as voluntary initiatives. About $5 million of this was a part of contractual obligations

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

MARITIME

NIMASA Intensifies Seafarers Training for Shipping Development Daniel Terungwa

Customs Impeding NPA’s Efforts in Apapa – Bala-Usman Daniel Terungwa

your job. In doing so port efficiency would improve, this would translate to the attractiveness of the country’s ports worldwide, and ships would be attracted.

This is part of the agency’s efforts to intensify the training and certification of seafarers and to enhance the country’s position in the maritime world.

“From today we should start seeing changes as a result of the training you have received; we should see general improvement in port handling. We need to see improvement in three stages: short-term, medium-term, and long term.

he Director-General Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh has issued certificates to fresh graduates of the Nigerian Seafarers Development Programme (NSDP).

Jamoh, while speaking at the graduation ceremony, held at NIMASA’s headquarters in Lagos, noted that seafarers are the lifeblood of shipping, and shipping is a key part of the country’s economic diversification effort. “Our investment in the training of seafarers is deliberate; it is part of our shipping development agenda,” he stressed. NIMASA’s Boss on behalf of the agency, congratulated the 788 newly graduated seafarers and reminded them of the importance of the training. He said; “The essence of this training is for us to have the right people. Now it is left for you to translate what you have learnt into practice as you do

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

“The short-term changes relate to the ability of the seafarers to apply what they learned in the classroom to their job. The second stage is the medium-term, which has to do with noticeable changes in their activities, changes in terms of everything they do as seafarers and the third stage, the long-term self-development or follow-up training,” Jamoh advised the graduates. 788 seafarers received certificates in both mandatory courses and specific areas of specialization for career progression, including Standards of Training, Certification and Watchkeeping for Seafarers (STCW), Oil Tanker Familiarisation (OTF), Efficient Deck Hand (EDH), International Ship and Port Facility Security Code (ISPS) awareness training, and Dynamic Positioning (DP).

The Managing Director of the Nigerian Ports Authority, Hadiza Bala-Usman, has blamed the Nigeria Customs Service (NCS) for frustrating the NPA’s efforts towards decongesting the Apapa port. Bala-Usman claimed that the Customs are yet to acquire scanners to inspect cargo at the port, since President Muhammadu Buhari’s approval in 2008. The NPA Boss, in a recent interview with ThisDay said, “The NCS also referenced that the scanners are not off the shelf. They are manufactured specifically for their requirement, and the approval was given when Kemi Adeosun was the minister of finance. I remember the meetings we had with Kemi (Adeosun) as minister of finance (she resigned in 2018). “This was how many years ago? They still have not acquired the scanners. She submitted that memo to FEC for approval, and in 2021 the scanners have not been delivered. I have been pushing Col. Ahmed Alli, and they say it will be ready this year.”

MARITIME Aisha Bala-Usman suggested a high level of corruption and lack of transparency of Customs as the cause for the delay in acquiring the scanners and clearing of cargo. “We have this running battle with Customs that, overtime, cargo just remains in the port. We have had to move almost a thousand containers to Ikorodu for Customs to auction, now Ikorodu is full. Customs have

still not auctioned, and the terminals now will be full because you have overtime cargo. “Ideally, if cargo is overtime, you quickly check it, take it, and auction it, and that is gone, but they seem to have a cumbersome process. I have written to the CG Customs. He said the process would require a gazette. I have told him that it’s interesting Customs is quick to

auction vehicles; seized vehicles are auctioned on time. But containers on random items, they are not excited to auction them.” She admitted that the NPA could not force Customs and other agencies operating at the port to do their job; “while we have synergy, we also have the challenge of operating on different wavelengths,” she added.

Lagos Traffic Team Uncovers E-Callup Ticket Forgery at Apapa Ports Daniel Terungwa State Special Traffic Management Enforcement Team, saddled with the responsibility of resolving the incessant gridlock that has plagued Apapa and its environs, esulting in untold hardship and huge losses in both National and state internal revenues.

agos State Special Traffic Management Enforcement Team, has said it has uncovered scandal involving counterfeiting of call up tickets, tagged; “Eto” by truck drivers and owners.

Several efforts in the past to tackle the obstinate perennial gridlock had failed forcing business owners to relocate to neighbouring countries as well as some residents abandoning their residences and other properties to safe abodes.

This comes in less than two weeks after Nigerian Ports Authority, NPA , commenced the new electronic-call Up System into the administration of port operations to ease gridlock at the Apapa ports axis.

NPA and Lagos State Government, had recently disclosed plans to finally commence a three-month

The development, it was learnt was said to be responsible for the initial teething problems experienced in the last one week when the initiative commenced.

trial on enforcem ent an d compliance of electronic-Call-Up System from February 27, 2021, as part of measures to ensure free flow of traffic in Apapa access port areas and environs. Governor Sanwo-Olu, in a bid to concretise this, constituted Lagos

The head of the traf fic team, Special Adviser to the Governor on Transp or tation , Oluwatoyin Fayinka, speaking on the alleged fake call up slip said, “We are currently investigating some cases where truck drivers were caught with counterfeited e-call up slip in order to by-pass security and officials saddled with the responsibility but we are on top of the situation. We will beat them to their game. “This was the major factor responsible for the initial confusion on the major road within the first week of commencement of the e-call up system. We are determined to checkmate the illicit act.” He however, stressed that all hands must be on deck to ensure total sanity and sustenance of the present free flow of traffic in Apapa and environs. “We will not relent in sustaining this current order in Apapa. The Governor Babajide Sonwo-Olu is determined to see an end to Apapa gridlock. We will not allow unscrupulous elements to scuttle the new order.”

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

MARITIME He appealed to stakeholders to cooperate with the state government in removing the congestion and remedy the situation. Fayinka declared that noncompliance on the part of trailer and truck operators would meet the full weight of the law, and therefore, “stakeholders and port operators should comply with the directive in their own interest.” As part of enforcement, the special adviser said at least about 200 trucks have been impounded over violation of e-call up system and indiscriminate parking on the road. Reacting to the development of counterfeiting the tickets issued by the operator Transit Truck Parks Limited, TTP, in Lilypond, its

Chief Operating Officer, Mr. Dayo Adeboye said “the tickets issued are being photocopied.” Adeboye also said that the photocopied tickets were also being altered with a view to beating the system that is being established to curb extortion and corrupt practices. He however, disclosed that the e-call up ticket has been programmed with a pin-code that cannot be changed or duplicated adding that “this fraudulent act cannot go far.” “Yes, we discovered that the tickets are being photocopied and altered by truck drivers that want to beat the system. “There is pin-code that is on every ticket issued by TTP that cannot be altered; each code is unique to a ticket. We had a few of the alterations but we are working

on it to resolve it,” he stated. On its part, NPA on its official Twitter page on Wednesday, March 10, 2021, said, “We are currently investigating some cases where truck drivers were caught with counterfeited e-call up slip in order to by-pass security and officials saddled with the responsibility but we are on top of the situation. “We will beat them to their game. “This was the major fac tor responsible for the initial confusion on the major road within the first week of commencement of the e-call up system. “ We are determined to checkmate the illicit act,”

NIMASA Receives Buhari’s Approval To Disburse $200m Cabotage Vessel Financing Fund By Daniel Terungwa

Offodile tagged “Implementation and Disbursement of the Cabotage Vessel Financing Fund (CVFF): Expression of Interest as Primary Lending Institution,’ the agency stated that the fund would promote the development of indigenous ship acquisition capacity by providing financial assistance to Nigerian operators in domestic coastal shipping.

fter 18 years delays, the Nigerian Maritime Administration and Safety Agency (NIMASA), has received the approval of President Muhammadu Buhari to disburse $200 million Cabotage Vessel Financing Fund (CVFF) to qualified indigenous maritime operators in line with the Treasury Single Account (TSA) policy and the CVGG Guidelines of 2006. The Cabotage Fund, which was

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

established alongside the Nigerian Coastal and Inland Shipping (Cabotage) Act of 2003 to empower indigenous ship owners to acquire vessels and thus take control of the country’s coastal and inland shipping business, has remained unutilized due to delays in the disbursement of the Fund. In a recent publication signed by the Executive Director, Finance and Administration of NIMASA, Mr Chudi

“The request for the primary lending institution is in line with the Federal Ministry of Transportation guidelines for the implementation of the Cabotage Vessel Financing Fund (CVFF) 2006, which specified the minimum requirement for the participation of banks as Primary Lending institutions (PLIs),” Offodile noted. The requirements include that the PLIs must have an existing relationship with NIMASA; have shareholders fund over N25 billion, and must have proof of substantial financial support in terms of credits extended to indigenous maritime operators.

INFRASTRUCTURE The PLIs according to the publication, will be responsible for liaising with NIMASA in determining the risk acceptance criteria for the utilisation of the Cabotage Vessel Financing Fund or issuing of guarantees. They would participate in financing and management of specific projects where necessary to further secure repayment of the loan or obligation; be actively involved in on-lending monitoring and entire loan management, and any other financial advisory or ancillary services as the Fund may determine. The Director further stressed that banks shall because of the Treasury Single Account policy of the Federal Government, also be prepared to open a dedicated account for each applicant who shall deposit a minimum of 15 percent of the loan request (sum applied for into the account); be committed to contributing between 10 – 35 percent of the loan request and also commit to a cumulative single digit interest rate. “On approval of the loan request by the Minister of Transportation, NIMASA shall transfer its portion of the loan request into the dedicated account,” he said. Time after time, the President Muhammadu Buhari led administration has unequivocally emphasised the importance of entrenching local content in both the maritime and the oil and gas sector. In consonance with the CVFF is the US$350 million Nigerian Content Intervention Fund (NCIF) issued by the Nigerian Content Development and Monitoring Board (NCDMB) which is designed among a few functions to increase indigenous participation in the oil and gas industry, build local capacity and competencies and also to spur productivity and job creation in the oil and gas Industry. The immediate disbursement of the CVFF will not only impact positively on Nigeria’s blue economy but also translate into a multiplier effect on the entire economy. This is owing to the fact that indigenous shipowners who eventually access the funding, would plough back into the maritime sector with improved capital to acquire more shipping vessels, boost international trade and provide more opportunities for Seafarers and other stakeholders connected to the sector.

FG Seeks Asset Manager for Infra-Co By Ikenna Omeje

he Federal Government, through the Central Bank of Nigeria (CBN) and the Nigeria Sovereign Investment Authority (NSIA) as well as its Partner, Africa Finance Corporation (AFC), is requesting an expression of interest proposals from qualified asset managers for the newly-created Infrastructure Corporation of Nigeria Limited (Infra-Co). This was contained in a statement issued recently by the promoters of the Corporation — CBN, AFC and NSIA. “The Central Bank of Nigeria (CBN), the Africa Finance Corporation (AFC) and the Nigeria Sovereign Investment Authority (NSIA) (the Promoters) are requesting for expression of interest proposals from qualified asset managers active in the infrastructure sector to manage a newly-created world class institution -The Infrastructure Corporation of Nigeria Limited (InfraCorp) to catalyse and accelerate investment into Nigeria’s infrastructure sector,” the statement reads. “InfraCorp is a dedicated privatelymanaged infrastructure and industrial vehicle that will harness oppor tunities for Nigeria’s infrastructure development by originating, structuring, executing and managing end-to-end bankable

projects in that space.” The successful asset manager will be responsible for establishing a general partner/asset manager organisation, to develop the consolidated business plan and financial model for InfraCorp and its subsidiaries. The person will also supervise the day-to-day operations of the Asset Management business of InfraCorp; plan, lead and coordinate the promotion of InfraCorp and capital raising activities; as well as other functions provided in the detailed request for proposal. According to the statement, all expressions of interest (EOIs) proposals must be sent to InfraCorp@cbn.gov.ng, while the deadline for receipt of final proposals is 12noon Nigerian time on March 16, 2021. President Muhammadu Buhari had in mid February, approved the establishment of the Public Private Partnership styled Infrastructure company, to address infrastructure deficit in the country. The company, which will take off with an initial seed capital of N1 Trillion, is expected to grow to N15 Trillion in assets and capital over time.

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

INFRASTRUCTURE

Buhari Commissions New NDDC Headquarters ...Describes Complex as Development Milestone

resident Muhammadu Buhari says the inauguration of the new headquarters building of the Niger Delta Development Commission, NDDC, marks an important milestone in his administration’s effort to reposition the Commission for the overall development of the Niger Delta region. Speaking at the virtual commissioning of the new headquarters complex at the Marine Base, Port Harcourt, President Buhari, observed that the new headquarters building was initiated by the defunct Oil Minerals Producing Areas Development Commission, OMPADEC, in 1996. Buhari said: “In 2015, as part of my administration’s objectives, we started a holistic reform of the NDDC for greater service delivery for the people of the region. To achieve this goal, I reassigned the supervision of the NDDC to the Minister of Niger Delta Affairs for administrative efficiency. “Second, was the appointment of Forensic Auditors to review the operations of the NDDC from inception to 2019 to ensure that appropriations made to the NDDC

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

are commensurate with what is on ground.” The President commended the Minister of Niger Delta Affairs, Senator Godswill Akpabio, for providing the required leadership that saw to the completion of the office complex, noting that money spent on rent would now be saved and deployed to other areas of needs to the region. Buhari said: “I commend the management and staff of the NDDC for staying on course and keying into the development agenda of my administration. I am particularly pleased to note the cordial relationship between the NDDC and the National Assembly and hope that this relationship will be strengthened for the benefits of the people of the Niger Delta region.” Speaking earlier, the Minister of Niger Delta Affairs, Senator Godswill Akpabio, said that he was the first minister to visit the new headquarters when it was under construction. He noted that for over 15 years the old headquarters on Aba Road

was not connected to the national grid and thanked the President for making it possible for this anomaly to be halted. Akpabio declared: “The President deserves a big reward for showing love to the people of the Niger Delta. I also thank the Interim Administrator and the former Managing Directors of the NDDC for their efforts to see to the completion of the new headquarters.” In his welcome address, the NDDC Interim Administrator, Mr Efiong Akwa, commended President Buhari, the Minister of the Niger Delta Affairs and members of the defunct Interim Management Committee for a job well done. The NDDC Chief Executive Officer thanked the President for reassigning of NDDC to the Ministry of Niger Delta Affairs, stating that the office complex stood as a monument to what Niger Delta people stood for, as “a people who are strong and resolute.” “It is noteworthy to observe that President Buhari, in a demonstration

ACROSS AFRICA of the remarkable political will, initiated three major policies that impacted positively on the speedy completion of this project.”

Angola Set to Announce EPC Contractor for Soyo Refinery

First was the re-assignment of the supervision of the NDDC to the Ministry of Niger Delta Affairs. Then second, was the appointment of forensic auditors to review the activities of the Commission form inception up to the year 2019. With the forensic audit exercise, it can no longer be business as usual in the Commission. Third was the policy direction for the completion of all abandoned projects which have positive impact on the people. The completion of this edifice is, therefore, a direct consequence of Mr President’s focused policy direction.” I specially commend the Governor of Rivers State and the Minister of Niger Delta Affairs who turned Mr. President’s directive into completion of the project. Speaking on behalf of the governors of the nine Niger Delta states, the Imo State Governor, Senator Hope Uzodinnma, expressed gratitude to President Buhari for the realisation of the new headquarters. He said that credit must be given to President Buhari for making the project a reality, stating: “With the completion of the new headquarters, the NDDC will stop the money being wasted on rents and channel it to more productive ventures. The governor commended President Buhari for setting up a forensic audit and appointing an Interim Administrator to manage the NDDC until the end of the forensic audit. In his goodwill message, the Amayanabo of Twon-Brass, King Alfred Diete-Spiff, said he was pleased to be part of commissioning of what he described as a magnificent complex. “This is the right step in the right direction, we the chiefs and elders of the Niger Delta stand behind the President and the leadership of the NDDC,” he said.

he Angolan Ministry of Mineral Resources and Petroleum (MIREMPET) will, on March 15, 2021, announce the winner of the tender to build the 100,000BOPD refinery in Soyo, in Zaire Province the north easternmost part of the country. At the start of final evaluation, there were nine proposals from groups that included Atis Nebest-Angola, SDRC, Jiangsu Sinochem Construction Co., Tobaka Investment Group, Satarem, Gemcorp Capital, China Petroleum Pipeline (CPP) Engineering Firm, Quanten Consortium, as well as a joint proposal submitted by CME, Aida and VSF. One of them has since dropped out, which means that eight companies and consortia had their proposals evaluated by PwC, the government’s due diligence consultant, as of

December 29, 2020. But MIREMPET postponed the announcement, for the second time in January 2021, in order that the best ranked competitors could renew their investment financing guarantees, “through renowned financial institutions, as well as re-affirmation of the corporate structures involved”, the ministry says in a statement. The Soyo refinery is one of three refinery projects under development by the Angolan government. One is to expand the capacity of the Luanda refinery, another is the two-phase construction of a new 60,000BOPD refinery at Cabinda, which is underway. Source: Africa Oil + Gas Report

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

ACROSS AFRICA

Mozambique’s LNG Industry Moves to Ensure Safe and Sustainable Operations

ozambique’s liquified natural gas (LNG) in d us tr y is s et to ensure safe and sustainable operations through the implementation of standardised security regulations and enhanced community empowerment. With substantial of fshore gas discoveries equating to more than 100 tcf, Mozambique has seen an influx in foreign investment aimed at driving LNG developments incountry. Despite major energy and infrastructure projects spurring job creation and a rise in local activity, the risk of the “resource curse” – in which resource-rich countries fail to fully benefit from their resource wealth due to immediate expropriation of resources and lack of reinvestment in the economy – presents a major challenge to both local communities and project developers. To safeguard LNG operations and ensure sustainable project development, oil and gas players must join forces with local government to co-implement standardised security regulations and foster community cooperation that showcases tangible benefits and prioritizes local empowerment. Standardised security regulations In recent months, there has been a proliferation of security threats to Mozambique’s LNG industry with the

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

rise in militant Islamic group attacks in the Cabo Delgado region – home to the country’s large-scale LNG developments. To mitigate the threat to its operations, French major Total even withdrew staff from its LNG site in January. According to C Derek Campbell, CEO of Energy and Natural Resources Security Inc, a primary regulatory and operational challenge in Africa is the lack of a consistent security framework that guides owners and operators of critical energy infrastructure on how to ensure resiliency and continuity of assets and operations. Through the implementation and execution of security-specific regulation, Mozambique c an establish a protected business environment for stakeholders and stimulate sectoral growth. Additionally, the increase in physical security threats has brought attention to the benefits of government collaboration with LNG developers. In a bid to address rising attacks, Total signed a MoU with the Government of Mozambique in August 2020, which saw the in the establishment of a joint taskforce to ensure the security of LNG project activities. This form of collaboration demonstrates the advantages of security cooperation and has the potential to increase safety on-site. Communit y cooperation and empowerment In addition to institutionalising a

security framework, dealing with security risks should go beyond established risk management protocols. One of the primary drivers of community unrest and retaliation concerns the lack of socioeconomic development directed towards the local population. To prevent this trend and ensure long-term, sustainable development, LNG projects have a critical role to play in establishing community cooperation through mutual beneficiation. The sustainability of LNG project developments can often be determined by community support, achieved through community empowerment and active participation. As mentioned, increases in physical security threats and vandalism can often be attributed to poverty alleviation, socioeconomic development and higher standards of living not being realised, despite significant energy potential. Therefore, by prioritising local content and capacity building through the training of and outreach and skills transfer to the local community, LNG projects can not only safeguard operations, but also ensure long-term success of projects. Mozambique’s ongoing security threats can be addressed through communit y par ticipation an d cooperation, as well as reinforced through security regulation and government support. In this way, LNG projects can not only ensure the safe continuity of operations, but also facilitate increased investment in the country and long-term industry success. The success of the country lies not only in the success of its energy industry, but in the energy industry’s ability to translate LNG revenues into tangible socioeconomic benefits. Source: Oil Review Africa

ACROSS AFRICA

Total CEO Speaks on East Africa Crude Oil Pipeline Fears oil projects are carried out in an exemplary manner and to create value for the people in both countries.

he French oil giant Total SA chief executive, Mr Patrick Pouyanne, has acknowledged that the company’s oil projects in Uganda “represent significant social and environmental stakes” but said they are mindful of the fears and are “taking them into consideration.” Mr Pouyanne said they are mobilising substantial resources to ensure the

“In view of the questions raised by stakeholders, the commitment of Total is to answer to all questions and to ensure complete transparency on the studies conducted by Total and independent third parties and the actions taken as a result,” Mr Pouyanne said in a statement from the company’s headquarters in Paris recently. Total SA, the parent company of Total E&P, the lead developer of East African Crude Oil Pipeline (EACOP),

made public the studies, including independent third-party reviews and social and environmental action plans of its Tilenga oil project in Nwoya and Buliisa districts. “These projects are undertaken in a sensitive environmental context and require the implementation of land acquisition programmes with a specific attention to respecting the rights of the communities concerned,” the company said in the statement. “Several independent reviews have been conducted by thirdparty organisations to ensure that the projects are implemented in compliance with social and environmental best practices. These reviews also allow assessment of the effectiveness of the actions undertaken, to identify areas of improvement and have resulted in related action plans,” the company added.

Chevron Announces First Gas from Alen Field Offshore Equatorial Guinea

oble Energ y EG Ltd. (a Chevron Company) has achieved first gas flow from the safe and successful execution of the Alen Gas Monetization Project. The project consists of a 70 km (43.5 miles) pipeline with a capacity of 950 million

cubic feet of natural gas equivalent per day (MMcfe/d) that allows gas from the Alen field, located in the Douala Basin offshore Equatorial Guinea, to be processed through onshore existing facilities, maximizing development of current and future regional gas resources. “As a company, we are proud to be a strategic partner in this joint effort, and we look forward to continue contributing to the economic and social development of the country,” said Gene Kornegay, Vice President and Country Manager of Noble

Energy EG Ltd. The Alen Gas Monetization Project is a key step forward for the country’s envisioned Equatorial Guinea Gas Mega Hub, which seeks to utilize existing infrastructure and support a thriving world-class gas industry within Equatorial Guinea. This project facilitates the transport of gas from offshore production infrastructure to existing onshore facilities at Punta Europa (the Alba Plant and the Equatorial Guinea LNG Plant), where it will be processed and converted into LNG, allowing for future discovered resources to be processed in the country, supporting jobs and economic growth, and further solidifying the country’s position as a key player in Africa’s oil and gas industry.

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

IWD 2021 #ChooseToChallenge

APWEN Abeokuta Honours Female Motor Mechanic ...Celebrates Abeogramms Girls

s Part of the events marking 2021 International Women’s Day (IWD), the Association of Professional Women Engineers of Nigeria (APWEN) Abeokuta Chapter has honoured Alhaja Adebisi Ojelade, a female motor mechanic at her workshop in Mechanic village, Kobape Road, Abeokuta today 11th March 2021. In her remarks, the Abeokuta Chairman of APWEN, Engr. Olanike Ogunbona appreciated Alhaja Ojelade for making the APWEN proud by distinguishing herself as a skilled worker who repairs and maintains vehicle engines. Alhaja Ojelade narrated how she learnt the work, and the only female that graduated at De Gaule Adeen Mechanic Workshop Oke 40

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

Sokori, Abeokuta and started working independently in 1992. She shared her experience and challenges encountered with her male counterpart despite she is one of the executives of the National Automobile Technicians Associations (NATA) Kobape Road, Abeokuta. One of her apprentices, Idris Abati and her colleague, Olu Olaifa also acknowledged the fact that Ojelade is one of the best hands in the mechanic village most especially for Japanese and German cars. They all testified to her dilligence and brilliance on the job. Highlight of the event was the presentation of award plaque to Alhaja Adebisi Ojelade.

In another related development, APWEN Abeokuta also celebrated girls of Abeokuta Grammar School Idi Aba Abeokuta that rep re sente d A P W EN O g un State at the “Who wants to be an Engineer Competition” of APWEN headquarters in celebration of IWD. In her speech, APWEN Abeokuta Chairman , Engr. O g unb ona appreciated the girls for good representation at the competition and charged them to work harder in their STEM Subjects in order to study Engineering in the University. She also appeals to the teachers to always support the girls in their study. Thereafter, awards plaque were presented to the brilliant APWEN girls of Abeokuta Grammar School to celebrate 2021 IWD.

IWD 2021 #ChooseToChallenge International Women’s Day (IWD) is a global day celebrated annually on March 8 to commemorate the cultural, political, and socioeconomic achievements of women. It is also a focal point in the women’s rights movement, bringing attention to issues such as gender equality, reproductive rights, and violence against women.

Women In Energy Canvass 30% Renewables Slot

omen playing in Nigeria’s energ y space have asked the federal government to open up the 30% renewable energy mix to women as they, more than the men, are better fund managers, and directly feel the impact of lack of power in the country.

The appeal was made during the ‘Energy Transition & The Role of Women’ session at the virtual Women In Energy Network WEIN’s inaugural conference over the weekend. This year’s conference was held in collaboration with the Renewable Energy Association of Nigeria REAN.

Speaking on the topic, Engr. Yetunde Taiwo, General Manager, New Energy at Seplat Petroleum Development Company, argued that women should be encouraged to compete more in the renewable energy frontiers sue to their proximity to the energy deficit gap both at home and at workplace

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

IWD 2021 #ChooseToChallenge “The renewable energy space should be opened to more women because they feel the direct impact of not having sustainable energy at the home front, and they also have the ability and acumen to manage whatever incentives that the government is giving for the renewable space”. According to her, giving women such opportunity will encourage them to be part of the energy transition plan of the federal government. “When you talk about government having 30 percent of the energy mix coming from the renewables, I think it should be channeled to the women”, she said. The session also had other discussants such as Folake Soetan, CEO at Sosai Renewable Energy, and Audrey Joe-Ezigbo, Deputy Managing Director at Falcon Corporation Limited.

Others include Head Project Management Unit, Rural Electrification Agency, Anita Otubu. Project Quality Engineering at TechnipFMC, Anehita Ojeabulu, and Chioma One, Training Development & Performance Manager at Solar Sisters.

This year’s WEIN/REAN conference was themed: ‘Light Up AfricaEnsuring Increasing Energy Access in Nigeria and The Role of Women. Source: Sweetcrudereports.com

2021 International Day for Women & Girls in Science: APWEN Visits FRIN and Aronmolase Woman Welder in Ibadan

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

IWD 2021 #ChooseToChallenge APWEN HQ joined other women in science worldwide to celebrate the International Day for Women and Girls in Science, February 11th, 2021. The President, Engr. Funmilola Ojelade, FNSE, led members on industrial visits to two locations in Ibadan, South-West Nigeria. First was to the Forest Products Workshop at the Forestry Research Institute of Nigeria (FRIN), Jericho, Ibadan and the second visit was to a welding workshop owned and run by a woman, Princess Modupeola Aronmolase. The visits were strategic. APWEN is looking to develop female craftsmen in various trades; carpentry, welding, electrical technicians, and others, through a program tagged “Tools & Tiara.” The industrial visits were to assess the resources of both facilities and to fashion out a collaboration. At FRIN, the APWEN team was received by the Director General, Prof. Adeshola Adepoju. He was excited at APWEN’s intentions of developing female craftsmen calling it a very laudable initiative. He advised APWEN to ensure that the girls are first sensitized about the advantages of acquiring a trade skill and properly screened before being admitted them into the program noting that many philanthropic and Social Responsibility gestures are unappreciated by many of the recipients and could be a waste if not properly handled. He promised to give APWEN whatever assistance they may require. FRIN has a college of Forestry Mechanization that deals with engineering issues in Kaduna. They also have a training school in Ibadan and workshops that can be used to train on wood products.

APWEN has come to celebrate the day with her as a woman in a sciencerelated trade. Also, that APWEN would like to employ her services as a trainer for the “Tools & Tiara”

project, to train girls in in the craft of welding. Princess Aronmolase was very pleased and expressed her willingness to collaborate with APWEN.

At the woman welder’s facility, APWEN was received by the founder, Princess Modupeopla Aronmolase. Her husband and daughter were also present, a family of welders. The APWEN President, Engr. Funmilola Ojelade, FNSE, informed Princess Aronmolase that

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

IWD 2021 #ChooseToChallenge

IWD 2021: NCDMB investments limited to Govt Policies, Projects – Wabote ...As WEOG Visits Board

he Nigerian Content Development and Monitoring Board (NCDMB) has said that it only partners with strategic policies and projects that are promoted by the Federal Government and would not invest in oil and gas businesses that have competitive private players.

as a catalyst for the industrialisation of the Nigerian Oil and Gas industry and its linkage sectors, it had partnered with investors in modular refineries, manufacturing of LPG cylinders, LPG Depots, gas processing facilities, lube oil production plant, and a methanol plant using gas as feed stock.

The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote made the clarification on Tuesday 30th March 2021, when he hosted members of the Women in Energy Oil and Gas (WEOG) Nigeria, led by their President, Dr. Oladunni Owo at the Board’s liaison office in Abuja.

Speaking further, Wabote listed some policies introduced by the Board to support women in the oil and gas industry to include the inauguration of the Diversity Sectorial Working Group in the Nigerian Content Consultative Forum (NCCF) and the creation of the Women in Oil and Gas Product in the Nigerian Content Intervention Fund (NCI Fund).

He clarified that the Board would not invest in competitive business areas because such investments would compromise its morale position as a regulatory agency. “Our role is to act as a catalyst of strategic government policies and programmes and we exit once those businesses become successful,” he added. He also stated that NCDMB is a regulatory agency and not an interventionist organisation and would not get involved in programmes outside its mandate. In line with the Board’s vision to serve

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

He explained that the Bank of Industry (BoI) is responsible for managing the NCI Fund, assessing applications, and disbursing loans to approved companies. He said “the NCI Fund is one of the most successful loan schemes. About 98 percent of the borrowers are paying back because we go through a very rigorous process.” Dwelling on the Project 100 Initiative of the Board, the Executive Secretary stated that it was designed to nurture 100 wholly owned oil and gas service providers in a competitive and

sustainable way through targeted interventions, into larger scale players that create high impact. He confirmed that some Project 100 companies are owned and managed by women and the participants were selected through a transparent process without recommendation from any quarters. The NCDMB chieftain also commended women for creating a forum to advance their cause in the oil and gas industry and counselled them against operating in splinter groups. “Do not see yourselves as rivalries because there are not even many women in the sector.” While calling for the inclusion of more women in decision making positions, Wabote stated that the Board’s Governing Council and the Top Management Committee had implemented a policy of having at least one lady to ensure gender balance and provide unique perspectives in decision making. Earlier in her remarks, President of WEOG, Dr. Oladunni Owo said the group visited the Board in furtherance of the International Women Day and to appreciate it for the laudable policies for women in the oil and gas sector. “This is very rare in Nigeria,” she said.

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

SUSTAINABILITY

Improved Data on Cooling Finance Needed to Enable Investment in Lifesaving Solutions

the current tracking of cooling investment is that databases lack project-level or transaction-level information. In response, the report proposes a new framework for tracking cooling investment that will enable transaction-level tagging for cooling finance, allowing development banks and national governments to better understand the scale, scope, and climate orientation of cooling investments, informing their policies and strategies.

OVID-19 vaccines are starting to be rolled out but need to be kept cold throughout their distribution. Meanwhile, global temperatures are rising year after year, with extreme heat threatening millions of people. The need for affordable, sustainable cooling solutions that do not cause a spike in global energy demand has never been so high. New research from Sustainable Energy for All (SEforALL) and Climate Policy Initiative (CPI), published under the Energizing Finance research series, highlights how improved tracking of cooling investment is essential to meeting the global cooling challenge. A Framework for Tracking Cooling Investment proposes a new approach to identify and track cooling transactions, which is an essential first step toward understanding current finance commitments and acting on growing global needs for sustainable cooling solutions. “Without precision in knowing how much finance is flowing to different types of cooling solutions in different

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

places, there is no foundation for informing policy and investment decisions that will deliver sustainable cooling for all,” said Brian Dean, Head of Energy Efficiency and Cooling at SEforALL. The report argues that current cooling finance datasets are too narrow in the types of investment identified and tracked as cooling solutions. For example, some datasets only track investment in active cooling equipment, such as air conditioners and refrigerators. They do not capture investments in various passive cooling solutions, such as energy-efficient building design and heat-resilient landscape architecture. As demonstrated in S E f o rA L L’ s Chilling Prospects research, increased investment in passive cooling solutions is imperative to managing the energy demands of cooling. Providing everyone with air conditioners is not an option if we wish to reduce overall energy consumption in the fight against climate change. The other shortcoming with

The framework provides clear guidance on how to categorize a wide range of cooling activities, which can be tagged by development banks and data providers based on their Cooling Orientation, Climate Orientation, Solution Type and Purpose. This tagging system could integrate seamlessly with the OECD’s existing investment data collection and verification approach. The report argues that the framework should be further d e v e l o p e d a n d p il o te d i n partnership with financial actors and data providers, and eventually implemented as a universal standard to track finance for cooling commitments and investment, helping decision-makers identify gaps between the two. Applying this framework will produce a more robust and useful set of cooling investment data. For example, not only will stakeholders be able to identify overall investment levels in cooling, but they will be able to segment which solutions are being supported. This segmentation is pivotal for knowing whether enough investment is being dedicated to sustainable cooling solutions or whether there is a bias towards energy-intensive solutions that undermine a low-carbon transition.

SUSTAINABILITY

Seplat Positively Impacting People, Environment With Its Sustainable Commitments ...gets regulator, investors commendation on strides

eplat Petroleum Development Company Plc, a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), is strongly committed to deploying resources and expertise to create and deliver sustainable value to meet the expectations of its various stakeholders through a responsible approach in the management of the Company’s Environment Social, and Governance (ESG) imperatives. The Company is committed to driving operational excellence in optimizing benefits to society and minimizing the negative impacts of its activities whilst making significant contributions towards sustainable development and pursuing continuous improvements in its Key Performance Indicators (KPIs) to ensure a better world without losing focus on the future generations. Mr. Roger Brown, Chief Executive Office at SEPLAT said this at the Facts Behind the Sustainability Report presentation made to the Nigerian Stock exchange (NSE)

recently in a virtual session. According to Brown, SEPLAT’s sustainability policy is based on the following principles: Commitment to transparent and complete disclosure of our ESG performance; encouraging responsible use of resources – energy, water and others; implementing human rights and gender equality; needs assessment of stakeholders to identify appropriate solutions; considering natural and cultural circumstances of SEPLAT’s host communities in the implementation of CSR initiatives; and setting science-based targets to deliver on environmental footprint. In addition, the SEPLAT CEO added: “We adopt an inclusive stakeholder management approach; integrate sustainability into our core business model and strateg y; embed Sustainability concept and practice companywide; operate the highest standard of corporate governance; leverage on stakeholder engagement in determining materiality; and exhibit a strong belief in our shared Value philosophy.”

He noted that the Company is strongly driving Nigeria’s transition to gas, delivering significant environmental, economic and social benefits that support United Nations Sustainable Development Goals. On SEPLAT’s response to Climate Change, he said the Company is strongly adhering to its flare out campaign to reduce carbon footprint, and has gone ahead to established a science-based assessment of our Greenhouse Gases emissions and reporting, adding that SEPLAT is currently investing in new infrastructure and R&D to help capture some of the emissions not previously reported. Brown explained: “We are developing a Carbon Calculator for continuous sustainable deployment to highlight the most negative carbon emission activities. Our investments in gas at Oben, Sapele and ANOH is aimed at reducing GHG emissions. “SEPLAT has created a new energy group to manage our midstream gas business and explore the adoption of renewable energy.”

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

SUSTAINABILITY According to him, SEPL AT’s operations impact a wide range of stakeholders; as the Company has continued to deploy proactive and effective stakeholder engagement framework, identify and classify stakeholders and their expectations, build mutually beneficial relationship with stakeholders, engage its s t akeh older s reg ularly an d consistently, and deliver consistently on our Global Memorandum o f U n d e r s t a n d i n g (G M o U ) commitments. He explained that SEPLAT has invested extensively on development of local suppliers, of which over 98 per cent of materials are sourced from Nigeria; adding that: “We have a deliberate policy of encouraging local contractors in the award of some jobs. The Company takes the issue of local content delivery seriously.” Over the years, SEPL AT has: improved economic empowerment of women and youths with customised empowerment programme; sustained skills acquisition program for youths in its communities whilst creating jobs and developing local suppliers. The Company has also improved access to quality education through customized CSR programmes, improved community infrastruc ture development , engaged 534 employees in its Nigerian and UK locations.

In his address, Oscar N. Onyema, the NSE Chief Executive Officer, congratulated S EPL AT CEO and the Company for the robust achievements and strides in the sustainability journey. The NSE CEO who urged companies to learn from SEPL AT, said reporting sustainability could help organisations create a sustainable future. Onyema noted that there is a recognized need for enhanced levels of corporate transparency on Environment, Social and Governance (ESG), and as an exchange “we are well positioned to encourage and even require listed companies to produce better sustainability reports that are issued consistently and with comparable information.” On governance, Brown said SEPLAT operates with the highest standard of corporate governance, with the Board oversight of all sustainability issues and the CSR Board subcommittee having direct oversight of sustainability issues. This is in strict compliance with SEPLAT’s corporate governance policy and companywide compliance with the Code of Business Conduct. Also speaking, the Divisional Head, Trading Business at the NSE, Jude Chiemeka, said sustainability is a journey and various companies are in their different stages of achievement

and reporting. He said the NSE will continue to promote global best practices as is seen in sustainability reporting, whilst also encouraging companies to do likewise. The SEPLAT CEO explained: “We respects rights of employees, community people and their culture. We maintain a non-discriminatory posture in recruitment devoid of gender, religion, tribe or other such considerations, and adhere to national and international labour laws and protocols.” Commenting on the Company’s adherence to best practices, Brown said: “ We adhere to relevant international standards and protocols such as the United Nations Universal Declaration of Human Rights, International Covenant on Civil and Political Rights, International Covenant on Economic, Social, and Cultural Rights, Convention on the Elimination of all forms of Discrimination Against, International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work, Board decision from inception on complete and transparent disclosure annually via Sustainability Report, Creation of a new function of Research & Sustainability Department to focus on ESG monitoring and reporting.”

After Steep Drop in Early 2020, Global Carbon dioxide Emissions Have Rebounded Strongly

lobal energy-related CO2 emissions were 2% higher in December 2020 than in the same month a year earlier, according to IEA data, driven by economic recovery and a lack of clean energy policies The Covid-19 crisis in 2020 triggered the largest annual drop in global energy-related carbon dioxide emissions since the Second World War,

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

SUSTAINABILITY according to IEA data released early March, but the overall decline of about 6% masks wide variations depending on the region and the time of year. After hitting a low in April, global emissions rebounded strongly and rose above 2019 levels in December. The latest data show that global emissions were 2%, or 60 million tonnes, higher in December 2020 than they were in the same month a year earlier. Major economies led the resurgence as a pick-up in economic activity pushed energy demand higher and significant policies measures to boost clean energy were lacking. Many economies are now seeing emissions climbing above pre-crisis levels. “The rebound in global carbon emissions toward the end of last year is a stark warning that not enough is being done to accelerate clean energy transitions worldwide. If governments don’t move quickly with the right energy policies, this could put at risk the world’s historic opportunity to make 2019 the definitive peak in global emissions,” said Dr Fatih Birol, the IEA Executive Director. “In March 2020, the IEA urged governments to put clean energy at the heart of their economic stimulus plans to ensure a sustainable recovery. But our numbers show we are returning to carbon-intensive business-as-usual. This year is pivotal for international climate action – and it began with high hopes – but these latest numbers are a sharp reminder of the immense challenge we face in rapidly transforming the global energy system.” The 2020 trends underscore the challenge of curbing emissions while ensuring economic growth and energy security. Amid a growing number of pledges by countries and companies to reach net-zero emissions by mid-century, the rebound in emissions shows what is likely to happen if those ambitions are not met with rapid and tangible action.

Emissions in China for the whole of 2020 increased by 0.8%, or 75 million tonnes, from 2019 levels driven by China’s economic recovery over the course of the year. China was the first major economy to emerge from the pandemic and lift restrictions, prompting its economic activity and emissions to rebound from April onward. China was the only major economy that grew in 2020. In India, emissions rose above 2019 levels from September as economic activity improved and restrictions were relaxed. In Brazil, the rebound of road transport activity after the April low drove a recovery in oil demand, while increases in gas demand in the later months of 2020 pushed emissions above 2019 levels throughout the final quarter. Emissions in the United States fell by 10% in 2020. But on a monthly basis, after hitting their lowest levels in the spring, they started to bounce back. In December, US emissions were approaching the level seen in the same month in 2019. This was the result of accelerating economic activity as well as the combination of higher natural gas prices and colder weather favouring an increase in coal use. “If current expectations for a global economic rebound this year are confirmed – and in the absence of major policy changes in the world’s largest economies – global emissions are likely to increase in 2021,” Dr Birol said. “Nonetheless, there are still reasons for optimism. China has set an ambitious carbon-neutrality target; the new US administration has rejoined the Paris Agreement and is putting climate at the heart of its policy-making; the European Union is pushing ahead with its Green Deal and sustainable recovery plans; India’s stunning success with renewables could transform its energy future; and the United Kingdom is building global momentum toward stronger climate action at COP26 in November.”

Global emissions plunged by almost 2 billion tonnes in 2020, the largest absolute decline in history. Most of this – around 1 billion tonnes, which is more than the annual emissions of Japan – was due to lower use of oil for road transport and aviation. As travel and economic activities pick up around the world, oil consumption and its emissions are rising again. The record increase in sales of electric vehicles is insufficient to offset the growth in emissions caused by the uptick in road traffic around the world. Global emissions from the electricity sector dropped by 450 million tonnes in 2020. This resulted partly from lower electricity demand but also from increases in electricity generation by solar PV and wind. For the world to achieve the climate goals of the Paris Agreement, notably of limiting global warming to well below 2 °C, a decline in electricity sector emissions of around 500 million tonnes would need to occur every single year. Even greater annual drops in emissions from electricity generation would be required to put the world on a path in line with warming of 1.5 °C. In order to show a sustainable path forward, the IEA will publish on 18 May the world’s first comprehensive roadmap for the energy sector to reach net-zero emissions by 2050. As part of its focus on leading clean energy transitions worldwide, the IEA is working with the United Kingdom’s COP26 Presidency to bring together heads of government and ministers at the IEA-COP26 Net Zero Summit on 31 March to step up international efforts to turn net zero pledges into concrete energy policies and actions. In April, the IEA will release its Global Energy Review 2021, which will examine this year’s emerging trends in global energy demand and CO2 emissions.

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

SUSTAINABILITY

NPA, NLNG move to reduce carbon emissions By Daniel Terungwa

he Nigerian Ports Authority, (NPA), in collaboration with the Nigerian Liquefied Natural Gas Limited , (NLNG), has commenced moves to reduce carbon dioxide emission and embrace the use of cleaner and safer source of energy. Managing Director, NPA, Ms Hadiza Bala Usman, while speaking at the just concluded NLNG conference tagged: “Decade of Gas” held in Abuja, said the agency is aligning with the global discourse that reduction in the use of heavy hydrocarbons and increasing the use of liquified natural gas in maritime transport could help reduce carbon dioxide emissions and other pollution arising from international trade. Bala Usman stated that the move to

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

minimize the use of carbon dioxide is a step in the right direction as NPA will join hands with other stakeholders to confront the challenges associated with climate change and air quality. She said; “With the expansion of opportunities in the sector and gas related investments and projects (eg. floating storage and regasification units, LNG bunkering floating platforms), there will, certainly, be more opportunities for Offshore Support Vessels (OVS) and the attendant economic benefits. This is why we must strive to provide the enabling environment for productive operations, with international best practices in mind. “Compliance is crucial to the handling of dangerous and hazardous good

and products (like gas). As a result, the NPA has strategically primed most of the reform initiatives to align with the impacts of global energy transition. “Towards the end of last year, I signed a directive with strict timelines for full compliance with and enforcement of the International Maritime Organization (IMO) sulphur regulation on Nigerian waterways. “The new regulations, known as IMO Sulphur Regulations 2020, mandates a maximum Sulphur content of 0.5% in marine fuels globally. The driver of this change is the need to reduce the air pollution created in the shipping industry by reducing the Sulphur content of the fuels that ships use. Source: Abuja

“Decade of Gas” Webinar,

Majorwaves Energy Report MARCH 2021, Vol 4 No 3

Majorwaves Energy Report

MARCH 2021, Vol 4 No 3

Majorwaves Energy Report March 2021

Articles inside

Seplat Positively Impacting People, Environment With Its Sustainable Commitments

APWEN Abeokuta Honours Female Motor Mechanic

FG Approves $526m for Power Projects, N190m for UI Microscope

NCDMB Inaugurates 2nd Batch of Project 100 Companies

African Local Content Fund Initiative Launched in Angola

IWD 2021 Nigerian Women in Energy ChooseToChallenge

Customers with Faulty Meters Shouldn’t Get Estimated Bills – NERC

NLNG Bags Gas Company of the Year Award

Seplat FY’20 Results Show Strong Cash Position of $259m Despite $100m RCF Repayment