Majorwaves Energy Report March Edition by majorwavesenergyreport

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MAR 2 0 2 0 VOL 3 NO 3

MAJORWAVES ENERGY REPORT

LOCAL CONTENT

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SOCIAL INVESTMENT

INFRASTRUCTURE

Nigeria’s Quest for Fuel Suﬀiciency, Refineries’ Revamp

NCDMB, Shell sign agreement on Gas facility How FG is addressing infrastructure deficit in power sector - ICRC BOSS

TGS wraps up one 3D survey oﬀshore Senegal, staas another.

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Majorwaves Energy Report MARCH 2020, Vol 3 No 3

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Majorwaves Energy Report MARCH 2020, Vol 3 No 3

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Just when Chinese President Xi Jinping made his first visit to Wuhan since the novel coronavirus outbreak began more than two months ago, a sign to show the coronavirus has been contained in China, the oil producing community are experiencing the beginning of a price war. Having suffered massively from the dip in oil demand, this is the last piece of information oil producing countries would have anticipated. OPEC failing to agree with its allies for further production adjustment have seen oil prices plunge to record low. It’s down to when Saudi Arabia and Russia will sheath their swords as the present 30 per cent crash in global price won’t benefit either party. Neither will the 3.5mln bpd unprecedented overhang for Q1 2020 do anyone good. Though the threat of a global epidemic from the virus still exists, particularly as the virus hotspots around the globe registers new cases, experts believe the advancement of the virus will be halted and normalcy will return in a few months. It is believed the aggressive Chinese model will be replicated globally. Additionally, these efforts will be supported by the release of experimental drugs and vaccines. Besides, the warmer temperatures of summer in the coming months will definitely change the dynamics. Our cover story x-rays the journey towards fuel sufficiency for Nigeria. With the right investments and alliances by government’s national oil company, NNPC, its maverick development agency NCDMB, unambigous policies by regulators, matched by private investments; the goal of fuel sufficiency by 2023 should be reached. As the world celebrates International Women’s Day, IWD in the month of March, we bring messages from some women who hold key positions at the Federal Ministry of Petroleum Resources. In the same vein, we present our Energy Woman for the month, Engr Lydia Wilson-Balogun who happens to be an ex-staff of NNPC. She presently works with British Petroleum, and have held top positions. These and more interesting reads have been prepared for you. Get details inside..

Cheers.

Jerome Onoja

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

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

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INDUSTRY NEWS

Sahara Group’s Innovation Hackathon Winners Emerge

he curtains have been drawn on the maiden edition of the Sahara Innovation Week, an initiative birthed with a vision to foster knowledge sharing and inventions that boost Sahara’s value proposition globally, with Sahara’s first Innovation Hackathon producing winners across the Group. The Hackathon which focused on service excellence around operational efficiency, customer experience and data optimisation & monetisation, attracted various submissions from different teams across the Group, and after rigorous assessment by various judges, Team GIS from Ikeja Electric Plc emerged as overall winners. Speaking at the award ceremony, Executive Director, Kola Adesina stated that “to reach greater heights, and to stay relevant, we must embrace innovation,” reiterating

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that Management would support innovative ideas and transform them for optimized implementation. Adesina disclosed that Management would transform the overall winning idea into a business enterprise in which the innovators will have shares.

future of Sahara Group, Executive Director, Temitope Shonubi said: “We see technology as that system that makes things better, easier, improves customer efficiency and operational effectiveness. This will drive what we do much more in the coming years at Sahara”.

The winners include Ayodele Alonge and Opeyemi Adaramola of Team BRAVO from Centrum Properties Limited, Ernest Efenador of Team OXYGEN from Egbin Power Plc, Chiedozie Ilechie, Chukwuemeka Azodo and Terkuma Ivande of Team REMACS from First Independent Power Limited, and Mobolaji Fayomade, Emmanuel Oyerinde and Chijioke Emeruwa of Team GIS from Ikeja Electric Plc. The top four winning teams went home with $5,000, $3,000, $2,000 and $1,000 respectively. Emphasizing the importance of technology and innovation to the

Ayodele Alonge, one of the winners, from Centrum Properties Limited, the real estate arm of the Group, described the Hackathon as a challenging and rewarding exercise. “This award has changed my life. In fact, I’ll be adding this achievement to my LinkedIn profile ‘Sahara Innovation Week winner, 2019’,”she stated. Other activities including Innovation Trivia, where winners went home with virtual reality gift items, Innovation showcase and knowledge sharing sessions, provided useful insight into the innovation path to Sahara’s future.

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INDUSTRY NEWS

DPR to enforce minimum industry safety training for downstream operations

he Department of Petroleum Resources (DPR) says it will begin enforcement of the Minimum Industry Safety Training for Downstream Operations (MISTDO) at petroleum facilities from Sept. 1. The agency said the move was necessitated by the rising cases of petroleum tanker accidents as well as gas explosion incidents leading to loss of lives and property across the country. Mr Sarki Auwulu, Director, DPR, issued the directive recently in Lagos at the inauguration of MISTDO programme, designed by the agency to deepen safety training in the downstream sector of the Nigerian oil and gas industry. He said “Effective Sept. 1, the department shall commence enforcement of MISTDO for all downstream operations and facilities. “This include Liquefied Petroleum Gas stations, retail outlet s, petroleum product depots, jetties, lube plants, industrial gas users and petroleum truck drivers and motor boys.” According to him, the enforcement will begin in Lagos, Ogun, Edo, Rivers, Imo, Enugu, Abuja, Kaduna, Kano, Niger, Nasarawa and Gombe, adding that no personnel would be permitted to engage in downstream

operations without the MISTDO training. Auwulu said effective Jan. 1, 2021, the compliance would be extended nationwide while renewal or obtaining of new permits for every downstream facility would also be based on the criteria. He said:” The growth of Nigeria’s downstream sector has resulted in increase of incidents leading to loss of lives, damage to properties and environmental pollution. “Some of these incidents have come from fallen tankers, petrol station fires, gas explosion and vandalism. “Our records show that 70 per cent of accidents in the Nigerian oil and gas industry between 2013 and 2019 occurred in the downstream sector. “To reverse this trend, the department has put in place enhanced regulatory strategies for downstream facilities’ development and operations monitoring targeted at the People, the Process and the Equipment. ” According to him, the MISTDO Programme is specially designed to target workers in the downstream sector including petroleum tanker drivers and motor boys. Auwulu said this was because investigations into repor ted incidents in the sector show that the underlining cause was poor

safety culture of workers and lack of knowledge which revealed serious training gaps. He said the DPR engaged critical stakeholders before coming up with the programme which has been developed in the three Nigerian major languages for easy understanding by all workers in the downstream sector. The director said inputs were sought from Oil and Gas Training Providers, Independent Petroleum Marketers Association of Nigeria (IPMAN) and Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN). He said contributions were also made by Major Oil Marketers Association of Nigeria (MOMAN), Federal Road Safety Corps (FRSC) and Nigeria Security and Civil Defence Corps (NSCDC). In their goodwill messages, Sen. James Manager, Chairman Senate Committee on Gas and Mr Alex Egbuna, Vice Chairman, House Commit tee on Downstream Operations, both commended the DPR for the initiative. The lawmakers said improving safety in the production, storage and distribution of petroleum products to end users would not only protect the lives and assets of Nigerians but it would also boost the nation’s economy.path to Sahara’s future.

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INDUSTRY NEWS

Shell plans turnaround scheduled maintenance on Bonga Vessel field accounts from between 150,000 and 180,000 barrels per day of oil exports on the average.

he Shell Nigeria Production and Exploration Company (SNEPCO) says the Bonga Floating Storage Production and Offloading (FSPO) is due for scheduled turn around maintenance.

The Shell Petroleum Development Company statement indicated that Bonga field situated on Oil Mining Lease (OML) 118, some 180 kilometers off the Atlantic Coastline would be shut for maintenance sometime in March or April. The

The development raised concerns of oil exports from Nigeria amongst industry observers. A spokesman of the oil firm noted that the exact time for the shutdown had yet to be fixed. ‘‘Bonga FPSO will be undergoing scheduled maintenance an d regulator y insp e c t ions during March and April. “Exact dates and production impact are currently under review and will be communicated in due course.” the Spokesman said.

Pricing, infrastructure imbalance worsen Nigeria’s CNG investments deficit -NIPCO

he inappropriate pricing, paucity of infrastructure and non-existence of a regulating agency are partly responsible for investment deficit rocking the Nigeria’s Compressed Natural Gas (CNG) industry. Managing Director, NIPCO Gas limited, Sanjay Teotia, who,

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according to a statement, declared this during a media tour of some of NIPCO’s facilities in parts of Benin City, the Edo State capital, noted that the development of CNG, which is also being used to fuel vehicles for profitability and environmental friendliness is also being hampered by lack of

accessibility to land. He expressed regret that with the enormous gas reserves in the country, the potentials in the sector have not being fully utilised to the benefit of the people. Nigeria, Teotia said, would continue to miss the gains of the deposit of such gas reserves if the challenges were not resolved.

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INDUSTRY NEWS “He however lauded the Federal G overnment ’s National Gas Expansion Programme Committee, which was recently inaugurated by the Minister of State for Petroleum Resources, Chief Timpre Silva, and chaired by Engineer Mohammed Ibrahim to steer the gas sector for optimal performance,” the statement signed by Assistant General Manager, Corporate Affairs, Nipco, Lawal Taofeek, read. The setting up of the committee, the Nipco Gas Ltd MD said, was very apt and a clear indication of the genuine resolve of the present administration resolve to tackle challenges that bedevil the sector and to pave the way for better utilisation of the nation’s massive gas resources in the overall interest of stakeholders . According to him, the company, which got its license to operate in 2007, have seven gas stations in Benin alone, with other stations in Lagos and Delta States adding that NIPCO has laid 51km gas pipeline in Benin to distribute CNG to the seven stations in the city. He said; “Currently, we have converted no fewer than 5000 vehicles from PMS/Diesel to CNG, and now distribute the product to few eatery in the city. We have the capacity to dispense 500 Standard Cubic Meter (SCM) and also dispense to no fewer than 20,000 vehicles here. “The sector has the potential to provide numerous job opportunities and create a lot of economy potentials for the country once the government provides the necessary frame work to enhance its growth. “For once, these must be appropriate pricing of gas to allow for affordability and the issue of land must be addressed as well. States government can encourage investment in the sector by giving land at a reduced rate,” he said. Some of the motorist who spoke with newsmen during the tour expressed delight on the over 40% saving they make using gas as auto fuel compared to using white petrol They however appealed to the company to replicate the establishment of more CNG across the city and neighbouring states to improve access to the product.

Seplat committed to managing matured assets profitably - Okon

eplat Petroleum Development Company Pl c , l e a d i n g N ige r ia n independent oil and gas company listed both on the Nigerian and London stock exchanges, has reiterated its commitment to managing old and matured assets profitably and growing returns. The company disclosed this to potential investors, industr y professionals and other participants at the IADC Drilling Africa Conference & Exhibition 2020 held in Accra, Ghana between February 18 and 19. Speaking during a panel session titled: ‘Established Producing African Countries’, the Operations Director at Seplat, Mr. Effiong Okon, said companies needed the right strategy, administration and technology to optimise mature or old resource wells and make the right profits. Okon said: “With a capable organisation, robust/ well-implemented strategy and deployment of latest technologies to optimise production capacity, companies can cost-effectively access and produce the remaining oil and gas in smaller reservoirs.

“In this light, Seplat employs a pro-active and innovative strategy towards optimising asset value and thereby extending economic life of small assets.” According to Okon, who is also an executive director in the company, Wells, Reservoirs and Facilities Management (WRFM) is key to sweating the assets and arresting production decline while developmental projects are aimed at filling ullage of existing facilities. He added: “Technologies deployed targets by-passed oil, attic oil, thin oil rims, improvement in productivity, (4D seismic, horizontal wells, geosteering, well stimulation). “Gas development of high and depleted pressure reser voirs (mechanical refrigerant vs JouleThompson), stripping out NGLs and LPG to maximize product yield and flares out.” The Seplat ED said the company’s Ovhor and Sapele fields that started production in the ‘70s were still producing after 50 years. He noted that facilities on the block include a flow station with 60,000 bpd capacity, a 60 MMscfd capacity non associated gas processing plant and a 26 MMscfd NGC owned gas compressor station

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INDUSTRY NEWS

NNPC rolls-out high performance engine oils

ollowing the unveiling of its range of lubricants late last year, the NNPC Retail Ltd, one of the Downstream subsidiaries of the Nigerian National Petroleum Corporation (NNPC), has commenced the rollout of its Nitro and Rhino range of engine oils into the market. Group Managing Director of NNPC, Mallam Mele Kyari, disclosed this at the formal launch of the products which held recently at the International Conference Centre, Abuja. Addressing marketers, distributors, managers of NNPC Retail’s affiliate stations and other stakeholders at the event, Mallam Kyari urged Nigerians to embrace the Nitro and Rhino range of engine oils as they were specially designed to meet the needs of Nigerian motorists. He certified the quality of the products, adding: “They are not in competition with any product, they are a replacement for any other product in the market”. Also speaking at the event, Chairman of the NNPC Retail Ltd’s Board and NNPC Chief Operating Officer, Gas and Power, Engr. Yusuf Usman, said the idea of NNPC lubricants

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was conceived long ago but it took time for the products to be designed and perfected in order for them to meet the company’s brand-characteristics of integrity and quality. He assured that the introduction of the Nitro and Rhino range of engine oils into the market would mark a turning point for Nigerian motorists. On his part, the NNPC Chief Operating Officer, Downstream, Engr. Adeyemi Adetunji, said the products were designed to stem the tide of prevalence of sub-standard engine oils in the Nigerian market which had been a cause for concern among motorists.

in keeping with the company’s strategic objective of making high quality petroleum products available to Nigerians at the right quantity for the right price, the Nitro and Rhino range of engine oils would be available at the over 600 NNPC Retail petrol stations, as well as accredited distributors and mechanic workshops across the country. He explained that the Nitro range of engine oil which comes in four variants – Nitro Diamond, Nitro Gold, Nitro Super 40, and Nitro 2T – is for petrol engines, with the Nitro 2T specially designed for two-stroke engines like motorcycles.

He said there was huge potential for the products as Nigeria was the third largest lubricant market in Africa, stressing that even with the introduction of electric cars, lubricants would still be required. Speaking earlier at a pre-launch press conference, Managing Director of NNPC Retail Ltd, Sir Billy Okoye, urged Nigerians to see the Nitro and Rhino range of engine oils as their own as they were the shareholders of the company and its parent company, NNPC. He assured that

The Rhino range which has two variants (Rhino X and Rhino HD), he explained, is designed for diesel engines. “NNPC brings to bear its wealth of experience in birthing the Nitro and Rhino ranges, hence the connection with the slogan, “Na My Papa Born Me”, in the product adverts we are rolling out in the media. The message is that the products are truly Nigerian, truly National, truly World Class”, the NNPC Retail boss stated.

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INDUSTRY EVENTS

African resources have the potential to alleviate poverty on the continent - PETAN Chairman By Ikenna Omeje

he Chairman, Petroleum Technology Association of Nigeria (PETAN), Mr. BankAnthony Okoroafor, has said that African resources have the potential to alleviate poverty on the continent. According to him,”540 million people in resource driven countries could be lifted out of poverty by effective development and use of reserves, more than what China did in the past 20 years.” He stated this in his welcome address at the 4th edition of the Sub Saharan Africa International Petroleum Exhibition and Conference (SAIPEC), held 25th-27th February, 2020 in Lagos, with the theme: “Oil and Gas as an Enabler for Economic Transformation in SubSaharan Africa.” He noted that Africa holds 7.5 percent of global total proven oil reserves, with about 128 billion barrels and another 7.6 percent of natural gas with about 503.3 trillion cubic feet (tcf) of global total proven natural gas reserves. Stressing the key role oil and gas can play in the economic development of a country, Okoroafor said,”... Qatar was a small pearl fishing economy, GDP per capital was

$2000 in 1970, zero LPG shipment till 1997. 77MPTA LNG export achieved in 14 years and GDP per capital of $124,000 in 2017. This is an example of using petroleum as an enabler for economic transformation.” He informed that the foundation of the development of most developed countries in the Middle East, Europe and America, was laid with oil and gas, adding that if properly harnessed, the oil and gas industry is capable of transforming the economy of the whole of African continent. O ko r o a f o r c a l l e d o n t h e governments of oil producing countries on the continent to create an enabling environment to make the industry private sector driven, just like in Europe and America, which has led to massive economic boost. He said,”The most developed countries in the Middle East, Europe and America laid the foundation of their development with oil and gas. The value chain in the oil and gas industry is such that if properly harnessed will definitely transform the economy of the entire continent. The challenge has been an enabling environment to create a private sector-led industry.

The oil and gas industry in Europe and America are private sector driven and this led to massive economic boost. Government across Africa, especially the oil and gas producing countries, should provide necessary incentives to attract private sector investment across the entire value chain. This will indeed trigger a massive economic revolution.” For Africa to move beyond exports and make the most of its resources, Okoroafor suggested strategic investment in infrastructure in areas such as refineries and petrochemicals. He advocated for strong regulation by governments on the continent to address issues surrounding regulatory and fiscal conditions. He also emphasised the need for regional integration to broaden the market and attract investments in the continent’s petroleum sector. SAIPEC is an annual conference organized by PETAN. The 4th edition of the conference attracted 20+ national oil company CEOs and delegations; 300+ companies participated; 80+ industry experts and 120+ exhibitors.

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INDUSTRY EVENTS

National Gas Transportation Network Code launched at NIPS 2020 in Abuja

he Minister of State for Petroleum Resources, Chief Timipre Slyva, has launched the National Gas Transportation Network Code on 2020 at the opening day of the third edition of the Nigerian International Petroleum Summit (NIPS) 2020 in Abuja. The gas network code, according to the minister, stipulates terms and guidelines of gas transportation, specifically applying between gas producers, shippers and their agents. Its provisions allow a window of six months for legacy agreements to migrate onto the network code while new and intending agreements are expected to align with the new code. Expressing the happiness on her association at the launching of the code, the President of the Nigerian Gas Association (NGA), Audrey Joe-Ezigbo, added that it will help Nigeria become a mature gas market. “The code will attract more investors into pipeline infrastructure,” said Joe-Ezigbo. Speaking during

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a panel session on the heels of the launch, Abel Nsa, assistant director, Department of Petroleum Resources (DPR), explained that the network code is a set of rules and contractual framework between producers and transporters. “It provides transparency and a level playing field for everyone who wants to come into the gas system. It is like a protocol to move gas within the system,” Nsa added. Nigeria is Africa’s largest oil producer and a strong member of the Organisation of Oil Exporting Countries (OPEC). With around 2.5 million crude oil production capacity, the country has huge gas reserves. According to data from the Nigerian National Petroleum Corporation (NNPC), the country has around 202 trillion cubic feet (tcf) of proven gas reserves plus about 600 tcf unproven gas reserves. Up till now, this gas had been largely undeveloped with huge chunk flared and the governmentowned Nigerian Gas Company (NGC), a sole operator providing

pipeline infrastructure in the Nigerian gas market. However, the Managing Director of the Nigerian Gas Company (NGC), Dr Salihu Jamari noted that his company has been upgrading its facilities in expectation of the launching of the network code. “We are making sure that metering is available at every point in the network. The NGC is very much aware of its role in the implementation of the network code,” Jamari stated. Over the years, the country’s relatively smaller oil reserves have been the major focus for government and international oil companies in the country who find it easier and more profitable to produce oil rather than gas. Government in recent years stepped up its effort to support gas development, grow the economy by opening the gas market through export and encourage domestic use of gas in power generation and household use.

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INDUSTRY EVENTS

SAIPEC: Nigeria commits to double domestic gas supply, export fuel by 2023

he national oil company of Nigeria, Nigerian National Petroleum Corporation (NNPC) is to expand its domestic gas footprint with the delivery of the Escravos-Lagos Pipeline System (ELPS) II to double capacity from 1.1 billion standard cubic feet of gas to 2.2 BSCF. A statement by its Acting Group General Manager, Group Public Affairs Division, Samson Makoji, in Abuja, said the Group Managing Director of the corporation, Mele Kyari, spoke on the expansion at the fourth sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos. A report by Financial Derivatives Company (FDC) has also noted that investors in the oil and gas industry are awaiting the outcome of the passage of the Petroleum Industry Bill (PIB), especially the clarity of its fiscal terms. Speaking on the theme: “Oil and Gas as an Enabler for Economic Transformation in Sub Saharan Africa,” Kyari stated that the NNPC would commence the construction of the Ajaokuta-

Kaduna-Kano gas pipeline in the second quarter of 2020 to serve as an enabler to further boost economic activities of the country. Represented by the Chief Operating Officer (COO), Gas and Power, Mr Yusuf Usman, Kyari explained that the recent passage of the Deep Offshore Act into law has set the industry on the path of irreversible growth. According to him, Nigeria as Africa’s leading exporter of LNG and the fourth in the world after Qatar, Australia and Malaysia, is ready to capture more LNG market with the Final Investment Decision of the NLNG Train 7. He said most resource dependent nations rely on their dominant natural resource to drive other key economic initiatives and activities, noting that it is true of Nigeria and many other countries represented at the conference. He explained that the connection between the oil and gas industry and the Nigeria economy was intricate, adding that the state of every aspect of the nation’s economic and social life revolves around hydrocarbon

resource. Kyari called for more hard work to diversify the economy away from over dependence on oil revenues in order to avoid the risk of market fluctuations that may impact the nation’s fiscal equation. He said: “Oil and gas resources have remained the major source of revenue that has kept the wheels of Nigeria moving for over five decades. Oil, as we all know, has served as key enabler to the economic transformation of many nations like Norway, Saudi Arabia, UAE, Qatar and many other oil resources dependent nations. “The current government under the leadership of President Muhammadu Buhari has made it a priority to ensure revenues from oil and gas resources are utilised to support the emergence and growth of other non-oil sectors of the economy. “In order to achieve this objective, it means more money will be required from the oil and gas to fund new economic projects outside the oil and gas industry,” the GMD stated.

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INDUSTRY EVENTS He said the NNPC, as a national oil company, had been repositioned to support the vision of the president for economic diversification, adding that in the upstream, the corporation targeted increasing oil production from 2.3 million barrels per day to 3 million bbl/ day. He noted that the corporation was working with partners to significantly reduce production cost per barrel in order to improve the flow of the needed revenue to support economic diversification. He said the NNPC was encouraging private investors to boost investment in oil and gas value chain as a way of creating more value and job opportunities for the nation’s teaming youths. Kyari explained that Nigeria was still a net importer of petroleum products due to the current state of NNPC refineries and the long absence of private investment in the refining sector. According to him, the NNPC is inviting investors to key into the revamp and expansion of domestic refining capacity in order to support the growth of the downstream sector and guarantee energy security for the nation. “We are progressing with the establishment of condensate refineries to fast-track domestic supply of petroleum products. In the same vein, the corporation would support the actualisation of the 650Kbbl/day Dangote Refinery, as well as other private initiatives along this line. Our plan is for Nigeria to become a net exporter of petroleum products by 2023,” Kyari noted. He said that NNPC was leveraging technology and innovation to achieve the goal of building an energy company of global excellence. The GMD implored all stakeholders to collaborate with the corporation in an atmosphere that is beneficial to all and emplaces Nigeria on the path of growth and development. In his opening remarks, the Chairman of the Petroleum Technology Association of Nigeria (PETAN), Mr. Bank-Anthony Okoroafor, called for deeper regional integration 14

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among African countries to boost the continent’s economic activities. Meanwhile, investors in the oil and gas industry is awaiting the outcome of the passage of the Petroleum Industry Bill (PIB), especially the clarity of its fiscal terms, analysts at the Financial Derivatives Company (FDC) have stated in a report. The analysts, in the February edition of the economic bulletin of the firm released yesterday, noted that the inability of the federal government to agree on oil reform is costing the country loss of investment or deferred investment in crucial oil projects as investors await how the regulations to be contained in the proposed law would affect the oil and gas sector. It noted that the prevailing global economic uncertainty has also affected the value of the state’s oil assets and what prices the government could command. Analysing the global trend in oil prices, the report explained that oil prices touched a peak of $68.91 per barrel due to the US-Iran tensions, US-China trade deal agreement and shutdown of two Libyan oil fields, before falling sharply to $59.45 per barrel following the outbreak of Coronavirus, which is impacting oil demand from China. Following the outbreak of Coronavirus, which has affected the global demand for crude oil, the price of the commodity has since slumped to $54 per barrel. Crude oil prices gave up early gains and slid for a fourth day yesterday as fears of a Coronavirus pandemic deepened as the outbreak spread in countries outside China. Brent crude fell 31 cents, or 0.6 per cent, to $54.64 a barrel while the US West Texas Intermediate crude dropped 16 cents, or 0.3 per cent, to $49.74. Fears of a pandemic have escalated as authorities around the world battle to prevent the spread of Coronavirus, which has now been found in about 30 countries. On the outlook for oil price, FDC projected that the bearish trend in prices would be sustained in the near term due to low demand from China as a result of the

Coronavirus. The report showed that Nigeria’s oil production declined by 1.12 per cent to 1.77 million barrels per day (bpd) in December 2019, from 1.79mbpd in November 2019. OPEC’s total crude oil production averaged 29.44mb/d in December, which was 161,000 bpd lower than the previous month. “At the December meeting, OPEC and its allies agreed to cut oil output by an additional 500,000 barrels per day but are yet to determine output cut among member countries. “With the recent decline in oil prices, the cartel will have to speed up its allocation process and could even resort to a deeper cut. If this happens, Nigeria may have to further reduce its oil production,” the report stated. On the impact, FDC explained that Nigeria was highly susceptible to a fall in oil production as crude oil accounts for approximately 90 per cent of Nigeria’s total export. The company also forecast that further decline in oil production levels coupled with lower oil prices would result in depleting oil proceeds, fiscal revenue and balance of trade. This, according to the report, means that the pace of depletion of the reserves could intensify and trigger a currency pressure. Also looking at the trends in natural gas, it stated that the prices of the commodity averaged $2.03/mmbtu in the review period, 11.35 per cent lower than the average of $2.29/mmbtu in December. “Prices increased to $2.19/mmbtu on January 14 before nose diving to close the period at $1.84/mmbtu. The bearish price trend was primarily influenced by the Coronavirus outbreak, surge in Qatar’s LNG production and lower demand in the United St ates,” the repor t added. The FDC report projected a rise in demand, especially as the peak of the winter season approaches. Also on the impact side, the report forecast that a higher LNG prices was positive for the country’s export revenue.

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INDUSTRY EVENTS

The firm also forecast a further decline in the nation’s power supply in the coming weeks. It stated that average power output from the national grid for January was 3,816MWh/h, which was 1.41 per cent higher than the average of 3,763MWh/h in December 2019. It added that during the month, power output was volatile, peaking at 4,120Wh/h on January 15 and nose diving to 2,373Wh/h on January 16. The FDC repor t added: “Aver age power output is expected to decline in the coming weeks due to the persistence of water constraints emanating from the dry weather and zero rainfall. This will be compounded by rising gas constraints. “The presence of water constraint limits hydropower generation in the country. A decline in power supply would result in an increase in demand for alternative power sources. This would increase the operating expenses of firms and households”. It, however, stated that the implementation of the cost reflective tariff in April would increase investments in the power value chain and improve power supply in the medium to long term.

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“The presence of water constraint limits hydropower generation in the country. A decline in power supply would result in an increase in demand for alternative power sources. This would increase the operating expenses of firms and households”.

Chevron Receives Two Awards at 2020 NIPS Oil/Gas Industry Dinner and Awards

hevron Nigeria Limited, (CNL), operator of the NNPC/CNL Joint Venture, was recognised for its outstanding performance in the Nigerian oil and gas industry as the company was presented with two awards during the Industry dinner and awards night organised as part of the activities to mark the official opening ceremony of the 2020 edition of the Nigerian International Petroleum Summit (NIPS), at Transcorp Hilton Hotel, Abuja on Monday February 10, 2020. The two awards to CNL are, the “Award for excellence in environmental sustainabilit y and stewardship” and “Award for the best exhibition booth at NIPS 2019”. CNL’s Chairman and

Managing Director, Jeff Ewing received the two awards on behalf of the company. The event was attended by many dignitaries including the Senate President Senator Ahmed Lawan who was represented by the Chairman, Senate committee, Petroleum Upstream, Senator Albert Bassey Akpan, Minister of State for Petroleum Resources, Chief Timipre Sylva, Petroleum Ministers from other African countries as well as representatives of the Ministry of Petroleum Resources, the Group Managing Director, NNPC, Mallam Mele Kolo Kyari, industry regulators and other captains of the Nigerian oil and gas industry.

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LOCAL CONTENT

APPO Commends NCDMB for Leading Africa Local Content …Exec Sec champions closer collaboration in Africa Oil Sector

he African Petroleum Producers Organization (APPO) has applauded the Nigerian Content Development and Monitoring Board (NCDMB) for its effective promotion of Local Content within the Africa continent. Secretary General of APPO, Dr. Omar Farouk Ibrahim spoke recently at the Sub Saharan Africa International Exhibition and Conference (SAIPEC), organized by the Petroleum Technology Association of Nigeria (PETAN). He described Nigeria’s Local Content Policy as a model worthy of emulation by other African nations and extolled NCDMB for catalyzing the development of infrastructural and human capacities that is being deployed to run the operations of the Nigerian oil and gas industry. He regretted that member countries of the Organization for Economic Cooperation and Development (OECD) had begun to initiate discriminatory policies towards hydrocarbons as primary energy sources and discourage research and investment in the sector – actions which would eventually make fossil fuels less accessible and more expensive and position other sources of energy as viable alternatives. He noted that these developments were taking place at a time that Africa is making more finds in oil

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and gas, hence making it imperative for African nations to take their destinies into their our own hands and pursue the development of local capacities to operate the oil industry successfully and use energy to fuel the national, subregional or continental economies. He acknowledged that significant progress has been made by some countries, pointing out that “Nigeria’s example is worth emulating. I wish to commend the Nigerian Content Development and Monitoring Board for the support it has been giving to a number of African countries.” Ibrahim underscored APPO’s belief on the “need to domesticate the oil and gas technology on our continent. No nation or continent will transfer technology to us. We should encourage local content development in the oil and gas industry on our continent.” He promised to facilitate more experience sharing between Nigeria and other African states, noting that APPO plans to develop exchange programmes among staff of the oil industry of its member countries. “We also believe that partnership in the development of crossborder energy infrastructure in oil and gas pipelines, electricity, joint refineries, among others are key to sustainable development of the energy industry in Africa. No one country can do it successfully

in isolation,” he added. Making presentation on ’Sub Saharan Africa Local Content Collaboration Strategy’’, the Executive Secretary, NCDMB, Engr. Simbi Kesiye Wabote remarked that the increasing discovery of hydrocarbon resources in Sub-Saharan Africa is sufficient motivation for governments and operators to collaborate closely. He said such collaborations can be deployed using infrastructure development, legal framework, trade agreements, human capital mobility, common industry standards, supply chain development, finance beyond borders to achieve local content practices on a wider scale. The Executive Secretary maintained that such collaboration will be an additional boost towards achieving sustainable development, especially if it is approached from the ‘’comparative advantage’’ point of view. He remarked that Ghana, Sierra Leone, Liberia, Mozambique, Kenya, Tanzania, and Senegal had joined the league of countries with hydrocarbon resources between 2005 and 2015 and more countries would join by 2025. Harping on Local Content, Wabote described it as a sure way to develop local capacities and capabilities across all sectors such that values are retained in-country and by extension, retained in-continent.

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LOCAL CONTENT

NCDMB, National Assembly hold workshop on Nigerian Content …Board to record US$360m annual turnover from partnerships

h e N ige r ia n C o nte nt Development and Monitoring Board (NCDMB) has organised an onboarding capacity building workshop for members of the Senate Committee on Local Content and House of Representatives Committee on Nigerian Content Development and Monitoring. The retreat was held in Lagos recently, with the theme “Building Capacity for Effective Oversight Towards the Realization of the Objectives of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act) and its Amendment.” In his address, Chairman of the Senate Committee on Local Content, Senator Teslim Folarin stated that the retreat was organized to enable the legislators have an in-depth knowledge on the mandate of NCDMB, its governing Act, identify areas of amendments and understand their oversight functions. H e p o s i te d t h at e f f e c t i ve enforcement of the NOGICD Act will enhance in-country value creation and retention and generate employment for Nigerians across the industry value chain, especially now that revenue accruable to the Federal Government from other key sectors of the economy was dwindling. Folarin commended NCDMB for recording landmark achievements in the last 10 years, which included the creation of

an enabling environment for indigenous companies to strive in the Oil and Gas industry; promotion of knowledge transfer, deepening in-country technical capacity, increasing industry contribution to the National GDP and facilitating access of Nigerian-made goods and services to regional markets among others. He promised that the National Assembly will continue to collaborate with NCDMB to understand its challenges and that of the industry, with a view to providing necessary legislative support for the Board to enforce the NOGICD Act. The committee chair confirmed that the two chambers of the National Assembly have set up a Technical Committee to commence a review of the NOGICD Act, to increase its relevance to current industry realities and expand its scope to cover other key sectors of the economy. “Their report will be submitted and considered by our Committees for further legislative action,” he added. In his remarks, Chairman of the House of Representatives Committee on Nigerian Content Development and Monitoring, Rt. Hon Legor Idagbo underscored the need for improvement in the implementation of the Nigerian Content Act, with a view to increasing the contribution of the oil and gas sector to the nation’s Gross Domestic Product (GDP).

Idagbo noted that the House Committee had a robust relationship with its Senate counterpart and expressed hope that it would lead to tangible benefits for the country. He announced that the committees will commence their oversight functions immediately after the retreat, so that Nigerians can derive maximum benefits from Local Content implementation. The Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote remarked that it was rare for members of the two arms of parliament to come together for capacity building. He said the positive dynamics exhibited by the legislators was a confirmation they would work together for the advancement of Nigerian Content implementation. Delivering his paper which focused on the “Implementation of Nigerian Content Act: the story so far,” the Executive Secretary indicated that NCDMB targets an annual turnover of US$360m from its various partnership in commercial ventures. These ventures include the 5,000 barrels per day Waltersmith Modular Refinery in Ibigwe, Imo State and the 12,000bpd Azikel Hydroskimming Modular Refinery in Bayelsa State. Other partnerships include 400,000 units per day LPG Cylinders manufacturing plant at Polaku, Bayelsa state, a 168,000 metric tonne per annum loading and off-loading LPG terminal in Koko,

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LOCAL CONTENT Delta State and 48,000 liters per day facility in Port Harcourt, Rivers State for the production of base oil from used engine oil. Wabote also remarked that the Board’s implementation of the Act had resulted in the retention of about US$9bn annually from the average $20bn industry spend. He added that about 9 million man-hours had been achieved in training while indigenous players now own about 40 percent of marine vessels that operate in the oil and gas sector.

Dwelling on current issues affecting Loc al Content development and ways to mitigate them, the Executive Secretary regretted the drought of Final Investment Decisions (FID) on major oil and gas projects. He recommended that one major project should be sanctioned in the industry every two years interval to ensure continuous use of capacities and capabilities established in-country and sustainability and growth. He also canvassed for the involvement

of relevant agencies by government and private sector entities while negotiating terms of foreign loans, to ensure due consideration of Local Content requirements in the foreign loans and the attendant projects. The two-day workshop featured presentations on varied topics around the Nigerian oil and gas industry, Local Content initiatives, identified loopholes in the NOGICD Act and suggestions to address them.

NCDMB, Shell sign agreement on gas facility

h e N ige r ia n C o nte nt Development and Monitoring Board (NCDMB) on Wednesday, March 4, signed an agreement with Shell Nigeria Gas (SNG) for lease of one hectare of the board’s land in Polaku, Bayelsa. The land is for the development of a Pressure Reduction and Metering Station by Shell. The Executive Secretary, NCDMB, Mr Simbi Wabote at the signing of the agreement in Abuja, said the facility would be used for gas distribution. Wabote signed for the board while the Managing Director of Shell Nigeria Gas (SNG) Mr E.D. Ubong signed for shell. “The pressure reduction and metering station will be used to distribute part of the gas from Shell’s Gbarain-Ubie gas plant for domestic utilisation,” he said. Wabotes explained that the board decided to use part of its land to catalyse the distribution and availability of natural gas to domestic gas users within Bayelsa and neighbouring states. This, he said was in line with the agency’s vision to be a catalyst for industrialisation of the Nigerian oil and gas industry and its linkage

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sectors. According to him, the availability of natural gas will open up corridor of opportunities for new and existing investors. He added that NCDMB was already in receipt of proposals for the location of power plants, CNG plants, and other manufacturing outfits in Polaku. ”With the extension of the gas pipeline network by SNG, more businesses can be supplied with natural gas, thereby creating employment and enabling impactful economic activities with this partnership. “We expect 30,000 direct and indirect jobs to be created in construction, manufacturing, and services sector within the next two years,” he said. Speaking further, Wabote noted that the Minister of State for Petroleum Resources, Chief Timipre Sylva had declared Year 2020 as the Year of Gas and NCDMB had bought into this declaration. He noted that the partnership with Shell Nigeria Gas would enable the provision of natural gas for power generation, feed stock, transportation, and for other industrial uses. He added that SNG’s project aligned with the board’s 10-year roadmap which aimed to increase the level of Nigerian

content in the oil and gas industry to 70 per cent by 2027. The executive secretary also said the board was delighted to partner with Shell Nigeria Gas Limited. He noted that the company had been supplying natural gas via pipelines to industrial customers within the Agbara/Ota axis, including the Ogun-Guangdong Free Trade Zone in Ogun. Others were in Aba industrial areas in Abia, and Port Harcourt in Rivers with a very impressive safety record. In his remarks, Ubong conveyed Shell’s excitement to distribute gas from its Gbarain-Ubie facility to drive economic development in Bayelsa and environs. He said Shell was the pioneer and leader in the delivery of domestic gas. Also, Chairman of Shell Nigeria Gas Limited, Mr Hans Nijkamp said the investment would unlock gas delivery and economic development in Bayelsa. “Everywhere we have distributed gas, we have seen the explosion of economic activities that Shell’s domestic agenda for gas in Nigeria is very important and we have growth plans and very excited to work together with NCDMB,” he said.

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LOCAL CONTENT

GPPSL emerges best Nigerian service company, back to back

HMSPR Timipre Sylva hands over award to Obi Uzu

igeria’s frontline oil services company, Global Process and Pipeline Services LTD (GPPSL) has emerged as the best Nigerian services company in the oil and gas industry for the second time in a row. This was announced during the industry dinner and awards night, at the 2020 Nigeria International Petroleum Summit (NIPS), which held in Abuja, early in February. It would be recalled that GPPSL won the same award at NIPS 2019. The 2019 recognition followed a similar award under the same category, but organised by a different body, the Energie Platform Lecture Series (EPLS). GPPSL was incorporated in 2002 and commenced operations in 2010 as a frontline oil services company, showcasing Nigerian indigenous capability on land, swamp and offshore terrains. Over the years, the company has experienced exponential growth and currently has the largest incountry pumping, process and pipeline services equipment fleet, capacity and competency. Speaking recently with Majorwaves

on the achievements of the company, the Managing Director, Engr. Obidike Uzu, said, “We are proud of our rapid growth and this has been attested to by African Business Review, which listed us among the top 10 fastest growing companies in Africa, as at March 2014. “We have since grown to become a superior brand name in the pre-commissioning and pumping industry with numerous awards to show for it. Our safety practice and quality service delivery is benchmarked against global standards, to the admiration of our clients. We are a great success story of collective collaboration of Nigerian talents, strategically organized to harmoniously work together. “GPPSL is the only Nigerian company focused solely on process and pipeline product service line, with major projects completed in deep-water applications. We have attracted the best hands in the industry to work with us. Some came from multinationals and have joined in this drive of expansion into other Sub-Saharan Africa countries,”

he said. While commenting on the goal the company has set to achieve in near future, he noted that “the goal of the company is to have presence in other countries, especially in Africa”. “Our goal is to turn GPPSL into a global brand, spreading into other countries. We have no doubt that GPPSL would become the obvious market leader in her product service line, especially in Africa. I see GPPSL expanding her foot-print into other sub-Sahara African countries in the nearest future. And in terms of financial success, I see GPPSL doubling her current revenue base, and efficiency in the near future.” GPPSL, as an ISO 9001:2015 certified company, has attracted acknowledgements and commendations from the oil industry giants like - Exxonmobil, Total, Nigeria Liquefied Natural Gas (NLNG), Shell Companies in Nigeria, among others, because of the company’s quality of service delivery.

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LOCAL CONTENT

Chief Joseph Penawou

FMES set to commission state-of-the-art logistics base in Bayelsa

irst Marine and Engineering S er v ice s (F M E S) i s to commission its logistics base in Bayelsa come April 2020, the Chairman/Chief Executive Officer of the company, Chief Joseph Penawou has said. In an exclusive chat with Majorwaves Energy Report during the 2019 Practical Nigerian Conference (PNC), he said while answering questions on the project, “The base has already been established. The Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva graciously came to carry out the inspection on the base this morning. And we are looking at commissioning the base in second quarter of 2020; April precisely.” Speaking on the capacity of the base, Penawou said, “it has a parking area of about 80,000 square kilometres. It is equipped with accommodation that can take over 60 people; office space that can take over 40 people, lock up warehouses too.” He noted that the base has so many advantages for International Oil Companies (IOCs), because of its proximity to the operation bases of the companies. “Bayelsa has no base.

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“

T his is the only Logistics base in Bayelsa. In terms of proximity, the IOC s have a lot to gain. If you’re coming from Warri or Port Harcourt, it takes you days to get to your operations. From this base, it takes you 8 hours. It’s a cost-saving measure. So, it’s of advantage to those who have their operations around Bayelsa and Brass area to use this base.” Though security is a source of concern for oil companies and ancillary service firms in the Niger Delta area, Penawou stated that the company in its one year operation has had no security challenge. “It’s normal that we operate with JTF. The oil companies also have their own security. We have been here for a year now, so we don’t have issues with that,” he averred. He added that the company is looking at expanding the Base by adding other features that will make it more convenient for its clients. “We are looking at expansion

- building a helipad. We are looking at expanding the base - building oil storage facility that can accommodate over two million litres.” FMES logistics base is a one-stopshop, which provides all logistical services, including warehousing, material handling equipment, fabrication, assembly yard, crew change management, catering, open and closed storage facilities that can support oil exploration companies with acreage(s) around Bayelsa axis, to be more efficient due to proximity.

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T he prox i m ity ha s the potentia l s to reduce swamp and offshore o p e r at i o n s c o s t by 4 0 percent and long transit time from Port Harcourt to just 8 hours as against t he u sua l 4 to 5 day s from other locations.

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NIPS 2020 Photospeak

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s the world marks International Women’s Day, the Ministry of Petroleum Resources have gathered the thoughts of some of its superwomen who work assiduously for the ministry, while participating in the solidarity for Gender Equality. #EachforEqual

#GenerationEquality

#IWD2020

‘In every home, each child regardless of the assigned gender at birth should be given an equal opportunity to live a wholesome life.’ ~ Nkem Agholor, Director, Gas Department, Ministry of Petroleum Resources, Nigeria #GenerationEquality #EachforEqual #IWD2020

‘Every child is important regardless of the assigned gender at birth and should be given equal opportunities to prosper.’ ~ Nneka Ikeagwu - Senior Petroleum Engineer, Ministry of Petroleum Resources, Nigeria #GenerationEquality #EachforEqual #IWD2020 24

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‘Your gender shouldn’t preclude you from having balls. Women should continue to speak boldly to issues that affect them.’ ~ Blossom, Technical Assistant, Media and Strategy, Minister of State for Petroleum Resources, Nigeria #GenerationEquality #EachforEqual #IWD2020

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‘Women should be given equal opportunities in terms of responsibilities and assigned roles in the marketplace to ensure full productivity.’

‘In the current society and to see the development that we seek, women should be empowered to fully commit to creating a better society.’

~ Timilayefa Nwajueboe, Press and External Relations Unit, Petroleum Technology Development Fund

~ Comfort Emenbu, Deputy Director, Gas Department, Ministry of Petroleum Resources, Nigeria

#GenerationEquality #EachforEqual #IWD2020

‘Giving an equal opportunity for women to earn the same salary as their male counterparts will play a major role in closing the gender gap.’

‘I can do anything I set my mind to do and as such, I am fully persuaded that no woman should be limited in any way.’

~ Enobong Chibo, Deputy Director, Gas Department, Ministry of Petroleum Resources, Nigeria

~ Shim Bingel - Senior Geologist, Ministry of Petroleum Resources, Nigeria

#GenerationEquality #EachforEqual #IWD2020

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COVER STORY

Nigeria’s Quest for Fuel Sufficiency, Refineries’ Revamp By JEROME ONOJA & AMOS IKE

he Minister of State for Petroleum Resources, Chief Timipre Sylva and the Nigerian National Petroleum Corporation (NNPC) had set a target of 2023 for the revamp of the country’s refineries and to end the importation of premium motor spirit (PMS), also known as petrol. The commitment of the government to this target had been called to question in the not-toodistant past. This article explores Nigeria’s journey through fuel shortages and the refinery quagmire, along with the various attempts of the government and private sector to remedy the situation.

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The Federal Government of Nigeria’s quest to end fuel importation by 2023 might yet be achievable, going by the drive of the country to fully rehabilitate the country’s refineries and support private investors in their efforts to set up crude oil refining facilities anywhere in the country. Ensuring that the country’s refineries return to full capacity, supported by private refineries, remained the only avenue through which Nigeria can achieve its goal of becoming a net exporter of petroleum products across the globe.

The near absence of functional refineries in Nigeria dates back to early 2000, when the country’s refining capacity began dwindling, and fell to less than 10 per cent of the facilities’ installed capacity. With the collapse of the refineries, Nigeria, which used to export petroleum products to neighbouring countries, later became a net exporter of the commodity, with the attendant loss of foreign exchange earnings and other illicit activities linked to unbridled fuel import.

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COVER STORY buying. At other times, it was a combination of all the factors. With the collapse of the refineries, kerosene also known as paraffin, became scarce. Meanwhile, this has always been an important household fuel since the mid-19th century, not just for Nigerians but developing nations in general. Where the commodity was available it was sold at a dear price. This forced the vast majority into seeking alternatives in solid fuels, biomass and coal, for cooking and other household needs. The cause of the kerosene scarcity was later attributed to systemic dysfunction arising from years of mismanagement of the oil sector.

For almost two decades, Nigerians suffered fuel shortages, with massive fuel queues emerging especially at critical periods, such as during the Yuletide season and other festive periods. The fuel shortages, which became perennial, consistently disrupted the Nigerian economy, spiked the country’s inflation rate and worsened the living standards of the people. It gradually became a regular occurrence that at Christmas, those who travel to country sides for celebration, a common ritual, were forced to pay exorbitant fees. It was either a case of PMS shortage, hoarding, illegal export or panic

In their Policy Brief, titled, ‘Kerosene Subsidy Reform and the Burden of Supply,’ Victoria Ohaeri and Temitope Adeyinka of Spaces for Change (S4C), a civil society organisation, lamented that years after the changes in kerosene subsidy policy, kerosene supply challenges remained as prices soared across major cities in Nigeria. They said, “to stem the protracted shortages of household kerosene, the Petroleum Products Pricing Regulatory Agency (PPPRA) removed the subsidy on kerosene in January 2016, and deregulated the kerosene market, pushing up the price from N50 to N83 ($0.23). “While the N83 per pump price applied only to Nigerian National Petroleum Corporation’s (NNPC’s) retail outlets, the capacity of independent marketers to import fuel and sell at the official rate was hampered by the lingering foreign exchange (forex) scarcity situation in Nigeria. “Forex scarcity challenges have persisted despite the Central Bank of Nigeria’s, CBN, deregulation of the forex market to bridge the widening gap between the official and parallel market rates, and wipe out the arbitrage.

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“The difficulty product marketers face in sourcing forex requirements from parallel or autonomous market sources has provided NNPC’s subsidiary, the Pipelines and Products Marketing Company (PPMC) with a monopoly on kerosene imports, forcing marketers to either suspend or abandon importation.

“Consequently, months after the changes in kerosene subsidy policy, kerosene supply challenges remained, as prices soared across major cities in Nigeria. Power imbalances that traditionally exist on the basis of gender have strong implications on women’s capacities to access energy products like kerosene which is predominantly used by the poor and low-income earners for their domestic energy needs. “Kerosene subsidy reform can therefore, have positive effects if it leads to improved energy supply systems, increasing energy access to the poor and the vulnerable, especially women living in far-off communities that lack electricity and energy-efficient services.” In addition, to kerosene scarcity, petroleum products smuggling, pipeline vandalisation, crude oil and products theft hit an all-time high in Nigeria, and served as a major drain on the country’s resources. All these became pronounced with the advent of illegal refineries, which provided a veritable avenue for dubious elements to cash in on the situation at hand.

Dr. Ngozi Okonjo-Iweala

Nigeria’s former finance minister, Dr. Ngozi Okonjo-Iweala, in 2012 brought the attention of the international community to the large scale crude oil theft in Nigeria, when she disclosed that Nigeria was losing about 400,000 barrels of crude oil per day, translating to over $1 billion monthly. The Nigerian Security and Civil Defence Corps, NSCDC, had stated that between 2003 and 2005, over 2,258 cases of oil pipeline vandalism were recorded; while Shell Petroleum Development Company, SPDC, disclosed that since

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COVER STORY 2012, it has removed more than 160 illegal theft points from its facilities. In addition, the Nigerian Navy in 2013, stated that Nigeria was losing $20 billion annually to crude oil theft, estimated at 55,210 barrels of oil lost per day, while the Nigeria Natural Resource Charter, NNRC, noted that N3.8 trillion was lost to crude oil theft, sabotage and pipeline vandalism in 2016 alone. On its own part, energy data firm, Oil Price Reports, stated that between 2011 and 2014, Nigeria lost over $25 billion to crude oil theft, while the United States Institute of Peace, had in 2009, declared that $100 billion was lost from illegal oil bunkering between 2003 and 2008. From the NNPC reports, between May 2018 and May 2019, the country lost N188.8 billion to crude oil and petroleum products theft. Specifically, the report noted that in the 13-month period, N4.557 billion worth of crude oil was lost; petroleum products losses stood at N27.49 billion; while pipeline repairs and management costs gulped N156.76 billion. The NNPC further stated that between May 2018 to May 2019, 2,014 vandalised points were recorded on its vast pipeline network across the country. The NNPC lamented that products theft and vandalism had continued to destroy value and put it at disadvantaged competitive position. Furthermore, the collapse of the refineries opened a window of opportunity for unscrupulous individuals to defraud the country, using the fuel subsidy racket. Following cries by Nigerians, the Senate, in 2011, instituted a probe of the country’s subsidy expenditure, where it found the NNPC guilty of making double withdrawals and accountable to the country. The joint committee later published the names of beneficiaries of the fuel subsidy scheme operated by government agencies. An ad-hoc committee of the House of Representatives also probed the fuel subsidy regime in 2012, and it was discovered that the subsidy administration was heavily compromised, while it also exposed massive fraud in the oil sector.

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oil exchange for product matrix.

Mele-Kyari

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The committee further revealed that $6.8 billion was unaccounted for, while it prescribed sanctions to individuals in the government, companies, and organisations involved for various offences including negligence and fraud. It also recommended that the Ministry of Petroleum Resources be split into two to ensure effective supervision of the industry. The report of the 2012 investigative committee on the subsidy by the House of Assembly was taken up by anti-graft agencies, which led to investigations of the indicted parties, some of whom have been convicted by the courts while other cases are still pending. The EFCC had indicated that the convictions attracted sentences ranging from eight to 10 years in prison. The court also ordered that more than N789.6 million that had been fraudulently collected as subsidy claims be refunded to the Federal Government. Furthermore, to cushion the endless fuel shortages, the Nigerian National Petroleum Corporation, NNPC, entered into various arrangements to bridge the fuel supply gap in the country, such as crude oil for products swap and the Offshore Processing Arrangement (OPA), which were later jettisoned for the Direct-Sale-Direct-Purchase (DSDP) arrangement. Announcing the transition to the DSDP in 2015, the NNPC stated that replacement of the OPA with the more efficient DSDP was aimed at enshrining transparency and eliminating the activities of middlemen in the crude

According to NNPC, the DirectSale-Direct-Purchase alternative allows for the direct sale of crude oil by NNPC as well as direct purchase of petroleum products from credible international refineries. The NNPC further explained that it came to this informed position after the evaluation exercise of pre-qualified bidders revealed that most of the 44 companies earlier shortlisted for the next stage of the tender process only had affiliations to refineries abroad a situation which introduces toll on the value chain. It added that if allowed to subsist, the development would in turn constitute a significant value loss to the federation by way of accruals. The claim of the government had always been that PMS was mainly consumed by the rich in the society, however, recent statistics had proven that more and more Nigerian masses are now using power generators, especially the small-sized ones, popularly called “I better pass my neighbour.” This had increased the number of people using petrol and whose lives are impacted negatively by the nonfunctional refineries. Specifically, in 2017, the then Speaker of the House of Representatives,

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Mr. Yakubu Dogara, had disclosed that Nigerians spent $5 billion annually on power generators, promised that the House would support the Executive to find a permanent solution to the power problem in the country. In 2016, the United Nations Statistics Division, in a report on Genset

Simbi Wabote

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COVER STORY Import/Export Trade, revealed that manufacturers of generators, including General Electric, Cummins, FG .Wilsons; Siemens, and other major power firms, brought into Nigeria, different brands of generators worth $51.055 million, about N10 billion in 2014/2015, about N10 billion, adding that the figure is projected to hit $450 million by 2020. In addition, in a report on Nigeria’s electricity situation, Bloomberg stated that business owners and individuals in Nigeria spend about $12 billion fueling power generators every year. “To keep out the darkness, households own and operate an estimated 22 million small gasoline power generators, whose combined generating capacity is eight times higher than on-grid supply. Businesses and individuals spend about $12 billion a year, twice the country’s annual infrastructure budget, fueling these generators,” the repor t stated. However, despite the tale of woes, efforts are ongoing to address Nigeria’s refining challenges, as a number of refinery projects are currently ongoing, while work is expected to commence in some in the next few months. Specifically, it’s no longer news that Dangote Group is setting up a 650,000 barrels per day refineries, which is stated to be 75 per cent complete; while a number of refineries are also scheduled to come on stream in the next couple of months, like the 5,000 Waltersmith modular refinery and the 12,000 barrels per day Azikel modular refinery, both enjoying financial support from the Nigerian Content Development Monitoring Board (NCDMB).

Aliko Dangote

Already, the modular refinery of Niger Delta Petroleum Resources (NDPR) is currently producing and there are plans to increase the capacity of the refinery to 11,000 barrels per day.

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The emergence of these refineries would make Nigeria the refining hub in West Africa and a major supplier of petroleum products across the region.

Yakubu Dogara

In addition to these, the Federal Government had announced plans to rehabilitate all the country’s refineries. The country’s refineries are the Port Harcourt, Warri and Kaduna refineries. The NNPC had set a deadline of 2023 to end fuel importation, stating that it is planning a model where original builders of the refineries would be engaged to undertake the revamp and management of the refineries. The revamp of the refineries and emergence of new modular and conventional refineries, would make a positive impact in helping the country conserve its foreign reserves, generate employment and buoy the economy by boosting the industrial sector and increasing the contribution of the Micro, Small and Medium scale Enterprises (MSME) to the country’s Gross Domestic Product, GDP. In addition, boosting Nigeria’s refining capacity would help the country bypass OPEC’s quota and output restrictions, as well as help the country absorb the expected increase in its crude oil output scheduled to come from major oil and gas projects, such as the Egina field, planned oil bid rounds and inland basin oil finds. Nigeria’s target to produce three million barrels of crude oil per day would also provide the much-needed feedstock for the refineries, while the refineries would help absorb most of the mined crude.

Huub Stokman

In his presentation at the just concluded Nigerian International Petroleum Summit (NIPS) in Abuja, Chief Executive Officer of OVH Energy, Huub Stokman, stated that a free market was critical to driving Nigeria’s downstream sector development. He said, “On refinery, you can’t have a conversation around the downstream industry without the refining. I think that the enhanced refining capacity which is imminent both with the traditional and the modular refineries will change the paradigm from an import country to a self-sufficient country, and that’s a key catalyst for the rest of the industry. “There are some benefits of these refineries as a catalyst. Product quality in my view will improve which will aid the environment and also reduce consumption.” In her own submission, chief operating officer of MicCom Cables, who is also a keen follower of developments in the oil sector, Bukola Adubi disclosed that, for Nigeria to tackle its refining challenges, it must undertake the deregulation of the downstream petroleum sector and

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COVER STORY new oil finds, it’s only rational to expect a surge in investment for refineries that will mop up the excess and even dig into OPEC’s allocation for the country. “Multiplier effect of having refineries scattered around the country are numerous. Just for starters, this will create jobs for us, create value and opportunities for technology to transfer”. Also speaking, Director/Chief Executive Officer, Department of Petroleum Resources (DPR), Sarki Auwalu, acknowledged that refining is key to government’s goal of making energy affordable. He said, “Government wants to create the enabling environment for investors to come into the downstream sector.”

Bukola Adubi

also reverse the neglect of the sector. She argued that the inability of the country to make its refineries function at full capacity had raised serious questions as to whether the country was truly committed to investing in refineries. She said, “The crux of this challenge is the volume of investment in the nation’s refining capacity. We are leaving out the real problem; we are not investing in refineries in Nigeria and we need to address that issue. With what Nigerian Content Development and Monitoring Board (NCDMB) is doing in its alliance with private entities, we are seeing a lot of traction. Already, we know there will be huge in-country value addition when these modular refineries get commissioned. Equally exciting is the news of Waltersmith extending the production capacity beyond 5,000bopd in the next phase. Let’s not lose sight of the fact that Dangote’s refinery will be functioning in the free trade zone. Technically, that’s outside Nigeria. On the contrary, these modular refineries are 100 per cent in Nigeria. We need more. We also need to see our dead refineries come back to life. No investment should be a waste. “As the quest for increase in production volume by NNPC continues with ne projects, even

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Explaining the fate of the refineries, Minister of State for Petroleum Resources, Chief Timipre Sylva, stated that the country’s refineries had performed below their capacity over the years because the assets were not run as business to yield requisite returns and add value to Nigeria’s economy. He said, “We ran them as a government. If a seal starts to leak in Port Harcourt refinery, the approval process to get that seal fixed is a long and tortuous bureaucratic process. By the time you go through that whole process and go back to fix that seal, maybe another two have started leaking as well. “You don’t run a refinery like that. You must run it as a business. Unfortunately, we have not run our refineries as a business. Some states will say bring all the money that we get from oil sales into the federation account and share.

Sarki Auwalu

That is not how you run a business. “The Federal Government has to put in some cash as our contribution; the IOCs have to put down some cash before they invest. But some people insist we must share the money. If you run a company like that, you will run it aground.

Timipre Sylva

“

“But if you run it as a business, it means this is our business, this is our bread and butter; we cannot allow the oil industry to die. Let us get the profit, let us share the profit and let’s ensure that this money will be reinvested to improve the oil sector.” In addition, in its report titled, ‘Nigeria’s Refining Revolution’, P r i c eWa t e r H o u s e C o o p e r s (PWC), however, stated that the economic viability of a refinery is dependent on the interaction of three elements, type of crude oil used, the complexity of the refining equipment (refinery configuration) and the desired type and quality of products produced. According to the global consulting firm, a key requirement for refining profitability is finding the sweet spot between cost of inputs and price of outputs

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COVER STORY

in a highly volatile environment influenced by global, regional, and local supply and demand fluctuations. It said, “Refineries have minimal influence over the price of input and outputs and, therefore, must ensure operational efficiency to improve profitability and gain competitive edge. This entails reducing operating costs such as labour, maintenance, energy (electricity and natural gas) etc. to the barest minimum. “Efficiency is achieved through operational excellence, innovation, maintenance & upgrades and optimisation to produce more output from fewer inputs. “Although refineries share certain similarities, each refining asset is a unique and complex industrial facility, with some flexibility in the crude it can process and the mix of product yields it can refine. “Factors such as refinery configuration

and complexity directly impact refinery end products while location and transportation infrastructure impact energy, labour and compliance costs.” PWC fur ther stated that, “Investors are constantly faced with tough decisions on refinery setup options which will yield the highest returns.

“

“Our analysis reveals that the modular refinery, an offthe shelf solution, is a cost effective supply option for investors especially when diesel is the lightest yield.

The relatively low capital cost, flexibility and short payback period make it distinc tly attractive. “For the independent producer, par ticipating in

a modular refining project improves cashflow, ensures crude oil production is sufficiently optimised and delivers value beyond the traditional oil production business model. “For downstream marketers seeking to hedge against foreign exchange exposure, domesticate fuel supply and build local capacity, the modular refinery is a winning strategy.” From the foregoing, it is observed that Nigeria’s quest to end fuel import and become a net exporter of petroleum products can only be achieved through the revamp of the country’s refineries and the building of new ones, just like it has begun. A gain, the countr y’s goal to become a refining hub in Africa is achievable, and with the right policies and enabling environment, investors would be encouraged to stake their funds in increasing the country’s refining capacity.

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SOCIAL INVESTMENT

140 Niger Delta youths win Shell’s N56m Livewire grant

o fewer than 140 young and talented people from eight states of the Niger Delta have graduated from the special Shell LiveWIRE Nigeria entrepreneurial training programme, which provides business and financial support to enable them to establish small and medium scale businesses. Drawn from Abia, Akwa Ibom, Bayelsa, Cross Rivers, Delta, Edo, Imo, and Rivers states, the beneficiaries, 20 of whom are under the Oporoma Special LiveWIRE Nigeria category in Bayelsa State, got N56 million grants from The Shell Petroleum Development Company of Nigeria Limited (SPDC) Joint Venture at the recent graduation ceremony in Port Harcourt. S PD C ’s G e n e r a l M a n a ge r External Relations, Igo Weli, said, “These beneficiaries have now become part of the 7,212 Niger Delta young entrepreneurs who have graduated from the LiveWIRE Nigeria programme since SPDC launched this flagship youth enterprise development programme in 2003.” Represented at the graduation ceremony by SPDC Manager for Social Per formance and Social

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Investment, Gloria Udoh, Weli said, “Shell LiveWIRE Nigeria has produced young entrepreneurs, most of whom are now employers of labour. Some of the beneficiaries are also given the opportunity to play in SPDC’s supply chain as vendors and are provided with access to growth capital.” The traditional head of Oporoma, Andy Zighadina, applauded SPDC for initiating such a laudable programme to benefit the youths of the community. The visibly excited monarch also offered cash rewards to the top five beneficiaries from Oporoma to make appreciable success in first three months after the graduation. Previous beneficiaries of the Shell LiveWIRE Nigeria programme were also at the ceremony to share their success stories. Managing Director of FarmToJuice Limited, Esther Bolouebi Ekiotenne, a 2019 winner of the Shell Group Global Top 10 Innovator award, and Solar Energy entrepreneur, Henry Chikodi, told the new beneficiaries that passion, hard work and discipline were necessar y requirements for business success. The Shell LiveWIRE Nigeria programme is part of the global Shell LiveWIRE

social investment programme, which enables young people to start their own businesses and create employment. It provides young entrepreneurs with access to essential business knowledge and customised support they need to transform their enterprising ideas into viable and sustainable businesses. In 17 years of its implementation in Nigeria, the Shell LiveWIRE Nigeria has received local and inter national recognitions , including the 2011 African Leadership Magazine Award for Youth Development, a year after it won the Social Enterprise and Reports Award in 2010. The LiveWIRE programme is targeted at SPDC Joint Venture host communities and others in the Niger Delta to inspire, encourage and support youths to start their own businesses or expand existing ones by providing them the requisite training and start-up finance in the hope that, with legitimate alternative means of livelihood, young men and women will turn their backs on vices.

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ENERGY WOMAN

““I bring

creativity, dynamism, innovation and diversity of thoughts... perspectives to situations’’.

ydia is a British - Nigerian with roots from Ayere, Kogi State, Nigeria. She is a graduate of Chemical Engineering with a master’s degree in Petroleum Engineering. Her 18-year experience in the oil and gas industry has seen her work in Nigeria National Petroleum Corporation (NNPC), Department of Petroleum Resources (DPR), Foster Wheeler (now part of Wood Group), and presently at British Petroleum (BP). Since joining BP, Lydia has held various operational roles and in the last 7 years, key leadership roles with BP’s operations in the North Sea. She is currently the first black person to hold such high-profile position in leadership within the upstream oil and gas sector in the North Sea.

She was instrumental to BP being recognised by Oil and Gas UK, when it won the 2018 annual award for Diversity and Inclusion. Engr Lydia mentors the younger generation on the importance of science and engineering, and she has been a registered member of Science, Technology, Engineering and Mathematics network (STEMNet) UK, since 2008. Her passion to capture the minds of young individuals led her to work with BP North Sea in organising the “Bring-your-child-to-work Day”. This has now been recognised as an annual event. Excerpts of her interview with JEROME ONOJA, Managing Editor. Question: Where did you cut your

“

teeth as a young engineer?

I had my first hands-on experience with engineering during my internship with West African Por tland cement (now LaFarge), in Sagamu back in 1999/2000. Being in a manufacturing environment was exciting and there were lots to learn, hands on. My internship influenced my final year project. Question: Can you take us through your career journey?

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ENERGY WOMAN Yes. I started my oil and gas engineering career by serving (NYSC) with the Nigerian Department of Petroleum Resources (DPR), 2002. I did a stint in banking by working for Zenith before moving back to engineering when I was hired by the Nigerian National Petroleum Corporation (NNPC) as a graduate chemical engineer. I was seconded to Shell in 2005 on the Train 6 NLNG project and Otumara development project before relocating to the UK with my husband under the UK Highly Skilled Migrant programme (HSMP) in 2006. In Britain, I interviewed and got a job with Foster Wheeler in January 2007 as a process engineer and spent 5 years before moving to Snaprogetti/ENI in March 2011 as a senior process engineer. I later joined BP as a facility process engineer, in 2011. I have held various roles in BP since then, one of which was offshore rotational role. I have held other technical leadership roles termed broadening such as; Reliability engineer, Deepwater activity team lead which are

“

considered critical for becoming a well-rounded leader in the oil and gas industry.

I was appointed as Operations Support team lead in 2018 for one of the flagship assets. This is one of the pivotal safety critical roles in oil and gas operation. It requires emotional maturity and good technical depth to be considered for these roles. Some companies call this type of roles asset manager or facilities manager.

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Being the first black person appointed to this role in the UK North Sea oil and gas industry is just humbling. What are the factors that influenced your decisions?

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Multiple challenges facing science and engineering globally and my desire to bring simplicity and encourage more women and youths to study engineering is a great influence. Looking at the low level of interests from our youths in studying science and engineering has inspired me to go out and speak up. Being an engineer, my curiosity and desire to find solutions to challenges hold a great factor. My faith and my husband’s support had been the secret of my success and influence. I would not have gone for any job, role or position without first agreeing same with God and my husband. As a member of Science, Technology, Engineering and Mathematics Network (STEMNet), what efforts are being considered to capture the mind of the younger generation especially girls in Engineering? A lot of workshops, bring child to work, scholarships and mentoring programmes are now in place to encourage girls, right from primary and secondary schools. These have opened up the minds of these young talents. Also,

“

sharing the stories of successful women in science and engineering has helped a lot in this area.

Question: Engineering is a male dominated profession, how have you been able to reach the peak in your career? Though I am still aiming for the top in the industry, I have always believed that my hard work and determination will be recognised. I don’t see myself as a woman in a male dominated profession. Rather,

“

I see myself as someone who brings creativity, dynamism, innovation and diversity of thoughts and perspectives to situations.

I am truly myself always. Question: Does the glass ceiling exist for women. If so, do you think enough is being done to promote women in workplace? Answer: I think a lot is being done to shatter the glass ceiling that used to exist, however there is still more to be done. In the developed world, women are encouraged, and the workplace is adapting to cater for part-time working women to promote inclusion. Even the interview styles and work contracts have been adjusted to promote equality. In developing nations like Nigeria,

“

there is need to call out and disagree with corporate bullying of women who want to advance their careers. My heart breaks when I read news of women in power being made scapegoats for the same crime, we let men get away with. I am a strong advocate of fairness and meritocracy irrespective of race and gender. Let’s get rid of the scapegoat culture and create a transparent platform of meritocracy with zero tolerance for corporate bullying and harassment. If this is in place, Nigeria will advance faster than expected. Question: How can corporate organisations, professional bodies and governments help improve the balance? Create a fair process of recruitment and work conditions that do not make it impossible for women with families to be ambitious. Encourage flexible working conditions. A mindset change from what has always been the norm to getting on board with the change required is necessary.

“

Create deliberate targets of increasing female talents on company’s board and management.

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ENERGY WOMAN You will find it easy to encourage your children if they see that you are also interested in what they are doing. Question: What are your future plans? Laughs! To continue to excel in what I do and more. My desire is to get to the top of the oil and gas echelon and contribute to the solutions of advanced technologies in the industry, globally.

Engr Lydia on an offshore platform

The Nigerian government is currently trying its best but I do believe more still needs to be done. More women need to be appointed to critical positions in the oil and gas industry to show inclusion. Question: What role do you think women can play in bridging the divide? Women who have advanced their careers must make it a deliberate plan to help other women coming behind them to equally advance.

“

As a woman, once you get a seat at a management table, don’t be silent but use the opportunity to influence justifiable change that will allow other women to get a seat as well. More importantly, don’t try to be like the men you work with but be comfortable being a woman and executing your role differently but efficiently. Question: Why do you think more women should be involved in engineering profession?

“

Women bring diversity of thought to decision making and troubleshooting, an average woman can multi-task effectively. This is because we think

differently. The more women in engineering, the more welcoming we can influence the profession to be. Question: Do you see any skill gap between engineers in Nigeria and those in the UK? I don’t see any gaps between engineers in Nigeria or abroad. What is different is the enabling environment. Question: What informed Lydia Wilson Foundation and what do they do? It is a charitable organisation that aims to alleviate sufferings of orphans, widows and the aged ones without care. I saw that our society does not have a robust plan in place to adequately support these group of vulnerable people and I decided this was my avenue to give back to the society. Question: Your dad played a significant role in your journey to Science and Engineering, what is your advice to parents and guardians? My dad took an interest in my sch o olwor k an d e du c at ional development. He took time to understand and know me, to be able to influence me.

“

Parents and guardians need to take time to know their children especially what interests them.

Question: How do you combine the home front with your career? I have a very supportive husband who is as busy as myself. We use our calendar diary to manage our career demands and being there for our kids. We have never had a nanny nor extended family support since the children were born. My husband and I are a team and we support each other as co-parents without being rigid on who does what around the home. This has worked for us, made us to understand our kids better and has allowed us to both work full time and raise a family. Question: How do you relax? Answer: I take time to travel. I love listening to classical music and a spa day at least once a quarter is not missed. I also go for walks with my children and create individual one to one time with them. Question: A lot of Nigerians in diaspora dream of returning. What are your plans to return, and contribute to the oil and gas industry? If the right opportunity arises at the right time in my life, it would be deeply considered Question: What is the Nigeria of your dreams? A land of equality irrespective of gender, race or religion. A land that harnesses its God-given resources to make itself great.

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MARITIME

Cargo clearance: FG to procure more scanning machines

he Federal Government has promised to procure more x-ray scanning machines to fast-track cargo examination and clearance at the nation’s sea ports. Mr Okokon Udo, Director, Home Finance, Ministry of Finance and National Planning, disclosed this at a sensitisation workshop for importers and stakeholders in Kano on Thursday. The workshop was organised by the Trade and Exchange Department of Central Bank of Nigeria (CBN). The theme of the workshop was “Trade Regulatory Compliance: A veritable tool for achieving trade facilitation in Nigeria”. Udo, represented by Mrs Mabel Negbedion, said the measure was in line with the present administration’s determination to make the ports user friendly and improve ease of doing business in the country. “Government is not relenting in its efforts to procure more x-ray scanning machines to fast-track cargo examination and clearance at ports,” he said. According to him,

government target is to establish a trade single window that will enable stakeholders to have full control over their trade transactions anytime, anywhere.

Agency (NESREA). He noted that compliance with the guidelines would further enhance ease of doing business at the ports and minimise port congestion.

“As you are aware, in 2017, government undertook a review of the import guidelines, procedures and documentation requirements under the DIS to reduce the turnaround time for clearance of goods at the ports and other entry points in line with best practices,’’ he said. He said documentation requirements for imports were reduced from 14 to eight for ease of compliance and urged importers to reciprocate by complying with provisions of the Revised Import Guidelines. Udo urged importers to familiarise themselves with guidelines on regulated equipment, food and products issued by Standard Organisation of Nigeria (SON),National Agency for Food and Drug Administration and Control (NAFDAC), Nigeria Agricultural Quarantine Service ( NAQS) and National Environmental Standards Regulations and Enforcement

According to him, keeping track with compliance requirements is essential for smooth business operations. “Importers must be conscious of the effect of nonco m p l ia n ce w i t h s t at u to r y regulations and take appropriate proactive steps to be compliant in order not to derail the ease of doing business at the ports in particular and Nigeria in general,” he said. Mr Afam Dunoi, an Assistant Director with NAFDAC, said the agency had taken measures to ensure proper control and regulation of products as part of effort to ensure compliance and availability of safe and quality products. Dunoi said the agency’s mandate was to ensure availability of safe and quality products and that it had put in place measures that would improve trade across the nation’s borders.

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MARITIME

Buhari appoints Jamoh to replace Peterside as NIMASA DG

resident Muhammadu Buhari has approved the appointment of Bashir Jamoh as the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA). Jamoh’s appointment will take effect after the expiration of Dakuku Peterside’s tenure in office on March 10, 2020. According to an online report by The Cable, the President has confirmed Jamoh’s appointment. The newlyappointed DG is currently the Executive Director, Administration, and Finance, at NIMASA. Jamoh, who hails from Kaduna, is also the current President of the Chartered Institute of Transport Administration of Nigeria.

‘Nigerian ports key to regional trade integration’

he Managing Director, Nigerian Ports Authority (NPA ), Hadiza Bala Usman, has described the nation’s harbours as critical to regional integration of trade, urging farmers to cultivate export-oriented produce to make the country an export nation rather than import dependent. Bala Usman, at a symposium to mark NPA Special Day at the 41st Kaduna International Trade Fair, said Nigeria must consolidate its economic strength to lead regional integration and development. Usman, who was represented by Hassan Danjuma, a General Manager, noted that regional integration through trade cannot be achieved by independent of seaports, adding that NPA would pursue policies and programmes to enhance performance of seaports in the country. She said: “Friendly and competitive, the essence is to make our seaports a preferred destination in West and Central Africa sub-regions as well as Africa.” She also urged farmers to develop cultivation of exportbased produce to tune the pendulum from import to export based economy. According to

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her, the Authority has initiated viable programmes to encourage cooperation with the international business community, to achieve the objectives of the Federal Government policy on ease of doing business in seaports. She reiterated commitment to making the harbours more efficient and secure so as to contribute toward sustainable economic development, and called for collective efforts in making the ports a pride of the nation. Meanwhile, about 16 vessels laden with various products, including, salt, sugar, petcoke, wheat, gypsum fish, general cargo and containerized cargoes are expected to berth at the Lagos ports in March. Statistics released by the NPA, recently, showed that 15 other vessels had arrived Nigerian waters, waiting to berth at the Lagos pilotage district. Also, three container vessels laden with Premium Motor Spirit (PMS), otherwise known as petrol, are also waiting to berth at SBM and ACJ jetties, but were yet to be cleared due to CRNAPP (Customs Release is Not yet Applicable).

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MARITIME

FG commends Akwa Ibom commitment towards deep Seaport development

HE Federal government has commended the commitment and preparedness of Akwa Ibom state government towards the development of the Ibom Deep Sea port project. Director General of Infrastructure Concession Regulatory Commission (ICRC) Mr. Chidi Izuwah gave the commendation recently when he led other stakeholders including , Nigeria Ports Authority, (NPA), Federal Ministry of Transportation, and Ministerial Project Development Steering committee (MPDSC) to inspect the project site in Mbo local government area. Izuwah said, “We are proud to be on this visit to verify that all the preparations to move this project forward are going very well. I cannot describe the joy I have in my heart to be here today to see that something we started sometime ago is beginning to take shape in terms of physical reality. “I congratulate the governor for his commitment towards this project. This sea port is crucial to Nigeria’s economic survival. It is designed to serve all parts of Nigeria. It is also crucial to the development of the South South region. “The Federal government wants to see Infrastructure development in every part of the country, so this is a sign of that. So we (stakeholders) are here

today to ensure that this particular infrastructure that will create, jobs, wealth, and develop our people is done. When completed this project will provide 5000 to 10, 000 direct jobs for Nigerians”. Izuwah added that the commitment of the state government towards the construction of the 12-lane Super highway leading to the sea port, further demonstrates its preparedness for the take- off the Sea port project. In his remarks, Director of Legal Services, Federal Ministry of Transportation, Mr. Pius Oteh said they were convinced that the project was good to take off given what they saw at the project site in terms of state government commitment and determination to get it moving forward. Oteh who is also a member of the Ministerial Project Development Steering committee (MPDSC) stressed that the sea port project was good to take off once the final business case processes were completed. “As a supervisory ministry for infrastructure such as this, we are impressed, and we have seen the need to give this project very full support. If you can recall, very recently, the hon. Minister of Transportation, Rotimi Amaechi had stated that this sea port is good

to go once we get the full business case completed and adopted. ” I am happy to tell you that in the meeting stakeholders held yesterday which included the Federal Ministry of Finance, the ICRC and state government, we took very strong steps in adopting the Full Business Case which will now be presented to the Federal Executive Council by the Minister soon as we complete all the processes. “It is really a great opportunity to come very close to the project site. I want to say that we are committed, we are supportive, and we are happy with the steps that have been taken so far” Also speaking, Chairman Technical Committee on Ibom Deep Seaport Actualisation and Development, Mrs. Mfon Usoro said she was impressed with the collaboration of the federal government and the state government so far stressing, “Akwa Ibom people should have no doubt about Federal government support . “We have shown the Ministerial Project Development Steering committee what Akwa Ibom state has done to show their preparedness towards this project. And I want to thank the governor for pushing this project so far. I am impressed indeed”

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INFRASTRUCTURE

How FG is addressing infrastructure deficit in power sector- ICRC Boss

ngr. Chidi Izuwah, the Direc tor-General, the Infrastructure Concession Regulatory Commission (ICRC) recently, commended t h e Fe d e r a l G ove r n m e nt ’s approach towards addressing the infrastructure gaps in the power sector. Izuwah who spoke to newsmen in Dadin-Kowa community said the Public-Private Partnership (PPP) project idea of the Federal Government to develop infrastructure in the dam had yielded the needed result. According to him, the same model was used for the three major dams in the country which are now regarded as the main achievements in power sector reforms. He stated that the challenges in the power sector as well as other sectors needed such initiative if the country must make progress in terms of infrastructural development; stressing that government alone cannot address the infrastructural deficits in the power sector and other sectors. “The Dadin-Kowa Dam project has faced challenges

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in the past but the Federal Government under President Muhammadu Buhari has leveraged the PPP initiative to address. I can tell you with what I have seen, I am extremely joyful. “I am very proud that this hydro power plant has been completed after several years. This is additional improvement in the infrastructural revolution in the power sector. “ If you look at our power sector, the three major hydro power plants, Jebba, Kainji and Shiroro were concessioned and those are the most successful aspects of the power reforms. “Only last week, the contract for the refurbishment of a major turbine in Jebba was signed by mainstream that’s what the FG is doing to improve infrastructure deficit in the power sector.’’ Izuwah added that the Dadin-Kowa hydropower dam would impact positively on the economy of the North-east in terms of industrialization while creating jobs for the people of the sub-region. He stated that par t of the

assessment visit was to initiate ways of bringing all stakeholders in the power sector together to ensure that the hydro-power dam was connected to the national grid for use. “We need power and here we have stranded power, so part of my visit is to see how to get all the stakeholders together to ensure that this stranded power is connected to the national grid. No available megawatts shouldn’t go into the national grid to improve the lives of Nigerians; so we have started making the necessary contacts in that regard,’’ he stressed. Our correspondent reports that Mr Christopher Cyril, the Managing Director of Mabon Energy Limited, the company handling the project commended the ICRC’s role towards ensuring the completion of the project while soliciting more support towards ensuring that the dam is put to use as soon as possible.

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POWER TCN Commissions three new Power Transformers in Egbin, Apapa and Gusau Substations TCN has again completed the installation and commissioning into service, three power transformers; a 30MVA, 45MVA and 45/60MVA transformers in Egbin, Apapa and Gusau Transmission Substations respectively. This brings to eight the number of power transformers commissioned this year.

World Bank, REA Strategise to Bridge Energy Gap in Nigeria

orld Bank’s $350 m illio n (N126 . 5 billion) funded Nigeria Electrification Project (NEP) has received a boost with a new agreement to reduce energy gap for underserved Nigerian households and micro small medium enterprises (MSMEs). The grant; Output Based Fund (OBF) aiming to supply Solar Home Systems (SHS) to homes and businesses across Nigeria, is being implanted by Rural Electrification Agency (REA). Speaking at the signing ceremony with a contractor, Emel Solar Solutions, Managing Director of REA, Ahmad Salihijo Ahmad noted the need to secure the nation’s economic growth through addressing electricity challenges. Ahmad disclosed that energy crisis remained a serious issue in need of innovative solutions to ensure that Nigerians have access to clean, safe and reliable electricity. Managing Director of Eme Solar, Onye Mba Uzoukwu also stressed the need to bridge the electricity gap in country, adding that the pact would provide the right opportunity to contribute to the nation’s pressing challenge. The energy company’s Marketing Head, Olubunmi Olowu, said the initiative was a step in the right direction.

SHS Component Lead of NEP, Ifunanya Nwandu-Dozie, said the objective of the Standalone solar Home System component is to help millions of underserved Nigerian households and micro small medium enterprises (MSMEs) access better energy services at lower cost than what they currently pay through the sale of stand-alone solar systems (Solar Home Systems (SHS). She fur ther highlighted that expanding reach to consumers across Nigeria is costly and requires significant investment in soft infrastructure such as people, training, advertising, increased working capital, logistics among others. She added that decreasing a portion of those costs with grant enables successful applicants to reach and serve customers faster. Nwandu-Dozie noted that providing the grant against each system after installation means that the government knows what it is getting for its money, and automatically directs the grant proportionally towards those solar providers that are most successful in serving more customers.

In Egbin Substation, the additional 30MVA power transformer and one 33kV feeder increased the substation capacity from 300MVA at 330kV level alone, with an additional 30MVA at 132kV level. The installation was carried out wholly by TCN Engineers. Following the planned rehabilitation of the Apapa Gas Insulated Substation (GIS) in Lagos, TCN engineers installed and energized a 45MVA 132/33kV power transformer in the substation. The transformer would provide alternative source of power supply to Ikeja Disco for consumers in Apapa and environs. In Gusau, Zamfara State, TCN equally upgraded the substation’s capacity from 60MVA to 120MVA with the installation of 60MVA 132/33kV power transformer. The new transformer was equally installed by TCN engineers and has increased bulk supply to Kaduna Electricity Distribution Company for consumers supplied from Gusau Substation. While the transformers in Egbin and Gusau Transmission Substations were commissioned on the 23rd of January, the Apapa transformer was commissioned on the 24th of January 2020. TCN is diligently implementing the rehabilitation and expansion of the nation’s grid with the goal of ensuring a more robust and efficient transmission network. The Company is determined to ensure that all on-going transmission projects across the country under its Transmission Rehabilitation and Expansion Programme (TREP) are completed on time.

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ACROSS AFRICA

TGS wraps up one 3D survey offshore Senegal, starts another that this latest stand-alone survey was located in northern Senegal and follows a further recently completed survey, SS-UDO-19, in the south of the country.

orwegian seismic player TGS has completed the acquisition of its latest 3D survey offshore Senegal, SNUDO-19, and started another survey also in Senegal. TGS said on Monday

Fast track data will be available during the second quarter of 2020. The full dataset will be available by the fourth quarter of 2020. Upon completion of SN-UDO-19, the acquisition vessel, BGP Prospector, started a new 2,024 square-kilometer 3D seismic survey in northern Senegal. Once again in partnership with GeoPartners and Petrosen, the new 3D survey, named OUP-NORD-20, will cover a block

that is currently open and included in the present license round launched in Dakar on January 31. According to the company, the data being acquired will illuminate deepwater fan systems that have already proved effective inboard of the 3D with the Yakaar and Tortue discoveries and will be key to supporting the licensing round across this acreage. Kristian Johansen, CEO at TGS, said: “It is great to see that the new data being acquired will be used to unlock the as-yet unexplored deep-water potential of this emerging worldclass hydrocarbon basin. We are proud to be bringing this data to our clients in order to enable future discoveries.”

Marathon talks the talk in Equatorial Guinea

arathon Oil has stepped up its plans for Equatorial Guinea, targeting the delivery of first gas from the Alen backfill project by the end of 2020. The Alen addition was due to start in the first quarter of 2021. Marathon spoke of its broader commitment to Equatorial Guinea’s gas mega hub plans. This includes cross-border co-operation and the possible construction of a second LNG train. The US company also said it would carry out a conceptual study on a modular refinery, in Punta Europa, on behalf of the Ministry of Mines and Hydrocarbons. This stems from

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a meeting between Marathon’s president and CEO Lee Tilman with Equatorial Guinea President Obiang Nguema Mbasogo and Minister of Mines and Hydrocarbons Gabriel Mbaga Obiang Lima. The Altantic Methanol Production Co.’s (AMPCO) president Paul Moschell also met Obiang Lima this week in Malabo. The company, which is 45 percent owned by Marathon, said it would work with the ministry on a methanol-to-gasoline and derivates plant, in a bid to extract more value from gas in the country. They agreed to develop a formaldehyde production unit in addition. Noble Energy has the other 45%

stake in AMPCO, while stateowned gas player Sonagas has the remaining 10 percent. AMPCO runs a methanol plant in Bioko Island. The company said its plans were part of its support for the country’s Year of Investment initiative. Obiang Lima said the country was focused on “increasing overall value by strengthening our upstream business and further integrating it with the downstream and chemical segments. We believe in working with long-term partners and welcoming new partners who bring on board a value-added proposition to our industry and country.” AMPCO said it would also support the ministry’s modular refinery plan, alongside Marathon. Equatorial Guinea is Marathon’s sole remaining international asset that generates cash. Obiang Lima was recently in Nigeria, where he talked to the country’s local content agency on the topic of modular refineries.

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