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Barambu village : Location of the drilled Kolmani River II Well

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Jeffery Ewing Nigeria’s Gas www.majorwavesenergyreport.com development: the Chevron Nigeria Limited’s success story

Damilola Simbi Wabote Ogunbiyi Majorwaves Energy Report NOVEMBER 2019, Vol 2 No 8 1 NCDMB, NOSDRA Nigerian Managing Collaborate on Director gets top Research Finding UN sustainable energy job

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

gas development:

chevron's success story is

nigeria's success story...

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

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Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

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Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

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20/08/2019 12:54

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INDUSTRY NEWS

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

OPEC October Output Up By 29.59m Barrels a Day

he Organization of Petroleum Exporting Countries, OPEC, oil output bounced in October from an eight-year low following recovery in Saudi Arabian production from attacks on oil plants more than offset losses in Ecuador and voluntary curbs under a supply pact, a Reuters survey found. The 14-member OPEC, pumped 29.59 million barrels per day (bpd) this month, the survey showed, up 690,000 from September’s revised figure which was the lowest monthly total since 2011. Initially expected to take months, Saudi Arabia’s production recovery from the September 14 attacks took only weeks. Oil LCOc1 has slipped to $60 a barrel after a spike to $72 following the attacks, and analysts expect the kingdom to continue its efforts to support the market. “Saudi Arabia will step up its production cuts if necessary in order to keep the oil market balanced and ensure at least stable prices,” said Carsten Fritsch, analyst at Commerzbank. The OPEC, Russia and other oil producer allies, known as OPEC+, are reducing supply by 1.2 million bpd from January 1, with OPEC’s share of the cut which is about 800,000 bpd, are expected to be delivered by 11 members, with exemptions for Iran, Libya and Venezuela. The 11 OPEC members 6

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bound by the agreement, which now runs until March 2020, have been easily exceeding the pledged cuts. Compliance has fallen to 140 per cent in October due to the rise in Saudi output, the survey found, from 222 per cent in September. OPEC’s largest production drop was in Ecuador, which on October 9 halted crude sales because at least 20 fields suspended operations amid protests against government austerity measures. State oil company Petroecuador resumed crude exports on October 20. Saudi Arabia has pumped 9.90 million bpd, up 850,0000 bpd from September, the survey found. Before last month’s attack, Saudi Arabia was already restraining output by more than called for by the OPEC-led supply deal to support the market. The country is still pumping more than 400,000 bpd less than the agreement allows it to. Supply increases elsewhere in the group were much smaller. Venezuela, which is contending with U.S. sanctions on state oil company PDVSA and a long-term decline in output, managed to boost supply. A domestic refining complex resumed production and, sources said, exports increased in October. Production in the two other exempt producers, Libya and Iran, was little changed. The United Arab Emirates has lifted exports, according to traders and

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a company that tracks shipments. Still, oil production was only up slightly in October. After Ecuador, OPEC’s next largest supply drop was in Iraq, which has exported less crude from its northern ports according to the survey. OPEC’s second-largest producer is continuing to exceed its OPEC target. Nigeria, which has consistently been pumping more than its OPEC target, continued to do so in October, the survey found. Nigeria’s rate of compliance improved because the country received a higher target under the deal, details of which became public earlier this month. September’s output was the lowest by OPEC since 2011, when the Libyan civil war caused a collapse in the country’s oil output, excluding membership changes that have taken place since then, according to Reuters surveys. The survey aims to track supply to the market and is based on shipping data provided by external sources, Refinitiv Eikon flows data and information provided by sources at oil companies, OPEC and consultants.

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when combined with foreign direct investment of over $230 million through equity injection by China Harbour Engineering Company (CHEC), the company has reached financial closure and can squarely focus on the successful delivery of the sea port project. He stated “The impact of the port on the Nigerian economy would be immense, creating over 200,000 direct and indirect jobs and generating about $360billion over the period of the concession. It will alolimaD niwE yreffeJ also the much gneeded etobaW ibmiS iyibnugenerate gO saG s’aireforeign giN ARDSON ,BMDCN gniganaexchange M nairegiN thus boosting eht :the tnempoNation’s leved no etaroballoC pot steg rotceriD airegiN norvehC gnidniF hcraeseR elbGDP”. aniatsus NUFurthermore,yrhe ots ssestressed ccus s’detimiL that boj ygrene the project is very strategic to the economic development of Lekki Free Zone and would definitely attract huge investments to the zone and Nigeria generally. He also commended the CDB and the Government of the People’s Republic of China for their sustained commitment to economic growth in Nigeria through investment in port infrastructure such as the step towards the realization of the Lekki Deep Sea Port. On his part, Lekki Port project by ensuring the Deputy General Manager, China the availability of the necessary Development Bank, Mr. Zhang Aijun, funding required to complete the explained that the facility agreements project. Aswani noted that the demonstrates the willingness of China agreement signing is a symbolic to continue in its contribution to the milestone in the company’s decade development of Nigeria’s economy long journey to deliver the world through the facilitation of the execution class deep sea port which would of the project adding that the bank change the narrative of Nigeria’s considers the project as an opportunity maritime sector and serve as a to further expand its business footprints very important catalyst for economic in Nigeria. “China Development Bank, development and the general wellas the financing party, will provide being of Nigerians. Aswani solicited a long term loan of $629 million to for the continued support of the support the construction and operation Federal Government and Lagos State of the project”, he said. Also speaking Government, especially in the area at the occasion, the Chairman of of road infrastructure enhancement China Harbour Engineering Company to enable a seamless construction (CHEC), a major equity investor and and operation of the port after the EPC contractor for the project, completion. “Lagos State has started Mr. Lin Yichong thanked all the on these works but we have now stakeholders for the support which has reached a stage where the remaining culminated into a successful negotiation critical roads need to be built and of the financial agreements. enhanced. We look forward to your continuing support in delivering this While assuring Nigerians on the for the success of the Port Project delivery of the project based on the and benefit of Lagos State, Nigeria agreed schedule, Yichong noted that the and all Nigerians”, he added. company remains absolutely committed to deepening its relationship with the Similarly, the Chairman, LPLEL, Federal Government of Nigeria and Mr. Biodun Dabiri stated that the Lagos State Government by helping to facility agreements were fundamental develop link roads to the port. “We to the successful delivery of the want to assure you all that we would Lekki Deep Sea Port as the do all it takes to deliver this deep sea transshipment hub of Africa that port within 30 months. We are highly will inadvertently boost Nigeria’s optimistic that the success of this economy, provide massive direct project would open up many sectors and indirect employments, generate of the Nigerian economy making Lagos revenue for the nation and boost and indeed Nigeria the transhipment the Gross Domestic Product of hub destination of many West African the country. Dabiri noted that the markets,” Yichong said. facility agreements’ funds

Lekki Port hits rebound with N226bn loan from Chinese Bank

ekki Deep Sea Port, LDSP, at the Lagos Free Trade Zone, which was moribund for some time, may have hit a rebound with a loan of $629million, about N226 billion, from the China Development Bank, CDB, for the final phase in the construction of the port which is to be Sub-Saharan Africa’s deepest and Nigeria’s first deep seaport. Apart from the loan four major agreements, namely, Facility Agreement, Sponsor Support Agreement, Completion Guarantee Agreement and the Tripartite Keepwell Agreement, as well as seven security documents were signed between officials of the Bank and the promoters of the port project. Speaking at the historic ceremony in Lagos, the Governor of Lagos State, Babajide Sanwo-Olu, said that the project is another milestone that would contribute greatly to fast-tracking the delivery of the port’s infrastructural development and construction as well as fostering the economic prosperity of the state and the nation as a whole. “This is a new beginning for us in Lagos. We have achieved another milestone in our efforts to transform the state and accomplish the 21st century economy. As a government, we will do all that is possible to ensure the terms of agreement signed today are delivered”, SanwoOlu said. Earlier in his remarks, Managing Director (A frica), Tolaram Group – promoters of the port, Mr. Haresh Aswani, described the facility agreement as a major

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INDUSTRY NEWS furthering our ambitious growth strategy. Our core business remains highly cash generative and with four rigs now operational in the field we expect to quickly regain momentum. This is reflected in our decision to declare an interim dividend of US$29 million.” “We have set the next major growth phase of our gas business in motion having taken FID for the large scale ANOH gas and condensate development to position us as Nigeria’s largest supplier of processed gas to the domestic market. In another major step, and inline with our overall growth strategy, we have made a strong statement of intent by becoming the first Nigerian company to undertake a public market acquisition of a London Stock Exchange listed company, and in doing so highlighted our ambitions to be a consolidator within our space.

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

Seplat declares $29m interim dividend to shareholders in Q3

eplat Petroleum Development Company Plc (SEPLAT), leading Nigerian independent oil and gas company listed on both the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE), has announced its unaudited results for the nine months ended 30 September 2019 released to the NSE and LSE. The company declared a $29m interim dividend to shareholders and highlighted that its recent £382m cash acquisition of Eland Oil and Gas Plc would create more value opportunities for shareholders going forward. Working interest production averaged 47,163 boepd for the period (2018: 50,303 boepd) and reflects slippage to the intended production drilling programme as a result of rig mobilisation delays and availability. Four drilling rigs are now operating across Seplat’s portfolio to drive liquids working interest production to an expected exit rate of 30,000 bopd. Production uptime stood at 91% while average reconciliation losses for the first nine months stood at 13%. This factor for the third quarter only, stands at 1% while the factor for the first six month period is still under review and expected to be consistent with prior periods when finalised. Full year average working interest production guidance has consequently been revised downwards to 45,000 boepd to 48,000 boepd (from 49,000 boepd to 55,000 boepd), comprising 23,000 to 25,000 bopd liquids and 128 to 133 MMscfd gas. 9M revenue of US$495 million (2018: US$568 million) reflects lower production and sales year-on-year together with lower

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price realisations of US$64.22/bbl and US$2.8/Mscf (2018: US$71.14/bbl and US$3.06/Mscf); gas tolling revenue of US$67 million also recognised in relation to the processing of NPDC’s gas at the Seplat sole risk funded Oben gas plant 375 MMscfd expansion between June 2015 and end 2018 Gross profit of US$265 million (2018: US$306 million) represents a 54% gross profit margin; operating profit of US$211 million (2018: US$264 million) with US$36 million recognised within Other Income (including a US$31 million oil underlift position and US$3 million income generated by third party useage of the Group’s Warri pipeline) and a US$5 million net fair value gain offset by a US$40 million impairment of NPDC receivables Profit for the period of US$185 million (2018: US$91 million) positively impacted by a 37% year-on-year reduction in finance costs reflecting de-leveraging of the balance sheet early in the year when the outstanding balance on the 2022 RCF was ultimately reduced to zero Cash generated from operations stood at US$306 million (2018: US$386 million) versus capex incurred of US$64 million (2018: US$29 million). Full year 2019 capex spend expected to be around US$120 million; gross debt of US$350 million at 30 September consists solely of the 2023 senior notes with undrawn headroom of US$225 million available through the 2022 RCF. Cash at bank at 30 September was US$455 million resulting in a net cash position of US$105 million. Commenting on the result, the Chief executive Officer, SEPLAT, Mr. Austin Avuru, said: “2019 so far has seen us make significant progress towards

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“The recommended acquisition of Eland for £382 million is a logical continuation of our business model and represents a rare opportunity to secure a well run asset base that lies firmly within our core geographical area of focus and expertise. Following completion, the enlarged asset base will enhance our inventory of production, development, appraisal and exploration opportunities and enable us to ensure capital continues to be deployed to the most value creative opportunities for shareholders.” Final investment decision (FID) taken for the large scale ANOH gas and condensate development in March 2019 and followed by capital markets days in London and Lagos in June and July (see separately released materials on the Company website); Project to comprise of a first phase 300 MMscfd midstream gas processing development with first gas targeted for Q1 2021; key regulatory, commercial and engineering workstreams remain on schedule Equity investment of US$150 million from government received by ANOH Gas Processing Company (“AGPC”) with US$150 million equity funding from Seplat also made into AGPC. Final equity injection of US$120 million expected in Q4 and funding discussions have progressed with prospective bank lenders and relevant advisors, in anticipation of debt funding being in place in H1 2020 in advance of the time that such funds are needed to meet project costs Gas sales of US$105 million and tolling fees of US$67 million take total gas derived revenue for the period to US$172 million; Gas sales reflect lower than expected gas production owing to constrained production from the Oben47 well and delay in completing the Oben-48 gas well. The Oben-48 gas well is expected to be completed in Q4 www.majorwavesenergyreport.com

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Nigeria loses $7bn oil bunkering investment to Ghana, others – DPR report

iting bureaucratic bottlenecks, Nigeria has lost about $7 billion investment in the oil bunkering subsector to some countries in West Africa, including Ghana, Benin Republic and some others. A Department of Petroleum Resources (DPR) document sighted by Daily Sun detailed how delays in regulatory approvals denied the country an estimated $7 billion investment inflow and thousands of jobs opportunities that could have emanated from the transactions. Contrary to the widespread believe belief that bunkering connotes illegality, bunkering is a legal business which is the supply of fuel for use by ships, and includes the shipboard logistics of loading fuel and distributing it among available bunker tanks. Though there have been reported cases of those involved in illegal bunkering arrested by Navy, DSS, Police and other security agencies in the past. A source in DPR who preferred not to be named confirmed to Daily Sun that over 70 per cent of vessels that enter the country prefer to fuel in other neighboring countries where the process is seamless as against doing so in Nigeria. He described the development as an anomaly considering that Nigeria has the quality of fuel required by the ships, stressing that what makes other countries a preferred destination of choice should be what government should unravel and make attempts to reverse. www.majorwavesenergyreport.com

‘‘Bunkering is legitimate business. We have looked inward and discovered that bureaucratic bottlenecks among inter-government agencies remained a major factor responsible for this loss of revenue. And that has discouraged investment in that sector. Refueling of vessels should be a seamless venture that should not take ages because the more a vessel stays it accrue demurrage and other charges by Government agencies. Every business wants to maximise profit by not incurring additional expenses.’’ The source said, there was no way the country would not make about $1 billion as revenue from the $7 billion investment. He said there was an attempt in the past to review the policies around bunkering business but such was done in a wrong manner and it created a setback that led to where the bunkering sector is at the moment. He said the Department was now working on a new regulatory regime to make the sector more investor friendly by carrying along all stakeholders in order for the country to maximize the benefits inherent in that sub-sector. ‘‘We are trying to avoid the mistakes of the past and that is why we are taking out time so that we don’t fall into the pitfalls of the past. But very soon, a soon framework for that subsector will be unveiled very soon.’

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DPR Begins Radiometric Survey In Bida Basin

he Department of Petroleum Resources has commenced the Radiometric survey of the bida basin Niger state in line with federal government’s aspiration to diversify hydrocarbon exploration across all Nigerian basins. The Director of Petroleum Resources, Mr. Ahmad Shakur gave this indication when he paid a courtesy call on the Executive Governor of Niger state, Alhaji Abubakar Sani Bello who was represented by the Deputy Governor, Alhaji Ahmed Mohammed Ketso. The Director said the objective of the Radiometric survey is to determine the hydrocarbon prospectivity of the bida basin. He stated that the exercise will cover twelve local government areas of the state. Mr. Shakur solicited the cooperation of the state government in sensitisation of the people in the affected local government areas of the survey to ensure the safe conduct of the program. The Executive Governor of the state promised to give DPR maximum support including the provision of adequate security for the survey team. He stated that the government of Niger state was delighted to have DPR, being the Petroleum Regulatory Agency of Nigeria carry out the survey in state which they expect will boost the economy of the state by way of job creation. In the same vein, Mr. Shakur paid a courtesy visit to the Emir of Bida, Alhaji Yahaya Abubakar to also solicit his cooperation and support for the Radiometric survey. The Emir gave his assurance to provide support for the program and assist in the sensitisation of his people.

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INDUSTRY NEWS

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution

14 Companies Bid for OML 119 Redevelopment Financing By Ikenna Omeje

ry Ewing a’s Gas opment: the on Nigeria d’s success story

he Nigerian National Petroleum Damilola Ogunbiyi (NNPC) has Corporation Nigerian Managing publicly opened bids from 14 Director gets top UN sustainable companies for the financing energyofjob and redevelopment Oil Mining Lease (OML) 119. This is in furtherance of the transparency agenda of the Group Managing Director of the Corporation, Mallam Mele Kyari. OML 119 is operated by the Upstream subsidiary of the corporation, the Nigerian Petroleum Development Company Limited (NPDC). This was contained in a statement issued by the Ag. Group General Manager, Group Public Affairs Division, Nigerian National Petroleum Corporation (NNPC), Mr. Samson Makoji recently in Abuja. Speaking at the public opening of bids for the Funding and Technical Services Entity (FTSE) which held in Abuja, the GMD said OML 119 was one of the corporation’s critical projects which aligns wholly with the Federal Government’s aspirations of boosting crude oil and gas production, growing reserves, and monetizing the nation’s enormous gas resources. The GMD who was represented by the Chief Operating Officer, Corporate Services, Engr. Faruk Sa’id, stated that the selection process for the potential FTSE was transparent and in strict compliance with extant laws and overriding national interest, adding that it was also in tandem with the Economic Recovery and Growth Plan (ERGP) and the TAPE agenda of the NNPC. In his remarks, the Group General Manager, Supply Chain Management, Mr. Abdulhamid Aliyu, assured the companies that the selection process would remain transparent and fair. OML 119 is a twin offshore block made up of Okono and Okpoho Fields located approximately 50 kilometers offshore south-eastern Niger Delta.

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Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

Total Updates the Media on Its CSR Activities

ournalists from different media houses in the country – with special bias for Energy reporting -- were hosted to a session on Total’s Corporate Social Responsibility (CSR) activities at the Eko Tower 1, the Lagos office of the company recently. The Executive General Manager CSR, Engr. Vincent Nnadi, made a presentation on the company’s CSR initiatives at the JV and Deep Water districts and at the Corporate level. The company’s focus CSR activities especially on Education and Capacity Development, and Sustainable Development accomplishments since inception among others were presented to the media. “We as Total are a strategic and reliable partner in Nigeria. Within the last few years, we have invested over $10billion in the Nigerian economy and we produce about 15% of the national output in crude oil. We partake in Corporate Social Responsibility, though that is not our main business. So the question now is: why do we do that? Because we believe in controlling and reducing the impact of our activities on the people and our environment,” said Nnadi. He further said the company believes it positively impacts the society and must contribute towards solving societal problems. Earlier in the opening remarks, the Total Country Communication Manager, Mr. Charles Ebereonwu said, “Total

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delivers world class energy solutions, adds economic value to the country and promotes best practices in safety and environmental protection, business ethics and corporate social responsibility.” Mr. Ebereonwu added detailed information on Total from upstream to its downstream arm, and full value chain lines. The journalists posed questions on the company’s efforts on renewables, research on barite, inclusion of the National Universities Commission in curriculum changes to reflect changes from Total/MIT fellows, among others. Senior journalists from Sweetcrude Reports, Punch, Vanguard, The Nation, Leadership, Daily Times, The Sun, News Agency of Nigeria, Africa Independent Television, Nigerian Tribune, Daily Independent, The Guardian, Businessday and TVC News participated in the session. Management staff at the media meet include the General Manager C S R , A ju k w u r a Wo ko m a h; Manager CSR - Education, Azu Azuike; Manager CSR Research & Development, Dr. James Edet; Manager External Communication, Fred Ohwahwa; Manager CSR/ SD Methods, Emmanuel Ikomi; Manager Communication Projects, Senan Murray and Manager, Internal Communications, Albert Mabuyaku.

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Ranti Omole

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INDUSTRY EVENTS

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

NCDMB to Formulate Gender- Friendly Policies to Benefit Women in Nigerian Oil&Gas Industry By Ikenna Omeje

h e Ni g e r i a n C o nte nt Development and Monitoring Board (NCDMB) is to commence formulation of gender- friendly policies aimed at increasing access to funding, award of contracts and support for research and development, for the benefit of women operators in the Nigerian oil and gas industry. The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote announced this at a one-day workshop for women in the oil and gas industry, themed,” Mainstreaming Women in the Oil and Gas Industry,” which was hosted recently in Lagos by NCDMB. He noted that since the Nigerian Oil and Gas Industry Content Development (NOGICD) Act was instituted as a deliberate agenda to get more Nigerians to participate in the oil and gas industry, there should also be special initiatives to encourage women participation in the sector. ”It is estimated that women occupy about 50 percent of non-technical positions at entry level compared to only 15 percent of technical and field role positions. “Gender diversity decreases with seniority with only a tiny proportion 12

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of women in executive positions. The percentage of women in the industry drops over time from 36 percent 24 percent between the middle and executive level,” he said while quoting a recent study by the Global Energy Talent Index Report which indicated that there is a chronic shortage of women in the oil and gas industry. He said NCDMB will review its strategy on the Nigerian Content Intervention Fund (NCI Fund), adding that ”access to finance is very important and we will look at our policy to see how we can support women who are serious to do business.” Already two companies managed by women have benefitted from the NCI Fund because NCDMB took deliberate actions to ensure that, Wabote said. The Executive Secretary assured that the Board would work with project promoters in the oil and gas industry to ensure the award of some contracts to companies owned by women, including the Nigeria Liquefied Natural Gas Company, which is set to start the execution of the Train 7 project. NCDMB would also encourage the study of sciences, technology, engineering and mathematics (STEM) by young girls in secondary schools and drive

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the collation of data on women who participate in various sectors of the oil and gas industry, so they can receive support, he promised. The Executive Secretary confirmed that ”out of the total number trained by the Board, women constitute about 20 percent of the trainees and we hope to increase the number of women trained to meet up the industry skilled labour demand.” In her keynote address at the event, the Acting Head of the Civil Service of the Federation, Dr. Folasade Yemi-Esan eulogized the Executive Secretary NCDMB for organising the workshop irrespective of his gender, stating that Engr. Simbi is an epitome of what humanity stands for. She expressed hope that the workshop would catalyse other dialogues to be initiated by the Board and complement other ongoing activities, programmes and policies of government to propel Nigeria to achieve the United Nation’s Sustainable Development Goals (SDGs), particularly Goals 4, 5 and 10. She insisted that Nigeria should “go beyond the rhetoric of having a quota for women in decision making or other strategic positions by ensuring that the country

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maximizes the economic potential of its whole labour force by promoting equal rights, access and opportunities for all at all levels.” She emphasized that effective implementation of gender related policies is dependent on actions taken by women to acquire the requisite skills for technical positions taking into cognizance that affirmative action is not geared towards jettisoning quality for quantity. Mrs. Yemi-Esan underscored the need for present and aspiring female industry professionals to pursue technically inclined disciplines, which will in turn expose them to better opportunities in the oil and gas industry. She assured of the commitment and collaboration of the Office of the Head of the Civil Service of the Federation to facilitate the formulation of gender smart policies as well as supporting relevant Ministries Departments and Agencies in gathering reliable women specific data for the industry. “We will also uphold gender-responsible budgeting through the expansion of gender desks, which are targeted at ensuring the inclusion of women and girls in their respective activities,” she said. Delivering her goodwill message at the event, the Managing Director of the Nigeria Ports Authority (NPA), Hadiza BalaUsman charged career women to define themselves around capacity and capability and not just because they are women. “When you get there, you must prove that you are capable.” She charged persons in authority to mentor young girls and consciously accommodate the needs of young working mums, so they can remain in employment and gain needed experience and competences that will position them for promotion into executive positions years later.

“You need to give a long rope to the mum that doesn’t come to work because her child was vaccinated or has to attend a school function for her child,” she said. The workshop featured three panel discussions on Key success factors for female corporate executives and entrepreneurs in oil and gas industry; Partnerships, Programmes and Structures for women in the oil and gas industry and Overcoming barriers to career progression and mentoring the next generation.

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gniwE yreffeJ saG s’airegiN eht :tnempoleved airegiN norvehC yrots sseccus s’detimiL

AA Rano Unveils Oil Sector Plans

he Chief Operating Officer (COO) of AA RANO, Mr. Mumuni Da ga zau, ha s reiterated the determination of the company to remain relevant in the business and become the leader in the Nigerian and Sub-Saharan African oil and gas industry. He made the declaration in Lagos recently, during the 2019 Oil Trading and Logistics (OTL) Africa’s Week and Expo. Dagazau declared that AA Rano was poised to take total control of the entire value chain from production to end user because the company now had all the required assets involved in production. This, the COO maintained, would be achievable as the company would do things distinctly and differently for the satisfaction of their customers. The company, one of the players in the industry at the exhibition yesterday, was on ground to display its array of products and services and to introduce its new logo to its major stakeholders. He affirmed that the newly introduced logo was to further refresh and sustain the confidence reposed on them by various stakeholders, as the company is constantly innovating, improving and continually raising the stakes in the industry. He also informed customers and stakeholders who thronged the

company’s stand that AA Rano, with over 600 trucks and 120 retail outlets, would soon expand its retail network to Lagos and other areas to ensure that an average consumer enjoyed and benefitted from its brand’s promise of availability, top quality and best pricing. “Plans are already in top gear. We have concluded plans and talked with various stakeholders to acquire and open more outlets in the Lagos area before the end of this year, to spread the goodness of AA Rano to consumers in Lagos,” he said. He revealed that part of the company’s strategic business expansion programmes included the recent acquisition of a new vessel and the commissioning of a state-of-the-art 56 million-litre tank farm facility and a 20,000 metric tonne capacity LPG plant currently under construction in Lagos. The company, which started with marketing and distribution of petroleum products at inception, has however evolved into a full-stream petroleum company within its 25years of operations. Its subsidiaries included: Rano Petrotrade Limited, Ranogaz Limited, AA Rano Transport Limited and Rano Lubricants Limited. It became a member of the Major Oil Marketers Association of Nigeria (MOMAN) in October, 2018.

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LOCAL CONTENT

EVENT

Nigeria’s Inland Basins CELEBRATING & Oil Discovery: EXCELLENCE IN Optimism, Caution AFRICA’S OIL & GAS

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

Featuring the Big Five Board Awards 2019 and Big Five Charity Auction The Geological Society, London, 21 November 2019 The Big Five Board Awards offer an unrivalled evening of networking for Africa’s leading oil and gas companies and senior executives in a receptionstyle event for these long-respected and annual accolades. Awarded since 1997

and with over 100 recipients to date, the Big Five Board Awards enter an incredible 23rd year. The event supports the plight of African wildlife and aims to raise funds for various conservation projects on the African Continent with a charity auction.

Keynote Speaker

Ade Adeola Managing Director, Energy & Natural Resources Standard Chartered Bank plc

Building Africa’s Oil & Gas Future Event Highlights • Recognise industry key-players and top performers • Champion Africa’s interests in the oil, gas and energy sector • Enjoy an evening of top level networking • Raise money for conservation in Africa

Visit bigfiveawards.com to Register Now £150 +VAT

www.bigfiveawards.com | Tel: +44 20 7193 8224 | email: info@frontierenergy.network www.majorwavesenergyreport.com NOVEMBER 2019, Vol 2 No 8

Majorwaves Energy Report

LOCAL CONTENT

s’airegiN snisaB dnalnI :yrevocsiD liO & ,msimitpO noituaC etobaW ibmiS ARDSON ,BMDCN no etaroballoC gnidniF hcraeseR

alolimaD iyibnugO gniganaM nairegiN pot steg rotceriD elbaniatsus NU boj ygrene

gniwE yreffeJ saG s’airegiN eht :tnempoleved airegiN norvehC yrots sseccus s’detimiL

Reps, NCDMB to collaborate in Nigerian Content Act Amendment

he House of Repre sentative s ha s promised to work closely with the Nigerian C ontent Development a nd Monitoring Board (NCDMB) to amend the Nigerian Oil and Gas I ndustr y C ontent D evelopment (NOGIC D) Act a nd extend it to other cr itica l sectors of the n at i o n a l e c o n o my. C h a i r m a n of the Nigerian C ontent D evelopment a nd Mon itor i n g C o m m it te e (NC D M C) i n t h e 9 t h N a t i o n a l A s s e m b l y, R t . Honora ble L egor Ida g bo made t h e p l e d g e at t h e i n a u g u r a l meeting of the C ommittee w ith the Niger ia n C ontent D evelopment a nd Mon itor i n g Boa rd (NC DM B) held at the N at i o n a l A s s e m b l y r e c e nt l y. He conveyed t he com m ittee’s deter m i nat ion to en su re t hat the ga i ns recorded i n the Oi l a nd Ga s I ndustr y throug h the implementation of the Act in the la st n i ne yea rs gets repl icated i n o t h e r ke y s e c t o r s o f t h e economy.

the ma ndate wa s expa nded to other sectors i n l i ne w ith the E xe cut ive O rder 5 i s sue d by President Muhammadu Buhari. He announced that the committee w i l l oversig ht the activ ities of every ministry, department and a genc y to en su r e c ompl i a nc e w ith E xecutive Order 5. T he cha i r ma n con f i r me d t hat t he c om m itte e h ad d r aw n up it s work prog ramme, which would g uide its activ ities i nto 2 02 0. According to him, the committee had a large membership because ma ny mem b er s of t he Hou s e of Representatives were i nt e r e s t e d i n a t t r a c t i n g t h e b enef it s of Ni ger i a n C ontent to t hei r c on st ituent s. I n h i s pre s ent at ion, t he E xe cut ive S e c r e t a r y, N C D M B , E n g r. S i m bi Ke s iye Wa b ote l aude d t h e c o m m i t t e e’s i n t e r e s t i n extend i ng the NOGIC D Act to other sectors and affirmed that the nation would derive several benef its i f the move becomes a succes s.

W h i le ad m itti ng that other sectors had their peculia r ities, Idagbo noted that the amendment wou ld t a ke t ho s e u n iq uene s s i nto consideration. He hi nted that the current committee was different from its predecessor in the 8th a s sem bly, add i ng that t he n a me wa s ch a n ge d f r om L oca l C ontent C ommittee a nd

He cla r i f ied that the focus of Nigerian Content implementation wa s not Niger ia n i zation of the oi l a nd ga s sector but rather domiciliation and domestication of i ndustr y activ ities. He a lso explained that Nigerian Content implementation was distinct from cor porate socia l responsi bi l ity and does not compromise s t a nd a r d s . Wa b ote i nd ic ate d

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f u r ther that the development of major oi l a nd ga s projects wa s cr itica l to the g row th of L o c a l C ontent. “I f we don’t have a n ena bl i ng env i ron ment a n d we d o n’t c at a l y z e m o r e projects a nd F i na l I nvestment D ecisions, we ca n not i ncrea se L o c a l C ontent,” he s a id. He informed that Nigerian Content g r e w f r o m b e l o w 5 p e r c e nt before the pa s sa ge of the NO GIC D Act i n 2 010 to t he c u r r ent level of 3 0 p er c ent. He a l s o st ate d t h at NC DM B introduced the Nigerian Content 1 0 Ye a r S t r a t e g i c R o a d m a p i n 2 017, w it h t h e t a r g et to g row Niger ia n C ontent to 70 percent by 2027. The Executive Secretary however stressed that “the idea is not to achieve 10 0 percent. We want to claw back a s much a s pos si ble a nd push the bounda r y for Niger ia ns to do so much. No one cou ntr y h a s 10 0 p e r c e nt t e c h n o l o g y a n d c a p a c it y i n t h e o i l a n d ga s i ndustr y.” S ome retu r n i ng members of the committee com mended the Boa rd for the ach ievements it had recorded w ith the implementation of the Nigerian Content Act, notably in the reduction of non-compliance against the Act. T hey also descr i bed the NOGIC D Act a s a bles si ng to the countr y a nd called for the extension to other sectors a s q uick ly a s pos si ble.

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NOVEMBER 2019, Vol 2 No 8 15

LOCAL CONTENT

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

UNN student Wins NCDMB 3rd Edition Essay Competition

second-year student of Medical Rehabilitation at the University of Nigeria, Enugu State, Mr. Isaac Fredrick Sunday, has emerged the winner of the third edition of the annual national oil and gas essay competition organised by the Nigerian Content Development and Monitoring Board (NCDMB). The essay submitted by the 21-year-old was adjudged the best amongst over 3000 entries and he was rewarded with a cash prize of Five Hundred Thousand Naira (N500,000), a new laptop and a plaque. He had emerged as one of the top 10 finalists in the 2018 edition of the competition. The other top four finalists included Miss. Melex Tamaradoubra, a 200-level student of Medical Laboratory, Rivers State University, Port Harcourt; Mr. Nater Akpen, a 200-level Medical student of Benue State University, Makurdi; and Miss Zeenat Magaji, a 200-level student of Cyber Security Science, Federal University of Technology, Minna. They received varying cash prizes for their efforts. 16

Majorwaves Energy Report

The Executive Secretary of NCDMB, Engr. Simbi Wabote, represented by the Manager, C orporate Communication, Barr. Naboth Onyesoh explained that the essay competition had become a signature event for the Board and serves to promote liberal arts education and development of vital soft skills required in the workplace and business in the emerging digital world economy. According to him, “This program will continue to generate interest and awareness especially among undergraduates about the criticality of Nigerian Content philosophy and law in the oil and gas sector as a national economic agenda for job creation, poverty reduction, industrial development and economic growth.” He commended the growth trajectory of the programme and the high ethical standards it had maintained over the years. Mr. Onyesoh added that the programme is comparable with the Boards sponsored Science Quiz Competition for high school students, conceived to stimulate interest in Science, Technology, Engineering

NOVEMBER 2019, Vol 2 No 8

and Mathematics (STEM) education. He encouraged the top 10 finalists to continually improve their writing competencies because it comes with numerous benefits. Chairman of the occasion and Vice Chancellor, Niger Delta University, Prof. Samuel Edoumiekumo represented by the Deputy Vice Chancellor (Academics), Prof. Allen Agih, commended NCDMB for impacting positively on NDU and the society in general. He sought for more competitions to improve creativity and research, so as to enable students gain requisite practical experiences and become employable upon graduation. The Project Consultant, Mr. Eyinimi Omorozi thanked the Board for its continued sponsorship of the essay competition. He said the project was conceived to encourage writing and the research ability of young Nigerian undergraduates in public and private owned tertiary institutions to enhance academic excellence.

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LOCAL CONTENT

s’airegiN snisaB dnalnI :yrevocsiD liO & ,msimitpO noituaC etobaW ibmiS ARDSON ,BMDCN no etaroballoC gnidniF hcraeseR

alolimaD iyibnugO gniganaM nairegiN pot steg rotceriD elbaniatsus NU boj ygrene

gniwE yreffeJ saG s’airegiN eht :tnempoleved airegiN norvehC yrots sseccus s’detimiL

NCDMB, NOSDRA Collaborate on Research Finding

NCDMB Trains Project 100 Companies on Project Management

he Nigerian Content Development and Monitoring Board (NCDMB) has concluded Project Production Management (PPM) training for the first batch of Project 100 beneficiaries.T he tra i n i ng held for one week i n L a gos, demonstrated the Boa rd’s commitment towa rds the rea li zation of the objectives a nd a spi rations of P roject 10 0 a nd the ta rgets of the Niger ia n Oi l a nd Ga s I ndustr y C ontent D evelopment (NOGIC D) Act 2 010 a nd the Niger ia n C ontent 10 - Yea r Strateg ic Road map. I n his welcome add res s, the E xecutive S ecreta r y, NC DM B; Eng r. Si m bi Wa bote represented by the D i rector, Pla n n i ng, Resea rch a nd Statistic s, M r. Patr ick Da z i ba Oba h expla i ned that the tra i n i ng wou ld help to add res s the cur rent gaps i n project del iver y, project fa i lure a nd i ncu lcate i n the benef icia r ies the capacities for effective project del iver y a nd P roject P roduction Ma na gement. Accord i ng to hi m, “A s pa r t of the ma ndate of the Boa rd, we have over t he ye a r s i nve ste d sig nif ica nt resources in project ma na gement tra i n i ng eit her through the direct inter vention www.majorwavesenergyreport.com

or project ba sed tra i n i ng, a l l w ith a si ng u la r objective that we cr ow n ou r exc el lent pl a n w ith q ua lity deliver y to ensure ste ady f low of i nve st ment i n cou nt r y. He adde d t hat ”you cannot build a reputation based on the best pla ns; you have to c o m p l i m e nt y o u r p l a n s w i t h q ua l ity del iver y.” A lso speaking, the General M a n g e r, C a p a c i t y B u i l d i n g N C D M B , D r. A m a I k u r u expla i ned that P roject 10 0 seek s to nur ture 10 0 Niger ia n wholly owned oil and gas service prov iders i n a competitive a nd sustainable manner and through ta rgeted i nter vention s i nto la rger sca le players that create hig h i mpact. I n her rema rk s, the Ma na g i ng D i r e c to r, W ider Per s p e c t ive, Mrs. Edughom Hanson thanked t h e B o a r d fo r i n it i at i n g t h e training and encouraged beneficiaries to actively participate and be fully equipped in tackling project management so a s to add more va lue to the Niger ia n oi l a nd ga s i ndustr y.

he Nigerian Content Development a nd Monitor ing Boa rd (NCDMB) has met with the National Oil Spill Detection and Response Agency (NOSDR A) and Solpawa BioRemediation Products Ltd (SBPL) over the potential certification of local bio-remediation breakthroughs. The meeting which held recently at NOSDRA’s Headquarter in Abuja discussed NOSDR A’s potential certification of SBPL’s Soil Booster 101X and Solpawa Soil Conditioner 102X). NCDMB initiated the meeting because it is the driver for the growth of local research capabilities within the Nigerian Oil industry. The Board is supporting SBPL’s efforts towards the commercialization of the Solpawa Soil Booster 101X and Solpawa Soil Conditioner 102X. The Board is working to facilitate NOSDRA’s certification of the patented products prior to the field trials. The NCDMB team was represented by Mr Woyengidinipre Anthony and Dr Ademola Kaka and they used the opportunity to emphasize the importance of strong collaboration between the Board and NOSDRA in view of NOSDRA’s role in testing of research breakthroughs. SBPL was represented at the meeting by the lead researcher, Olufolahan Emmanuel-Tella and Rowland Tella while NOSDRA representatives included Oladipo Obanena, Oluyinka Okunubi, John Lahu among others.

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NOVEMBER 2019, Vol 2 No 8 17

POWER

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

4,000 Undergrid Minigrid Projects Can Save DisCos $60 Million Annually - Report By Ikenna Omeje

y implementing 4,000 undergrid minigrid, the Nigerian power Distribution Companies (DisCos) can save between $30-$60 million annually while offering minigrid owners $1 billion in annual revenue and saving communities $170 million in yearly energy expenditures. This was contained in a new report funded by All On and produced by Rocky Mountain Institute (RMI), Clean Tech Hub and Energy Market and Rates Consultants (EMRC) titled,” Electrifying the Underserved: Collaborative Business Models for Developing Mingrids Under the Grid.” According to the report, communities under the grid are unserved or underserved by their electric utility, and are forced to supplement with expensive diesel or petrol gensets instead of grid power; and noted that undergrid minigrids up to 1 megawatt (MW) in size can solve this challenge. Speaking on the report, the Chief Executive Officer (CEO) of Clean Technology Hub, Ifeoma Malo said, “The growth of the energy access sector in Nigeria is evident in the growing interest of distribution companies in increasingly exploring ways to grow their market base and meet underserved needs. This report will be a pivotal guide for minigrid developers, investors, and distribution companies in deciding the best business models for a ready market of energy-hungry consumers.” On his part, the Principal at RMI and coauthor of the study, James 18

Majorwaves Energy Report

Sherwood said, “Undergrid minigrids are a promising and commercially viable solution that can deliver reliable electricity to hundreds of thousands of Nigerians today. The business models outlined in this report can kickstart the undergrid minigrid industry in Nigeria by providing guidance on how to start projects, which will provide a precedent for private sector, community and utility collaboration that is applicable across many other countries in sub-Saharan Africa and around the world.” According to the CEO of All On, an off-grid energy investment company backed by Shell that funded the research, Dr. Wiebe Boar, “the undergrid minigrid business models introduced through this research provide a framework for minigrid developers, distribution companies and communities to collaborate to provide reliable, affordable and sustainable power at scale to millions of underserved, low-income households and SME customers across Nigeria. We need collaborative approaches like these to address Nigeria’s energy access gap and improve livelihoods nationwide.” The report describes four business models as practical solutions to guide stakeholders through the process of implementing undergrid minigrids in Nigeria. The four business models, which it stated can be implemented under today’s social, political, and economic environment include a minigrid operator-led approach, in which a private minigrid operator leads NOVEMBER 2019, Vol 2 No 8

development in consultation across the distribution company and community; a special purpose vehicle (SPV)-led model, wherein the SPV may include distribution company investors; a cooperative-led approach formed by the community to lead minigrid development; and a collaborative SPV-led model wherein ownership and operation are shared among stakeholders. It added that these business models were developed with extensive stakeholder consultation and consideration of commercial dynamics and regulatory frameworks in the Nigerian Electricity Supply Industry to ensure successful project implementation that meets the needs of all actors. It stressed that the most critical aspect of each business model is the requirement for multiple project participants to work together toward a common outcome, noting that executed projects need to reflect real community needs while working within Nigerian regulation to support customer well-being and economic development. “The four business models discussed in this report explore the possibility of developing an undergrid minigrid in Nigeria which presents an opportunity for improved energy access to unserved and underserved communities, developers to make returns on their investment and existing electricity distribution companies to reduce losses, “ said the Senior Consultant at EMRC, Oladiran Adesua.

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POWER

s’airegiN snisaB dnalnI :yrevocsiD liO & ,msimitpO noituaC etobaW ibmiS ARDSON ,BMDCN no etaroballoC gnidniF hcraeseR

$1.66bn from International Donors Increases Power Generation – TCN

he Managing Director of Transmission Company of Nigeria (TCN), Alhaji Usman Mohammed, said that the 1.66 billion dollars received from international donors increased generation capacity in the country. TCN recently received 1.66 billion dollars from multi-lateral donors to boost power supply in the country. Mohammed disclosed this at the Nigeria electricity awareness walk, organised by TCN and Mainstream Energy Solutions Limited in conjunction with other Nigerian Electricity Industry Stakeholders in Abuja. He said that the capacity was less than 4,000MW but increased to over 7,500MW, which also increased the distribution capacity from about 3,500MW to 5,375MW in the highest peak in February. “There is need to sustain investment into the sector especially in distribution segment, careful investment planning, regulatory consistency and transparency,’’ he said. The TCN boss said United Nations’ SDGs classified infrastructure along industry and innovation as goal number nine, while availability of clean and affordable energy was made to stand alone as goal number seven. Mohammed said power stands out as the most important infrastructure, adding that many citizens knowingly or ignorantly were contributing to the crisis confronting the sector. He attributed the poor development of the sector to vandalism of power infrastructure, building under power lines, preventing acquisition of power line right of way (ROW) among others. The TCN boss also said that electricity theft through illegal connection, meter by-pass and the refusal to pay electricity bills by consumers was a challenge for the sector. Mohammed said the objective of the walk was to highlight the need for all Nigerians to appreciate sustainable development and growth of the Nigeria electricity industry as a national issue. He said the electricity awareness walk was also targeted at ensuring that every Nigerian understood his or her role in the development of the electricity industry. “Electricity industry is key to the sustainable development of the nation. Power infrastructure is expensive and requires extensive planning,“ he said. The Managing Director of Mainstream Energy Solutions, Mr Lamu Audu, said the country`s economic development and electricity synergy were the same. “I want to assure the Nigeria electricity consumers that we are ready and fit to provide a reliable and affordable electricity to the public. “We are looking up to the government for support, the workers are ready to work,” he said. Audu, who said that the sector had recorded a huge success since its privatisation, called for the support of the Nigerian Electricity Regulatory Commission (NERC).

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alolimaD iyibnugO gniganaM nairegiN pot steg rotceriD elbaniatsus NU boj ygrene

gniwE yreffeJ saG s’airegiN eht :tnempoleved airegiN norvehC yrots sseccus s’detimiL

Akpabom Community Welcomes Solar Electricity

The Federal Government of Nigeria, through its Implementing A gency – Rural Electrification Agency (REA), in October, commissioned a 100KW solar hybrid mini grid power plant in Akpabom Community, Onna Local Government Area of Akwa Ibom State. The project, which is the third to be commissioned under the Ru ra l E lectr i f ication Fund (REF), will provide clean, safe, affordable and reliable electricity for the community members. The REA Managing Director/ C EO, Mrs. Damilola Ogunbiyi, emphasised the Federal Government’s commitment to meeting its developmental goals by providing electricity access for all. Reiterating REA’s role, she stated that “as an agency, we are responsible for powering unserved and underserved communities, therefore, it is fulfilling every time homes, businesses, schools and medical centres are connected to sustainable sola r power. A lmost immediately, we are able to witness rural communities being transformed with clean energy through the jobs that are created during construction, to their micro and small businesses scaling to larger capacity thanks to reliable electricity.” The Head of Oniong Clan in Akpabom, His Royal Highness Obong Barr. Samuel Johnson Efik,

Majorwaves Energy Report

expressed gratitude to the Federal Government and the private sector developer for providing electricity to their small community. “Our businesses are now fully operational; especially at night. Our fishermen are able to preserve their fish and businesses, in general, are growing. Today is indeed the beginning of better things to come for Akpabom.” GVE Projects Limited Chief Executive Officer, Ifeanyi Orajaka, shared that the installed mini grid comprising a total of 306 solar panels and a distribution network cable of 5.5KM will adequately energize the community. He also mentioned that fifty-eight jobs were created as a result of local labour. “It is a thing of pride that GVE, an indigenous Nigerian firm, can be a part of developing Nigeria’s rural areas. Thanks to this project, Nigerian solar developers, like myself, can access these investment opportunities and participate in growing Nigeria’s evolving offgrid sector.” Akpabom Community now joins Upake (80KW) in Kogi State and Kare-Dadin K o w a a n d Ts u l a y e (98.8KW) in Kebbi state in experiencing social and economic progress thanks to the solar mini grids project under the Rural Electrification Fund (REF). NOVEMBER 2019, Vol 2 No 8 19

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

Majorwaves Energy Report

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

NOVEMBER 2019, Vol 2 No 8

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MARITIME

s’airegiN snisaB dnalnI :yrevocsiD liO & ,msimitpO noituaC etobaW ibmiS ARDSON ,BMDCN no etaroballoC gnidniF hcraeseR

he International Maritime Bureau (IMB) has reported a drop in piracy attacks in Nigeria in the third quarter of 2019. IMB said in its latest report, “Nigeria has reduced Q3 piracy attacks from 41 in 2018 to 29 in 2019,” which represents nearly 30 per cent year-on-year reduction. This is as the Deep Blue Project, a comprehensive maritime security architecture initiated by the Nigerian Maritime Administration and Safety Agency (NIMASA), in collaboration with the military and other security agencies, comes into operation. The piracy reporting body also said there was a decrease in global piracy incidents during the first nine months of 2019, compared with the corresponding period in 2018, in a fall to a five-year low. Director of IMB, a specialised division of the International Chamber of Commerce (ICC), Pottengal Mukundan, said, ‘’119 incidents have been reported to the IMB Piracy Reporting Center in 2019, compared to 156 incidents for the same period in 2018. Overall, the 2019 incidents include 95 vessels boarded, 10 vessels fired upon, 10 attempted attacks, and four vessels hijacked. The number of crew taken hostage through the first nine months has declined from 112 in 2018 to 49 in 2019.” However, according to IMB, piracy and armed robbery attacks remain a challenge in the Gulf of Guinea. The decline in piracy and armed robbery attacks on vessels came as the Deep Blue Project, Nigeria’s www.majorwavesenergyreport.com

IMB Reports 30% Piracy Drop as Nigeria’s Deep Blue Project Kicks in

alolimaD iyibnugO gniganaM nairegiN pot steg rotceriD elbaniatsus NU boj ygrene

Integrated Security and Waterways Protection Infrastructure, began to yield results. The project is handled by an Israeli firm, Homeland Security International (HLSI). It involves the training of field and technical operatives drawn from the various strata of the security services and NIMASA as well as acquisition of assets to combat maritime crime, such as fast intervention vessels, surveillance aircraft, and other facilities, and establishment of a command and control centre for data collection and information sharing to aid targeted enforcement. The Deep Blue Project aims at building a formidable integrated surveillance and security architecture that will broadly combat maritime

gniwE yreffeJ saG s’airegiN eht :tnempoleved airegiN norvehC yrots sseccus s’detimiL

crime and criminalities in Nigeria’s waterways up to the Gulf of Guinea. The timing of the IMB report also coincides with the conclusion of the Global Maritime Security Conference (GMSC 2019) hosted by Nigeria, and coordinated by the Federal Ministry of Transportation and NIMASA, under the theme, “Managing and Securing our Waters.” With the stated objective of, among others, defining the nature and scope of coordinated responses to maritime insecurity in relation to interventions, the conference enabled global maritime leaders to review the progress made in the fight against maritime crime while charting strategies for the future.

Dr Dakuku Peterside

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MARITIME

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

NCDMB, OPTS to Develop Marine Vessels Standards for Oil Industry ...Conditions for NCI Fund‘ll not be relaxed

he Niger ia n C ontent Development and Monitoring Board (NCDMB) will partner with the Oil Producers Trade Section (OPTS) – the umbrella body of major oil producing companies to develop an oil and gas industry marine vessels standards. The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote gave the hint in Abuja recently when he received the new executive committee of the Shipowners Association of Nigeria (SOAN) led by the President, Dr. Mkgeorge Onyung. The standards will be applied in marine tenders by all oil and gas operators and will specify uniform technical specifications that must be met by marine vessels that will work in the oil and gas industry. The conceptualization of the standards will have inputs from relevant stakeholders and will enhance business opportunities for marine operators and stimulate capacity building, efficient maintenance of vessels and optimum service delivery, Wabote explained. He added that NCDMB was desirous to promote the development of shipyards and would collaborate with the shipowners or any group that would submit a bankable proposal on how to domicile that important capacity in-country. Responding to a request by the shipowners for the Board to relax certain conditions which made it difficult for them to access the Nigerian Content Intervention (NCI Fund), the Executive Secretary insisted that existing conditions on the NCI Fund would remain. He clarified that the Board instituted those conditions, including the demand for Bank Guarantee from 22

Majorwaves Energy Report

the applicant’s commercial bank, so as to guard against failure of the loans and the entire credit scheme. “We set tight conditions because we do not want the Fund to fail,” he added. He described the NCI Fund as phenomenal success, noting that 90 percent of the funds have been accessed by oil and gas companies that met the set conditions. Earlier in his remarks, President of SOAN, Dr. Mkgeorge Onyung stated that the visit was aimed to familiarize the Board with the new executive of the association and seek innovative ways both organisations could collaborate for the good of the industry. He commended NCDMB for the impactful implementation of the Nigerian Content Act, which has led to the exponential growth of indigenous marine sector. He also lauded the Board for developing the revised Marine Vessel Categorization Scheme and expressed hope that it would lead to more industry contracts for their members. Onyung stated that some members of the association were working with foreign partners to start ship building and repair centres in Nigeria and will require support and collaboration from NCDMB. He declared that shipping consisted of 90 percent of global trade and SOAN wanted to contribute its quota to national economic development. He said the association was planning to organize a national conference and would use the forum to showcase how Nigerian Content had provided an enabling environment for shipping to thrive.

NOVEMBER 2019, Vol 2 No 8

In their contributions, other executive members of SOAN sought the Board’s intervention towards getting international oil companies to change the 10-year age restriction they placed by on marine vessels that would be hired in the Nigerian oil and gas industry. According to them, it took an average of 5-6 years for a contracted vessel to break even, hence it would be highly unprofitable if such a vessel barred from working shortly after it clocked ten. They also proposed a partnership arrangement with NCDMB whereby the Board would sponsor cadets to gain seatime onboard vessels owned by SOAN members. They noted that the association operated a similar scheme with the Maritime Academy Oron, Akwa Ibom State and presently had 59 cadets onboard ships, with the school paying a discounted rate for the opportunities. The also pleaded with the Board to compel the Nigerian National Petroleum Corporation (NNPC) to use indigenous owned tankers for transhipment of its products. They regretted that only one Nigerian owned tanker was engaged by the NNPC in contravention of Nigerian Content dictates. Responding, the Executive Secretary stated the Board’s readiness to partner with SOAN to provide seatime experience to young Nigerians and charged the association to submit a detailed proposal on the idea. He also stated that NCDMB was already exploring an arrangement whereby ExxonMobil Nigeria would deploy a training vessel as a Capacity Development Initiative (CDI). The training vessel would have extra deck spaces for cadets and operate under a sustainable arrangement. He also challenged SOAN to engage the Nigerian Maritime Administration and Safety Agency (NIMASA), NNPC and Nigerian Ports Authority (NPA) on some of its demands, which border on the mandate of those agencies.

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NOVEMBER 2019, Vol 2 No 8 23

SOCIAL INVESTMENT

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

Two Nigerian Businesses Shortlisted for Shell Global Innovation Prize

wo Nigerian entrepreneurs have been shor tl i sted among 21 finalists for theShell LiveWIRE Top Ten Innovators Awards,a global competition, which highlights and rewards businesses that demonstrate excellence in innovation as well as giving entrepreneurs a chance to shine on a global platform. The businesses are”FarmToJuice and Foods Nig. Ltd which produces juices, processing any waste into livestock feed and using a biogas digester to provide energy; and Basiled Energy Ventures, a business that provides solar lamps, solar installation maintenance and repair, and solar battery recycling services. “ The two Nigerians have come up with creative ideas on energy efficiency, food and agriculture and join19 entrepreneurs from other countries to vie for the prestigious prize,” said the Managing Director, The Shell Petroleum Development Company of Nigeria Limited (SPDC) and Country Chair, Shell Companies in Nigeria, Osagie Okunbor. A public vote of the shortlisted businesses took place from September 9 – 18, 2019 on the Shell LiveWIRE website, 24

Majorwaves Energy Report

with the results helping to determine the winners. “ We are happy that young Nigerians keep deploying the skills and funding assistance in our LiveWIRE training schemes. Last year, two Nigerian companies were among the Top Ten Innovators from among 21 entries in a contest which attracted over 11,000 voters from 102 countries. We hope to come out successful again this year,” said Igo Weli, SPDC’s General Manager, External Relations. LiveWIRE is Shell’s flagship youth enterprise development programme that provides training and finance to young people to start or expand their own businesses. Launched in Nigeria in 2003, the programme enables young entrepreneurs to convert their bright ideas into sustainable businesses creating wider employment and income generation opportunities. “LiveWIRE ambassadors have benefitted from this support to make their mark and we call on Nigerians to encourage them by voting for their ideas,” Weli added. Winners and two runners up will be named in the categories of Food & Agriculture, Energy & NOVEMBER 2019, Vol 2 No 8

Mobility, and Sustainable Future, with the winners receiving $20,000 USD and runners up receiving $10,000 USD. In addition, Shell LiveWIRE will name an Outstanding Achievement Award winner who will receive $10,000 USD. All Top Ten Innovators will win direct mentoring from Shell staff and the opportunity to integrate and benefit from vast linkages within Shell’s global network. Executive Vice President of Shell Global Commercial, Huibert Vigeveno said, “We’re inspired to see these 21 finalists from around the world whose businesses work towards providing circular solutions that help to achieve zero waste. Transitioning to a circular economy can help protect the environment and deliver positive change to society. Working with innovators like these esteemed finalists, will allow businesses, communities and society to move faster towards achieving these goals.” Since its introduction in Nigeria in 2003, the LiveWIRE programme has trained 7,072 Niger Delta youths in enterprise development and provided business start-up grants to 3,817.

www.majorwavesenergyreport.com

SOCIAL INVESTMENT

s’airegiN snisaB dnalnI :yrevocsiD liO & ,msimitpO noituaC etobaW ibmiS ARDSON ,BMDCN no etaroballoC gnidniF hcraeseR

he Niger Delta Development C ommission (NDDC), says its six billion naira 132/33KV Sub Station designed to provide electricity for over 2, 000 riverside communities in Ondo State will be ready for use soon. Dr Akwagaga Enyia, the NDDC Acting Managing Director, gave this assurance while addressing newsmen during an inspection of the project in Okitipupa recently. Enyia, who was in company with the state deputy governor, Agboola Ajayi, said she was excited that the commission was constructing “a huge power station” in the oil-producing area of the state. The project got stalled for over 10 months as a result of non payment of the outstanding Interim Payment Certificate (IPC). However, the NDDC met that obligation recently and work began in earnest as a target completion period of first quarter of 2020 has been agreed between contractors and the commission.

“

I was told that for sometime, there was delay in the progress of work on site. When I came on board as the Acting MD, I made sure that funds were released to put the project on fast-track. That is why work is going on at a much faster pace now,” he said. Enyia stated that it was one of the key projects with many months of outstanding Interim Payment Certificates, which the commission had cleared to pave the way for progress at the site. Enyia assured www.majorwavesenergyreport.com

NDDC Says N6b Power Project for Ondo State Riverside Communities Ready Soon alolimaD gniwE yreffeJ

iyibnugO gniganaM nairegiN pot steg rotceriD elbaniatsus NU boj ygrene

that as more funds were made available to the commission, payment would be sustained to guarantee early completion of the project, stating that the contractor had promised to complete the project by the first quarter of 2020. Also, the deputy governor said the commission had done well in spite of some challenges which were expected in any organisation, especially in an interventionist agency such as the NDDC. He expressed delight that over 2,000 oil-producing communities spread across five local government areas of Ilaje, Ese-Odo, Okitipupa, Odigbo and Irele, all in Ondo South Senatorial District, would benefit from the sub-station. “We must look at how we can strengthen the NDDC to enable it deliver on its mandate. We need to encourage and support NDDC to do more for the people of the region. “For us, this is the most important project NDDC is executing in the state. If you deliver this project, you will have delivered the whole of Ondo South from the pains of lack of public power supply. “All of us will be happy with you, and the economy of the area which had been crippled for many years, will begin to boom,” the deputy governor said. Ajayi, who emphasised that the project was very dear to the people, urged the NDDC and the federal government not to relent in their efforts until the project is completed. The Executive Director, Engineering and Technical Services, Niger Delta Power Holding Co Ltd., Ifeoluwa Oyedele, said the inspection by NDDC was significant because

saG s’airegiN eht :tnempoleved airegiN norvehC yrots sseccus s’detimiL

it underscored the importance of collaboration among agencies of government. He said that the NDDC sub-station would be fed from NDPHC power station in Omotosho, which, according to him, was grossly underutilised. “We have four turbines at the station, but at the moment, we are firing only one while the rest are idle,” he said. According to Oyedele, the southern senatorial district of Ondo State represents the core economic base of the state, as it is the oil-producing area. He said that the absence of public power supply in the area had strangulated the state economy for 12 years. Mr Benson Obayomi, the MD, Stedy Engineering Ltd, the contractors handling the project, said the scope of the contract included the evacuation of light from Omotosho with a step-down at Ireje through a 132KV double circuit line with two 30/40MVA transformers at Okitipupa. According to him, the transmission lines run through Ireje with 145 electricity towers that are standing on concrete foundations. Obayomi said that all materials needed for the project were already on site at Okitipupa, listing them to include 45 kilometres of wires and 240 kilometres of conductors. A traditional ruler from Ilaje Local Government Area, Oba Oluwashegun Akinyomi, thanked the NDDC for the intervention, noting that all hands were on deck to deliver the project on time. He lauded the NDDC for stepping in to resolve a prolonged electricity problem in the oil producing communities.

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NOVEMBER 2019, Vol 2 No 8 25

COVER STORY

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution By JEROME ONOJA

xperts have raised serious concerns following the hysteria c o m i n g w i th th e announcement of fresh oil find in the northern part of Nigeria, saying fundamental policies are critical to harness the emerging potentials. This article is a review of some opinions by experts who have called for caution, the actual exploration activity over the years, the transformative possibilities and the guiding regulatory framework. Glory days are ahead for Nigeria’s oil fortunes, first following the addition of 200,000 barrels of oil per day to the nation’s daily output by Egina deepwater oil field, operated by Total Nigeria Joint Venture; and 26

Majorwaves Energy Report

more recently, an increase in the nation’s crude oil reserve. Though uncertain of the volume of proven reserve increase, the discovery is said to be in commercial quantity and was found after drilling the Kolmani River II well on the upper Benue Trough, in the Gongola Basin. The discovery has led to additional purchase of 3D Seismic of over 1183 km2 in pursuit for increase of Nigeria’s reserve by the Nigerian National Petroleum Corporation, NNPC. Drill stem tests are still being conducted to verify the reservoir volume, hence the caution. However, some are pessimistic in their analysis, citing the gradual shift to renewables and pursuit for Net Zero carbon emission by major global economies. The discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the North-

NOVEMBER 2019, Vol 2 No 8

Eastern part of the country, no doubt has been described by experts as capable of further stretching economic opportunities of the north in particular, and the country in general. President Muhammadu Buhari had said that government should learn from past experiences in the Niger Delta, by ensuring that it conducts Environmental Impact Assessment, EIA, and ensure adequate compensation for host communities are addressed. The drilling of the Kolmani River II Well was flaggedoff by the President on February 2, 2019. Before then, operators in the sector were offering divided views about the economic considerations in the continued search for hydrocarbon resources in the north, especially when about $3 billion had already been sunk in the exercise without making a www.majorwavesenergyreport.com

COVER STORY

s’airegiN snisaB dnalnI :yrevocsiD liO & ,msimitpO noituaC Felicia Agubata

etobaW ibmiS ARDSON ,BMDCN no etaroballoC gnidniF hcraeseR

However, some experts noted that nature has blessed each region of Nigeria with peculiar resources, and while the south is enriched with hydrocarbons, the north is blessed with solid minerals, thus, solid minerals and hydrocarbons cannot coexist. This opinion was heightened by accusations that persistent push by some northern leaders, including President Muhammadu Buhari, points to an underlining reason far beyond the quest, which is far from being of economic benefit to the country. Already, there have been visits by some northern governors to the NNPC, on the issue. The Executive Director, Civil Society Legislative Advocacy Centre (CISLAC), and Head of Transparency International Nigeria, Auwal Musa, described the move as unnecessary and not in the best interest of the country. Musa said, “We should not bring regional politics to everything that can benefit the entire country. The project has not been seen as a national effort to diversify revenue.

commercial find. Some regarded the exercise as an economic waste, but government was encouraged by the success of oil finds in neighbouring countries like Niger, Chad and others. The president of Association of Professional Women Engineers of Nigeria, Dr. Felicia Nnenna Agubata, is one of the very vocal voices in the industry who consider the feat as capable of opening other reservoirs with great opportunities for new investments in the host communities; job creation through skill acquisition for local operators in the industry, which in the end will be a Win-Win for everyone involved.

“

Agubata said that exploring the new frontier will certainly open up development of communities around the area and above all, will improve Local Content implementation in the industry”. www.majorwavesenergyreport.com

“

If it is seen as something meant for national interest, I don’t think there is the need for the Sokoto State governor or anyone to lobby. There are signals that it is going to favour one particular region.”

Auwal Ibrahim Musa

Senator Shehu Sani, a playwright and human rights activist, who is also the President of the Civil Rights Congress of Nigeria (CRCN), during a visit by members of the Kaduna State Students Union to his office in Kaduna, noted that “Past leaders had amassed wealth through this venture,” and instead called President Buhari to investigate the over $3billion already spent on the project. About 40 years after the Federal Government started the search for oil in the north, some opinion alolimaD leaders are convinced gniwE yrefthat feJ its iyibnugO saG s’aireBuhari giN by the President gniganaintensification M nairegiN eht :tnempoleved pot sadministration teg rotceriD may be more airegiN politically norvehC elbaniatsus NU yrots sseccus s’detimiL motivated, and will end up enriching boj ygrene a few individuals from the region. Described as a mere geopolitics of oil, some experts insisted that the drive, if not dropped, especially now that the country’s economy is in turbulence, would remain a waste of the nation’s scare resource. But a new directive from the Buhari-led administration had compelled the NNPC to aggressively pursue oil search in the frontier basins, the then Group Managing Director, Maikanti Baru, said. Regardless of the criticisms, Baru said the corporation would not give up on the mandate given to it by President Buhari to aggressively explore the inland basins, including Anambra, Bida, Benue, Chad, Gongola, and Sokoto. Baru said, based on preliminary results from the exploration in the inland basins so far, especially the Benue Trough, there was a strong indication that commercial quantity of oil and gas find would soon be a reality. Experts again were of the view that instead of continuing with the search, Nigeria should take opportunity of the rise in oil prices at the international market to produce already discovered reserves, and maximise the benefits thereof in view of the global shift to renewables. But after suspending exploration in the Chad Basin, where some workers lost their lives to Boko Haram insurgents, the NNPC started operations in Nasarawa State, in its readiness to return to the Chad Basin, Sokoto, and Benue, among other states in the north. Few International Oil Companies, IOCs, including, Chevron, Total, and Shell, which had oil blocks in the upper Benue trough, had also drilled wells, bringing the total number of wells drilled in the region to 26. Out of the three that were drilled by the IOCs, only the block belonging to Shell had some gas reserves, but the discovery is untested. The energy sector plays a vital role in Nigeria’s economy since the country is endowed with abundant energy resources, such as oil, gas, coal and water.

Majorwaves Energy Report

NOVEMBER 2019, Vol 2 No 8 27

COVER STORY Oil was discovered in 1958 and has since the early 1970s dominated the economy. Today, Nigeria is the largest oil producer in sub-Saharan Africa and since 1971 a member of Organization of Petroleum Exporting Countries, OPEC, with an estimated production volume of 2.413 million barrel/day 2005, making it the world’s sixth largest producer.

“

Nigeria has reaped an estimated US$600 billion in oil revenue since exploration began”.

Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Mele Kyari

Paradoxically, Nigeria is numbered among nations with the highest number of poor people in the world, coming third after China and India. Its GDP per capita is equivalent to 19 percent of the world’s average. This translates to several low human development indices. The oil producing region of the Niger Delta are not immune to the level poverty in spite of humongous amounts of money being set aside for the regions development. Despite the fears and concerns, the Acting Group General Manager, Group Public Affairs Division, Samson Makoji, said that NNPC acquired 435.54km2 of 3D Seismic Data over Kolmani Prospect in the Upper Benue Trough, Gongola Basin. This was to evaluate Shell Nigeria Exploration and Production Company Kolmani River 1 Well Discovery of 33 BCF and explore deeper levels. The well was drilled with “IKENGA RIG 101” to a total depth of 13,701feet encountering oil and gas in several levels.

“

A Drill Stem Test is currently on-going to confirm the commercial viability and flow of the Kolmani River reservoirs”.

Majorwaves Energy Report

The corporation explained that on Thursday, October 10, 2019, at 18:02hours, one of the reservoirs was perforated and hydrocarbon started flowing to the well head at 21:20hours in which the gas component was flared to prevent air charge around the Rig. Preliminary reports indicate that the discovery consists of gas, condensate and light sweet oil of API gravity ranging from 38 to 41 found in stacked siliciclastic cretaceous reservoirs of Yolde, Bima Sandstone and PreBima formations. “Computation of hydrocarbon volume is on-going and will be announced in due course,” the statement indicated. The corporation said it had also acquired additional 1183km2 of 3D seismic data over Simbiprospective Wabote areas of Gongola highly NCDMB, NOSDRA Basin with Collaborateaonview to evaluating the Finding fullResearch hydrocarbon potential of the Basin. NNPC stated that it deployed technologies including Surface Geochemistry, Ground Gravity/ Magnetic, Stress Field Detection, Full Tensor Gradiometry aerial surveys to de-risk exploration in the frontier basins. It said it plans to drill additional wells for full evaluation of the hydrocarbon volume in the Gongola Basin. During the spudin ceremony of Kolmani River II, Buhari stated the commitment of his administration to the exploration for oil and gas in the frontier basins in the entire length and breadth of the country. The basins include the Chad, Gongola, Anambra, Sokoto, Dahomey, Bida and Benue trough He also stated that attention would be given to the Dahomey and Anambra Basins which had already witnessed oil and gas discoveries.

frontier basins. “More employment will be generated for all Nigerians, while the region will benefit in infrastructural development and several corporate social responsibility projects and programmes. More significantly, investors’ confidence has been boosted such that we expect some good amount of private sector investments in the basin, and indeed in the other inland frontier basins comprising the Bida, Sokoto, Anambra and onshore Dahomey basins in the years ahead,” Obaje said. He said even though the NNPC is presently working on all the inland basins, government would be encouraged to put some of the blocks in the inland basins up for bidding during the next bid round.

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution

“

According to NNPC, the discovery of oil and gas in commercial quantity in the Gongola Basin will attract foreign investment, generate employment for people to earn income and increase government revenues”. Also reacting to the development, Professor of Geology and NNPC Chair in Basinal Studies, Nuhu Obaje, who lauded the development, especially as the search has been on for above four decades, said although the volumetrics are yet to be announced, the discovery would shore up national reserves, and bring significant positive socioeconomic transformations. Obaje said despite being far from the coast, the construction of national grids of pipelines and other flow infrastructure, as well as the proposed trans-Saharan pipeline will make the economics optimal for further exploration and harnessing of the potentials in the

NOVEMBER 2019, Vol 2 No 8

“

Definitely the environment will suffer. There will be dislocation and relocation of communities, pollution and destruction to farmlands and the aquatic ecosystem, but futuristic strategies for mitigation and reclamation should already begin in earnest”. But above all, Nigeria will benefit. This is a milestone achievement for the NNPC and critical stakeholders,” Obaje stated. According to the Chairman of Petroleum Technology Association of Nigeria, PETAN, “If the find turns out to be in commercial quantity that will be great!

“

We cannot g row our reserves if bold steps such as exploring hydrocarbon across the country were not considered”.

A key execution priority of our economic recovery and growth plan is ensuring national energy sufficiency and this cannot be achieved through hydrocarbon resources from the conventional basins alone.

Bank-Anthony Okoroafor

www.majorwavesenergyreport.com

COVER STORY He further added, “therefore, exploration in our frontier basins, viz Chad, Gongola, Anambra, Sokoto, Dahomey, Bida and Benue trough is important and must be sustained by government since private companies are unwilling to invest in inland basins; it rests on government to open them up in order to attract international investors. Concerning available and reliable data to guide exploration activities, the geophysical expert had this to say: “We do not have much data on the inland basins. But, with present improvements in technology and seismic, it will do our country great to acquire reliable data on the inland basins, and re-launch a licencing round on the same basins. “I believe we are sitting on a huge natural hydrocarbon resource and it must be explored”, he quipped. The former President, Nigerian Association of Petroleum Explorationists (NAPE) Abiodun Adesanya described the discovery as a positive accomplishment and a game changer for national development. According to him, the fact that the country has oil and gas discovery from another section of the country means that its benefits to the citizens will spread, stressing that the resources would be useful for economic development, especially for addressing the country’s energy deficiency.

“

Once we cross that threshold, it can then be packaged into a licensing round that would naturally be attractive to both local and international investors”.

s’airegiN snisaB dnalnI :yrevocsiD liO & ,msimitpO noituaC

“

There are a lot of things we can do with the gas locally in that area and oil can be piped as feedstock to the Kaduna Refinery, or a new one that may be built in Gombe area,” Adesanya said”.

Abiodun Adesanya

Stating that the discovery would reduce over dependency on resources from the Niger Delta, Adesanya added that the find, however, needed to be appraised to confirm the extent and determine the size of the oil and gas reserves found. www.majorwavesenergyreport.com

As far as cost is concerned, when you commence exploration in new areas, cost could be higher than normal because there are lots of unknowns. Whether the oil would be for export, I wouldn’t think so because of our own internal energy Adesanya etobaW ineeds,” bmiS ARDSON ,BM DCNwe find crude said. He continued: “If no etaroballoC idniF hrefined craeseR oil, that cangnbe locally; if we find gas, we would process it to generate power, build LPG, Ammonia or fertiliser plants, whose products can be consumed in the country, that will be good news. “However, environmental and security issues could be of concern. The area is just North of the Yankari Games Reserve, therefore, we have to ensure that the environmental impact is minimised and global best practices adhered to so that we will not destroy the ecosystem of that area. As much as possible, mistakes and lessons learnt from the Niger delta area should guide our operations,” he said. Again, experts have cautioned that regulatory framework, delayed passage of the Petroleum Industry Bill, PIB and investors’ apathy from poor handling of the sanctity of contracts, stand against investments. However, optimism comes in when one considers the potential of further discoveries from other inland basins, as well as the nation’s stable democracy, a strong index for attracting positive investment considerations. A multiplier effect of the oil find, if proven to be of substantial reserve is the guaranteed supply of feedstock to the impending revolution of refining processes across the country. It is not news that Dangote group has joined the rank of refiners, with its 650,000 barrels capacity for crude oil daily, expected to come on-stream within the first quarter of 2021. Also, the recent effort to rehabilitate the state-owned 450,000 barrels per day refineries in different parts of the country, coupled by investments from private businesses in building modular refineries, hold abundance of processed petroleum product for users in the future. The Nigerian Content Development and Monitoring Board, NCDMB is seen to be strategic and very deliberate in this space as it partners with private businesses to bring these modular refinery ventures to reality. Bukola Adubi, the Chief operating officer of Miccom Cables

also had this to say: “There’s no way this discovery will not enhance local participation, if the reservoir volume is commercial. Consider the entire value chain inherent in the oil resource, particularly if the entire process is handled by Nigerians”. She demanded that political sentiments be removed from real economic pursuit. Noting that, unemployment has no tribal sentiments. “According to the constitution of the country, the land belongs to the federal government; so alolimaD iyibnugO gniganaM nairegiN pot steg rotceriD elbaniatsus NU boj ygrene

“

gniwE yreffeJ saG s’airegiN

eht :tnempolevedthat it is commendable airegiN norvehC NNPC has yintensified rots sseccus s’detisearch miL for more oil finds, which if successful, will bring more revenue and several economic benefits to the government and existing players in the industry”.

Bukola Adubi

It is expected that, the lessons learned from the Niger Delta will be corrected with discovery in the Northern basins. Massive unemployment, poverty, debtburdened states and out-of-school children in the North will have some form of respite. Also, basic infrastructure, as well as ravaged environments from climate challenges will be addressed when the Northern region becomes prosperous from the oil resource. The single story of Chad River running dry will be replaced with tales of pipes conveying water across the region. A direct comparison with the Niger Delta region in terms of revenue inflow will see the Northern region gulp billions in allocation. The Niger Delta Development Commission (NDDC) of the Niger Delta region receives about N350bn annually. This is the right time to have conversations around the policies and framework to commercialise the downstream sector ahead of the impending boom from refining. Currently, according to Department of Petroleum Resources, deepwater PSCs account for about 40

Majorwaves Energy Report

NOVEMBER 2019, Vol 2 No 8 29

ENERGY WOMAN

COVER STORY

per cent of Nigeria’s oil production. Analysts indicate that the Deepwater PSC 1993 terms have attracted approximately, US$86 billion of investments since the commencement of deepwater developments in 2001. From 2001 to 2019, government has received about US$180 billion from deepwater oil production.

The structure of PSCs is such that, with increasing cumulative production, the share of profit to the Federal Government of Nigeria, through the Nigerian National Petroleum Company, increases. However, in the last decade, ry Ewing the Nigerian oil Damilola industry has been able Ogunbiyi a’s Gas Managing three new Deepwater opment: the to sanction onlyNigerian Director gets top African on Nigeria projects whereas other UN sustainable d’s success story countries with lessjob hydrocarbon energy potential have attracted significantly more investments in comparison with previous years, because they offer more attractive Deepwater fiscal terms that encourage investments. Some international oil companies, IOC’s are of the opinion that, introducing an additional price-based royalty or increasing water-depth based royalties on revenues are burdensome to an industry with a plethora of other taxes, fees, levies and tariffs. They claim it will worsen Nigeria’s competitiveness. There are fears that US$48 billion of currently planned oil and gas investments would no longer be economically viable, resulting in significant decline in production and government revenues by 2023. Reports have it that French oil major, Total is seeking to sell its 12.5 per cent stake in the giant Bonga deepwater oilfield off the coast of Nigeria. It was also said to be in an effort to adjust the energy company’s Africa portfolio amid a broad expansion, having nothing to do with the new fiscal regime. President Muhammadu Buhari recently signed the amendments as contained in the

“

Deepwater and Inland basin Bill, having the conviction it would help the industry generate at least US$500 million in 2020 alone, and another US$1billion in 2021”.

President Muhammadu Buhari

Majorwaves Energy Report

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

Nigerian Chapter of WinLPG plans Secondary School Advocacy Project

he Nigerian Chapter of the Women in Liquefied Petroleum Gas, WinLPG, has concluded plans to embark on its Secondary School LPG Advocacy Campaign before December 31, 2019. The group disclosed that the project will commence with two schools by the year end and will be in collaboration with the Lagos State Government Education District and the Local Council Development Areas (LCDA). According to WinLPG, the selected schools include, “Onike Girls Senior High School, Sabo Yaba, Herbert Macaulay Girls Senior High School, Gbaja Girls Senior High School Surulere, New Era Girls Senior Secondary School, Surulere Girls Senior Secondary School and AnsarU-Deen Senior Secondary School” The campaign is targeted at enlightening the youth about the versatility and benefits of LPG as well as proposing LPG as a suitable fuel towards meeting Nigeria’s Sustainable Development Goals. The campaign will also encourage households to convert to the use of LPG for domestic cooking, as it is to cleaner, cheaper and readily available in Nigeria. Recently, the Minister of State for Petroleum Resources, Chief Timipre Sylva, disclosed at the just concluded OTL Africa Summit that: “LPG expansion programs with the intention of making it the first choice of energy for domestic and industrial purposes is ongoing.

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“This is being pursued through “the LPG Penetration Initiative” of the Ministry of Petroleum Resources. The framework is designed to achieve at least 40% fuel switch to LPG by 2025, attainment of 5MM MT domestic utilization of LPG and the creation of an estimated 500,000 job opportunities within the next 5 years. “The recently launched ‘Operation White’ has been strategically developed to eradicate the smuggling of PMS across Nigerian borders. The Government will not relent on the sustenance of the programme. A team of 89 persons drawn from five key agencies have been mandated to ensure transparency and accountability in the distribution of petroleum products across the country. “In addition, they will: Authenticate actual volumes of products imported and consumed; ensure the nation attains energy security; reduce diversion of PMS and stop financial haemorrhage and improve downstream operations and create commercial opportunities.” He added: “Tracking of products and cleanup of illegal stations shall continue and even adequately supported with modern technology. Working with private sector to aggressively increase domestic refinery capacity shall be paramount. Refurbishment of the existing refineries to achieve full capacity operations shall be fast-tracked: (PH ongoing, others to follow by Q1 & Q2 2020). We will actively collaborate with the private sector to create a large number of well-paying jobs for Nigerian youths.” www.majorwavesenergyreport.com

s’airegiN snisaB dnalnI :yrevocsiD liO & ,msimitpO noituaC etobaW ibmiS ARDSON ,BMDCN no etaroballoC gnidniF hcraeseR

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alolimaD iyibnugO gniganaM nairegiN pot steg rotceriD elbaniatsus NU boj ygrene

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gniwE yreffeJ saG s’airegiN eht :tnempoleved airegiN norvehC yrots sseccus s’detimiL

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ACROSS AFRICA

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

Uganda to Begin Exportation of Crude Oil Soon ... As Equatorial Guinea Announces Winning Bids for Oil Licences this Month By Ikenna Omeje

ganda will soon begin exportation of its first crude oil from its Lake Albert oil discovery to the international market, making it one of the countries to have joined the oil exporting countries after the government came to an agreement with Tanzania that enables it to transport its crude oil through the East African Crude Oil Pipeline (EACOP), a 1,445-kilometre pipeline from Hoima, Uganda, to the port of Tanga in Tanzania is the proposed route. The country’s Minister of Energy and Mineral Development, Hon. Irene-Margaret Muloni, made the disclosure while speaking at the Ministerial and VIP Symposium at the 2019 Africa Oil Week , held in Cape Town, South Africa from 4-8 November, 2019, which attracted over 200 senior executives from International Oil Companies (IOCs) and National Oil Companies (NOCs) along with ministerial delegations from leading African nations; who joined to look for solutions to Africa’s energy challenges. “It is exciting times for Uganda, we are now preparing for production,” Muloni said. “It has taken us some

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time, but we are there. The exploration discovered six billion barrels and we have plans to recover about 1.4 billion of these. And now the issue is to get that out of the ground. We’ve already agreed with Tullow, Total and CNOOC the way forward to commercialise that oil. “We need two big destinations. One is access to the international markets through the pipeline to add value and ensure security of supply within the East Africa region. Also, we are importers of petroleum products now, so we have a refinery under development.” That refinery is planned for Kabaale in Western Uganda’s Hoima district, along the eastern shore of Lake Albert, close to the border with the Democratic Republic of Congo. Once the refinery is completed, expected to be in 2022, it will produce kerosene, gasoline, diesel, heavy fuel oils for Uganda and other local markets. In addition to the refinery an airport, hospital and a 100-megawatt thermal power plant are being constructed. “For these two big projects the pipeline is more advanced with the FEED signed and an intergovernmental agreement with Tanzania. We are now negotiating the host government agreements between us and setting up the private companies that are going

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to own and operate the pipeline. For the refinery we’ve already approved the configuration of the refinery that will handle 60,000 barrels per day. Those two projects are ongoing and as a country we are preparing the infrastructure.” With the Lake Albert oil beginning to flow, Uganda has set its sights on further resources and in May announced a second licensing round for additional oil exploration in five blocks in western Uganda that will be announced before the end of 2019. “It is all about attracting companies to come and join us in the exploration. We have only licenced about 15% of the resources but the appetite is there because the parameters are world class. The success rate when you drill is hovering around 85%, meaning every time you drill a hole there is a good chance of success.” Also speaking at the symposium, the Equatorial Guinea Minister of Mines, Industry and Energy, Hon Gabriel Mbaga Obiang Lima, said that later this month the country will announce the winning bids for its 27 oil and gas licences. The bidding round is reported to have attracted a high level of interest, especially among Chinese oil and gas companies following a roadshow in Beijing. www.majorwavesenergyreport.com

ACROSS AFRICA

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“We have many companies who have expressed an interest,” Lima said. We have pre-selected some of these because we see the most serious companies, but the important thing is that the key blocks have already attracted interest.” Equatorial Guinea is already home to several majors including ExxonMobil. Kosmos, Marathon and Noble and hopes to attract several more in this latest round. “We are doing well, and we are delivering great revenue,” he added. “But the issue here is what we are going to do in the future. Two of the fields are mature fields and we need to decide about them going forward. That revenue has allowed us to carry out investment in our infrastructure, but we are still keen on bringing in more companies.” This year has been the Year of Energy 2019 in Equatorial Guinea, that saw several

high-level investment conferences have a limited population so local and roadshows in Malabo and content have been mainly focused internationally, and they are on a specialised sector such as the following that up next year with service industry,” he noted. “In the Year of Investment 2020. “It has general, I can say that more than been very successful,” the minister 90% of the companies have done informed. “A lot of people have a very good job regarding local heard more about what to do and content that we’re happy with.” As we have been able to promote more for the regulatory regime, Equatorial content. We have also been able Guinea are going to be working to prepare ourselves for the next next year on the new law. “We year, 2020, which is going to be the companies alobelieve limaD that our national gniwE y reffeJ etobaW ibWe miS iyibnugOwork more efficiently saG s’aif, iregrather iN investment ARDSyear. ON ,BMDCN are looking to gniganaM nawill iregiN eht :tnempoleved no etarobwhich alloC pot steg rthan otceriD having regularairresponsibility egiN norvehC build refineries will be the gnidniF hcraeseR elbaniatsus NU yrots sseccus s’detimiL next stage of our development.” boj from ygrene a minister, it will be controlled by a law.” Equatorial Guinea and Uganda were amongst almost forty Two of the challenges that often ministerial delegations in attendance curtail investment in Africa are at the symposium. Africa Oil Week stringent local content rules and is the leading oil and gas event for a regulatory framework that can the continent, with over 1,800 key be fluid. For Equatorial Guinea executives attending from around the the subject of local content is not world to broker new deals. an issue according to Lima. “We

Zimbabwe’s Cabinet approves merger of 3 oil firms

a b i n et h a s a p p r ove d the merger of three oil companies – Petrotrade, Genesis Energy and CMED’s retail division – to enhance their value ahead of negotiations with prospective partners. This was said by the Information, Publicity and Broadcasting Services Minister, Monica Mutsva ng wa while addressing journalists after Cabinet meeting recently. “Cabinet received and approved proposals for the partial privatisation of Petro-trade, as presented by the Minister of Finance and Economic Development (Professor Mthuli Ncube), being part of the ongoing State Enterprises reform programme,” said Minister Mutsvangwa. “Under the proposals, Petrotrade and Genesis Energy, together with CMED’s fuel retail component, will www.majorwavesenergyreport.com

be merged to enhance the resultant entity’s value, attractiveness and competitiveness ahead of negotiations with prospective strategic partners.” Government has a programme aimed at reforming State Enterprises to improve their performance and reduce reliance on fiscus for their survival. Some of the companies will be listed on the stock exchange, while others will be partially privatised and some will be merged. Minister Mutsvangwa said Cabinet received an update on the Second Phase of the Implementation of Ease of Doing Business reforms, which was presented by Prof Ncube. “The reforms are based on the 10 World Bank Doing Business indices, namely: Starting a business; construction permits;

access to electricity and other public utilities; registering property; access to credit; protecting minority investors; payment of taxes; facilitation of crossborder trade; enforcement of contracts; and resolution of insolvency,” she said. Minister Mutsvangwa said to date, President Mnangagwa has approved eight of 16 legislations which required significant amendment. “To give due prominence to the reforms, Cabinet agreed to set up an Inter-Ministerial Cabinet Committee or Task Force of key line Ministries to superintend the Ease of Doing Business reform programme in order to transform the country’s business environment, promote local and foreign investment, create wealth and jobs and improve overall economic performance,” she said. “You may be aware that we recently rose up the World Bank Competitive Index by 15 places as a country, from 170 out of 190 countries in 2015 to the current 140.” Source: The Herald

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SPOTLIGHT

ACROSS AFRICA

Ivory Coast mobilizes $85m to connect 400,000 Damilola ry Ewing households to electricity Ogunbiyi a’s Gas Nigerian Managing opment: the Director gets top on Nigeria grid UN sustainable d’s success story energy job

he Ivorian government has just mobilized 50 billion CFA francs ($ 85 million) from donors as part of its Electricity for All Program (PEPT), which will reach 400,000 households in 2019 and 2020” . This was announced by the Ivorian Minister of Petroleum, Energy and Renewable Energies, Abdourahmane Cissé during a session of the Committee on Economic and Financial Affairs of the National Assembly. This amount has been mobilized from several donors. These include the World Bank, the European Union and the French Development Agency (AFD), which contributed 35 billion FCFA (approximately $ 59.3 million), as well as the African Development Bank ( AfDB) which raised financing of CFAF 15 billion (approximately $ 25.4 million). This investment will connect 400,000 households in 2019 and 2020, to reach one million households that will have benefited from PEPT at the end of 2020 in Côte d’Ivoire. “ In the last few years, a lot has been done. We have more than doubled the number of electrified localities. The coverage rate, which represents the percentage of electrified localities in the total number of localities in Côte d’Ivoire, was around 33% in 2011, “said Abdourahmane Cissé, adding that ” we want to reach 80% in 2020 ”. . Note that the PEPT is a government initiative that allows Ivorian populations to have access to electricity by paying only 1000 FCFA (about $ 1.69) instead of 150 000 FCFA ($ 254). Source: Agence Ecofin

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Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

South Sudan to Launch Oil Sector Licensing Round By 2020

outh Sudan’s petroleum m i n i s t e r o n Tu e s d a y announced a raft of energy plans seeking to improve the world’s youngest oil sector industry in a bid to jump-start economic recovery after more than five years of conflict. Daniel Awow Chuang, South Sudan’s oil minister, said the government is planning to launch the country’s first oil and gas bidding round within the first quarter of 2020, but noted that the environmental audit will be done in November. “This year we have a lot of plans for us to launch the licensing round by the first quarter of 2020, and for us to invest in those areas as the government is key for us to get the information,” Awow said during third oil and power conference in Juba. He revealed that the current data collection which is done by the ministry of petroleum provides a platform for investors to invest in the oil sector, adding that it will add more value to the country’s national resources. “In November, we are going to launch an environmental audit and there are a lot of companies that are interested to invest in this area, this will be an opened tender,” Awow said. In August, South Sudan made a new oil discovery in the Adar oil field in Block 3, containing more than 37 million barrels of recoverable oil. The discovery was announced by the Dar Petroleum Operating Company, a consortium led by China National Petroleum Cooperation.

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Awow observed that the discovery will increase the appetite of international oil investors to enter the country’s oil and gas sector, noting that Block 5A, which is located in the Muglad-Sudd Rift Basin on the same geological trend as the Greater Nile Oil Project in Sudan will resumption early November. He said the Block 5A has a production capacity of 80,000 barrels per day (bpd) of the higher quality Nile blend, noting that the potential resumption of Block 5A comes at a time when the young nation is about to achieve a durable peace as parties gather steam to establish a new unity government on Nov. 12. “The number of blocks that we used to say was eight, but we have added more due to more discoveries in the areas we have never demarcated before. All those blocks will be opened for tending, and that is why we are planning to launch the licensing round in a bid by next year,” he said. “As of now we have a lot of investors that are ready to apply, including the companies from the West, America, Russia, India, and China that have shown interest, but of course we can’t negotiate with them until the right time come,” he added. Awow revealed that the new discovery in Block 5A and in the Adar oil field will become a game changer as it is the first discovery made since independence, giving hope to investors interested in South Sudan’s energy sector. Source: Hellenic Shipping News www.majorwavesenergyreport.com

DOWNSTREAM

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Exxon awards $13 billion in Mozambique LNG contracts

x xon Mobi l awa rde d contracts worth about $13 billion to three companies including JGC Holdings Corp. to build a giant liquefied natural gas plant in northern Mozambique, the country’s oil and gas regulator said. The total cost of the Exxon-led Rovuma project will be about $23.6 billion, a spokeswoman for the National Petroleum Institute said Wednesday by email. That’s less than the $27 billion to $33 billion that Johannesburg-based Standard Bank Ltd. had earlier estimated. Japanese company JGC will be joined by Fluor Corp. and TechnipFMC to develop the plant scheduled to start production in 2025. Exxon approved spending of more than $500 million for preliminary works before a final investment decision next year, the energy giant said recently from the Mozambican capital, Maputo. Exxon’s plant is planned to produce 15.2 million tons of LNG per year, higher than another project that Total SA is developing in the same region with capacity of 12.9 million tons. Mozambique is counting on the projects to boost income in what is the world’s 7th-poorest country by gross domestic product per capita. The size of the economy was about $15 billion last year.

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etobaW ibmiS ARDSON ,BMDCN no etaroballoC gnidniF hcraeseR

alolimaD iyibnugO gniganaM nairegiN pot steg rotceriD elbaniatsus NU boj ygrene

gniwE yreffeJ saG s’airegiN eht :tnempoleved airegiN norvehC yrots sseccus s’detimiL

FG Unveils Automated Downstream Operations, Financial Monitoring Centre to Deepen Oil Sector Transparency

ollowing the launch of “Operation White”, made up of 89 officials drawn from five agencies to help monitor products supply and distribution across the country and check unwholesome practices with a view to aut hent ic at i ng the actual volume of products imported and consumed in the country, the Federal G o v e r n m e nt h a s unveiled the Automated Downstream Operations a nd Financial Monitoring Centre (DOFMC) to deepen transparency in the oil and gas sector. S p e a k i n g at t he unveiling ceremony in Lagos, the Minister of State for Petroleum R e s ou r c e s, C h ief Timipre Sylva, said the activation of the D OF MC a nd the launch of “Operation White” were very clear signs of the President Muhammadu Buhariled administration’s

commitment to stamping out sleaze from the oil and gas sector and placing it on the path of growth. The Minister who was represented at the event by the Executive S ecreta r y of the Petroleum Equalization Fund Management Board, Mr. Ahmed Bobboi, called on a ll dow nstream stakeholders to work together to ensure the success of both the “Operation W h ite” a nd t he DOFMC initiatives. Also speaking at the event, the Group Managing Director of the Nigerian National Petroleum Corporation (N N P C), Ma l la m Mele Kyari, who was represented by the corporation’s Chief Financial Officer, Mr. Umar Ajiya, said the establishment of the DOFMC would help in blocking leakages and boosting revenue to the Federal Government.

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The GMD said NNPC was committed to ensuring the success of the “Operation White” and the DOFMC in line with its renewed stance on transparency. On his part, the Managing Director of the Petroleum Products Marketing Company (PPMC), Mr. Bala Wunti, explained that the two initiatives would enhance efficiency in the delivery of petroleum products to ensure availability and affordability. It would be recalled that Chief Sylva, along with the NNPC GMD, Mallam Kyari, inaugurated the “Operation White” team yesterday at the NNPC Towers to achieve end-to-end tracking of petroleum products from landing point to the pump to stem crossborder smuggling and diversion.

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INFRASTRUCTURE

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

Oil Exploration: Economist Seeks More Funding for N/Delta Development

he Institute of Chartered Economists of Nigeria, ICEN, has appealed to the Federal Government to appropriate significant funds to the Niger Delta, to compensate for its long neglect and ecological risks from oil-companies’ activities in the region. The South-South Coordinator of ICEN, Mr. Friday Udoh, made the appeal while briefing newsmen amidst Senate’s rejection of the N23billion Niger Delta Ministry’s 2020 budget proposal presented before the Senate Committee on Niger Delta. Udoh commended the thoughtfulness of the Senate and efforts of the ministry, headed by Sen. Godswill Akpabio, describing both side as stakeholders and friends of the region. He said considering the multifaceted social and economic problems, only infrastructural development and sustained human capital development can promote peace in the region. “Even though we have move a step forward, at the same time there is no intrigue that can foster the required peace hitherto the creation of the right atmosphere for investment in the region. “Just as the security forces and army cannot achieve a decisive peace, but effective institution to a degree that it meets the tough 36

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challenges of resource allocation, coordination and communication that fosters institutionalization of reciprocity along groups and legitimately offers reassurance to skeptical groups. “It is beyond any question to postulate that the effect of any given gesture only have impact when there is a significant capability to allocate services and material resources, Udoh who sponsored the first and second Niger Delta Summit for Economic and Social Development at the height of unrest in the region in 2008, which demanded for amnesty which was latter adopted by the Federal Government in 2009. Situating the place of stable and stronger Niger Delta to economic prosperity, the Economist said for the region to grow, it must evolve foresighted strategy given the strategic national interest of the region, and threats posed by weak nations along the coastal West and East African countries given its geographical location at improving it resilience. “Our President, His Excellency Muhammadu Buhari, does not hide his desire for sustainable economy. More proactive action of the state governors in the region is sin qua non to growth in the region.

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“While this responsibility seems particularly difficult, interestingly success does not necessarily require that all is accomplished fully or immediately. “Ideally, we must see success and failure as foreseeable, believing that level of successes could be varied and at worst unattainable, but to an extent that its enforces the radius of trust between the government and the governed, consequently my submission to the increase in budget allocation given the overreaching needs of the region.” Connecting the importance of research, innovation and entrepreneurship to regional economic development, Udoh call on the Ministry to increase its funding to human capital development, sponsorship of researches among universities in the region, and lending support to the concept of business cluster development across states in the region. He also advocated for programs and projects that would exert a symbolic impact on citizens by meeting their daily needs. “Sustainable level of prosperity, productivity and wages in a region like the Niger Delta is determined by the ability of the region to create and commercialize innovations,” the Economist said. www.majorwavesenergyreport.com

INFRASTRUCTURE

s’airegiN snisaB dnalnI :yrevocsiD liO & ,msimitpO Petroleum Ministry to Partner ICRC to Develop Oil Sector n o i t u a C Through PPP

etobaW ibmiS ARDSON ,BMDCN no etaroballoC added gthat nidniF hcrtalks aeseR

he Minister of State for Petroleum Resources, Mr. Timipre Sylva has said that the ministry will partner with the Infrastructure Concession Regulatory Commission (ICRC) to develop the oil sector through Public Private Partnerships (PPPs). Sylva said this in Abuja when he received the Director-General and management staff of ICRC on a courtesy visit.

He had been ongoing with some Chinese investors for funding but there was not much progress on it and stakeholders had come to the realisation that the discussions with the Chinese was not moving forward. “So now, we have to look for another way out. I will be travelling with President Muhammadu Buhari to Russia and Saudi Arabia and the AKK will be on the table during our discussions.

According to him, every developed country in the world has had to go through privatisation and PPPs to achieve their development. “I believe that your agency is an engine for growth and development and if privatisation will lead the growth process in the country, an agency like yours is very necessary.

“On top of that is the discussion with the ICRC and we need to take this discussion far enough for us to be able to brief the president to know whether we have to exit the discussions we are having with our partners for funding.”

“Everybody, the world over has come to realise that government is a bad manager and so everybody is concessioning and moving toward the private sector and PPP.” Speaking on the Trans-Saharan Gas Pipeline (TSGP) project, Sylva said it was a very important one which unfortunately had been on the drawing board for far too long. He said it was no longer time to discuss and talk or diagnose the problem of Nigeria endlessly, but to make some progress. “The TSGP has probably been on the drawing board for 30 or 40 years and yet has not taken off. “I understand that the Algerians had some differences with Nigeria; let us look at those details and clear them out so that we can move forward.” Sylva, however, said that before working on the TSGP, both organisations must look at the AbujaKaduna-Kano (AKK) gas pipeline project which had also been on the drawing board for sometime also.

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While complaining about the state of the nation’s refineries, Sylva said it was unfortunate that they had run aground over the years and were all presently operating at zero capacity. He, however, said that efforts were on to revamp the refineries, adding that the Federal Government was already making a lot of progress with the Port Harcourt refineries, while studies on Warri and Kaduna refineries were ongoing. The minister said he was glad that the ICRC could be beneficial to the oil sector and that synergy between both agencies would go a long way in enhancing results for the government. “It is one government and whatever gains we make ends up with the same government. “Sometimes, these linkages are not apparent because we are all working at individual levels and no one knows what the other is doing.

“

So, we have this de-linking between agencies, but of course if we come together and work together , we will get a lot more traction from that.”

alolimaD gniwE yreffeJ iyibnugO saG s’airegiN gniganaM nairegiN eht :tnempoleved pot steg rotceriD a i r e giN norvehC Chidi Izuwah,yrothe elbaMr niatsus N U ts sseccDirectorus s’detimiL bGeneral, oj ygrene ICRC, said there were

opportunities to bring private capital into the refineries to restore them to their capacity and industrialise the country. He said this was because that was how countries in the Middle-East were industrialised. “It is important that we revive the system with private capital because transporting petrol by trucks is not only dangerous and unsafe, our roads are not designed for doing that.

“

This is because the load they carry will make sure that our roads no matter how much money we spend repairing them will never be good.” He also said there were various ways to partner with the private sector to bring in private capital to transform the petroleum industry. According to him, these are areas where the ICRC as the primary regulator for the PPP effort of the Federal Government will like to work with the ministry to unleash the next level agenda of the president. Izuwah said the ICRC was also pushing to ensure that the Nigeria-Morocco gas pipeline project was achieved. “Morocco has come into this deep relationship with us which has solved our fertilizer problem. “It would also be nice for us to look at that project that really expands the West African Gas Pipeline and rolls it around the corridor of Africa to Morocco and that would be transformational for Africa.” The News Agency of Nigeria (NAN), reports that ICRC was established to regulate PPP activities in Nigeria to address physical infrastructure deficit which hampers economic development. (NAN).

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INTERVIEW

The goal of OTL Expo from the beginning was to give voice to the downstream Damilola ry Ewing Ogunbiyi a’s Gas Nigerian opment: the segment ofManaging the oil Director gets top on Nigeria UN sustainable d’s success story job and gasenergy industry - Emeka Akabogu, Convener OTL Africa

r. Emeka Akabogu is the C onvener of the globally acclaimed Oil Tr a d i n g L o g i s t i c s A f r i c a D o w n s tr e a m E x p o , w h i c h h a s b e c o m e th e p r i n c i p a l downstream petroleum event in A frica . He is a widely recognised expert in the f ield of maritime law and policy in Ni geria , and l e a d s th e r e s o u rc e f u l a n d enterprising team at Akabogu & Associates. He holds a law degree from the University of L agos, and was called to the Ni gerian Bar in 2 0 0 0 . H e a l s o h o l d s a m a s te r’ s d egree wi th sp eciali sa tion in Maritime L aws from the University C ollege L ondon . His book , “ Maritime C a b o ta ge i n Ni ge r i a” , i s the f irst book on the subject of Cabotage in Nigeria. This is in addition to numerous o ther p ub li shed articles .

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Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

Akabogu is a recipient o f th e p r e s ti g i o u s B r i ti s h C h ev e n i n g S c h o l a rs h i p , a Fellow o f the C hartered In s ti tu te of S hippin g, an d serves on the E x ecutive C ouncil of the Ni gerian Mari tim e L aw A ssocia tion as Honorary Secretary. In this exclusive in terview with IKENNA OMEJE, on the sidelines of the 2 019 Expo of the OTL (Africa Downstream) We e k h e l d i n L a g o s l a t e O c to b er, he sp ea k s on the i n i ti a l go a l o f O T L E x p o and gives his assessment on the imp lem en ta ti on o f the C abotage Act. E xcerpts: Yo u h a v e b e e n c o n v e n i n g O i l Tra di n g a n d L ogi s ti cs D o w n s tr e a m We e k fo r 1 3 y e a rs n o w. W h a t w a s th e initial goal for this expo and how have you b een able to

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sustain it? T he goa l from the beg inning wa s to g ive voice to the downstream segment of the oil and gas industr y, which prior to this event did not have any voice. Prior to this event, the d ow n s t r e a m s e g m e nt o f t h e p et r o l e u m i n du s t r y w a s n ot reckoned with; it was seen as a junior partner to the upstream. So, our goal was to give it life, give it confidence, put a face, wh ich i s cu stomer- cent r ic to t hat s e g ment of t he ma rket. A nd I think we have achieved that, because everyone who is a key player in the downstream is now more conscious of its role to the public; of its appearance to the public and its engagement with the public. So, we have achieved that. W here we are goi n g i s now to en su re t hat the busines s env ironment for dow n st r e a m op er ator s i s improved significantly. www.majorwavesenergyreport.com

INTERVIEW

s’airegiN snisaB dnalnI :yrevocsiD liO & ,msimitpO noituaC

T he business environment has not been good for that segment for a couple of years now. So, that’s our next goal; to ensure that the business environment is improved, so that the operators ca n rema i n prof ita ble i n the work they do. A ny specif ic achievement since the start of this expo? We are very proud of the impacts we have made in the image of the downstream segment of the market over the years. Before we sta r ted, nobody reckoned w i t h t h i s i n d u s t r y, n o b o d y invested in advocacy for this segment, nobody was involved in branding for this segment. Ever ybody rema i ned more or le s s br iefc a s e, but what ha s h a p p e n e d ov e r t h e y e a r s i s that we have seen downstream players increasingly integrating, and even going upstream, on the back of valuables accrued from an increased sophistication arising from our inter ventions and activities. As a maritime lawyer, what’s your assessment of the C abotage Act so far? I t h i n k t hat’s a s er iou s one you ju st a sked. Even thoug h the C abotage Act is poised and def i ne d to i mp act p o sit ively, ha s not ach ieved the goa l s which it was set out for. A nd I g uess that’s the reason why the current administration of N I M A S A (Niger ia n Ma r it i me Administration a nd Sa fety A gency) realizing that it ha s not b e en ef fe ct ive, i s t r y i n g www.majorwavesenergyreport.com

opp or tuni ty i t presen ts? W ha t wi ll b e th e even tua l impact on the mari time industry?

C h a nc e s a r e t h at t hei r pl a n of seizure of waivers is based o n t h e p l a n fo r i n c r e a s e i n c ap a c it y ; s o t h at i f you get increase in capacity up to a point of saturation, then, of course you a re ju sti f ied i n stoppi ng waivers. So, if that’s the case, hen, atlo limaD it may b e gju niwst E yi rfeie ffed. J It etobaW ibmiS iyibnugdepends O saGthe s’airegplans iN on what ARDSON ,BMDCN gniganaMall nairegiN eht :tnempoleved no etaroballoC pot steare g rotcerin iD place. So, it’s airegimportant iN norvehC gnidniF hcraeseR elbaniatsus NU y r o t s sseccus s’detimiL bwhile oj ygrene issuing such statements, t hey c ome on t he b ack of a clear plan that ensures holes are plugged and that there’s a continuing value being given in to put me a su r e s i n pl ac e to the areas where those waivers rev ive t he i mplementation, were releva nt. S o, a lot i s which is the way it should be. dependent on what other plans I mp l e m e nt at i o n n e e d s to b e are in place to ensure that those seriously driven and it’s only holes are plugged in respect to when that is done that we will which waivers are going to be get va lue f rom C a b ota ge. S o stopped. far, there has been sub-optimal value accruing from C abotage. Yo u w r o t e a b o o k o n C a b o ta ge. C an yo u tell us L et’s look at the four pillars the objective of that book? of the C abotage Act: B uild , Own, Manning and Flagging. Ju st to i n for m the genera l In which of these areas do pu bl ic a b out wh at C a b ot a ge you think we have made is a ll a bout; a bout what the si gnif icant progress? benefits, opportunities are; and t hat b o ok wa s w r itten more Well, ownership has improved than 16 years ago at the onset slightly, but it’s at a very token of C abotage. Many things have level. Ma nning ha s equa lly happened since then. There has improved, but while we have not been a redo because there a h i g h e r nu m b e r o f t r a i n e d has not been significant activity seafarers, there has not been i n C a b ot a g e . S o, o n c e s u c h a corresponding increase in s i g n i f ic a nt ac t iv it y h app en s, the number of vessels in which then, it will be time to do a these seafarers can get sea time new edition. and be fully employed. So you see, it’s some kind of cosmetic Do you think there are some improvement. F rom the point sections of the Cabotage Act of v iew of f lagg ing, you f lag that need to b e reviewed or what you own. So, you need to amended? increase ownership to increase flagging. Building has remained I k n o w t h e r e’s a c t u a l l y a n at the same point. So, across the amendment before the National four pillars, there has been subA ssembly. There has been talks optimal impacts. So, there’s still about ensuring that the parts, a lot of room for improvement. for instance, relating to waivers are reviewed; some parts relating Some months back, NIMA SA to financing. T here are parts issued a public notice that need to be reviewed, but regarding its planned the review is not as important cessa tion of waivers to as the implementation of what certain categories of vessels is on ground. Lack of success of by D ecember 2 0 2 0 . In what C abotage has not been because w a y s d o y o u s e e i n d u s tr y the Act needs to be reviewed, p la y ers up - s k i l li n g wi th i n it’s been because the Act as it th e s hor t p eri o d to ta k e is, has not been implemented advan tage of the huge the way it should be done.

Majorwaves Energy Report

NOVEMBER 2019, Vol 2 No 8 39

ENERGY WOMAN

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

Damilola Ogunbiyi Appointed UN Secretary-General Special Rep for SEforALL By Ikenna Omeje

he Managing Director of the Rural Electrification Agency (REA), Ms. Damilola Ogunbiyi, has been appointed by the United Nations SecretaryGeneral, António Guterres as his Special Representative for Sustainable Energy for All and Co-Chair of United Nations-Energy. According to a release obtained by Majorwaves Energy Report from the official website of the UN, Guterres also welcomed the announcement by the Administrative Board of Sustainable Energy for All (SEforALL) that Ms. Ogunbiyi has been appointed Chief Executive Officer (CEO) of SEforALL. Ms. Ogunbiyi succeeds Rachel Kyte of the United Kingdom as Special Representative, Co-Chair of United Nations-Energy, and CEO of SEforALL. The Secretary-General expressed his gratitude to Ms. Kyte for her dedication and commitment to the United Nations, her achievements in accelerating universal energy access, and her leadership in advancing sustainable energy transition in the context of the Paris Agreement. Giving a brief profile of Ms. Ogunbiyi, the release stated, “Ms. Ogunbiyi brings extensive leadership experience and a track record of supporting energy 40

Majorwaves Energy Report

access in Sub-Saharan Africa to these roles. She was the first woman to be appointed as Managing Director of Nigerian Rural Electrification Agency. She is also responsible for implementing the Nigerian Off Grid Electrification Programme and successfully negotiating the Nigerian Electrification Project, to rapidly construct solar mini-grids and deploy solar home systems across Nigeria. She also developed the Energizing Economics Initiative and Energizing Education Programme, which provide sustainable and affordable off grid power solutions. Before joining the Federal Government of Nigeria, Ms. Ogunbiyi was the first woman to be appointed as the General Manager of the Lagos State Electricity Board, which is responsible for public lighting, independent power projects, and energy development serving millions of people across the State. Prior to this, she consulted for the United Kingdom Department for International Development on public-private partnerships.

“

Ms. Ogunbiyi is a globally respected leader with a broad and diverse international network in the area of energy development, which

NOVEMBER 2019, Vol 2 No 8

includes key relationships with leading multilateral and bilateral partners and the private sector. She is also one of the Commissioners for the Global Commission to End Energy Poverty.” Ms. Ogunbiyi who was appointed the MD of REA in 2017, is also the Power Sector Recovery Programme (PSRP) Coordinator. This role includes coordinating the activities of the PSRP, which is a series of policy actions, operational, governance and financial interventions to be implemented by Federal Government of Nigeria (FGN) over the next five (5) years (2017-2021) to restore the financial viability of Nigeria’s power sector, improve transparency and service delivery, and RESET the Nigerian Electricity Supply Industry for future growth. Her appointment comes as the world is about to enter the final decade to achieve Sustainable Development Goal 7 (SDG7) - access to affordable, reliable, sustainable and modern energy for all by 2030. SEforALL is an international organization, headquartered in Vienna, Austria, that is dedicated to helping the world achieve SDG7 and Paris Agreement targets.

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ENERGY WOMAN

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Majorwaves Energy Report

NOVEMBER 2019, Vol 2 No 8 41

SPOTLIGHT

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution Damilola Ogunbiyi Nigerian Managing Director gets top UN sustainable energy job

ry Ewing a’s Gas opment: the on Nigeria d’s success story

Simbi Wabote NCDMB, NOSDRA Collaborate on Research Finding

Jeff Ewing, Chairman/MD, CNL

Nigeria’s Gas development: The Chevron Nigeria Limited’s success story

he development of Nigeria’s vast gas resources has been one of the major policy thrusts of successive governments in Nigeria. It is worthy of note that Nigeria is blessed with resources for growth and global competition in gas. According to the Department of Petroleum Resources (DPR), Nigeria has the largest gas reserves in Africa and is ranked 9th globally - Current estimates put its 42

Majorwaves Energy Report

proven reserves at about 200 (Tcf) and 600Tcf unproven. Nigeria has a robust and rapidly evolving demand base. Through the National Gas Policy (NGP) and the Nigerian Gas Master Plan, the FGN continues to focus its efforts to unlock the vast gas resources through reducing gas flaring, increasing domestic supply and utilization, while diversifying Nigeria’s economy. In Nigeria, Chevron Nigeria Limited (CNL), the NOVEMBER 2019, Vol 2 No 8

operator of the joint venture between the Nigerian National Petroleum Corporation (NNPC) and CNL ranks high among some corporate bodies that play leading role in gas development in the country. CNL has continued to receive accolades for its contributions to gas development in support of the Government’s gas development objectives.

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SPOTLIGHT

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gniwE yreffeJ saG s’airegiN eht :tnempoleved airegiN norvehC yrots sseccus s’detimiL

Escravos Gas-To-Liquid

In February 2018, at the Nigerian International Petroleum Summit (NIPS) in Abuja, Chevron received an award as the greatest contributor of domestic gas in Nigeria. Chairman/ Managing Director of CNL, Mr. Jeff Ewing explained that CNL has contributed immensely to the Nigerian government’s gas master plan through the various gas projects it has embarked on and that the company is the highest contributor of high quality gas to the domestic market in Nigeria. Also, according to the Department of Petroleum Resources (DPR), CNL supplies about 40% of Nigeria’s domestic gas consumption and the company is one of the highest contributors of high quality domestic gas in Nigeria. Jeff noted that through investments in gathering and processing of associated gas, routine flaring has been reduced by over 90% in the last ten years in CNL’s operations. According to him, “amidst the growing global trend in gas production and utilization, the expectations for the gas sector in Nigeria remain high and provide opportunities for investment in the sector. T h e o p p o r t u n it i e s i n c lu d e: Transitioning from an oil based economy to a more integrated oil and gas economy and end routine gas flaring; Deliberate exploration for non-associated gas to support the Nigeria Gas Master Plan, with a focus on high liquid yield non-associated gas resources to optimize the gas development project economics.. www.majorwavesenergyreport.com

Other oppor tunities include: Removing constraints in the gas to power value chain to increase investor confidence, and Supporting and enabling competitive (“Willing Buyer – Willing Seller”) gas pricing model across the chain to enable stakeholders cover their costs and be guaranteed a return on investment. CNL’s Chairman/Managing Director explained that the company’s gas story began with the implementation of different phases of the Escravos Gas Project (EGP), with four phases of development over the years. He stated that the EGP gas gathering, and processing facilities placed CNL as one of the pioneers in creating a practical and economic solution for gas flaring in the Nigerian oil and gas industry. Also CNL’s Sonam Field development facility is designed to process natural gas through the EGP and is expected to deliver a total of 300 million cubic feet of natural gas per day to the domestic gas market and produce over 30,000 barrels of combined Liquefied Petroleum Gas (LPG) and condensate per day The strategy, said the Chairman/Managing Director, includes: ending routine gas flaring; boosting domestic supply diversifying and commercializing gas resources through Gas-Based Industries such as its Escravos Gas-to-Liquid (EGTL) Plant. CNL works very closely with our JV partner (NNPC), pertinent government agencies and industry stakeholders to advance domestic gas supply. Very notable are the Gas Sale and Aggregation Agreement (GSAA)

with Egbin Power Plc, Dangote Fertilizer Limited, Ibeju-Lekki and Olorunsogo Generating Company. Chevron is also supportive of Nigeria’s leadership in West Africa through our partnership with the NNPC in developing and operating the West African Gas Pipeline (WAGP), a 678 km pipeline that supplies gas to Benin, Togo, and Ghana as part of a broader initiative to develop the energy sector in the region. CNL is optimistic about the future of oil and gas business in Nigeria as the opportunities are enormous. As the Chairman/ Managing Director emphasized: “Chevron has a long commitment to Nigeria. The company has been making significant investments in the country for over 50 years and it expects to do so for many more years to come. With the right policies, the enormous potential of Nigeria’s oil and gas sector can yield even greater benefits.”

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Nigeria’s Inland Basins & Oil Discovery: THE SELL-OUT EVENT, RETURNING Optimism, TO THE EKO CONVENTION CENTRE Caution

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Articles inside

The goal of OTL Expo from the beginning was to give voice to the downstream segment of the oil and gas industry - Emeka Akabogu, Convener OTL Africa

Nigeria’s Inland Basins & Oil Discovery: Optimism, Caution