Majorwaves Energy Report February Edition by majorwavesenergyreport

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ENERGY REPORT

LOCAL CONTENT

SUSTAINABILITY

FGN Mulls Low-Cost Price Environment

…exploring the NUCOP, NOGEC initiatives

INFRASTRUCTURE

Wabote Tasks IOCs on New Projects Buhari Approves Establishment of Trillion Naira Infrastructure Company NNPC Renegotiates Terms with IOCs to Keep Investments Flowing Energy Thee: Ikeja Electric Introduces Incentives for Whistleblowers Senegal Plans 2023 Staa for $4.3bn BP-Kosmos Gas Project Angola: China Sonangol International Privatisation may begin this Year

“In the face of a plethora of challenges …, there are huge oppoounities to deploy blockchain technology for lasting solutions” Mike-Eze, Viviane Majorwaves Energy Report Marketing Comms Mgr, Schneider Electric Nigeria FEBRUARY 2021, Vol 4 No 2

Majorwaves Energy Report FEBRUARY 2021, Vol 4 No 2

CONTENTS

NNPC Earns N1.95tr from Sale of White Products in One Year

AGPC Raises US$260m to Complete ANOH Project and Drive Energy Transition in Nigeria

Shell Reports Nigeria to W’Bank Panel over Oil Spill Dispute

SPDC Says Interim Freeze Order On Its Bank Accounts Unconnected With Alleged Crude Diversion

NLNG Train 7: Uniport to Get US$6M Gas Research Center

NCDMB Donates Office Items to The Department of State Services, Bayelsa

Mozambique’s President and Total CEO Discuss Security Issues

Sahara Group Releases it’s 2019 Sustainability Report, Says Transition to Cleaner Energy Urgent

FG Mulls Low-Cost Price Environment …exploring the NUCOP, NOGEC initiatives

“In the face of a plethora of challenges the country is battling, there are huge opportunities to deploy blockchain technology for lasting solutions”--Mike-Eze, Viviane

Majorwaves Energy Report FEBRUARY 2021, Vol 4 No 2

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Majorwaves Energy Report FEBRUARY 2021, Vol 4 No 2

Federal Government of Nigeria (FGN) understands the growing demand for energy transition on the one hand, while making frantic efforts to beautify the Nigerian business environment for oil investors (before the commodity becomes undesirable), on the other hand. The administration has been thrown into an indirect contest with emerging, preferred investment destinations like Suriname, Guyana, even with neighbours – Senegal, Mozambique, Angola, and Cameroon, just to name a few. However, it’s the place(s) with the right fiscals and better business indicators that will pull the bulk of investible funds available on the global market. So, it’s quite comforting to see a lot of activities around the PIB, hoping it is passed into law before the end of Q2, 2021. Each year without its passage costs the nation an estimated US$15 billion. The uncertainty with this piece of legislation results in paucity of investments and contributes in keeping production cost high. National Oil and Gas Excellence Centre (NOGEC) and Nigerian Upstream Cost Optimisation Programme (NUCOP), as well as series of direct interventions led by Nigeria National Petroleum Corporations (NNPC) all have effects on the production cost. That’s the main thrust of our cover story. Get the details. “When there are no projects, then there will be no Local Content”. The above quote is from the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr Simbi Wabote. Find him charge the oil majors in this edition to commission new projects and his justification. Viviane Mike-Eze bares her thoughts on a lot of issues our women will find interesting. Let’s also read up how Chile deployed blockchain to salvage its energy sector and know the place of Ecostruxure in our daily activities. Let us hear from you; and please stay safe!.

Jerome Onoja

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

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

Majorwaves Energy Report FEBRUARY 2021, Vol 4 No 2

INDUSTRY NEWS

NNPC Earns N1.95tr from Sale of White Products in One Year

h e Nigerian National Petroleum Corporation, NNPC, has disclosed that its downstream subsidiary, the Pipelines and Products Marketing Company, PPMC, earned N1.95 trillion from the sale of white products in one year, October 2019 to October 2020. The figure is contained in the October 2020 edition of the NNPC Monthly Financial and Operations Reports, MFOR, released recently. White products are petrol, kerosene and benzene, among others. A press release by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru, said Premium Motor Spirit, PMS, also known as petrol, accounted for about 99.07% of the total sales with a value of over ₦1.9 trillion. Total sales of white products for the period under review stood at 16.462.50 billion litres and PMS accounted for 16.344.36 billion litres, the report said.

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The NNPC also announced that the PPMC recorded a total of ₦158.04 billion from the sales of the white products in the month of October 2020, representing 92 percent over the N80.15 billion sales in September 2020. In terms of volume, the October 2020 sales figure translates to a total of 1.224.54 billion litres of white products sold and distributed by PPMC within the period compared with 603.39 million litres in the month of September 2020. This comprised 1.224.20 billion litres of PMS, 0.31 million litres of Automotive Gas Oil, AGO, also known as diesel and 0.033 million litres of Dual Purpose Kerosene, DPK. Also, according to the NNPC, 23 pipeline points were vandalised in October 2020, representing about 10 percent increase from the 21 points recorded in September 2020. Of this figure, Mosimi Area accounted for 83 percent of the vandalised points while Port

Harcourt Area accounted for the remaining 17 percent. In the gas sector, the corporation said a total of 214.07 billion cubic feet, bcf, of natural gas was produced in the month of October 2020, translating to an average daily production of 6,908.34 million standard cubic feet per day, mmscfd. The daily average natural gas supply to power plants increased by 8.60% to 745mmscfd, equivalent to power generation of 2,801 megawatts. This 63rd edition of the MFOR highlights NNPC’s activities for the period of October 2019 to October 2020. In line with the corporation’s commitment of becoming more accountable, transparent and driven by performance excellence, NNPC has continued to sustain effective communication with stakeholders through this report via publications on its website and in national dailies.

INDUSTRY EVENT

IOCs Fear That PIB May Deter Offshore Investment

nternational Oil Companies (IOCs) operating in Nigeria fear that proposals in the long-delayed Petroleum Industry Bill (PIB), will deter investment in new offshore projects, Bloomberg reports. At least half of Nigeria’s total crude output is from offshore oilfields, helping to offset declining production from mature onshore assets. But recent discoveries have remained undeveloped in the face of regulatory and legislative uncertainty. “Our review of the Petroleum Industry Bill shows that deepwater provisions do not provide a favorable environment for future investments and for the launching of new projects,” Mike Sangster, managing director of Total SE’s Nigeria unit, told lawmakers at a hearing in Abuja, the capital. To boost new investment, the prop osed law should grant deepwater oil projects full royalty relief for the first five years of production or a graduated royalty program, said Sangster, speaking on behalf of the Oil Producers Trade

Section, a group of 30 producers including Total, Royal Dutch Shell Plc, Exxon Mobil Corp., Chevron Corp. and Eni SpA, which he chairs. The bill — legislation that’s two decades in the making — will streamline how Nigeria’s energy assets are operated and funded. First presented in parliament in 2008, progress in passing the bill was held up by political wrangling and objections from international oil companies that say the government is demanding an excessive increase in revenues. Nigeria, Africa’s top oil producer, is facing growing competition for new investments. Nigeria was able to attract only $3 billion, or 4%, out of the $70 billion committed on new projects in Africa between 2015 and 2019, Sangster said. In a joint presentation, the OPTS urged lawmakers to remove a proposed hydrocarbon tax as producers will still be subject to companies income tax.

In relation to gas, “the PIB should provide a clear path for transitioning to a free market-based pricing, not add additional compliance conditions on domestic gas delivery obligations as a precondition for export gas supply,” Sangster said. The producers also worry the proposals don’t explicitly preserve the terms of existing oil investments. “We recognize the government’s right to change laws but the PIB must explicitly preserve rights” for all existing oil leases, Sangster said. “Operators should be allowed to retain the entirety of their lease areas and new terms should apply to new contracts, licenses and leases.” The persistent failure to pass the bill “has been a major drag” on the oil and gas sector, Ahmad Lawan, president of Nigeria’s Senate, said on Jan. 25 as he opened two days of public hearings on the proposed legislation. The delays have harmed the country’s ability to “attract both local and foreign capital” at a time of greater competition with other resource-rich nations, he said.

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INDUSTRY NEWS

AGPC Raises US$260m to Complete ANOH Project and Drive Energy Transition in Nigeria

eplat Petroleum Development Company Plc (Seplat or the Company), a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange and the London Stock Exchange, announces that its Incorporated Joint Venture (IJV), the ANOH Gas Processing Company (AGPC), has successfully raised US$260m in debt to fund completion of its ANOH Gas Processing Plant (ANOH). The 300MMscfd capacity ANOH plant, located on OML 53 in Imo State, is being built by AGPC, which is an IJV owned equally between Seplat and the Nigerian Gas Company (NGC), a wholly owned subsidiary of Nigerian National Petroleum Corporation (NNPC). Seplat and NGC have previously provided a combined US$420m in equity funding and the project is now fully funded. The US$260m funding was provided by a consortium of seven banks: Stanbic IBTC Bank Plc (advisor), United Bank for Africa Plc, Zenith Bank Plc, FirstRand Bank Limited (London Branch) / RMB Nigeria Limited, The Mauritius Commercial Bank Limited, Union Bank of Nigeria Plc and FCMB Capital Markets Limited. It allows for an additional US$60m accordion at

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the time of completion to fund an equity rebalancing payment at that time, if considered appropriate. Funding commitments of more than US$450m were received by the company, which is a significant oversubscription and a strong sign of confidence in the project.

gas to Nigeria’s power sector, supporting local employment and the cleaner generation of power for Nigerian homes and businesses. We conservatively estimate that the gas from AGPC will be enough to generate electricity for more than 5 million people”.

Following a cost optimisation programme, the AGPC construction cost is now expected to be no more than US$650m, inclusive of financing costs and taxes, significantly lower than the original projected cost of US$700m.

On his part, Roger Brown, Chief Executive Officer of Seplat, said: “Completing the funding of ANOH is an important milestone for AGPC. The ANOH development is one of the government’s Seven Critical Gas Development Projects and our involvement provides a clear path towards strengthening Seplat’s position as Nigeria’s leading indigenous diversified energy producer. It will help us drive, alongside our government partners, Nigeria’s transition to cleaner, less expensive power generation. We are extremely proud to partner with the Nigerian Gas Company in this strategically important project, which will create jobs and prosperity in the Nigerian economy.

ANOH is one of Nigeria’s most strategic gas projects. It will help Nigeria to accelerate its transition away from small-scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation. Seplat is a leading provider of natural gas to Nigeria’s power sector, supplying around 30% of gas used for electricity generation. Commenting on the deal, Okechukwu Mba, Managing Director of ANOH Gas Processing Company said: “Successfully closing the US$260 million debt facility means that the ANOH project is now fully funded. Once operational, AGPC will be a significant supplier of

Seplat will continue to diversify its business and invest in gas to help Nigeria develop its own natural resources, which in turn will drive more sustainable social and economic growth for a young, rapidly growing population.”

INDUSTRY NEWS

ExxonMobil, Chevron CEOs Discuss, Mull Possible Merger

x xonMobil and Chevron executives discussed the possibility of a merger last year as the two oil giants were battered by the pandemic, The Wall Street Journal reported recently. Chevron CEO Mike Wirth and his Exxon counterpart Darren Woods discussed merging as demand for oil and gas plummeted due to restrictions to stem the spread of the coronavirus, the paper said, citing sources close to the issue. The sources added that the “preliminary” discussions are no longer taking place but could resume in the future. The combined market value of the

two companies would exceed $350 billion, according to the Journal, with ExxonMobil worth $190 million. “Together, they would likely form the world’s second-largest oil company by market capitalization and production, producing about 7 million barrels of oil and gas a day, based on pre-pandemic levels, second only in both measures to Saudi Aramco,” the Journal wrote. But such a merger could come up against anti-competitive regulations. Many industry experts, however, believe that a consolidation of the oil and gas industry is necessary to reduce costs and help companies overcome the pandemic slowdown.

Additionally, the sector must prepare for an uncertain future as many countries seek to reduce their dependence on fossil fuels to combat climate change. While President Joe Biden has already announced the United States’ return to the Paris climate accord, the American oil giants are also likely to face a Democratic administration that is less supportive of the industry. Chevron had announced Friday that it had recorded a net loss of $5.5 billion in 2020, affected by a sharp drop in crude oil prices at the beginning of the pandemic.

Total Nigeria Issues N15bn Commercial Paper The Issue was TNPLC’s debut issuance in the Nigerian debt capital markets. It attracted significant demand from a wide range of investors, resulting in a 3.9x subscription level and a demonstration of investor confidence in the Company and its management team.

otal Nigeria PLC says it has successfully issued and quoted a N15 billion Series 1 and 2 Commercial Paper issuance (the “Issue”) under its N30 billion CP programme registered with the FMDQ Securities Exchange Limited in December 2020.

Commenting on the quotation of the Issue, Mr. Imrane Barry, Managing Director of Total Nigeria PLC, explained that the Programme was set up to enable the Company further broaden its sources of capital by accessing funding from the Nigerian debt capital markets while also reducing its overall funding costs. He thanked investors for supporting the Company’s debut Issue and commended the Financial Advisers, Stanbic IBTC Capital Limited and FBNQuest Merchant Bank Limited for ensuring the success of the Issue despite the challenging environment.

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INDUSTRY NEWS

NNPC Repays $3.081bn Of Joint Venture Cash Debt Mordi chukwunonso Esther

he Nigerian National Petroleum Corporation (NNPC), has repaid $3.081 billion from the $4.689 billion cash call arrears it negotiated with its Joint Venture (JV) partners, leaving an outstanding indebtedness of $1.609 billion. In a report published recently, the NNPC stated that the repayments, which stood at 68.69 per cent of the total; and outstanding indebtedness, which stood at 34.31 per cent, were as at October 2020. While the NNPC confirmed that it had cleared the cash call indebtedness to Mobil Producing Nigeria (MPN), it noted that it was working towards clearing the arrears owed Shell Petroleum Development Company (SPDC), Chevron Nigeria Limited (CNL), Total Exploration and Production Nigeria (TEPNG) and Nigeria Agip Oil Company (NAOC). Specifically, the report disclosed that as at October 2020, the NNPC owed SPDC $917.205 million; CNL $55.479 million; TEPNG $265.011 million and NAOC $370.925 million. The NNPC further explained that in the case of SPDC, repayment was from the price balance distribution on Project Santolina; while in the case of CNL, repayment was from price balance distribution on Projects

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Cheetah and Falcon.

recorded in September 2020.

“NNPC has fully repaid its cash call arrears to MPN and all incremental barrels have reverted to base,” the NNPC reiterated.

Giving a breakdown of the figures, the report noted that the NNPC earned $707.547 million from total crude oil sales, compared to $431.589 million in September 2020.

As at the commencement of 2020, precisely in January 2020, the NNPC stated that of the $4.689 billion JV cash call debts, $2.79 billion was repaid while $1.89 billion was outstanding. SPDC, CNL, TEPNG and NAOC’s outstanding, as at January 2020, stood at $917.205 million, $158.309 million, $390.59 million and $433.41 million respectively. The NNPC, in 2016, signed a CashCall Repayment Agreement with its JV partners to defray cash-call arrears within a period of five years. This came after many years of its indebtedness to its JV partners over its failure to meet up with its cash call obligation. In addition, providing a summary of revenue from crude oil and gas liftings for October 2020, the report stated that the NNPC earned $769.28 million from crude oil and gas sales, a decline by 7.71 per cent compared to $833.62 million

Giving a breakdown of some of the components of crude oil sales, the NNPC stated that it earned $73.09 million from crude oil exports, compared to $12.38 million in September 2020; while earnings from domestic crude oil sales and Modified Carry Agreement (MCA) stood at $416.975 million and $58.925 million respectively. On the other hand, the report noted that total gas earnings stood at $61.736 million in October 2020, compared to the previous month’s gas earnings of $135.349 million. Furthermore, the NNPC also disclosed that it spent N3.676 billion on pipeline repairs and management for the month of October 2020. Giving a breakdown of the spending, the NNPC stated that pipeline and other facilities repairs gulped N2.173 billion; Marine distribution cost the country N951.484 billion; while strategic holding gulped N551.799 million.

INDUSTRY NEWS

Shell Completes the Sale of Its 30% Interest in Oil Mining Lease 17 Daniel Terungwa

he Shell Petroleum Development Company of Nigeria Limited (SPDC) has announced the competition of the sale of its 30% interest in Oil Mining Lease (OML) 17 in the Eastern Niger Delta, and associated infrastructure. The transaction has been made to TNOG Oil and Gas Limited, a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc (Transcorp), for a consideration of $533 million. A total of $453 million was paid at completion with the balance to be paid over an agreed period, a company statement explained. Completion follows the receipt of all approvals from the relevant authorities of the federal government of Nigeria. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area. SPDC assured its commitment “to transfer OML 17 in an orderly and responsible

manner to the new owner, which will help to provide a sustainable long-term plan to unlock its full potential”. The sale also enables SPDC to focus on supporting the federal government of Nigeria’s national energy agenda in its remaining OMLs through oil and gas production, payment of royalties, taxes and levies as well as advancing local content and providing social investments. Managing Director of SPDC and country chairman of Shell Companies in Nigeria, Osagie Okunbor, said: “As with previous divestments, we will facilitate a successful transition to new ownership. Shell has been in Nigeria for over 60 years and remains committed to a long-term presence here.” The other SPDC JV partners, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited, have also assigned their interests of 10% and 5% respectively in the lease, ultimately giving TNOG Oil and Gas Limited a 45% interest in OML 17.

Allegations That SPDC Under-reported 2 Million Barrels of Crude from 2016 to 2018, False Says DPR

The Department of Petroleum Resources (DPR) has dismissed media reports that it uncovered a ‘missing 2 million barrels of crude’ in oil production records by Shell Petroleum Development Company (SPDC) between 2016 and 2018. The DPR described the allegations as false and baseless. The report had alleged that SPDC which was allegedly found culpable had admitted the infraction and offered to refund the cost of the oil and pay a fine. The report claimed that the shortfall came from the Trans Niger Delta export pipeline which conveys an average of 150,000 barrels of SPDC’s Bonny light crude blend to the export terminal. The oil industry regulator urged the public to disregard the false media report. Mr Paul Osu, Spokesman of DPR, who reacted in a short text message to a News Agency of Nigeria (NAN) Correspondent recently stated that there was no such thing. “There is absolutely nothing like that, kindly disregard,” Osu said. Also, Mr Bamidele Odugbesan, Media Relations Manager at SPDC in a telephone chat dismissed the report as false and malicious and irresponsible and urged NAN to cross-check with the DPR. “The claims are baseless and without any iota of truth, it is totally false and malicious and lacks substance. “SPDC was not under any probe by the DPR. SPDC had never admitted to underreporting its crude production to DPR or any authority,” Odugbesan said. (NAN).

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INDUSTRY NEWS

Dangote Refinery to Come Onstream Early 2022 –Director By Ikenna Omeje

he Executive Director of Capital Projects and Portfolio Management at Dangote Group, Devakumar Edwin, has said petroleum products from the company’s 650,000 per day refinery in Lagos will hit the market by early 2022. The plant, was previously set to come on stream in 2020, but the completion of construction work was later shifted to the end of 2020 with operation expected take off early-2021. However, speaking in an interview with Arise TV, Edwin said that the earlier completion and products production date could not be met due to the outbreak of Covid-19 pandemic, which resulted in lockdowns and restrictions of movement in various countries that delayed the shipment of equipment from abroad. In November 2020, the group said its refinery had reached 80 percent completion; engineering and construction were 100 percent, and procurement was 98 percent ready. He said the group has gone ahead with the construction schedule and that by end of 2021 it would have achieved mechanical completion

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NLNG Remittance Surpasses FG’s Target by N63.6bn

and proceed with the inauguration in December. “As you rightly said, it’s a 650,000 barrels per day refinery and it is much larger than the existing capacity within Nigeria. And this is the largest single-train refinery in the world,” Edwin said. “We had hoped to complete at the end of last year and start the commissioning early this year, but as you know, the impact of the COVID-19 had a major impact on us. “ We a r e r e c e i v i n g g o o d s manufactured in the US, Europe, China and India and almost all the four countries were affected by COVID. “So, our equipment deals got delayed and because of the movement restrictions, the shipping got delayed and the construction engineers also got restricted. “So, now, we have gone far ahead with the construction schedule and by the end of this year, we will have mechanical completion and we start the commissioning by December this year. So, we expect the products to start coming out early next year.”

he share of dividend remitted to the Federal Government by the Nigeria Liquefied Natural Gas company between January and December 2020 exceeded the projected target in the 2020 revised budget of the government by N63.62bn. The Punch reports that a document it obtained from the Federal Ministry of Finance, Budget and National Planning on the Federal Government’s revenue performance in 2020 showed that the government projected a retained revenue of N80.38bn as its share of dividend from NLNG in the 2020 revised budget. The government, however, got N144bn from the gas company as actual dividend during the review period, representing an increase of N63.62bn when compared to the target for the year. This represents 79 per cent higher value than the N80.38bn projected target in the 2020 revised budget. The revenue performance document also showed that the Federal

INDUSTRY NEWS Government garnered more revenue than it projected in the 2020 revised budget from oil. The 2020 revised budget put the Federal Government’s projected revenue from oil at N1.01tn but the actual retained revenue for the year under review was N1.52tn. This showed that the government retained N507.67bn higher than it projected in the revised budget for 2020, which represented a 50 per cent increase on the target. Also, while the 2020 revised budget projected a retained revenue of N1.9bn for the Federal Government from minerals and mining, the actual revenue that was generated from the sector was N2.09bn. However, it was observed that the actuals from non-oil revenue, Company Income Tax and Value Added Tax were lower than their respective projected targets in the revised budget.

The retained revenue projections of the Federal Government for non-oil revenue, CIT and VAT in the revised budgets were N1.62tn, N821.67bn and N284.11bn, while their actuals were N1.28tn, N673.22bn and N192.66bn respectively. Also, the actual revenues from Customs and federation account levies were lower than their targets as captured in the revised budget for 2020. The actual revenue from customs that was retained by the Federal Government during the review period was N396.37bn, whereas the projection in the 2020 revised budget was N450.7bn. For federation account levies, the projection was N68.46bn, but the actual retained revenue of the Federal Government was N13.84bn. Minister of Finance, Budget and National Planning, Zainab Ahmed, recently said revenue generation

remained the most critical fiscal issue over the medium term. She noted that several measures were being instituted to improve government revenue and entrench a regime of prudence with emphasis on achieving value for money. Ahmed explained that improving the country’s tax administration framework to optimise government revenue was a major thrust of the Federal Government’s Strategic Revenue Growth Initiatives. Nigeria LNG Limited is one of the world’s top 10 suppliers of liquefied natural gas. The company is an incorporated joint venture owned by the Nigerian National Petroleum Corporation, 49 per cent; Shell Gas B.V., 25.6 per cent; Total Gaz Electricite Holdings France, 15 per cent; and Eni International N.A. N.V. S.àr.l, 10.4 per cent.

Shell Reports Nigeria to W’Bank Panel over Oil Spill Dispute The oil major’s Netherlandsregistered holding company and SPDC filed the case at the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) on February 10.

oyal Dutch Shell Plc along with its Nigerian subsidiary, th e S h ell Petroleum Development Company (SPDC), has launched arbitration proceedings against the federal government over a long-running dispute with a Rivers community.

This is coming as the Joint Venture (JV) between the Nigerian National Petroleum Corporation (NNPC) and Total E & P targets to hit first oil in the $500 million Ikike Oilfield from the last quarter of 2021. A post on the website of the Washington-based World Bank dispute resolution body, indicated that the hearing of the case marked “Shell Petroleum N.V. and The Shell Petroleum Development Company of Nigeria Limited v. Federal

Republic of Nigeria (ICSID Case No. ARB/21/7)” was still pending. It listed the claimant’s representative as Debevoise & Plimpton, London, UK and New York, NY, U.S.A, while the respondents representatives were named as the AttorneyGeneral of the Federation and Minister of Justice, Abuja, Nigeria, Solicitor-General of the Federation and Permanent Secretary to the Federal Ministry of Justice, Abuja, Nigeria as well as the Federal Ministry of Justice. The World Bank’s arbitration body is a leading institution devoted to international investment dispute settlement, having administered the majority of all international investment as agreed to by participating states.

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INDUSTRY NEWS It was set up under a multilateral treaty formulated by the executive directors of the World Bank to further its objective of promoting international investment . It was established in 1966 by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention) and has handled over 700 cases. According to the organisation, Shell brought its claim against Nigeria under the bilateral investment treaty between the governments of The

Netherlands and Nigeria.

spill.

Bloomberg reported that the decision to drag the country to the arbitration panel followed the AngloDutch energy giant’s unsuccessful efforts last year to reverse a court order instructing the company to pay compensation to a community for polluting its land.

“Given the history of this particular case, we are seeking protection of our legal rights from an international tribunal,” Bloomberg quoted a spokeswoman for Shell’s Nigerian subsidiary as saying in an emailed statement, without providing further details about the oil major’s case.

While the case’s victors say they are now owed more than N183 billion ($479 million), Shell contests that valuation and denies being responsible for the decades-old oil

Shell operates the oil block at the heart of the dispute, which is known as Oil Mining Lease (OML) 11, in a joint venture with the NNPC, Total SE and Eni SpA.

2020 Marginal Bid Round: FG Targets N189.5bn revenue Bid Round, with 57 fields available for indigenous companies and investors interested in participating in the exploration and production business in Nigeria.

NNPC Renegotiates Terms with IOCs to Keep Investments Flowing

The agency said last month that 161 companies had been shortlisted to advance to the final stage of the bid round.

he Federal Government is expecting to generate at least $500m in revenue (N189.5bn) from the ongoing marginal field bid round, the Department of Petroleum Resources has said. The Director/Chief Executive Officer, Department of Petroleum Resources (DPR), Mr Sarki Auwalu, disclosed this in an interview on Arise TV’s The Morning Show recently.. He said that the bid round would be concluded before the end of the first quarter of this year, adding that the successful bidders would be allowed for the first time in the nation to pay the acquisition cost of the oilfields in naira. The Federal Government, through the DPR, had announced on June 1, 2020 the start of the 2020 Marginal Field

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“When we started the marginal fields bid round, we reviewed the first and learnt from the experience. We had 24 fields awarded in 2003; unfortunately, only 13 out of the 24 seems to be producing,” Auwalu said. He said there were over 630 applicants, out of which about 500 prequalified. Asked how much was being expected from the bid round, Auwalu said, “What we did internally is to look at the competent person reports and objectively estimate the average signature bonus on a field. We estimate to have not less than $500m, which is on the conservative side.” “We are avoiding any third-party interference since government really believes in us and we believe the investors are having confidence in the process,” he said, adding that there would be no discretionary award.

h e G ro up Ma na gin g Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has said the national oil company is renegotiating commercial contract terms with major International Oil Companies (IOCs) operating in the country. This is in a move that it hopes will keep investment flowing into a sector crucial for the country’s economy at a time when spending is being slashed. Nigeria is an oil dependent nation. Oil accounts for over 90 percent of its foreign exchange earnings and over 70 percent of its revenue.

Oil companies meanwhile, including Royal Dutch Shell, ExxonMobil, Total and Eni, are cutting billions in spending after taking hits to their profits, shifting money to renewable fuels and focusing only on the most cost-effective markets.

INDUSTRY NEWS

11 Plc Proposes Voluntary Delisting from NSE, writes Shareholders

In an interview with Reuters recently, Kyari said that new commercial terms were being negotiated and would be finalised before a pending oil overhaul bill is passed. “No company will invest where they cannot get the appropriate margin,” Kyari said in a video interview, declining to say specifically what was being renegotiated. “We’re very conscious of the fact that people have choices, companies will make choices to leave countries when they have to.” Nigeria’s parliament has promised to pass the long-awaited oil overhaul bill by May. It will define the sector for decades to come, but companies have criticized the draft for not doing enough to attract development dollars. They have raised issues over taxation, royalties and local community obligations. Kyari said companies would have the option of the newly negotiated commercial terms or moving to the updated terms outlined under the new law. By the end of June the NNPC is planning to have found $2 billion of financing to overhaul its Warri and Kaduna refineries, Kyari said. Talks are underway on financing repairs to the Port Harcourt refinery after a pre-finance bid for more than $1 billion was oversubscribed, he said. The money will be repaid in profits and fuel cargoes from the refineries, rather than in oil cargoes, Kyari said. While the refineries have not operated at full capacity for years, NNPC had to shut all of them completely last year as they await much-needed maintenance, repair and upgrades, leaving it with a hefty fuel import bill.

11 PLC, which until October 2016 was known as Mobil Oil Nigeria Plc, has written explanatory statement to its shareholders, proposing voluntary delisting of its more than 360.592 million ordinary shares from the daily official list of the Nigerian Stock Exchange (NSE) by the end of the first quarter, in furtherance of a resolution passed at its last annual general meeting in October. “The purpose of delisting is to enable the company explore strategic opportunities, alliances and collaborations that can bolster earnings and/or provide synergized benefits with little or no regulatory obligations,” the energy firm said in an explanatory statement issued recently. Shareholders who do not consent to the exit proposal will be in the frame to sell their stakes at N213.90 per ordinary share, “being the highest price at which 11 Plc shares have traded, six (6) months preceding the notice of the AGM at which the resolution to delist was deliberated, as provided by the rules of the Nigerian Stock Exchange.”

on the bourse. For the exit plan to materialise, both the Securities and Exchange Commission and the NSE have to give their approvals, after which dissenting shareholders will be settled and cease to be stockholders in the company. “11 Plc shareholders will be able to elect to accept the Exit Consideration from February 1, 2021 to March 1, 2021,” the document said. It added that the delisting would not affect the current employment contracts of staff and the composition of the board of directors. Socony Vacuum Oil Company, the precursor of 11 Plc, started marketing operations in Nigeria in 1907 through the sale of Sunflower Kerosene. It transformed to a limited liability company in 1951, the same year it adopted the name Mobil Oil Nigeria Limited. In 1978, it was quoted on the NSE, assuming the identity: Mobil Oil Nigeria Plc.

11 Plc will still maintain its public liability company status after delisting, even though its shares will no longer be eligible for trade

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INDUSTRY NEWS

SPDC to Secure Expeditious Discharge of Account-Freezing Injunction ...ex parte order based on sale of interest in NCTL; and crude re-allocation programme, NOT crude theft/diversion

he Shell Petroleum Development Company (SPDC) has said that the recent interim freeze order on its bank accounts by a Federal High Court in Lagos, which was based on the sale of its interest in Nembe Creek Trunk Line (NCTL), as well as some issues arising from a crude re-allocation programme, would soon be a thing of the past. Some media outlets had erroneously reported that SPDC will refund about 2.1 million barrels of crude oil from the Trans Niger Pipeline in line with a directive of the Department of Petroleum Resources (DPR). And that a Federal High Court sitting in Lagos had blocked the company’s account in January pending the hearing of the case this month. H owever, D PR th ro ug h it s spokesman, Mr. Paul Osu, in response to media enquiries on Saturday February 13, 2021 described the allegations of crude diversion against SPDC as untrue and urged that the allegations be disregarded. In its reaction to the allegations, SPDC in a release on Friday, noted that the freeze order on its accounts was obtained by Aiteo Eastern E&P Company Limited in relation to SPDC sale of its interests and two other SPDC JV partners in the Nembe Creek Trunk Line (NCTL) and OML 29 to Aiteo in 2015; and crude reallocation programme between injectors into the SPDC JV’s Trans Niger Pipeline and injectors into

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Aiteo’s NCTL. It described the alleged diversion of crude oil as “factually incorrect”, informing that it has to do with a directive by the DPR to SPDC as operator of the Bonny Oil and Gas Terminal, to implement a crude reallocation programme between injectors into the SPDC JV’s Trans Niger Pipeline and injectors into the NCTL. “It is important to note the claims underpinning the interim freeze order obtained by the plaintiff, Aiteo Eastern E&P Company Limited, relate to the SALE of the interests of SPDC and two other SPDC JV partners in the Nembe Creek Trunk Line (NCTL) and OML 29 to Aiteo in 2015; and crude reallocation programme between injectors into the SPDC JV’s Trans Niger Pipeline and injectors into Aiteo’s NCTL which is a normal industry practice. “The disputes are subject of ongoing litigation and SPDC is working to secure an expeditious discharge of the freezing injunction which we believe was obtained by Aiteo without any valid basis. “The crude theft/diversion allegation is also factually incorrect. This is a distinct issue that relates to the directive by the Department of Petroleum Resources to SPDC as operator of the Bonny Oil and Gas Terminal, an asset belonging to the SPDC Joint Venture, to implement a crude re-allocation programme

between injectors into the SPDC JV’s Trans Niger Pipeline and injectors into the NCTL. “Crude allocation review and reallocation is a normal industry practice to re-allocate previous provisional allocated volumes under the directive and supervision of DPR, and this is not an exercise resulting from crude diversion, underreporting or theft at the terminal. This industry practice is not peculiar to the SPDC-operated Bonny Oil and Gas Terminal alone and does not translate into any loss of volumes to the Federal Government of Nigeria,” SPDC said. It further stated that, “The reallocation in issue was initiated by SPDC as operator of the Bonny Oil and Gas Terminal, while the DPR validated and confirmed it for implementation for the concerned oil producers. “Crude oil production metering and allocation are subject to specific guidelines issued by the industry regulator, DPR. SPDC strictly adheres to these guidelines and the implementation is regularly verified by the regulator.” “SPDC and all Shell companies in Nigeria are responsible corporate citizens who conduct their operations in accordance with applicable laws and industry best practices,” the company added.

LOCAL CONTENT

President Buhari is Committed to Niger Delta Development ---Sylva ...Says security is pre-condition for oil firms to return

h e a dminis tration of President Muhammadu Buhari is very committed to the development of Bayelsa State and other states of the Niger Delta, the Minister of State for Petroleum Resources, Chief Timipre Sylva said recently. He spoke in Yenagoa, at the special town hall meeting organized by the Bayelsa State Government and the Ministry of Petroleum Resources with chiefs, youths and other stakeholders in the state. The interactive session was a directive by Mr. President after the ENDSARS protest last year, for ministers and other top government functionaries to enlighten Nigerians about the plans and programmes of the Federal Government. Chief Sylva affirmed that the Federal Government is willing to promote more investments that will create jobs and prosperity for citizens and

residents of the state. He listed the Nigerian Content Tower as one of top achievements of the current administration. The Minister further stated that the Federal Government is promoting the development of Nigerian Oil and Gas Park at Ogbia LGA of the state and is facilitating the development of two modular refineries within the state, notably the 12,000 barrels per day Hydroskimming modular refinery being constructed by Azikel Petroleum Limited at Obunagha, Gbarain, and the 2000 barrels per day modular refinery being developed by Atlantic International Refiner y and Petrochemical Limited at Okpoama, Brass Local Government Area. He added that the Federal Government has also taken final investment decision on the Brass Fertilizer and Petrochemical Project, among other projects.

He affirmed that the various projects will create thousands of direct and indirect jobs for Bayelsans and other Nigerians during the construction stage as well as the operations phase of the facilities. Speaking further, Sylva has charged residents and stakeholders in Bayelsa State to embrace unity and collaborative spirit in order to enjoy more developmental strides. He said: “From this meeting, we expect a lot more understanding because some of the problems we have are as result of breakdown in communication. This forum will create a platform to understand the plans of what the state government is doing and how the Federal Government can also assist in order to create a better life for the people,” Sylva said. Responding to calls for the relocation

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LOCAL CONTENT of oil companies to the Niger Delta region, the Minister maintained that youths and residents of the region must eschew restiveness and work for peace and security as preconditions for multinationals to relocate. He stressed that asking the companies to relocate without addressing the security concerns would only escalate Nigeria’s cost of crude oil production, which is one of the highest among OPEC members. According to him: “We look at it from the perspective of cost. It will be cheaper for oil companies to operate from here because it is nearer from the operating areas. The only concern is that we have a responsibility to bring peace and security because that is another source of cost. If you don’t have peace and security and the oil companies move back here, then you add to the cost of oil production.” He insisted that it would make sense to the oil companies to return if the

environment is safe because it will be cheaper for them. He added: “They were before. Shell was in Port Harcourt and Warri and most of other companies were here. They only ran away when insecurity took over the region. It is time to bring back peace and security so that those firms can return.” On our part as the Ministry we are not against the oil companies moving back.” In his remarks, the Executive Governor, Bayelsa State, His Excellency, Douye Diri applauded the peace building initiative of President Muhammadu Buhari. He also pleaded for unity, synergy, collaboration and cooperation from all parties to move the state forward. While appreciating the President for some of the Federal projects ongoing within the state, Diri pleaded with the Federal Government to commence the Nembe/Brass road.

“All the projects that you have sited in Brass LGA will become Elephant projects if we do not have a road leading there.” He noted that Brass LGA and Southern Ijaw LGA are some of the few Local Government headquarters in Nigeria that are not accessible by road. Diri pledged his readiness to collaborate with the Federal Government to ensure that all federal investments in the state are protected. The engagement had in attendance representatives of the State in the National Assembly, State Assembly members, leaders of youth groups, traditional rulers as well as members of the Civil Society Groups.

FG Targets 35,000 Jobs as NCDMB, NNPC Stake US$670 in Brass Methanol Plant

h e N i g e r ia n C o n te n t Development and Monitoring B o a rd (N C D M B), t h e Nigerian National Petroleum Corporation (NNPC) and DSV Engineering recently signed the Final Investment Decision (FID) for the construction of 10,000 tonnes/day

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methanol production plant by the Brass Fertiliser and Petrochemical Company Ltd (BFPCL), committing equity investment of US$670m.

is expected to create 30,000 direct and indirect jobs and additional 5000 permanent jobs during the operations phase.

The facility would be the largest methanol plant in Africa and the first in Nigeria and the construction phase

According to the financing plan, the project is estimated to cost about US$3.5bn and aside the equity from

LOCAL CONTENT NCDMB, NNPC and DSV, there is an impressive cast of lenders which includes a consortium of Chinese banks led by the China Exim Bank, African Development Bank (AfDB), international commercial banks, regional banks and African institutions and they would be expected to raise 70 percent of the project cost. Other agreements that have been firmed up include a Gas Supply Purchase Agreement (GSPA) with the Shell Petroleum Development Company (SPDC) led joint venture, of f take agreements and contracts for Engineering Procurement and Construction and technology provider. The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote, the Group Managing Director (GMD) of the NNPC, Malam Mele Kolo Kyari and Executive ViceChairman of BFPCL, Chief Ben Okoye signed the FID on behalf of their organisations. Speaking at the event, the Minister of State for Petroleum Resources, Chief Timipre Sylva said the project was part of the strategic efforts to maximize value and monetize the country’s vast gas endowments. He stated that President Muhammed Buhari had in July 2020 “approved the development of the Brass Gas Company with the sole aim of aggregating and monetizing all stranded gas in the Brass area, which amounts to over 10 trillion cubic feet of gas, into the processing facilities to be built in the hub.” He expressed confidence that the project would have significant economic and developmental impact on the country, including support

for gas-based industries, revenue generation and import substitution for methanol needs of the nation that is currently 100 percent imported. Other economic benefits include foreign direct investment, economic diversification, acceleration of Nigeria’s march to zero gas flaring and community development through the company’s plan to offer one percent equity to host communities. In h is re m a r k s , t h e Executive Secretar y NCDMB underscored the significance of two Federal Government’s agencies – NCDMB and NNPC catalysing investments in the country. He added that the project would place Nigeria in the world’s map as one of the top 10 producers of methanol. He emphasised that Local Content can only grow sustainably when there are oil and gas projects, adding that a mega project of this size provides opportunities to utilize local capacities and capabilities built over the years. He further explained that opportunities provided by the project in job creation, gas utilization, local availability of methanol for primary and secondary users, formed part of the basis of the Board’s decision to partner with Brass Fertiliser and Petrochemicals Company Ltd to enhance delivery of the project.

accomplishments to include the signing of Train-7 FID, Gas Flares Commercialisation, Marginal Field bid rounds, Petroleum Industry Bill (PIB), Refining Roadmap, and others. The GMD NNPC in his comments described the BFPCL as the most third most important project that had taken FID in the last five years. He stated that achieving FID for the project was proof of the Federal Government’s commitment to monetize the nation’s gas resources, notwithstanding the challenging investment environment. He pledged the commitment of NNPC to ensure the delivery of the methanol plant on schedule by 2025. According to him, “The country is blessed with abundant gas resources, over 200 trillion standard cubic feet of gas (tscf) proven, with potential of over 600 tscf. As energy transition processes go on, you must monetize these gases as quickly as possible. NNPC will continue to collaborate with all the strategic partners. We will ensure that feedstock is available for this project and subsequent projects that would happen in the Brass hub.” Executive Vice-Chairman of BFPCL, Chief Ben Okoye said that jobs that would be created from the project would help to assuage the restiveness in the Niger Delta in addition to the development of a new oil and gas city in Brass Island.

Wabote also commended Chief Sylva for recording huge achievements in the energy sector, at a time when most nations are unsure of decisions to make amid the COVID-19 pandemic. He listed some of the Minister’s Majorwaves Energy Report FEBRUARY 2021, Vol 4 No 2

LOCAL CONTENT

Sylva Performs Groundbreaking of Atlantic Energy Infrastructure Park ...project includes 2000bpd modular refinery, power plant, jetty Ground-breaking

he Minister of State for Petroleum Resources, C h i e f T i m i p r e Sy l v a recently performed the groundbreaking ceremony of an Energy Infrastructure Park being developed by Atlantic International Refinery and Petrochemical Limited in partnership with the Nigerian C o nte nt D eve l o p m e nt a n d Monitoring Board (NCDMB) at Okpoama, Brass Local Government Area, Bayelsa State.

gas facilities, including modular refineries, which would ensure value addition to the crude oil, products sufficiency, create jobs in-country and curb pipeline vandalism.

The Minister also commissioned three corporate social responsibility (CSR) projects executed by the Atlantic International Refinery for the people of the Okpoama Kingdom. The projects included the Okpoama Cottage Hospital, Iseleama Health Centre and Okpoama Community Water Works.

The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote in his remarks, listed the various elements of the Energy Park project to include a 2000 barrels per day modular refinery, power plant, and jetty. He added that the project will serve as catalysts for infrastructural development and spur of economic activities in Bayelsa State.

Speaking at the event, the Minister hinted that one of the best strategies to curb restiveness in the Niger Delta region is to create jobs and opportunities for youths. He added that part of his mandate is to collaborate with players in the private sector to establish oil and

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He charged the people of Okpoama Kingdom and other parts of the Niger Delta to create an investment friendly environment that would attract other oil and gas and manufacturing facilities to the region.

He explained that the Board decided to partner with Atlantic International Refinery and Petrochemical Ltd to develop the Energy Park in line with its mandate of catalyzing oil and gas activities.

He confirmed that the Atlantic modular refinery is the fourth in the series of the Board’s partnerships to contribute to the implementation of the Modular Refinery aspect of the Federal Government’s Refining Roadmap. The previous partnership included the Waltersmith 5000 barrels per day modular refinery at Ibigwe, Imo State, the 12,000 barrels per day Hydroskimming modular refinery being constructed by Azikel Petroleum Limited at Obunagha, Gbarain, Bayelsa State and the 2,500bpd modular refinery being developed by Duport Midstream Company as part of its Energy Park in Egbokor, Edo State. According to the Executive Secretary, “with the recent commissioning of the Waltersmith Refinery, we have proven that the concept is doable with the right dedication and partnership models. Our focus now is to ensure the completion of the remaining three modular refineries under construction”.

LOCAL CONTENT Acknowledging that the location of the Atlantic Modular refinery was challenging, the Executive Secretary said “we believe that with the capability of our partner, and especially the support of our stakeholders in the Community, the State, and the nation at large, we will come back next year to commission the project”. Also speaking, Chairman/CEO of Atlantic International Refinery and Petrochemicals Limited, Dr. Akintoye

Akindele stated that the company is building the first integrated energy park, comprising a scalable and environmental friendly modular refinery, power generation and distribution plant and a world class jetty services in Brass, Bayelsa state. He added that the park will not only transform the economic activity in Brass but will also act as a commercial hub for logistics in Niger Delta, unlocking significant developmental in Brass community

and its environs. He thanked His Royal Majesty, the Amanyanabo of Okpoama Kingdom, King Ebitimi E. Banigo (OFR) for his royal blessings and hosting the project in his Kingdom. He also thanked the Honourable Minister of State for Petroleum Resources and the Executive Secretary, NCDMB, for their unwavering support towards the actualization of the project.

Wabote Tasks IOCs on New Projects ...Total’s Ikike to hit first oil Q4 2021

he Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote has charged International Operating Oil and Gas Companies to emulate Total Exploration and Production Company (Total E&P) in sponsoring new projects and stop being deterred by the delayed passage of the Petroleum Industry Bill (PIB). He gave the charge recently when he received the Managing Director of Total E&P, Mr. Mike Sangster at the Nigerian Content Tower, headquarters of the NCDMB in

Yenagoa, Bayelsa State. He commended the MD for his emergence as the chairman of the Oil Producers Trade Section (OPTS)- the umbrella body of major oil producers, adding that his appointment was deserving because Total E&P was the only international operating company that had taken Final Investment Decisions and sanctioned major oil and gas projects in recent times in Nigeria despite the delayed PIB. While expressing confidence in the determination of the 9th National Assembly to pass the PIB after it

had been delayed for over 15 years, Wabote encouraged other IOCs to forge ahead with their new projects. He hinted that new projects were needed to grow Local Content and create work opportunities for local fabrication and manufacturing yards, many of which have been idle since the conclusion of the Total’s Egina deep water project in 2018. He also charged Total E&P to lend its full support to the ongoing NLNG Train 7 project, adding that the project held great prospects for the local oil and gas industry and host communities.

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LOCAL CONTENT The Executive Secretary remarked that the Egina Project remains “the benchmark of upstream project delivery considering its recordbreaking performance in local content practice in the oil and gas industry. The project served as a veritable tool to raise the bar in the development of our in-country capacities and capabilities.”

manufacturing: study, to determine what it will take to produce all the gasket requirements in-country.

He added that “the Board is also happy with Total E&P on the implementation of the ‘Adopt a Faculty and the various actions it had taken on the programme.

The Executive Secretary also noted that the Board has made significant progress with the development of Nigerian Oil and Gas Parks Scheme in Bayelsa and Cross River states and requested the operating companies to encourage their key suppliers to set up manufacturing shops in the NOGAPS sites as they become operational by end-2022.

Wabote also solicited the support of the chairman of the Oil Producers Trade Section towards the conclusion of the categorization of in-country oil and gas capacities and capabilities, covering engineering, fabrication yards, testing facilities and training facilities. Another area of collaboration with OPTS is in the study for local gaskets

He also asked OPTS companies to prove feedstock for newly established modular refineries to increase value addition, local refining, demotivate illegal refiners and stealing of crude.

The Total MD had remarked earlier that the company had operated in Nigeria for 60 years and is the only IOC that operates in the upstream, midstream and downstream sectors of the Nigerian oil and gas industry.

He indicated that the company developed the last three Floating Production Storage and Offloading (FPSO) platforms in Nigeria and Egina created new records, one of which is recording 40 million manhours in-country. Sangster also reported that the company had made significant progress with the development of the Ikike Oil Field and would record first oil before the end of 2021. He admitted that “it had been difficult developing the project, particularly with the pandemic, but we are making progress and we appreciate the support from the NCDMB.” Commenting on the PIB, which underwent public hearing in the National Assembly in January, the OPTS lead advised federal legislators and policy makers to ensure that the fiscal provisions in the law are fair to key stakeholders, so as to stimulate new investments in the industry.

NLNG Train 7: Uniport to Get US$6M Gas Research Center headquarters in Yenagoa, Bayelsa State. The NCDMB is a key stakeholder in the NLNG project and played an active part in the determination of the Capacity Development Initiatives (CDI) from the project. Wabote outlined the objectives of the investment in the university to include the establishment of LNG & Gas Research center that will run sustainably and provide solutions to the Oil and Gas industry, equipping selected engineering laboratories and expansion of some facilities.

s part of the Human Capital Development Programme for the NLNG Train 7 Project, over three billion Naira (US$6m) has been set aside for the strengthening of the LNG and Gas Research Centre at the University of Port Harcourt.

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The Executive Secretary, Nigerian Co ntent D evelo p m ent an d Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote made this known recently when the acting Vice Chancellor of the university, Prof Stephen Okodudu paid him a courtesy visit at the Board

The intervention would also train some lecturers to operate the facilities as well as establish digital laboratories linked to simulations at the center. He hinted that under the Human Capital Development for the Bonga North West project by the Shell Nigeria Exploration and Production Company (SNEPCO),

LOCAL CONTENT the sum of US$.70m had been set aside for the provision of subsea technolog y equipment and a 23-seater bus will be delivered to the school in quarter 2 of 2021. The NCDMB boss applauded the participation of Uniport Students in the ongoing Science, Technology and Innovation Challenge which the Board sponsoring. He mentioned that the top institutions in the

with NCDMB particularly in Research and Development.

competition will get facility upgrade. In his remarks, Prof Stephen Okodudu commended the Board for the developing and promoting indigenous participation in the oil sector. He appreciated the Board for various capacity development interventions it had initiated in the university.

He enumerated the research interests of the university and expertise which could form the basis of strong partnership between the two institutions. He also called on the Board to always consider UNIPORT in all NCDMB programmes, particularly in Research and Development and other areas.

Okodudu sought closer collaboration

Oil and Gas Park in Bayelsa Ready Q4 2022 .. Shell supports project with CDI We still have a long way to go because most of the buildings are getting to the finishing stages while some are just starting. We believe that we will complete this project by Q4, 2022.” Explaining the benefit of the park scheme to the nation’s economy, Wabote hinted that the facility would stimulate the manufacturing of oil and gas components in-country and reverse the current trend whereby the sector depended on importation for most of its finished products.

he Nigerian Oil and Gas P a r k b e in g d eve l o p e d by the Nigerian Content Development and Monitoring Board (NCDMB) at Emeyal 1, Bayelsa State would be completed in the 4th quarter of 2022, the Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote has said. He spoke recently after inspecting construction work at the project site in company with senior management of the Board. He hinted that his assessment visit was a prelude to the planned tour by the Minister of State for Petroleum Resources, Chief Timipre Sylva to the Board’s major projects, including the oil and gas park projects at Emeyal 1 and Odukpani in Cross River State and the Composite Gas Cylinder Manufacturing facility at Polaku. Wabote expressed delight with the quality and speed of work by the

wholly Nigerian contractors. He noted that their work compared favorably with similar jobs across Nigeria and provided evidence that the Board was always acting in accordance with its guidelines on patronage of local service companies.

The park would also save the much-needed foreign exchange for the nation and create jobs for our people, he said. “It will also enhance our capacity and bring about technological innovations because most of those manufacturing will be done here. For the community, it will create a lot of jobs and there will be a spin-off effect to other economic activities. The benefits The park will create a low-cost are enormous.”

manufacturing hub that will produce equipment components and spare He also assured that shortage of electricity parts to be utilized in the nation’s oil would not affect companies that would set up in the park. He said: “We have been able and gas industry.

to conquer the challenge of electricity at this site. We have built a 10megawatts gas a plant to guaranty power to the site.”

T h e p roje c t s t a r te d w ith groundbreaking ceremony on April 27, 2018 and has now reached about 68 percent completion, with four major structures nearly completed, while foundation work was starting on some buildings and parts of the project. According to the Executive Secretary, “we did the groundbreaking ceremony in 2018 and we were practically inside water; but today, we are seeing structures coming up.

The Executive Secretary also confirmed that Shell Petroleum Development Company (SPDC) was supporting the oil and gas project through a Capacity Development Initiative (CDI). Shell’s commitment to the project included the construction of Effluent Treatment Plant, Fire Station and acquisition of two fire trucks. The company also committed to construct water treatment plant, sewage systems and piping network for water.

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POWER

Energy Theft: Ikeja Electric Introduces Incentives for Whistleblowers By Ikenna Omeje resides within the IE network); without which it may be difficult to reach out and reward such whistle-blowers. All reports submitted through any medium will be considered confidential.

“The Company views whistleblowing as a positive practice that enables it detect incidents of unethical conduct, fraud and other illegal activities early; thus, providing the opportunity to take corrective measures. This is done in a confidential manner that enables IE investigate the alleged misconduct and take necessary steps to deal with the misconduct,” he said.

The power distribution company noted that for established cases of energy theft, the whistle-blower will be rewarded from the reconnection penalty paid by the culprit in accordance with the fees stipulated in the Nigerian Electricity Regulatory Commission (NERC) Order on Unauthorized Access to Electricity Supply, Meter Tampering and Bypass for non-maximum demand and maximum demand customers.

In addition, he also stated that where the report is established to have been made in bad faith or for the purposes of personal gain or malicious intent, it will not be eligible for compensation. It also not applicable where the report was not made using the aforementioned whistleblowing channels.

n a continued effort to curtail the incidence of Energy theft, Ikeja Electric Plc has introduced incentives for whistleblower who expose energy thieves within its network.

It further stated that where the culprit is a non-Maximum Demand customer, the whistle-blower receives up to 10 percent of the reconnection penalty paid by the culprit while in a case that involves a Maximum Demand offender, the whistle-blower receives up to 5 percent of the reconnection /penalty paid by the culprit. According to the company, whistleblowers will only be rewarded after the culprit has made full payment of the fees. However, where the report is made in the name of multiple individuals. Only one whistle blower per case will be rewarded. A release by the Head, Corporate Communications, Felix Ofulue, on Thursday stated that whistle-blowers of energy theft cases who wish to be rewarded must provide their full name, contact telephone number, e-mail address and customer account number (where the whistle-blower

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Ofulue further reiterated the Company’s commitment to global best practices in business ethics, stating its strict adherence to its policy of zero tolerance to bribery and corruption, with focus on upholding ethics and integrity. “Ikeja Electric is committed to a culture of zero-tolerance against fraud, bribery, corruption, misappropriation, illegal activities and unethical conduct throughout its operations”, he said. He expressed hope that this initiative will bring about a cessation or significant reduction in the widespread scourge of energy theft across its network. The company also provided phone number, email address as well as other communication channels for customers to make reports in confidentiality; for it to investigate alleged misconduct and take steps to deal with any misconduct

World Bank Approves $500m for FG to Improve Electricity Distribution By Ikenna Omeje

he World Bank has approved $500 million to support the Federal Government in improving Nigeria’s electricity distribution sector. The project, the Bank said, would help boost electricity access by improving the performance of the Electricity Distribution Companies (DISCOs) through a large-scale metering program desired by Nigerians for a long time. In addition, it said financial support would be provided to private distribution companies only on achievement of results in terms of access connections, improved financial management and network expansion. According to Bank, 85 million Nigerians don’t have access to grid electricity. This represents 43 percent percent of the country’s population and makes Nigeria the

SOCIAL INVESTMENT country with the largest energy access deficit in the world. The lack of reliable power is a significant constraint for citizens and businesses, resulting on annual economic losses estimated at $26.2 billion (₦10.1 trillion) which is equivalent to about 2 percent of GDP.

NCDMB Donates Office Items to The Department of State Services, Bayelsa

Citing the 2020 World Bank Doing Business report, it said Nigeria ranks 171 out of 190 countries in getting electricity and electricity access is seen as one of the major constraints for the private sector.

Mordi chukwunonso Esther

“Improving access and reliability of power is key to reduce poverty and unlocking economic growth in the aftermath of the global COVID-19 pandemic,” says Shubham Chaudhuri, World Bank Country Director. “The operation will help improve the financial viability of the DISCOs and increase revenues for the whole Nigerian power sector, which is critical to save scarce fiscal resources and create jobs by increasing the productivity of private and public enterprises”. The Bank noted that the Nigeria Distribution Sector Recovery Program (DISREP) will help improve service quality, as well as the financial and technical performance of distribution companies by providing financing based on performance and reduction of losses. This project complements the support provided under the Power Sector Recovery Operation (PSRO) approved in June 2020. Specifically, it will ensure that distribution companies make necessary investments to rehabilitate networks, install electric meters for more accurate customer billing and to improve quality of service for those already connected to the grid. It will also help strengthen the financial and technical management of DISCOs to improve the transparency and accountability of the distribution sector. “The program will only be eligible to those DISCOs that transparently declare their performance reports to public with actual flow of funds based on strict verification of achieved performance targets by an independent third party. The program would also make meters available at affordable prices to all consumers in Nigeria, a long pending demand of Nigerians,” says Nataliya Kulichenko, World Bank task team leader for the project. The Bank added that the program will reduce the CO2 emissions of the Nigerian power sector by reducing technical losses, increasing energy efficiency, replacing diesel and biomass with grid-electricity, and investing more in on- and off-grid renewable energy. DISREP supports the development of regulatory guidance on climateresilient infrastructure and facilitates inclusion of climate risks in decision making.

he Nigerian content development and monitoring board (NCDMB) has donated office items to the Department of State Services, Bayelsa command. This is part of it’s Corporate social responsibility (CSR) to the Department of State Services for their service delivery to all stakeholders. The items were delivered by Engr. Okey Egbuta, Ag. General Manager, Facilities & Logistics NCDMB on behalf of the Board and the Executive Secretary, Engr. Simbi Kesiye Wabote FNSE and was received by Femi Akinrinlola, Deputy Director of Security DSS, Yenagoa.The items includes; 2 Photocopiers, 10 Walkie-Talkie and 50 conference chairs.

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FGN Mulls Low-Cost Price Environment …exploring the NUCOP, NOGEC initiatives

By Ikenna Omeje, Emeka Eboagwu and Jerome Onoja

n 2020, the global economy was brought to its knees as a result of lockdowns and restriction of movement put in place by various countries being part of measures to reduce the spread of the novel coronavirus (Covid-19). The oil and gas industry, which thrives on economic activities, was heavily affected. Airlines, manufacturing firms and train operations were shut down in several countries. Eventually, history was made on April 20, 2020, when the price of West Texas Intermediate (WTI) went negative for the first time ever, trading between $0 and -$37.63. Nigeria as an oil dependent nation,

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lost over 60 percent of its revenue in Q2, 2020. Oil accounts for over 90 percent of the country’s foreign exchange earnings and over 70 percent of its revenue. In mid April 2020, one of Nigeria’s benchmark grades, Bonny Light, fell between $12 and $13 per barrel, Bloomberg reported. These prices are well below the cost of producing oil in Nigeria, which was about $22 per barrel in April, and further lower than the country’s fiscal breakeven, which based on Fitch Ratings assessment is about $133 per barrel. The production cost of International

Oil Companies (IOCs) operating in the country, currently hovers around $17 and $22 per barrel, while the production cost of indigenous oil producers goes as high as $35 per barrel. Yet, some operators still register as high as $90 per barrel. In 2019, according to some stakeholders, the country had one of the highest production costs with break-even price for major proposed projects hovering around $48 per barrel, slightly higher than Angola’s $45, and Uganda at $44 per barrel. Effort has been made by the Nigerian National Petroleum Corporation (NNPC) to drive down the cost of

COVER STORY Narrative – Push or Pull Approach, What Works?”, the optimization elements of the crude oil production was emphasized.

Dr. Maikanti Baru

Drawing a comparison between Nigeria’s high cost of production to that of one of the Organisation of Petroleum Exporting Countries (OPEC) member - Saudi Arabia, Kyari stated that cost of production in Saudi Arabia is between $4 and $5 per barrel. Speaking in a statement in June 2020, the former Chief Operating Officer, Ventures and Business Development of the NNPC, Mr. Roland Ewubare, disclosed that the oil company plans to achieve a $10 per barrel cost of crude oil production by Q4 of 2021. He explained that a lot of logistics costs would be recalibrated to drive down the cost of crude oil production in the country.

During his term as the Group Managing Director of NNPC, Late Dr. Maikanti Baru worked assiduously to drive down cost from $27 per barrel to $22 per barrel, which was just a scratch. In a continuous effort to drive down cost, the current GMD of NNPC, Mr. Mele Kyari while speaking at the Central Bank of Nigeria Round Table discussion, in March 2020, expressed the national oil company’s readiness to strategically put in place measures that would alleviate the cost of crude oil production in the country in order to improve the market for Nigeria’s crude and make the country a choice destination for Foreign Direct Investment (FDI).

He said, “When you have a low commodity price regime, as the case now, the only way we can squeeze out some reasonable cash and financial gain to the nation is by curtailing and constraining our costs in line with the Group Managing Director’s aspiration to push for a $10 per barrel cost of production. Against this backdrop, the conversation around cost becomes an imperative and urgent one.” Collaboration and the NUCOP Initiative Some experts in the Nigerian oil and gas industry in October last year, noted the need for collaboration in order to achieve the NNPC’s target of $10 per barrel crude oil production cost. At a webinar organised by PEL Consult, an indigenous oil and gas supply chain consulting firm, with the theme: “Driving the $10 Cost Per Barrel

Mr. Mele Kyari

Speaking from the energy services and oil and gas perspective at the webinar, Managing Director ODENL, Chijioke Akwukwuma, said,

Chijioke Akwukwuma,

“

“what is strategically more important is to sort out and rehabilitate the crude oil refinery plants in-country, rather than driving cost per barrel down to $10,

as that improves the overall economic value derivable from the operation and accruable to the nation drastically.”

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COVER STORY “Optimising the elements of crude oil production is definitely a better way to achieve the regulatory body’s initiative, however, I am yet to see any concrete research on the possible comparative analyses with similar regions in any OPEC state to ours that achieved aspired target that can provide a template and basis that will help us better manage our expectations,” he said. Also speaking, Regional Director, Security, Sub-Saharan, Africa, General Electric, George Kobani, who spoke from the angle of security said: “There is an absence of community engagement from IOCs, Nigerian oil companies and service providers on a sincere level. If I had $500,000 to spend on security logistics for a crude oil production project, I would rather invest it in community engagement because the community without fail needs to be a stakeholder/shareholder in that project and what other outlying issues may then be dealt with from a purely security perspective.”

Gracetti Fredson,

“

“However, it is imperative that a strategic recruitment with a focus on employing personnel with crossfunctional capabilities measured on a basis of smart KPIs, and whose efforts directly impact the crude oil production system be adopted in the industry.” Lending his voice to the discussion, Country Chair, World Energy Council, Nigeria, Salisu Isihak, once said: “in a low-production environment, such as the one forced upon us due to restricted quotas by OPEC,

George Kobani,

On her part, Assistant General Manager Supply Chain Management, Neconde Energy Limited, Gracetti Fredson, said “If we must accomplish an optimisation of the variables of the total operating cost of producing crude oil, a lot of priority analyses will have to be done. It is not enough to trim head count of administrative staff and human capital as it is not a solution in itself.

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“

we must look to galvanise production efforts and redirect it to low-cost crude oil producing fields.”

Emphasizing on the need for collaboration, McKinsey in 2016 said, “Collaboration is a particularly effective way to lower costs and simplify contractor management. Combining equipment, software and engineering, or other combinations of service offerings can unlock significant value for customers.

“Many services and equipment purchases currently are outsourced to a variety of providers, which result in complexity and a fragmented supplier base. Multiple OFSE (oil-field service and equipment) companies are now bringing these services in-house, with integrated offerings reducing coordination costs. This can lead to savings of up to 30 percent. For example, Schlumberger’s SIS division is offering a software backbone based on its Petrel software platform. This allows an operator to develop a view of the potential for oil and gas in a reservoir, model the field, plan the wells, and complete the design. “While companies are developing integrated offers in-house, many also are partnering or merging with others to provide a wider range of services. In the subsea sector, Cameron and Schlumberger formed the OneSubsea alliance in 2013 to offer reservoir-to-surface services, integrating SLB’s reservoir and well technology with CAM’s wellhead and surface technology (sensors, controls, software, and analytics) to create complete drilling and production systems, thereby gaining annual cost and revenue synergies estimated at $600 million per year.” Meanwhile, the Federal Government, through the NNPC, early in February 2021, officially launched the Nigerian Upstream Cost Optimization Programme (NUCOP) in a bid to cut down cost. NUCOP, an industry-wide initiative is designed to optimize Nigeria’s upstream operating expenses through process enhancement and industry collaboration. Speaking at the launch of the program, the Minister of State for Petroleum Resources, Chief Timipre Sylva emphasized the need to optimize unit cost of production, saying the average total cost per barrel in the country is below $30/barrel for Joint Venture (JV) agreements and below $20/barrel for Production Sharing Contract (PSC).

COVER STORY “We are leveraging this laudable initiative of NUCOP launched on the background of the directive of the Federal Government to the HMSPR which mandated that we must cut down on the cost of production,” he said. “It is in our informed interest to optimize on our cost of production. The realities of energy transition and investor choices are very much clear to us. There is nowhere in this world where less cost-efficient operator can survive today.” Timipre Sylva

“

“Currently, the average total cost per barrel is below $30/ barrel for Joint Venture (JV) agreements and below $20/ barrel for Production Sharing Contract (PSC).

We need to optimize our unit cost of production in order to sustain our way of doing business,” he said. According to him, “Engagement with industry stakeholders, under the NUCOP, is part of the resolve of this administration to confront this challenge of high production cost. I expect robust discussions and a realistic roadmap to achieve the cost optimization objectives.”

“I am convinced that with the successful implementation and Executive Excellence of NUCOP, the Nigerian Oil Industry will achieve a contracting cycle of 6 months or less and UOC of sub $10/b, thus making us more efficient, sustainable and competitive,” Kyari noted. Security Challenge T h e N i g e r ia n o il a n d g a s environment is a very peculiar one. Issues revolving around pipeline vandalism and crude oil theft are critical factors that are peculiar to the nation’s terrain and often drive up crude oil production cost. The NNPC must look very closely at such variables as logistics, security, and transportation if it is serious about reducing cost of production to $10 per barrel or below.

On his part, the GMD of NNPC, Kyari, said that the laudable initiative was in response to the directive from the Federal Government to the Minister of State for Petroleum Resources, asking the national oil company to drive down cost of production in the country. Kyari noted that the national oil company is not unknowledgeable of the current realities in energy transition and investor choices, adding that there is nowhere an operator can survive in a less cost-efficient environment today around the world.

Director/Chief Executive Officer of Eroton Exploration and Production Company, Ebiaho Emafo, identified insecurity as the major challenge confronting indigenous operators in the Nigeria’s oil and gas industry. Emafo said that vandalisation of flow lines and the export line occur mainly because they are easy to access by vandals, noting that at a point, indigenous operators experienced losses in excess of 30 percent. “Security is a great challenge for all the indigenous operators. Anybody within the swamp or land region is susceptible to security challenges. You have vandalization of flow lines and the export line because it is easily accessible. At a time, we experienced losses in excess of 30 percent, but now ranges between 20 and 30 percent of our daily production. In value terms, we were losing about 20,000 barrels of crude a day. Some operators produce as much as 20,000 barrels per day and that is a viable business for them. If you are losing 20,000 barrels of crude per day, it severely impacts your cash flow and the return on your investment. So

“

if the Government is able to fix the security along the export lines, we will be able to realize our full production potential and that will bring significant returns to the business and Nation, he said.

Ebiaho Emafo,

Speaking with newsmen on the margins of the 2019 Nigeria Oil and Gas Conference, the Managing

Similarly, a government committee, chaired by Edo state governor Godwin Obaseki, in its report in September 2019, said that Nigeria lost $1.35 billion to oil theft in the first six months of 2019 and needs a legal task force with special courts to tackle it. The committee, set up to investigate theft from the miles of pipelines that pass through the Delta region,

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COVER STORY According to NEITI, Nigeria has lost more than 505 million barrels of crude, and 4.2 billion litres of products, from 2009 to 2018. This brings the cost to the country to $40.06bn and $1.84bn respectively, equivalent to $11.47mn per day for 10 years.

Godwin Obaseki

said the theft will only grow if the government does not take special action to combat it, adding that oil pipeline maintenance and ownership needed to be restructured. “The governance structure of the pipeline(s) is such today that no one is held accountable when these losses occur,” the committee said in its report. According to the committee, there is a lack of fuel stations in most of the oil-producing communities around the Niger Delta region, which it said made them resort to oil theft and illegal refining. More so, in its 2018 report on oil theft, the Nigerian Extractive Industries Transparency Initiative (NEITI), said Nigeria loses 138,400 barrels per day of crude, around 7 percent of its total production, to theft, spills or shut-in production. The report said that the problem is “neither hypothetical nor episodic. It is real and endemic.” It admonished that steps should be taken on a number of fronts to tackle the problem, including

“

fingerprinting of oil in tandem with the international community, improved leak detection and cut-off systems for pipelines. 30

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The NEITI report further stated that aside the monetary loss related to crude and products, companies must pay to repair pipelines and there is an environmental impact, adding that companies had been forced to spend 363bn naira ($1bn) between2014 and 2016. In the same vein, the NNPC in its Monthly Financial and Operation Report for October 2020, released recently, said that

“

it spent N49.69 billion on pipeline repairs and management cost between January and October 2020.

According to the report, a total of 506 vandalised points were recorded within a year; October 2019 and October 2020. Giving the breakdown of the total amount spent within 10 months, the national oil company said N5.48 billion was spent in January; N6.74 billion in February; N7.70 billion in March; N7.84 billion in April; and N7.99 billion in May. In June, it said that a total cost of N6.24 billion was incurred, while N1.80 billion was spent in July; N1.50 billion in August; and N4.41 billion in October. It added that no pipeline repairs and management cost was incurred in September of the year under review. “Products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position,” the report read. “This month (October 2020), 23

pipeline points were vandalized representing about 10 percent increase from the 21 points recorded in September 2020. “Of this figure,

“

Mosimi Area accounted for 83 percent of the vandalised points while Port Harcourt Area merely accounted for the remaining 17 percent.

“NNPC, in collaboration with the local communities and other stakeholders, continuously strive to reduce and eventually eliminate this menace.” Role of Technology Improved technologies are at the centre stage of the global economy, improving efficiency and productivity, while also reducing cost and saving time. An abstract of a paper presented by four oil and gas experts at the 2017 Industrial and Systems Engineering Conference titled, “Supply Chain Innovations in the Oil and Gas Industry” outlined some of the challenges oil and gas industry face and the need to adopt technologies to address them. “Organizations in the oil and gas industry often deal with a variety of logistic challenges. These organizations need to utilize innovative technologies to reduce costs and help achieve a loweremissions environment. The industry involves a global supplychain that is comprised of domestic and international transportation, inventory control, materials handling, import/export facilitation and information technology. Currently, the industry offers a classic model for executing supply-chain management techniques. However, companies can optimize their supply chains to generate more productivity for

COVER STORY better financial returns. Applying some of the new techniques can diminish costs and reduce the uncertainty in the supply chain. The demand for digital oil-field attentions will grow once there is a reduction in oil costs. To improve supply chain management, it is necessary to use an optimization model,” the paper read in part. The paper, which focused majorly on supply chain management, optimization, logistics in the oil and gas stated that supply chain begins and ends with the customer. According to the paper, the global supply chains of the gas and oil industry are often complex and interdependent, which make them vulnerable to risk and uncertainty. It noted that overcoming risks involved require innovation, which is essential for survival in any industry. It said that “innovations can have effect on the quality of service, for example, by improving customer satisfaction, optimizing the inventory costs and total costs, and more. Currently, supply chain innovations in the oil and gas industry are absolutely necessary.” It added,

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“In the oil and gas industry, a successful supply chain involves minimization of material procurement, maximization of manufacturing capacity, meeting demand, and maximizing throughput.

While there are many external factors that cannot be controlled, effective utilization of resources within the supply chain can help resolve problems with ease. Organizations should focus on removing inefficiencies from daily operations by increasing supply chain visibility, improving compliance, and enhancing supplier collaboration

by challenging current outdated practices and adopting the latest innovations.” Similarly, while laying emphasis on how technologies can revolutionize the downstream supply chain, Wipro --- a leading global information technology, consulting and business process services company --- said,” Business leaders in the oil and gas industry recognize that the

January, President Muhammadu inaugurated the National Oil and Gas Excellence Centre (NOGEC). Buhari said the establishment of the centre, situated at the Lagos Annex of the Department of Petroleum Resources (DPR), would enhance safety, value and cost efficiency in Nigeria’s petroleum sector.

“

right technologies can help them drive business outcomes by improving operations, building customer relationships, and collaborating effectively with partners. “Transportation of products in the downstream sector is a complex, high-cost operation. Though oil companies and their haulers seek the most effective strategies for transport between supply depots and customer locations, challenges that include imprecise planning and forecasting, unforeseen customer demand, complex scheduling problems, low fleet utilization, and invoice inaccuracies prevent full realization of this goal. One of the most significant challenges is incorporation of technology-based strategies to streamline operations and save costs. “The most effective and profitable method for getting product to market uses technology-based strategies to add agility to operations and offers opportunities for operational and cost breakthroughs to the oil and gas enterprise, the hauler, and the vendor. With the right system, an enterprise can revolutionize its downstream operations and create business benefits for both internal and external stakeholders.” Incorporating NOGEC in Cost Saving Drive Earlier this year, precisely in

Muhammadu Buhari

NOGEC is an integrated resource centre - a regulatory intervention of the DPR - aimed at tackling some of the major challenges confronting the industry. The integrated NOGEC complex encompasses five units. These include Search, Rescue and Surveillance (SeRAS) Command & Control Centre, National Improved Oil Recovery Centre (NIORC), Oil and Gas Alternative Dispute Resolution Centre (ADRC), Oil and Gas Competence Development Centre (CDC) and Integrated Data Mining & Analytics Centre (IDMAC). “ T h e e s t ablish m ent of th e National Oil and Gas Excellence Centre (NOGEC) aligns with my administration’s commitment to foster stability, growth and sustainability of the Nigeria Oil and Gas Industry, consistent with the economic development and sustainability agenda articulated in the National Petroleum Policy 2017, National Gas Policy, 2017, Economic Recovery and Growth Plan (ERGP) and the Economic Sustainability Plan (ESP), 2020.

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COVER STORY “This ceremony of the official launch of NOGEC – an integrated resource complex to drive Safety, Value and Cost efficiency in the Industry – is yet another milestone in the development of the oil and gas sector and the realisation of greater value for all stakeholders,” Buhari said while speaking at the inauguration of the centre. While charging stakeholders in the industry to take full advantage of the centre, he said, “I therefore charge you all to rededicate yourselves to national duty and take full advantage of this Excellence Centre to meet the challenges confronting industry. On our part, we will spare no effort to ensure that every Nigerian gets the maximum benefit from the huge natural resources. “We will continue to leverage oil and gas for development and pursue our economic diversification drive across all sectors. I urge all industry practitioners and stakeholders to join me in this task of nation building to realise the abundant opportunities in our country.” Also speaking at the inauguration, the Minister of State for Petroleum Resources, Chief Sylva, said that

of the Centre designed to enhance safety management, emergency preparedness & response and routine transportation for bed space management. SeRAS will therefore drive cost reduction and improve operational efficiency across the Industry. “Conservatively, it is projected that upon full implementation of SeRAS, the annual industry expenditure for offshore and remote locations flight logistics and emergency response will reduce by 50 per cent – a significant gain towards our target reduction of cost-per-barrel across our operations,” he said. On his part, the Director of DPR, Engr. Sarki Auwalu, said, “Today, we have concluded the framework and implementation modalities for successful take-off of these Programmes within the National Oil and Gas Excellence Centre due for imminent commissioning. “We have no doubt that the industry now has the resource and platform to interact, cooperate and collaborate on salient industry issues that remain impediments to cost reduction, safe operations and optimum value optimisation”.

“

NOGEC will help the country to cut operations cost in both offshore and remote locations by 50 per cent, adding that the projected 50 per cent reduction will also lead to the realization of the $10 per barrel oil production cost target.

“Search, Rescue and Surveillance (SeRAS) is a flagship programme

The importance of community engagement cannot be

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But speaking with journalists after the end of the two-day public hearing on the proposed bill by the Senate panel in January, Chief Sylva said that 2.5 percent is fair enough. The Punch quoted him as saying,

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“The 2.5 per cent as proposed in the bill is fair and of course, I speak as a member of the host communities myself.

“Before now, you had a provision of 10 per cent of profit for the host communities but we discovered that if the oil firms do not declare it, host communities won’t have anything.

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The leaders of the oil rich communities under the aegis of the Host Communities of Nigeria Producing Oil and Gas (HOSTCOMS), in January at a public hearing, openly rejected the 2.5 per cent being proposed for them in the PIB, being considered by the joint Senate Committee on Petroleum Resources, (Downstream, Upstream and Gas), insisting that it is 10 percent or nothing.

“If you have to look at it properly, you will see that 10 per cent in profit is different from 10 per cent of the OPEX (operating expenditure).

“Let me take a few moments to highlight the main elements of each of these centres to underscore its role in driving cost reduction, increasing production and enhance value for the Industry.

overemphasized, if the country must achieve its $10 per barrel production cost target. This is the reason a comprehensive effort must be made to ensure that the overall best interests of the host communities are enshrined in the proposed Petroleum Industry Bill (PIB), currently before the National Assembly.

Sarki Auwalu

“But in this case, it is 2.5 per cent of the operating expenditure. So, at the end of the year we will calculate the operating cost and take the 2.5 per cent of that cost to the budget of the next year.

COVER STORY “Of course, I don’t like to discuss details of the bill at this point because these are just proposals before the National Assembly. “Until it is passed, we cannot discuss it but since it came up here, I thought I should just mention it. “As far as we are concerned, we have made a very fair proposal – fair to the host communities, fair to the country and fair to the oil companies.

related know better. “But from the little I understand,

“

while Saudi Arabia may spend 5 dollars to produce a barrel, we are spending about 30 dollars to produce same in some cases.

“We have put this bill before the National Assembly and they have the competence to look at it and pass it the way they see fit.

Lawan said, “The cost of production in Nigeria is a major concern in the oil industry, my colleagues in the committees that are oil and gas

compared to the size of what we have elsewhere, maybe due to lack of a legal framework – the PIB.

“We need to help you by creating that kind of environment where you’re able to argue and get the investments flow into Nigeria, instead of elsewhere. Let me also add, that at the end of the day, this is going to be a balanced legislation.

“As you heard the Senate President say yesterday, we expect that this bill would be passed at the end of this quarter or early next month.”

While receiving a delegation of Oil Producers Trade Section (OPTS) in Abuja late January, the President of the Senate, Ahmad Lawan called for a reduction in the cost of crude oil production. He promised that the National Assembly will do everything possible to ensure that the host communities benefit from wherever they are supposed to benefit from. He noted that PIB would make provisions for reduction in the cost of crude oil production.

In the last 20 years, investments coming into Nigeria and this industry have been so dismal and so small

“So, we are very conscious of ensuring a balance and equilibrium between our interest as a people and a country, that we should have all the benefits accruing from your operations.

“So, at this point I do not want to go into detailed aspect of the bill. The bill is before them and we are happy with the progress.

This disagreement raises a red flag that needs to be nipped in the bud. If the issue of percentage host communities are entitled to, is not addressed, the PIB may not be a success, especially in the area of reducing cost of production; as most of the host communities are likely going to be more antagonistic to the oil firms operating in their localities, leading to continued vandalization of assets and loss of investments.

“

Ahmad Lawan

“The time has come for us to ensure that the cost of production is beaten down to a more meaningful and profitable production cost. “We must do everything possible together to ensure that the host communities benefit from wherever they are supposed to benefit from.

“For us as a country, we will not do anything that would jeopardise the chances of our oil industry competing favourably with other climes. “So, I want to assure you that we would look into those issues of concern to you, and we would do exactly what we think will be in the best interest of Nigeria and also in the interest of the OPTS,” Lawan said.

“Not only the host community development fund, but in the Niger Delta Development Commission (NDDC) and other areas of government intervention, the Amnesty Programme and Ministry of Niger Delta Affairs. “How do the host communities benefit, because we need to stabilise those areas so that we have cheaper production costs.” On the importance of PIB, he said,

Mike Sangster

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COVER STORY and reduce what we see as the cost premium of operating in Nigeria, so we are looking at ways where the PIB can help there.”

Conclusion For the country to achieve $10 per barrel crude oil production cost, a holistic approach much be adopted. One that clearly defines milestones in its execution. Legor Idagbo

In his remarks, the leader of OPTS and Managing Director of Total Nigeria, Mr. Mike Sangster, who led the delegation, said the essence of the visit was to engage the National Assembly on areas that needed modification, to ensure its success when passed into law. He said, “On behalf of all of the industry and my colleagues, I want to say that we duly support the government’s effort to drive through the Petroleum Industry Bill. We think it is really important that there’s an updated framework for the industry. “In our view, we are looking for something that will contribute to Nigeria, which will bring investment to the country and growth to the economy, and obviously jobs to the Nigerian people.

“

“We are looking for something that will protect our existing investments, and also unlock opportunities so we can further grow our businesses and production. “We need to find ways jointly to try

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This approach must cut across the entire value chain - upstream, midstream and downstream sub-sectors. It must look beyond personnel headcount reduction and encapsulate varying cost elements of its supply chain. Addressing the big elephant in the room, a deliberate effort must be made towards improving security in the Niger Delta region. Effective protection of varying assets in the industry, as well as proper stakeholder engagement and management are key elements to driving the cost of security to a barest minimum within the region. A combination of industry regulating apparatus, as well as corporate self- regulation by IOC’s and their indigenous counterparts within the region is essential in driving a proper collaboration amongst all stakeholders in the value chain.

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“New AI techniques and technologies will help to address efficiencies and grow production. The industry needs collaboration to drive costs down. The industry is one in the global context contributing 2mbpd and therefore needs to cooperate,” he said. It is also noteworthy to recognize collaboration as recommended by experts is in the area of materials unitization and logistics. It is extremely vital to take inventory of varying equipment and to create material exchange portals for the industry by deploying big data, AI, IoT and other contemporary technologies. Finally, the Federal Government and its relevant agencies must ensure that this laudable NOGEC program works. This, among other things, will help the country towards creating a $10 per barrel environment.

Speaking in 2019, the Chief Executive Officer, Seplat Petroleum Development Company, Mr. Roger Brown, emphasized the need for collaboration and deployment of Artificial Intelligence (AI) and technologies to achieve $10 target. “Driving down the cost of production to $10 a barrel and below requires the active involvement of every player at every point. Realistic timelines need to be set. Delay costs, crude handling costs are key issues. Reducing costs also include exploring wells that give the best output.

Roger Brown,

INFRASTRUCTURE

Buhari Approves Establishment of Trillion Naira Infrastructure Company By Ikennqa Omeje

resident Muhammadu Buhari has approved the establishment of a Public Private Partnership styled Infrastructure company named Infra-Co to address infrastructure deficit in the country. The company, which will take off with an initial seed capital of N1 Trillion, is expected to grow to N15 Trillion in assets and capital over time, a release by the Senior Special Assistant to the President on Media & Publicity (Office of the Vice President), Laolu Akande has said. “Infra-Co will be one of the premier infrastructure finance entities in Africa and will be wholly dedicated to Nigeria’s infrastructure development. The entity has been developed with concept designs from the National Economic Council (NEC) and the Central Bank of Nigeria.

“The President had asked Vice President Yemi Osinbajo, SAN, to chair a Steering Committee tasked with setting up the company. “The initial seed capital for the entity will come from the Central Bank of Nigeria, the Nigerian Sovereign Investment Authority, NSIA, and the Africa Finance Corporation,” the release stated. According the release, the board of Infra-Co will be chaired by the Central Bank Governor and include the Managing Director of the Nigerian Sovereign Investment Authority, President of the Africa Finance Corporation, as well as representatives of the Nigerian Governors Forum, and the Ministry of Finance, Budget and National Planning. The Board will also have 3 independent directors from the private sector.

deficit, the Buhari Administration continues to explore innovative options, including through financing initiatives such as the Presidential Infrastructure Development Fund (PIDF) designed to cater for the 2nd Niger Bridge, the Abuja-KadunaZaria-Kano Expressway, and other projects. There is also the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme which is being used for the funding of the Bodo-Bonny Bridges and Road (with the Nigeria Liquefied Natural Gas, NLNG), and the ApapaOshodi-Oworonshoki Expressway (with Dangote Group), among others. Infra-Co will finance public asset development, rehabilitation and reconstruction as well as invest in cutting edge infrastructure projects for Roads, Rail, Power and other key sectors.

To address Nigeria’s infrastructure

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INFRASTRUCTURE

Govt says East-West Road for Completion, Commissioning Q1 2022

he Federal Government has announced that the East-West Road will be completed and commissioned in the first quarter of 2022. The Minister of Niger Delta Affairs, Sen. Godswill Akpabio, disclosed this during a tripartite meeting among the Presidential Amnesty Programme, NDDC and ex-militant leaders in Okochiri, Okrika Local Government of Rivers State. The meeting, according to the minister, was geared towards remo deling the A mnes t y Programme on how repentant militants can be entrepreneurs instead of depending on stipends. Sweetcrudereport reports that Akpabio said that the Niger Delta remains a priority in President Muhammadu Buhari’s agenda. He stated that contractors have been mobilised to site and by August 2021, the East West road project would have gone far, as he has devoted three quarters

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of his ministry’s 2021 budget to the project. The minister said: “We must find ways to move the Niger Delta region forward. We are hopeful the East-West road will be completed by December. Contractors have been mobilised to site, Setraco, RCC and Giito are back on site. ‘By August this year, the project must have gone far. I am also a part and parcel of the victims of East-West road, I ply that road almost daily. That’s why I went to Mr. President and told him I will take over the project. “I have devoted one quarter of my ministry’s 2021 budget into the road. I also insisted that NDDC must make a contribution, even if it’s N25 billion and also the Federal Ministry of Finance is contributing about N25 billioj to make N100billion for the completion of that road. “I am sure that by early 2022, between February and March, we will commission the entire

section of the East West Road. The failed portions you see now, you will see them no more”. Also speaking, Coordinator of the Presidential Amnesty Programme, Col. Miland Dikio Rtd., disclosed that the programme has been repositioned to empower exagitators to be competent and efficient in their chosen fields, so as to be independent of stipends. “We have brokered truce with the major stakeholders. We inherited a lot of debts and we have started paying those debts sequentially from 2014 downwards. “For students, we are also clearing backlogs of fees. There are students who had partial scholarships and we are working to ensure that such dichotomy does not exist anymore. “For empowerment, we want to ensure that those powered can compete for any job anywhere, not because they are from the Niger Delta, but because they are competent and qualified,” he said.

INFRASTRUCTURE

At Least $10bn Infrastructural Investment Ongoing in Nigeria’s Energy Sector --- NNPC GMD poverty level is very high, extremely

According to him, “The best of forecasts have said that in 30 years we will still have at least 100 million bpd of oil consumption. “So, oil and gas will still remain relevant in the near future, but the transition is real. What countries and nations are doing is to move towards much cleaner fuel and this cleaner fuel is clearly gas and that’s why we as a company are focused on gas resources, making sure to supply the domestic market and create opportunities for export.

he Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has said that there is at least $10 billion worth of investments currently ongoing in the energy sector in a bid to delist Nigeria from one of the most energy impoverished nations in the world. Kyari, who spoke on the second day of the Atlantic Council Global Energy Forum, 2021 on the topic “Delivering Energy Access in the Developing World,” noted that although the country aligns with the push for renewables, it is now focused on using its oil and gas resources in developing infrastructure till when the commodities become less relevant in about four decades. He said Nigeria with significant gas reserves, has approximately $3 billion to $4 billion projects currently going on, some of which have reached advanced stages, in the country’s efforts to rev up production for domestic use and for export. He said: “We are not a petroleum country in the real sense. It’s agreed that we have the 10th largest reserve of oil and a significant gas reserves. Of course, what everybody recognises is the oil. The reality today is that we have a country in excess of 200 million people. Seventy per cent of this population is well below 30, with a growing middle class and one of the fastest-growing economies in Africa. “More importantly, for us today, an energy deficient country, over 60 per cent of our country is not electrified, the

challenging. But so much is going on to see how we can reverse this trend. When you combine all these, you will see that as a country of focus today, many things are happening in the energy sector. “For instance, we are seeing investment in our energy infrastructure, especially in the area of gas in excess of $10 billion; this is ongoing. There are a number of gas-based projects about $3 billion to $5 billion dollars and some of them are at the Final Investment Decision (FID) stage.” According to him, Nigeria as a country is currently in transition and not necessarily in energy transition, adding that the country is not oblivious to the changes in the global oil and gas sector. He explained that Nigeria is at the moment witnessing increased domestic gas demand in the industrial and power sectors, leading to increased production and reduced gas flaring. Kyari added that the country is also witnessing increasing household access to gas networks and natural gas in the main cities, while there are deliberate plans to expand that access to rural areas. He said the federal government’s recent plan aimed at deepening domestic gas consumption, led to the advent of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) and that it was part of the policy to deploy resources in the right places.

“So, what we see as an energy resource-based country is to utilise the available resources of today to create the enabling environment for growth and prosperity in the country and that clearly aligns with the reality on the ground. “We have significant goodwill and understanding across countries, nations and companies. For instance, we have significant engagement with the United States Department of Energy in the sense that we receive some support in our transition to cleaner fuels so that we can develop our gas infrastructure so that we move away from the liquids to gas ultimately.” On whether or not Nigeria can survive without oil, especially given the current crisis in the global oil market, Kyari explained that Nigeria is gradually moving away from its dependence on oil. “What does this mean for a country like ours which depends on oil for cash? Obviously, we have seen how we can transit to something better for our country, so we don’t depend on that today. You may be aware that today, the country’s resources are mostly coming from taxes and those taxes are growing because population and prosperity is growing and we want to get more work done. “As a country, we are facing the new realities and we are moving towards the use of gas and also we are developing our resources as quickly as possible so that when the real transition comes in 30 to 40 years time, we will be in a position to say this is a developed country that has taken advantage of its resources,” he stated.

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ENERGY WOMAN

“In the face of a plethora of challenges the country is battling, there are huge opportunities to deploy blockchain technology for lasting solutions” --Mike-Eze, Viviane

iviane Mike-Eze is the Head of Marketing Communications for Schneider Electric, covering Anglophone West Africa. A French and Nigerian national, she has built an international career over the past 10 years across France, Nigeria, the UK and Mexico in the fields of HR, training and marketing. She joined Schneider Electric in 2012 and was moved to Nigeria a year after, tasked with the

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responsibility of developing the Access to Energy program in West Africa while implementing energy training programs in partnership with 15 organizations in Nigeria and Ghana. Over 2000 beneficiaries were targeted and impacted.

key technological partner across segments with the EcoStruxureTM architecture, driving efficiency and profitability in organizations.

Having led major sustainability projects with the French Development Agency and the German Cooperation GIZ, her portfolio as head of Marketing Communications has enabled her to position Schneider Electric as a

Q: Tell us about yourself.

Find below excerpts of her interview with Margaret:

My name is Viviane Mike-Eze; I am currently a Marketing Communications Manager for

ENERGY WOMAN S chn eider Ele c tric Nigeria , covering Anglophone West Africa and responsible for conducting sustainability projects, especially with regards to training in the energy sector. I have been with Schneider electric for the past 9 years. I started my career in France where I was born but decided to come to Nigeria, eight years ago, in a bid to discover my country of origin. Eventually, this is where I settled for several years now, and have started a family. I’m a happy mother of a one-year-old girl, who teaches me every day. Q: In your opinion, what is Nigeria’s main problem with power and what is your recommendation? Nigeria’s power problems are quite complex and varied. First of all, on the generation aspect, the power that we generate is grossly insufficient, so we have a total installed capacity of power generation of 12,500 megawatts but what we actually generate is more like 3,500 to 5,000 megawatts. In comparison with South Africa, with a population of a quarter of Nigeria’s: that is 48 million people; their actual generation capacity is 35,000 megawatts. That looks like a long way to go. Remember, of the generated capacity, about 8 per cent is lost in transmission and another 27 per cent is also rejected at distribution. Apart from generation challenge we have a big problem with our infrastructure. The quality of our infrastructure and the capacity of the distribution companies (DisCos) come to mind here. Why? Because for too long, the cost of supplying electricity has been higher than the actual rates charged customers. It led to a situation where the DisCos piled up debts over time. This is further compounded by estimated billing which was due to inadequate metering. Along with estimated billing came a non-payment culture where some people would simply not

pay or they would find a way to steal the power from the grid, directly. So, between the generation problems, the infrastructure problems, the losses due to the poor network and the commercial losses with electricity theft and fees that were not reflective of the actual cost of generating power, you can imagine that it is a big chaotic situation. Only last year, the tariffs changed; so, the method or the way this was done may raise questions for concern but at least we are on a basis where the DisCos functionality is actually viable. In terms of recommendations, I subscribe to the completion of meters roll out plan because that is the most accurate way to know what is distributed and ensure prompt payment of the bills. So that is for one. Secondly, the sec tor needs investments. Investments in the DisCos to improve the efficiency of our distribution network. With adequate investment, we are guaranteed an efficient network with smart solutions. Finally,

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we need policies to be enforced so we stop seeing people with estimated billings paying outrageous bills to make up for the others that have meters installed and are paying reduced fees. We need to have a system that is fair to both the consumers and viable for the distribution companies. Q: Automation and Artificial Intelligence (AI) are innovations that have been widely deployed in the oil and gas industry, particularly as we now have manless oil platforms. Stretching your mind, what other application do you see in the near future?

Well,

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automation and AI have to be applied to the utility sector because smart grid is really the future of utility; we are starting to consider it now in Nigeria and it is really timely because this is going to take us a step ahead in addressing the challenges we are facing.

How? Just imagine a grid that, when there is an issue we can pinpoint exactly where the issue is located and tell you exactly what the issue is, against what we currently have now, which is the shutting down of a whole sector while we send our engineers from one area to the other to find out where the fault lies before it is then rectified. Imagine the revenue that is lost in that time where the whole unaffected area has been shut down for an issue that is happening at a precise location. That is how self-healing grids work; they eliminate unnecessary down time, so this is one. Two,

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AI can actually be used for predicting maintenance because if all grids become smart, then with the analysis of recurring situations, the grids then become able to understand the trends that may lead to a particular issue and tackle the issue or raise an alert before that problem even arises. Again, think about the whole savings that can be done when you don’t even need to get to a state of shut down because the operators know exactly what operation to perform in order to avoid it.

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ENERGY WOMAN This is the power of automation and AI applied to the utility space and actually these are already here. Q: With a view to energy transition, do you think Nigeria will meet her energy demands over the next decade? I believe that with the ongoing series of events, Nigeria is on a good track, a positive one at least. Within the next ten years, I don’t know but at least a good first step was to raise the viability of the distribution companies through tariffs that reflect the actual cost of supplying power. Again, with the earlier recommendations I made, there’s a need for good governance of these investments, along with policies and a clear framework that protects the electricity consumers as well as the sustainability of the generation, transmission and the distribution companies. However, I doubt this can be achieved with just our current generation structure. We need a continuous development in the sustainable, renewable energy space.

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Now, private investors are really encouraged to go and set up mini grids in rural communities because when you look at the figures, you still have 40 per cent of the Nigerian population that is not even connected to the grid. So, we cannot wait for improvement of the existing grid only, there’s an urgent need to increase access to energy and to improve the current infrastructure. I’ve seen the growth of these mini grids in the past five to seven years and I’m really in support of its proliferation across the country because it’s making a lot of difference. It can be one village at a time, one project at a time but eventually everywhere would be powered up.

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“

In Schneider Electric for example, we started with five projects in 2015; now, with so many partners and the huge investments which have gone into it from government, organizations, Bank of Industry and even international organizations, it has become burdensome to keep tracks because of the widening spread across the country.

I n s u m m a r y, t h e m o r e investments that go into the improvement of the existing network, as well as to new mini grids and even bigger power plants, and solar power plants, the more we are likely to meet the power sufficiency target. Whether we make it over the next decade or not depends on governance, transparency and competence of those leading the initiatives.

Q: What is the term ‘’Ecostruxure’’ and what difference does it bring to the table? To put it simply,

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Ecostruxure is a platform that has been elaborated by Schneider Electric to lead the digital transformation in homes, buildings, data centres, in utility, infrastructure, and industries; basically across board and everywhere you have energy.

It is a platform that is IOT-enabled and ensures that with the power of digitization, all aspects of energy management become so much more efficient that it saves money for the consumers in the operations, usage and reduces carbon footprint by optimizing energy and making it greener. As regards utility and power, it can actually lead to incredible savings, simply by making the decision making process a lot faster and smarter in terms of the operations to conduct. For example, I mentioned the issue of a fault and your solution being able to help you pinpoint exactly where the fault lies but on top of that you can automate some actions. If for instance, there’s a drop in energy demand in a building, the smart system detects it, then brings down some of the operations. It does the reverse when the situation demands it. Basically, it ensures that your resources are always optimized; and with this, you can actually make savings of operational expenditures or “CapEx” of up to 80 per cent. That helps one recover the cost of investment within two to three years, depending on the sector in which Ecostruxure is applied. Return on investment is faster, climate change is checked through reduced carbon footprint –an important aspect organisations ought to keep in mind when solutions are developed.

With Ecostruxure, from the products to the overseeing of the operations, to analysis, and everything in between is digitally enabled. Your brakes can be digitally enabled, even your switch in the parlour can also be smart. One easy way to put it would be to think of making your equipment so smart enough that they can talk to you; just like when somebody is not feeling well, and they tell you exactly where the issue is. Q: There has been so much fuzz about recent innovations like block chain and 3D printing. What are the immediate applications you see in the energy sector? I think these are quite exciting innovations that are making the headlines and are having increasing number of applications in the energy space. For example, blockchains have converted erstwhile consumers into producers of energy. That is the concept of “Prosumers”. People are now equipped with solar panels such that they use the grid as a backup and produce more energy than required.

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Block chain gives a very clear and transparent means of conducting the transactions on the internet and this is what you call peer to peer energy market as it ensures that there is transparency for the consumers with the best market prices.

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ENERGY WOMAN In the face of a plethora of challenges the country is battling, there are huge opportunities to deploy blockchain technology for lasting solutions

We need data on the actual energy usage per sectors of the economy. With actual numbers, government and its institutions could tailor specific policies for different regions, based on the data. Chile, which is a developing country, had its National Energy Commission (CNE) announce the deployment of blockchain technology in 2018. The aim is to increase the security, transparency, and confidence in the available public information. It helps record, store and track energy data in order to better serve the consumers. So, there is a real opportunity there for us in Nigeria. When we look at 3D printings, there is also a very huge opportunity, especially in terms of sustainability. There are 3D-printed panels which are not only much thinner and lighter but also more efficient than the traditionally made panels. These panels are up to 20 per cent more efficient and they cost half the price to build. In Nigeria, where there is so much potential for renewable energy projects, the introduction of 3D printing technology would facilitate widespread adoption of renewable energy solutions across Nigeria. Away from that, even Original Equipment Manufacturer (OEM) for utility component manufacturing will end up phasing out equipment.

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This is the creation of smart contracts, where individuals If there is an equipment that a confidently transact on energy company realizes needs a spare part among themselves. I believe it is a fantastic innovation that is applicable and they actually would prefer to here in Africa. change the spare part rather than the The emergence of block chain really provides us with a great opportunity to connect data, accurate data.

entire equipment, 3D printing makes that possible and also makes up for any form of supply chain challenge of a particular equipment component.

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ENERGY WOMAN So, these are innovations that we can leverage on. They are readily available to us in Nigeria, after we fix the basics. Q: If there is a piece of technology you wish to see in common use among players in the energy space, what will that be? Well, it will be Ecostruxure. I have described the potential impact of Ecostruxure and smart, digitallyconnected equipment and software in the utility space. Now imagine spreading the same capability of having every single product being able to communicate with individuals, having this predictive maintenance spread across industries, buildings, data centres, all infrastructures. Imagine the impact on our economy and the kind of change it will power. Q: What is your take on the level of internet penetration in the country and how does this affect technology and innovations? Well,

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I believe that internet penetration in Nigeria keeps surging year on year. In 2020 for example, we had moved up 15 per cent from the year before. We currently have between a 100 and 140 million Nigerians having access and being active internet users. On the strength of that, I believe we really deserve our position as top economy in Africa.

Today, Nigeria is at the forefront, even competing with advanced colonies in areas like payment facilities. In fact, banking has never been easier. We have various USSD applications, mobile banking, and physical transfers. I believe that in the banking sector for example, internet penetration has helped many users handle their finances in a much more safe and secure way. I also think that on a wider scale, the level of internet

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penetration in the country can fuel innovations that will enhance better governance. We’ve seen so many people organize themselves online to create movements and significant change awareness. So, I do believe that the future is with connected people. Q: What drives you? What are you so passionate about? What drives me is purpose. I need to see purpose in anything that I undertake. I need to feel a concrete impact, and linked to that purpose is development: developing people in my environment, developing myself, learning new skills, new challenges, and progress in life. These things drive me. For the second part, I believe I am passionate about people. Part of my educational path was psychology, a degree in psychology and human resources. So, it tells you that I really love, not just observing people, but also interacting with people - this actually started my career in human resources. I have travelled quite a bit too. I have lived in France, the UK, Mexico, and now in Nigeria. There is so much to learn from people and so much to also share, such that I feel enriched by my connection to so many people. That explains my passion. And yes, I do love dancing Salsa. Q: As a woman in the energy industry, how would you rate women’s participation and inclusion at top executive levels? I am quite happy with the change we are seeing these days in women’s visibility at top executive levels. If we looked at Mrs Damilola Ogunbiyi, for example, she has a fantastic track record as the first Managing Director of the Nigerian Rural Electrification Agency. Now, she sits as the UN representative and CEO of Sustainable Energy for all (SEforALL). We also see the likes of Hannah Kabir of Creeds Energy and Catherine Uju

Ifejika, the first CEO and chairman of the Brittania-U Nigeria Limited (BUNL), an indigenous petroleum company for upstream exploration and production. These women are really powering through in the energy field and I believe this is only the beginning, we shall see more of them. Q: What is your advice to young girls looking to be like you? First of all, I believe that they should really be looking to be like the best version of themselves that they see. It is good to have role models but most importantly, to follow your own dreams. What I would like to tell them is that, you can do anything, literally anything that you set your mind to do. Just work hard at it. Also, the most important thing you need to work on is your attitude. In Nigeria, a lot of youths have the mindset that if you do not know somebody that can help you pull through, then you will never make it. Are we really in a country where there are no opportunities? You have challenges in every single geographical area. But also, you have several women like those that I cited, who have pulled through these challenges and made it. Truly, some made it on their own.

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I did not know anyone to get to where I am. What worked for me was an open mind, a very strong determination to always develop myself and to grow. That has not changed because I do not think that “I have arrived”. So, really, my advice to young girls is: go for it! Do not listen to societal pressure, whenever you are ready, go for your dreams! Q: What is your perception of the glass ceiling on women?

ENERGY WOMAN It is undeniable. Things are changing but

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there is still a glass ceiling that is especially re-enforced in our geographies by the weight of culture and the place of women in the family and society. That said; I have also come to realize that a significant part of that glass ceiling is self-imposed. People might not agree that women are just putting a glass ceiling over themselves but I believe that sometimes we are. Sometimes, we choose to abide by these norms or by the stereotypes that have been given to us. It is a lot of social conditioning and it takes efforts to break through them. Confronting the first layer of the glass ceiling has to do with a realization that

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there is so much power within us, and that we can do much more than what we imagine. Sometimes, it only takes asking to see a big change in one’s life. I can tell from my own experience. My journey in Schneider Electric has seen me occupy four to five positions though I relied on myself and seized the opportunities whenever I saw one. Even my current positions came that way. I said, “I can do it, hey guys, I want to position myself for it”, and I heard “hmm are you sure?” I mean you studied Psychology and Human Resources, you do not have an educational background in marketing. My only response to that was: “I can do it.” Thank God, I have been doing it very well. So, I have proven it to everyone

and it’s my firm belief that

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women should position themselves to prove to the world what they are capable of.

proud to be called Nigerians; and to hold that green passport. That is my dream: a Nigeria where people will want to stay and blossom, one that nurtures people’s skills and ambitions.

Q: How do you deal with work life balance? That can be tricky. The most important thing I tell myself is that family should always be priority. Like I said, I have a beautiful daughter that has made time management even more of a challenge. That wasn’t the scenario when it was only myself and my husband because we are both workaholics. But, I have resolved that I will not encroach on my child’s time. Whenever there’s extra work, I choose to sleep later or wake up earlier to accommodate it.

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That bonding family time cannot be compromised because at the end of the day, this is the most important thing.

In summary, I actively strive to maintain a balance and ensure that however busy I am, I always have time for my family. Q: What is the Nigeria of your dreams? The Nigeria of my dreams, put it simply, is a country where Nigerians will want to stay and blossom. I had a start in life that made me get to know my home country a little bit late. I am so impressed actually with what I discovered about this part of myself. I look at Nigeria and it saddens me so much to see the number of smart, tech-oriented, leadership-oriented, or medically-oriented youths that have so much to give to this country, yet are all seeking to run away. But, I believe that one day, we would get to that stage where all of these youths and most of the Nigerian population would look at this country and be

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ACROSS AFRICA

Mozambique’s President and Total CEO Discuss Security Issues

ozambican President Filipe Nyusi has granted an audience in Maputo to the chairperson and Chief Executive Office of the French oil and gas company, Total, Patrick Pouyanne, and the two men agreed on strengthening security at the Total camp on the Afungi peninsula, in the northern province of Cabo Delgado. According to a statement issued on Tuesday by Nyusi’s office, the meeting also discussed the latest developments in implementing the liquefied natural gas (LNG) project under implementation at Afungi by a consortium headed by Total. “Among other matters, questions were discussed concerning security in the northern area of Cabo Delgado, which has been the target of terrorist attacks”, said the statement. Nyusi and Pouyanne agreed on the need to draw up a security plan that guarantees implementation of the LNG project without any further upsets. Nyusi’s delegation at the meeting included Defence Minister Jaime Neto, Interior Minister Amade Miquidade and the Minister of Mineral Resources and Energy, Max Tonela. Earlier this month, Total evacuated part of the project’s workforce from

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Afungi because of security concerns. The evacuation was precipitated by attempted terrorist infiltration into Quitunda, the resettlement town for people displaced by the LNG project. According to Cabo Delgado police spokesperson Ernesto Madungue, the islamist terrorists were infiltrating armed men into Quitunda in preparation for an attack. Madungue said that, when the police discovered the terrorist infiltration, they went to the house where the infiltrators were hiding on New Years Day. They were met with shots, and returned fire. In this clash, according to Madungue, one terrorist informant was killed and a policeman was injured. A statement from total at the time said “given the evolution of the security situation in Cabo Delgado province and in Palma district”, the company had decided “to reduce the number of staff present at the project site in Afungi. The demobilisation is under way in an organised manner and in accordance with the established protocols”. Instability in the area has concerned the Mozambican authorities, since the LNG project is the largest foreign investment in the country ever, mobilising an estimated 23 billion US dollars, 16 billion financed by various

banks, and the rest coming from the capital of the consortium partners themselves. Total E&P Mozambique Area 1, Limitada, a wholly owned subsidiary of Total, operates the Mozambique LNG project, in Area One of the Rovuma Basin, with a holding of 26.5 per cent. The other members of the consortium are Mitsui of Japan (20 per cent), PTTEP of Thailand (8.5 per cent), the Indian companies ONGC Videsh Rovuma Limited., Beas Rovuma Energy Mozambique Limited and BPRL Ventures Mozambique B.V. (10 per cent each) and Mozambique’s own National Hydrocarbon Company, ENH (15 per cent). Terrorist attacks by fundamentalists linked to the self-styled “Islamic State” began with attacks on police premises in Mocimboa da Praia district on October 2017, and then spread to several other districts in the north and centre of the province. The raiders have burnt down villages, beheaded many of their victims, and are thought to have killed about 2,000 people. An estimated 550,000 people have been driven from their homes, and are now entirely dependent on humanitarian assistance.

ACROSS AFRICA

Senegal Plans 2023 Start for $4.3bn BP-Kosmos Gas Project

he Grand Tortue Ahmeyim gas field development , straddling the offshore waters of Mauritania and Senegal, is expected to produce its first gas in 2023 following delays related to the coronavirus pandemic, according to Senegal’s Oil Minister Sophie Gladima. The two countries and international oil companies BP Plc and Kosmos Energy Ltd. are collaborating on the $4.8 billion project set to produce 2.5 million tons of liquefied natural gas annually and 70 million cubic feet of natural gas a day in its first phase, to be equally shared between Senegal and Mauritania, Gladima said in response to emailed questions. “The start of the pandemic coincided with a key period corresponding to the development of the oil and gas fields,” she said. “Many development-related activities, such as the mobilization of resources and people, the construction phases on various sites around the world and installations were affected.” The delay from a planned 2022 start has denied Senegal much-needed oil and gas revenues as its economy seeks to recover from the impact of the pandemic, which pushed down its 2020 economic growth target to 0.7%. Between 2014 and 2017, reserves of more than 1 billion barrels of oil

and 40,000 billion cubic feet of gas were found in Senegal — most of them shared with Mauritania, according to the International Monetary Fund. That’s prompted Senegal to be hailed as one of the region’s most promising new producers and a possible future member of the Organization of Petroleum Exporting Countries. “Any talk of joining any international organization or not is premature,” said Gladima. “Senegal is focused on the development of its oil projects to meet its objective of starting production from 2023,” she said. The resources will be used “to build an economy that’s connected and competitive,” through the reduction of electricity costs, the development of local content, and industrialization. Cheaper Power Power plants run by the state-owned Senelec and independent producers such as Turkey’s Karpowership are expected to switch from heavy fuel to gas after gas-to-power projects are completed, President Macky Sall said at a climate conference in October.

in Senegal — the cost of production is high,” with many plants running on imported fuel, she said. Senegal’s Sangomar project, developed by Perth, Australia-based Woodside Energy, with an estimated production capacity of 75,000 to 100,000 barrels of oil per day, is also set to start production in 2023, Gladima said. The $4.2 billion project will receive 18% of its funding from state-owned oil company Petrosen, she said. The country had already started to reap benefits from its discoveries when the pandemic hit. The government’s revenues from the hydrocarbons sector reached 22.8 billion CFA francs ($42.5 million) in 2019, a 37% increase from 2018, according to a report by the National Committee of Extractive Industries Transparency Initiative. The rise that year was driven by a tax adjustment of 5.21 billion CFA francs paid by Kosmos Energy. Another gas field, Yakaar-Teranga, a resource of 15 to 20 trillion cubic feet, seeks to start production in 2023 or 2024, she said.

“There’s a lot resting on gas-to-power,” said Kissy Agyemang-Togobo, a managing partner at Songhai Advisory Group Ltd. “Electricity is expensive

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ACROSS AFRICA

Angola: China Sonangol International Privatisation May Begin this Year Daniel Terungwa

he selling process of the oil company (Sonangol)’s stake in China International Holding (CSIH) may begin this year, according to the Privatisation Programme (Propriv) underway in the country. China Sonangol International Holding which was created in 2004, has been based in Hong Kong, since September 6, 2012. C S IH is ow n e d by Day ua n International Development Limited (70 percent), with the Angolan company holding a 30 percent minority stake. According to the privatisation schedule of the assets and stakes held by the oil company in Angolan and foreign companies, presented at a methodology seminar in 2019, this year, the oil company will also begin disinvestment at China Sonangol International Limited. 2021 programme also include the disinvestment process at Empresa Nacional de Combustíveis e Óleos S.A (ENCO), based in São Tomé and Príncipe. Angolan oil company is expected

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to sell 70 assets, in a list of 195 companies and assets to be privatised by 2022. Of this number, 50 are under direct control of its administration. In addition to Angola, Sonangol’s assets and holdings are found in Portugal, the United States, France, the United Kingdom, Gibraltar, the Cayman Islands, Bermuda, Ivory Coast, Singapore, Cabo Verde and Panama.

participations, to be launched in this period of 2022. Among the privatised firms, through public tender, include 13 industrial units located in the Special Economic Zone (SEZ) Luanda-Bengo, whose awards resulted in AKz 30 billion contracts. In addition, 12 agro-industrial enterprises were awarded in public tender, including two silos and a tomato processing plant in Dombe Grande in Benguela.

Of the 195 assets and holdings in various branches, the provisional figure pointed to the sale of 36 assets and accumulated contracts till December.

Just two contracts of the abovementioned establishments, raised a total of 2 billion Kwanzas.

The process allowed the collection of 355 billion kwanzas in privatisations.

The remaining nine assets were not awarded in electronic auctions or for other rules of procedures in the Privatisation Law.

In November 2020, the Secretary of State for Finance and Treasury and Coordinator of the Propiv Technical Group, Osvaldo João, on behalf of the Angolan State, announced very concrete steps in 2021 towards the privatisation of assets and holdings. The state expects the companies to have their started privatisation processes of 195 assets and

The list of companies to be privatised include the “giants” TAAG – Angola Airlines, ENSA – Angola Insurance, Bodiva – Angolan Securities Exchange, and other companies in the transport sector, mining resources, telecommunications, as well as the financial sector.

ACROSS AFRICA

Morocco, Nigeria Renew Commitment to Gas Pipeline, Fertilizer Plant Projects

ing Mohammed VI held a telephone conversation on January 31, with President of Nigeria Muhammadu Buhari, a statement from Morocco’s Royal Cabinet announced.

sidelines of King Mohammed VI’s visit to Nigeria in 2016. Morocco’s National Office for Hydrocarbons and Mines (ONHYM) and the Nigerian National Petroleum Corporation (NNPC) signed an agreement on the project in 2017.

During the call, the two heads of state welcomed the positive dynamic that bilateral relations between Morocco and Nigeria have witnessed since 2016.

In 2019, the two partners carried out a feasibility study estimating that the project would be completed in stages in 25 years. The study also estimated the pipeline to cost approximately $25 billion.

They recalled King Mohammed VI’s visit to Nigeria in December 2016, which marked the beginning of a new page in bilateral ties, as well as Buhari’s visit to Morocco in June 2018, which confirmed the new momentum. The two leaders expressed their common determination to pursue and materialize their strategic joint projects, notably the creation of the Nigeria-Morocco gas pipeline, as well as a Moroccan fertilizer plant in Nigeria. The Nigeria-Morocco gas pipeline is one of the most ambitious infrastructure projects in West Africa. When finalized, the pipeline would cover a 5,660-kilometer-long route, contouring the Atlantic coast from Lagos, in southwestern Nigeria, to Tangier, in northern Morocco. It would carry natural gas from Nigeria through 11 West African countries, up to Morocco and Spain.

The second project that King Mohammed VI and President Buhari discussed, the fertilizer plant, will be a subsidiary of Morocco’s phosphate company OCP. The project was also announced during the King’s visit to Abuja. Morocco is set to supply the Nigerian plant with phosphoric acid to produce fertilizers for the benefit of local farmers. The factory, meanwhile, would supply Morocco with ammonia. Located in southeastern Nigeria, the $1.3 billion plant is expected to become operational in late 2023. While the fertilizer plant is OCP’s landmark project in Nigeria, the Moroccan company has launched in recent years several other initiatives in the West African country. The initiatives include training programs for local farmers, agronomic trials, and soil testing.

Concluding the telephone conversation, President Buhari thanked King Mohammed VI and Morocco for their efforts in the fight against terrorism and extremism. Buhari especially mentioned the training of Nigerian Imams (Islamic leaders) at the Mohammed VI Institute for the Training of Imams, Mourchidines, and Mourchidates (Islamic preachers) in Rabat. The Nigerian leader considered the religious training that Morocco provides as a barrier against the influence of extremism that stems from religious misinterpretations and misunderstandings. Yesterday’s phone call proves once again that relations between Morocco and Nigeria are still on their upward trend. For a long time, Nigeria challenged Morocco’s territorial integrity and expressed support for the separatist Polisario Front. However, the royal visit to Abuja in 2016 marked a shift in Moroccan-Nigerian dynamics. Today, while Nigeria still nominally recognizes the self-proclaimed Sahrawi Arab Democratic Republic, it does not express support for separatism in Western Sahara. Instead, the West African country voices support for the UN-led process in the region.

The project was first announced on the

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MARITIME

FDI: Belgian Investors Watching Nigeria’s Maritime Transport Policy Closely

he National Maritime Transport Policy being developed by Nigeria is of interest in Belgium for windows of investment opportunity. Executive officers of the Port of Antwerp International stated this in Lagos during a meeting with Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh. Jamoh said there were huge opportunities for investment in wreck removal and recycling, s tressing that the Federal G overnm ent is planning a coordinated wreck removal policy to drive investment in the area. The visiting team of executives from the Port of Antwerp International had sought audience with the NIMASA Director-General to follow up investment interests in Nigeria. The Managing Director

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of A PEC-A nt werp/ Fla n d er s Port Training Centre and Port of Antwerp International, Mr. Kristof Waterschoot, and Director at Port of Antwerp International, Mr. Mario Lievens, said they were also in Nigeria to promote new partnership opportunities, especially in the area of training. Waterschoot and Lievens, who hosted Jamoh at the Nigerian Belgian Chamber of Commerce, Onikan, Lagos, said their mission was to discuss projects of interest, including inland ports, and to streng then the relationship between the Port of Antwerp and NIMASA, particularly in the areas of training, technical support, and cooperation. They noted Nigeria’s proposed National Maritime Transport Policy, and said the policy was being watched as it unfolded to see how Belgium could come in with

investments. “We believe in Nigeria,” said Waterschoot, who observed that the business climate in Nigeria could be difficult, but there was hardly any country without its peculiar difficulties. A National Maritime Transport Policy is in the works in Nigeria as part of the government’s effort to develop maritime infrastructure and diversify the oil-dependent economy. Minister of State for Transportation, Senator Gbemisola Saraki, told a recent stakeholders’ validation forum on the draft policy that the policy, when approved, would lead to improved Foreign Direct Investment (FDI) inflow and enhance the ability of the Nigerian maritime sector to compete at the international level.

MARITIME Jamoh praised the long-standing diplomatic and economic relationship between Nigeria and Belgium. He highlighted the Federal Government’s abiding interest in diversif ying the economy, saying the development of maritime infrastructure is part of the government’s economic diversification drive. Jamoh stated, “The National Maritime Transport Policy, which is being developed, is part of a wider agenda purposed to build alternatives to oil. The maritime

sector is consciously being opened for investment by local and foreign investors to build a sustainable blue economy.

Jamoh also sought Belgian partnership in the sea-time training of Nigerian seafarers and in the area of port safety and port security.

“One area I would like the Belgian private sector to come in is wreck removal and wreck recycling. There is a huge investment opportunity there, and there is also a big room for collaboration. This is more so as the Federal Government is planning a coordinated policy on wreck removal.”

The Port of Antwerp International is a subsidiary of Port of Antwerp, Europe’s second largest port – after Port of Rotterdam in the Netherlands. It was established to expand the activities of the Port of Antwerp beyond Europe through consultancy, management solutions, investment projects and training.

NPA Raises Hope on Electronic Call-up System

truck electronic call-up system, which is being powered by a web application called ‘Eto’, would put an end to the perennial logjam caused by articulated trucks within the port corridor. She stressed that “we must put an end to the intractable Apapa traffic to restore sanity to cargo operations at our ports.”

s the port operators celebrate the take-off of the truck electronic callup system, the Managing Director of Nigerian Ports Authority (NPA), Hadiza Bala Usman, has assured port users that the irresponsible parking of trucks on the access roads would soon be a thing of the past. Usman gave the assurance after

Bala Usman said ‘Eto’ would int ro d u ce t ra n sp a re n c y and orderliness to truck movement as scheduling is done automatically on a firstcome, first-serve basis. leading a stakeholders’ facility assessment audit of the Truck Transit Park (TTP) at Lilypond, Ijora, Lagos. The tour was to ascertain the degree of preparedness by the park towards the full commencement of the e-call up system later in the month. The NPA boss reiterated that the

She commended TTP LTD for the renovations carried out at the Lilypond Truck Transit Park facility. Chief Operating Officer, TTP LTD Management, Temidayo Adeboye, assured truck owners and drivers of quality service delivery at the facility. He demonstrated the functionality of ‘Eto’.

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MARITIME

Environment Management Essential for Maritime Growth – Amaechi

MARITIME

Daniel Terungwa of life after service, the minister stressed that the basic thing is the contribution attained during one’s service years.

he Minister of Transportation, Rotimi Amaechi, has identified marine environment management as a crucial factor that will enable the maritime sector to contribute to economic growth in the country. The Minister noted that a clean and safe marine environment is the bedrock that ensures the entire maritime industry contributes significantly to the growth of a nation. Amaechi stated this in a keynote address he presented during the formal exit from Public Service and the launch of a book by a former Marine Environment Management Department at the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Felicia Mogo in Lagos. The book titled: “Regulating the Marine Environment of Africa for Sustainable Blue Economy – the Nigeria Scenario,” was written to celebrate her exit from public service. Amaechi who participated virtually, said: “Maritime is key to national development and we can’t talk about this without the marine environment. It is in this area that Mogo has made impressive records with over two decades spent trying to make reforms in environmental assessment, especially for the oil and gas sector.” Noting that the usual fear of most public servants is the uncertainty

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“Mogo has an impressive and well documented record which is why we are celebrating her today. She is an environmentalist and her pedigree has been evident on the global terrain where she has represented Nigeria and NIMASA admirably. You can’t conclude the functions of NIMASA or talk about maritime without talking about environmental issues and you can’t ignore the contribution of Mogo in that area,” he added. Amaechi lauded Mogo’s contributions in marine environment management, stating that the industry will better appreciate her efforts now that she has exited public service. Earlier, the chairperson of the occasion, Dr. Anne Ene-Ita stressed that it is imperative for the government to fully explore the potential of the blue economy, noting that giving credence to Mogo’s book will be a good way to show commitment to the sector. The former Senior Special Adviser to the President on Aviation Reforms described Mogo as a national asset and a global personality on marine environment management. “Mogo has been an energetic and enterprising young woman since her maiden employment in the Federal Ministry of Works. This book is worth having and we need to disseminate the book at secondary and tertiary levels to get young ones involved in maritime,” she said.

On his part, the High Commissioner of Kenya to Nigeria, Dr. Wilfred Machage, also graced the occasion where he posited that Mogo wasn’t only an asset to Nigeria but the African continent at large. “There’s nothing more gratifying than sharing knowledge with a generation of young leaders who will be taking up similar roles as Mogo in both public and private sectors. “Even upon her exit from public service, Mogo joins the coveted list of our celebrated scholars in the field of marine science and we all know that intellectuals are paragon of virtues and the cream of intelligentsia in all societies.” According to him, the book will serve as a repertoire of knowledge, which will be an asset especially for those who are in the field of environmental science, marine ecology and general field of environmental studies. “This important book acknowledges the importance of the marine environment and ecosystem as a life-support system for supplying resources that support livelihoods and economic development. “African’s Agenda 2063 has identified the blue economy as the next to frontier to facilitate rapid economic transformation of the continent and of seeing the livelihoods of the present and future generations in a continent where 38 out of 55 countries are coastal states and collectively encompass vast ocean territories of an estimated 13million km,” he said. During her 34 years of public service, Mogo served in various capacities in agencies, ministries and various international avenues contributing to the protection of Nigeria’s environment and giving the country recognition on the international level.

SUSTAINABILITY

Sahara Group Releases it’s 2019 Sustainability Report, Says Transition to Cleaner Energy Urgent Mordi chukwunonso Esther According to Uzokwe, Sahara launched its Green Life Initiative in 2019 in line with its commitment to fostering sustainable environments via the protection of the environment, promotion of a circular economy and recycling of waste within and outside our business.

ahara Group has released it s 2019 Sustainabilit y Report which reflects its commitment to achieving its corporate goals and creating shared value for stakeholders through economic development, protection of the environment and building a sustainable society. The energy conglomerate, which announced this on Wednesday in a statement, also described the global transition to cleaner energy and low/ carbon solutions as urgent. It s aid th e re p o r t , t a g ge d ‘ Tra n s fo rmative In n ovatio n’, highlights how Sahara continues to leverage innovation and technology in achieving its corporate goals and sustainability ambitions across its businesses in Africa, Asia, Europe, and the Middle East. D i r e c t o r, G o v e r n a n c e a n d Sustainability, Sahara Group, Pearl Uzokwe, said the Group had continued to foster partnerships and initiatives that have co-created a desirable future through innovation. Uzokwe said: “We have aligned our business operations within our entities with the demands and expectations of our changing

world – digitization – which in turn increases our competitive advantage for sustainable growth. Beyond measuring our performance in numbers and outcome, we have raised our lever of sustainability excellence by committing to more strategic partnerships and setting targets to achieve sustainable development from the micro to global scale.” She said Sahara had aligned its operations and processes in furtherance of the urgent global transition to cleaner energy and lowcarbon solutions. She said “Sahara entered an MoU with the United Nations Development Programme in 2019 to provide access to affordable and sustainable energy in sub-Saharan Africa. This is in line with UN Sustainable Development Goal 7. “During the year, we were pivotal to the success of the United Nations Private Sector Advisory Group (PSAG) and joined hands with other stakeholders in advancing the mission of the African Influencers for Development (AI4Dev), World Economic Forum’s Partnering Against Corruption Initiative (PACI) and other institutions in providing a better quality of life to the world.”

“Among other ac tivities, we established a Recycling Exchange Hub in the Ijora Oloye community and executed upcycling vocational training for the conversion of tyres to usable products. In delivering more environmentally friendly fuels, we committed to complying with the African Refiners & Distributors Association (ARA) standards – the only pan-African organization for the African downstream oil sector – in 2019, as we expanded our investment in the supply of cleaner energy in the form of gas, particularly LPG’” she added. Sahara is a foremost provider of Liquefied Petroleum Gas (LPG) in Africa through West Africa Gas Limited, a joint venture with the Nigerian National Petroleum Corporation (NNPC). WAGL operates two 38,000 cbm LPG vessels, MT Africa Gas and Sahara Gas that are driving LPG access, security, and stability in Africa. Both vessels have supplied approximately 500,000 MT of LPG across regional markets since their acquisition in 2017. Sahara Group’s 2019 Sustainability Report reflects its economic, social, and environmental activities from January 1 to December 31, 2019. The report is the energy conglomerate’s fifth sustainability report, and the fourth report written in line with the GRI standard. The 2019 Sustainability Report has been organized and presented in accordance with the Sustainability Reporting Standards of the Global Reporting Initiative (GRI). The guidelines seek to achieve consistency amongst corporations reporting on their sustainability activities.

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SUSTAINABILITY

NNPC COO, Waltersmith MD, Others to Speak at WIEN/ REAN’s International Women In Energy Symposium By Ikenna Omeje

and monitor progress towards gender equality in the energy industry and a gender equal Africa.

Yusuf Usman, COO GAS AND POWER, NNPC

he Chief Operating Officer (COO) — Gas and Power of the Nigerian National Petroleum Corporation (NNPC), Usman Yusuf, as well as the Managing Director of Waltersmith, Chikezie Nwosu, have confirmed to speak at the forthcoming International Women in Energy Symposium to be co-hosted by The Women In Energy Network and Renewable Energy Association of Nigeria (REAN), scheduled to hold on Saturday March 13, 2021. The Symposium, which will hold 9:00am — 3:00pm on the scheduled date, will also have as speakers, Country Manager Solar Sisters, Olasimbo Sojinrin; Managing Consultant Pejad Group, Engr Tony Ogbuigwe; General Manager Human Resources — Waltersmith, Tari Akhibi; Founder/CEO Sosai Technologies, Habiba Ali and the Chief Commercial Officer at Mixta Africa (an ARM Group), Rolake Akinkugbe-Filani, the organizers of the Symposium diclosed at a press conference on Friday. The Symposium, which will hold virtually, is sub-themed: Light Up Africa and aims to bring together Women in Energy across Africa. The event will yield initiatives, to extend the footprint of women in Energy to new frontiers and increase womens talent contribution to Light up Africa. In alignment with the 2021 global International Womens Day theme –

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Chike Nwosu, COO Waltersmith Petroman Oil Ltd

Choose to Challenge” the Symposium looks to encourage women across Africa to choose to challenge gender bias and inequality, to take a position in driving the energy transition and to celebrate the achievements of women driven successes in the energy sector. Speaking at the press conference, the President of WIEN, Ms. Funmi Ogbue and REANs Executive Secretary, Ms. Lande Abudu, listed three activities lined up ahead of the symposium. They include: Supernova girl Initiative, The Light up Africa with women Pledge and Winning with Women Award (WIWA). According to them, Supernova girl is a WIEN Initiative to encourage and motivate young girls to study related subjects and aspire to come into the energy industry. This, they say, will be carried out through school visits. Leveraging on the 2021 Global IWD theme, they said they will use The Light up Africa with women Pledge, to encourage CEOs of key companies and government officials in Nigeria to do a photo pledge supporting the IWD theme and post on their Social Media handles using #LightUpAfrica, #ChooseToChallenge hashtags. Also, stakeholders will be asked to choose from a couple of key themes presented by the organisers to make Public commitments to drive positive change

Similarly, they said that the Winning with Women Award is an Employer programme to recognize and reward companies, and individuals who champion workplace policies and programmes that help women succeed and thrive and called on companies to self-nominate or be nominated for this award. Explaining further the aim for Supernova girl Initiative, Ogbue said it was aimed at encouraging girls in secondary schools to embrace STEM subjects, so as to take up carrers in them, noting that while art related disciplines are good, STEM related disciplines are also important and girls should be encouraged to embrace them. She also said that the Supernova girl Initiative is targeted at demystifying S TEM disciplines by projecting role models in the fields that girls in secondary schools can emulate, just the same way it is in art related disciplines. Responding to a question on whether issues around clean cooking energy will feature at the Symposium, Abudu said that they will make arrangement for an expert in the area of clean cooking energy to be part of the panelists.

SUSTAINABILITY

CISME Consulting Admitted into PCCB of UNFCCC 16, 2021. The release quoted Ms Eva Vazquez Costa of United Nations Framework Convention on Climate Change (UNFCCC) thus: “It is with pleasure we welcome CISME Consulting Ltd to the PCCB Network. The PCCB looks forward to working with you.”

he Consulting arm of N i g e r ia’s C e n t r e f o r Investment, Sustainable Development, Management and Environment (CISME) has been admitted as a member of the Paris Committee on Capacity-building (PCCB). This was revealed in a press release signed by the Chairman of CISME Consulting, Prince Lekan Fadina upon receipt of an email dated February

Established at COP 21 in 2015, the mission of the PCCB is to identify capacity gaps and needs and potential solutions, including enhancing the coherence and coordination of capacity-building efforts related to climate change. It fosters collaboration between actors at all levels (local, national, regional and global), strengthening networks and partnerships to enhance synergies and promote knowledge- and experience-sharing. “Recently, it called for refocusing and redirection with COVID19 and the effects on our ways of life.

“The UNFCCC status has been boosted with the return of the United States to play a more effective role in its activities”, Fadina stated. Through its platform for capacitybuilding guidance and its communication tools, the PCCB facilitates access to information and knowledge for enhancing climate action in developing countries and for measuring progress on capacitybuilding to ensure continuous improvement over time The PCCB consists of twelve members from developed and developing countries. Some include: the United Nations Environment Programme (UNEP), UNIDO, Nigeria Metrological Agency (NiMET), Commonwealth Foundation, and World Health Organization, among others. The members meet once each year and regularly reports to the Conference of the Parties (COP) on its progress and activities.

Dubai Gives a Glimpse inside its Expo Sustainability Pavilion By Ana De Oliva, CNN

elayed by a year by Covid-19, Dubai Expo 2020 is now giving people a sneak peek inside the event that will officially open in October. Despite the pandemic, the World Expo is set to see more than 190 countries showcase innovations around the themes of sustainability, mobility and opportunity. The Sustainability Pavilion will be a centerpiece of the event. Called “Terra” -- meaning planet Earth -the building generates fresh water from the surrounding humid air. Its 130 meters-wide roof canopy and surrounding “Energy Tree” structures are fitted with more than 1,000 solar panels, which will provide some of the energy needed to host this massive event.

“We’re trying to showcase that humanity can build buildings that do live in harmony with the environment around them, that do manage to grab the resources around them whether that’s sun or water,” explains John Bull, director of the Sustainability Pavilion. “Even in this environment, which is somewhat dry, we’re still able to get enough water which allows this building to be self-sufficient.”

interactive experiences, that’s how we can really connect to people. That’s how you start conversations that matter, rather than just giving information,” says Bull. Expo will run from October 2021 to the end of March 2022. Once the event is over, the Sustainability Pavilion will form part of a science center in District 2020 -- a new residential and business development that will evolve from the Expo site.

This pavilion is the first of the Expo structures to be completed. Until April 10, residents and visitors will be offered a glimpse inside, where a range of interactive experiences are intended to help people understand their impact on the environment. “Through those immersive and

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INDUSTRY EVENT

OPEC+ to Reconvene in March to Take Stock of Oil Market Conditions By Ikenna Omeje “Our target remains stable oil markets, and to ensure that w e h ave stability on a sustainable basis, we need to flexible and adaptable,” he told the panel.

to deepening our relations with the US independent producers.”

FG Announces New Date for 2021 NIPS

DoC

he Organization of Petroleum Exporting Countries (OPEC) and non-OPEC member countries, popularly called OPEC+, which is led by Russia, will reconvene in March “to take stock and examine oil market conditions and developments.” OPEC ’s S e cretar y G en eral, Mohammad Sanusi Barkindo, disclosed this recently while participating in the Atlantic Council Global Energy Forum via videoconference. Now in its fifth year, the forum is taking place under the patronage of the Crown Prince of Abu Dhabi, Sheikh Mohammed Bin Zayed Al Nahyan, from 19 to 22 January 2021. The event is focusing on the post-COVID-19 energy system, the energy transition and other emerging trends in the energy sector. In the ‘2021 Global Energy Agenda’ session, the Secretary General praised the achievements of the ‘Declaration of Cooperation’ (DoC) and highlighted its role in supporting oil market stability to the benefit of producers, consumers and the world economy at large.

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participating countries agreed at their 13th Ministerial Meeting on 5 January 2021 to meet on a monthly basis “to ensure that we do not allow this market imbalance to re-emerge,” the Secretary General said. “We all agree that the recovery is fragile, there are still uncertainties. But we are cautiously optimistic that the recovery will materialize this year.” Barkindo reiterated the need to remain vigilant and adaptable to changes in the economy and oil market in the face of the ongoing COVID-19 uncertainties. “I want to use this opportunity to assure consumer countries that we have their interests in mind. Our role is to assist the market to return to stability,” the Secretary General said. He highlighted the effective relations with the United States and noted that OPEC’s cooperation with US independent oil producers has grown over the years. He also pointed out the important US contribution to international efforts in April 2020 to help mitigate the devastating impact of the pandemic on the oil market. “We congratulate President-elect Biden,” he said, “and we look forward

The 2021 edition of the Nigerian International Petroleum Summit (NIPS) has been postponed to June 6, 2021 instead of the earlier dates of March 28 to April 1, 2021. The Minister of State for Petroleum Resources, Chief Timipre Sylva, who announced the new dates said that the official oil and gas meeting of the Federal Republic of Nigeria will hold in Abuja “We have had to re-consider the dates in light of the current global pandemic”, Sylva said in a special broadcast on select television stations, which was also shared on the Petroleum Ministry’s official social media handles. “While it has been a challenging year for the oil and gas industry due to the impact of the COVID-19 pandemic, the crisis also provides us with the opportunity to re-define our industry for transformative moments.

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ANGOLA’S OIL & GAS CONFERENCE

15-16 JUNE LUANDA, ANGOLA

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

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International Sales Director jp@africaoilandpower.com

KATIE BROCK

Event Director k.brock@africaoilandpower.com

Majorwaves Energy Report February Edition

Articles inside

Sahara Group Releases it’s 2019 Sustainability Report, Says Transition to Cleaner Energy Urgent

Mozambique’s President and Total CEO Discuss Security Issues

Shell Reports Nigeria to W’Bank Panel over Oil Spill Dispute

In the face of a plethora of challenges the country is battling, there are huge opportunities to deploy blockchain technology for lasting solutions”--Mike-Eze, Viviane

FG Mulls Low-Cost Price Environment

NCDMB Donates Office Items to The Department of State Services, Bayelsa

SPDC Says Interim Freeze Order On Its Bank Accounts Unconnected With Alleged Crude Diversion

NLNG Train 7: Uniport to Get US$6M Gas Research Center

AGPC Raises US$260m to Complete ANOH Project and Drive Energy Transition in Nigeria

NNPC Earns N1.95tr from Sale of White Products in One Year