Majorwaves Energy Report February Edition 2020 by majorwavesenergyreport

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ENERGY REPORT

LOCAL CONTENT

SOCIAL INVESTMENT

INFRASTRUCTURE

Africa Leaps Into New Decade; Unbundles Gas for Sustainable Development

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At the tail end of 2019 NLNG and its partners took the Final Investment Decision to invest over US$12bn on Train 7. This is coming 13 years after Train 6 was commissioned. A simultaneous awakening is happening across Africa, as the continent seems to have come to terms with the limitless possibilities with gas. Read the cover story for more. The collaboration between NCDMB and Waltersmith in building modular refineries in Nigeria has been fruitful. The first one being built in Imo state has a 5,000 bpd capacity and will be commissioned sometime in Q2. The second one is expected to come up in Brass of Bayelsa, It is the success with this partnership that has brought about a collaboration between the duo and Equatorial Guinea. We expect to see future collaborations across the continent by African nationalities, particularly as Nigeria International Petroleum Exhibition (NIPS) and (sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) hold in this month of February. No oil producing country takes the recent development in China lightly. Should the crisis escalate beyond certain degree, VLCCs from oil producing countries will remain in the oceans for months without finding a spot buyer for its crude after rejection from China, the world’s largest importer. Already, China’s top processor is seeking to re-sell millions of barrels of West African crude it no longer needs due to the impact of the virus as a lot of refineries and factories have been quarantined or partially closed. The dreaded Coronavirus outbreak has left 635 dead, while 30,829 have contracted it. Though 1,563 infected persons have recovered, scientists from every part of the world should continue to give in their best until a cure is found. Consequent upon a 13-month, record fall in crude price, obviously triggered by coronavirus, OPEC and its non OPEC partners are expected to decide on further production adjustment. Perhaps, this would see total production adjustment soar above 2 million bpd. Enjoy the details inside and let’s stay in touch.

Thanks.

Jerome Onoja

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

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

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INDUSTRY NEWS

Petrohub is the Panacea to challenges facing Nigeria’s downstream petroleum sector- former Rep. member

former House of Representatives member, Hon. Joseph Iranola Akinlaja has said that Petrohub is the Panacea to confronting plethora of challenges facing the downstream Sector of Nigeria’s petroleum. Akinlaja stated this while giving his remarks at the launch of Petrohub, a digital platform and an initiative of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), held recently in Lagos. The former Chairman, House Committee on Petroleum Resources - Downstream noted that the initiative is targeted at encouraging the harnessing of resources and technical expertise by members and the formation of alliances for competitive edge in the oil and gas marketplace. According to him, the objective is to provide a common platform for the Nigeria’s oil and gas industry-based service providers for the good of members, the value chain of the oil industry, the Nigeria’s economy and the industrialization of the country. Akinlaja added that Petrohub will become the nexus for the exchange of ideas and information for the development and promotion of local content in the oil and gas industry in Nigeria.

Earlier in his remarks, the President of OGSPAN, Mazi Colman Obasi, said that the association and Petrohub are necessities that came into being at different times to drive hit-free operations in Nigeria’s oil and gas industry. “Petrohub is an offspring of OGSPAN and the initiative of members of OGSPAN who have embraced the culture of innovation and technology for the transformation of the industry in Nigeria and by extension improving the nation’s economy,” he said. He informed that,“Petrohub.com. ng is Africa’s/Nigeria’s No 1, Oil and Gas Marketplace with a mission to provide a real-time innovative technology marketplace where oil and gas suppliers, buyers and product owners and transporters interact and trade. PETROHUB major objectives are, to provide real-time electronic marketplace where depots owners, suppliers and buyers of petroleum products will transact business with minimal human interference, make the processes and procedures more efficient by providing live information and data on actual products volume available at the depots, live pricing, truck ordering and scheduling fleet

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tracking for potential buyers and promote the sales of products and services of our clients in a transparent manner.” “It is meant to compete on the rate of learning by leveraging innovation and technology to identify and fulfil each individual customer’s changing needs and by deploying the best human and machines to unlock the full potentials of new technologies such as artificial intelligence and the collaborative ecosystems in the Oil and Gas Industry in Nigeria, consciously create both social and economic values to shape critical social issues that will increasingly and continuously improve our business sustainability in our environment and ecosystem and embrace new ideas and open communication practices and commitment to building diversity at organizational level to achieve innovation, resilience and unlock full potentials of diversity in the organisation,” he added. Petrohub Trading & Logistics Company Limited is an offspring of OGSPAN and initiative of members of the association who have embraced culture of innovation and technology for the transformation of the oil industry and by extension improve the nation’s economy.

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INDUSTRY NEWS

More than 20 NOC CEOs and GMDs Confirm to Speak at PETAN’s 4 th Sub Saharan African International Petroleum Exhibition and Conference (SAIPEC) ...SAIPEC returns to the Eko Convention Centre 25-27 February 2020

ETA N’s leading event, SAIPEC 2020 has grown to have a sell-out exhibition and a conference programme packed with all the industry leaders from throughout Nigeria, further enhanced by the presence of 20 CEOs leading delegations from National Oil Companies across the continent making SAIPEC the most important event for Nigeria and Sub Saharan Africa. Speakers confirmed across the three day programme include: Mr. Mele Kolo Kyari, Group Managing Director, Nigeria National Petroleum Corporation (NNPC), Federal Republic of Nigeria; Dr. Ibrahima Diaby, Chief Executive Officer, Société Nationale Opérations Pétrolières de la Côte Ivoire (Petroci), Côte Ivoire; Mr. Omar Mitha, CEO, ENH, Republic of Mozambique; Dr. Kofi Koduah Sarpong, CEO, Ghana National Petroleum Corporation, Republic of Ghana; Mr. Mamadou Fall Kane, Joint Permanent Secretary, COSPetrogaz, Republic of Senegal; Dr. Michael Nkambo Mugerwa, General Manager - Uganda Refinery Holding Company Ltd, Uganda National Oil Company, Republic of Uganda; Dr. Ben Asante, Chief Executive Officer, Ghana Gas Company Limited, Republic of Ghana; Mr. Timothy Kabba, Director General, Petroleum Directorate – Sierra Leone, Republic of Sierra Leone; Mr. Hamani Boube, Director of Exploration and Production of Hydrocarbons, Ministry of Petroleum, Republic of Niger; Mr. Issifou Moussa Yari, Managing Director, SOBEH / Benin Petroleum

Corporation, Republic of Benin; Mr. Philips Obita, Ag. Chief Operating Officer – Upstream, Uganda National Oil Company, Republic of Uganda; Dr. Ousmane Ilboudo, Permanent Secretary, Ministry of Mines and Quarries, Burkina Faso. Others are Mr. Lamin Camara, Permanent Secretary, Ministry of Petroleum and Energy, The Gambia; Mr. Braulio de Brito, President of the Board, Association of Contracted Companies of Angola Oil & Gas Industry (AECIPA), Angola; Dr. Juliette Twumasi-Anokye, Principle Consultant, Anojul Afriyie & Co, Republic of Ghana; Mrs. Jessica Kyeyune, National Content Expert, Uganda National Oil Company (UNOC), Republic of Uganda; Mr. Nuertey Adzeman, Executive Director, Ghana Oil and Gas Service Providers Association, Republic of Ghana; Mr Adriano Sebastiao, Exploration Director, The Angola National Agency of Oil, Gas, and Biofuels (ANPG), Republic of Angola; Mr Kwaku Boateng, Director – Local Content, Petroleum Commission, Republic of Ghana; Dr. Achille Ngwanza, Legal Consultant, APPO, Jus Africa SARL. A full speaker list can be found at saipec-event.com/speakers In addition to an extensive conference programme, the organisers have confirmed a sellout exhibition of 120+ exhibitors with several new features for 2020, including NCDMB’s African Content Series Day on February 26th, followed by the SAIPEC Awards and Women in Industry on February 27th. For full programme details or to register to attend, please visit www. saipec-event.com.

NLNG signs 10-year gas deal with Total

igeria Liquefied Natural Gas has signed a deal with French energy group Total for 1.5 million tonnes of LNG per year, the African producer said recently. The agreement is for 10 years, with volumes to be supplied to Total from trains 1, 2 and 3 of the Nigeria LNG plant at Bonny. The deal is in line with Nigeria LNG’s “drive to continue to deliver LNG globally in consolidation of its position as one of the top-ranking LNG suppliers in the world”, the company said in a statement. “The deliveries under the agreement will commence October 2021,” said an NLNG spokeswoman. An company spokeswoman was not immediately available to comment on when the deal would begin. Nigeria LNG has been remarketing some volumes from its existing trains as some contracts approach expiry. The company’s contracts with Turkey’s Botas, Portugal’s Galp Energia, Spain’s Naturgy and Total for a total of 2.67 million tonnes a year will expire in 2020 and 2021, according to the International Group of LNG Importers (GIIGNL). Nigeria LNG is a joint venture between the Nigerian National Petroleum Corporation, Shell, Total and Eni.

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INDUSTRY EVENTS

Coleman Cables to increase production output by 24,000 tonnes come July By JEROME ONOJA

oleman Cables will kick start the production of marine and transmission cables by July this year. The simultaneous projects, together with the company’s new production plant, will increase its production output by 24,000 tonnes, the Managing Director/Chief Executive Officer of the company, George Onafowokan has said. Onafowokan disclosed this in a chat with Majorwaves while reflecting on his discussion on panel at the 2019 Practical Nigerian Content (PNC), which focused on local content opportunities for supporting oil and gas industries. Coleman Cables has been responsible for 80 percent of installed wire and cables production in Nigeria since the launch of its Sagamu factory. Along with Cutis Cables, Nigeria produces 70 percent of wires, cables in West Africa. Coleman,

currently, does 48,000 metric tonnes of copper. He noted that the projects are already 50 percent done. “We are already 50 percent done on what we had. We are just expecting machinery now. That should come in by March, April or May. Hopefully, commence production in July. That’s really the game changer. That will have direct impact on Bonga Southwest - like Zabazaba- because those are FPSOs, which are vessels and these vessels when manufactured do use a lot of foreign cables. This is the first time we are having a local company with the capacity to produce such cables for vessels,” he said. Speaking on measures that should be put in place to ensure strict compliance to the Nigerian Content Development and Monitoring Board’s (NCDMB) policy on cables, he said that even though the board has done a lot to support local cable manufacturing companies

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in this regard, International Oil Companies (IOCs), EPC contractors and service companies should be properly monitored to ensure that they don’t import cables that are produced in-country. He noted that despite the efforts NCDMB has made, the country is not yet there regarding local content and emphasised the need for more measures to be put in place to ensure compliance. Onafowokan informed that the ongoing expansion projects of the company is costing it $40m (fourty million United States dollars). He stated that it’s so because the company is also doing backward integration of its processes and putting other measures in place to meet local and export demands. .

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INDUSTRY EVENTS INDUSTRY EVENTS

NIPS 2020: Technology, knowledge, sustainability and partnership, main talking points By Ikenna Omeje

igeria International Petroleum Summit (NIPS) 2020 will focus on technology, knowledge, sustainability and partnership that can enhance inflow of foreign investments while improving success rates of indigenous business engagements. The summit, which is the gathering of key stakeholders in the oil and gas industry, scheduled to hold from January 9 - 12 in Abuja, intends to provide networking platform for key political decision-makers, government officials and industry specialists. In a special podcast monitored by Nigerian Tribune on the official Federal Ministry of Petroleum Resources social media platforms, the Minister of State for Petroleum R e s ou r c e s, T i m ipr e Sy lva , declared his readiness to host the stakeholders. Sylva said: “I look forward to personally receiving you in Abuja for the Nigeria International Petroleum Summit (NIPS) on behalf of the Federal Government and the people of Nigeria.” The historic event according to the Minister of State for Petroleum Resources will be declared

open by the Nigerian President, His Excellency, Muhammadu Buhari, GCFR. “NIPS, the official oil and gas meeting of the Federal Government, has over the years evolved into a must attend industry event for all industry stakeholders,” Slyva said adding that the focus of the upcoming NIPS 2020 edition will be on “widening the integration circle, emerging technologies and cross pollination of ideas as we build on the success of previous editions”. He further noted that with full backing of the Federal Government, NIPS 2020 will guarantee the attendance of top decision makers and industry leaders from all over the world. Some of the guests who have been confirmed to be part of the summit include H.E Mohammad Sanusi Barkindo, Secretary-General, Organisation of Petroleum Exporting Countries (OPEC); H.E Younghoon David Kim, Chairman, World Energy Council; H.E Mahaman Laouan Gaya, Secretary-General, African Petroleum Producers’ Organisation (APPO); H.E Dr. Sun Xiansheng, Secretary-General, International

Energy Forum (IEF) amongst other reputable international stakeholders. Others are Tony Attah, Managing Director, Nigeria LNG Limited; Osagie Okunbor, Managing Director, SPDC/Chairman, Shell Companies in Nigeria; Michael Sangster-Managing Director & Chief Executive, Total E&P Nigeria Limited (TEPNG); Paul McGrath, Chairman OPTS/ Managing Director, Exxonmobil; Simbi K. Wabote, Executive S e c r et a r y Ni ger i a C ontent Development & Monotoring Board (NCDMB); Mele Kolo Kyari, Group Managing Director, Nigeria National Petroleum Corporation (NNPC). NIPS is Nigeria’s official petroleum and a pan-African event. The 2020 edition of the summit, which the 3rd, is designed as a meeting place for the oil and gas industry to introduce new technologies, share ideas that will lead to development of new strategies. The 1st and 2nd Editions of NIPS held in 2018 and 2019 respectfully attracted high-level attendance from across the continent and beyond.

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LOCAL CONTENT

NCDMB organizes workshop on contracting processes The Nigerian Content Development and Monitoring Board (NCDMB) has organized a one-day sensitization workshop on Vendor Development Programme, with a view to enlightening vendors operating in the oil and gas industry on how to register and bid for contracts in the industry as well as encourage compliance. In his address at the workshop held in Port Harcourt, Rivers State recently, the General Manager, Capacity Building Division NCDMB, Dr. Ama Ikuru, highlighted the need to create awareness on how Nigerian Oil and Gas contractors and service providers should register, participate and execute contracts in the industry. He noted that the targets set in schedule A of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 and Nigerian Content 10-year strategic roadmap is the attainment of 70 percent in-country value retention by 2027. For this target to be met, he said, there was need for capable and informed vendors that understand the tendering processes in the industry. As part of the conference, several oil and gas operators made presentations enumerating guidelines for Vendor Registration and Qualifications, Contracting Processes, Procurement Processes and 2020 Opportunities. The operators include Shell, Nigerian Agip Oil Company, Chevron, Nigeria LNG, Seplat, Addax and Amni. In his closing remarks, Dr. Ikuru thanked all the Operators for sharing and interacting with vendors on the processes and opportunities in the industry. He also encouraged vendors to take advantage of the information provided by the operators.

NCDMB Extends Nigerian Content Sensitization to Oyo, Kwara, Osun States

he Niger ia n C ontent Development and Monitoring Board has commenced the sensitization of the residents in non-oil producing states on the benefits and impacts of the Nigerian Oil and Gas Industry Content Development Act 2010. The enlightenment workshop which has been conducted in the various oil producing states since the establishment of the Board a decade ago has now been extended to the other states across the country, beginning with Oyo, Kwara and Osun States. The Executive Secretary, NCDMB, Engr. Simbi Wabote represented by the General Manager, Corporate Communications and Zonal Coordination, Dr. Ginah O. Ginah stated at the workshop in Ibadan that the Board started to extend the message of the NOGICD Act to other states in the federation in order to improve the productivity of Nigerians and increase the participation of more Nigerians in the oil and gas industry. Ginah explained that the Nigerian Content Act mandates the Board to organise workshops to enlighten critical stakeholders, integrate indigenes into the oil and gas industry activities and empower youths with skills required in the sector. He clarified that the NOGICD Act was instituted for all Nigerians and was not limited to indigenes or residents of

the Niger Deltans alone. In his words: “the Act is Nigerian Content not Niger Delta Content but because we are located in the oil producing region, we needed to start from our base before moving out. We are now going out to the non-Niger Delta areas and this will be a continuous exercise.” He said that the main objective of the workshop is to enlighten the people on how they can effectively participate in the oil and gas industry. Fielding questions from participants during the workshop, he reiterated that Nigerian Content is about domiciliation of industry work incountry and development of local capacity with associated benefits. Ginah charged participants to get familiar with the Board’s NOGICJQS database and upload their bio data onto the portal, so they benefit from the various Human Capacity Development Initiatives of the Board. Company, Chevron, Nigeria LNG, Seplat, Addax and Amni. In his closing remarks, Dr. Ikuru thanked all the Operators for sharing and interacting with vendors on the processes and opportunities in the industry. He also encouraged vendors to take advantage of the information provided by the operators.

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LOCAL CONTENT

NCDMB, Rungas Start Cylinder Factory in Polaku

he Niger ia n C ontent Development and Monitoring Board (NCDMB) announced recently that it has partnered Rungas Prime Industries Limited in the establishment of a 400,000 per annum Type 3 LPG Composite Cylinder Manufacturing Plant in Polaku, Bayelsa State. Making the announcement in Yenagoa during a town hall meeting with chiefs and representatives of the Polaku Community, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote confirmed that Rungas had been allocated two hectares of land at Polaku for the establishment of the factory. NCDMB had purchased 10.6 hectares of land at Polaku in June 2013 for the purpose of establishing a pipemill but discussions with Yulong Pipemill of China and other investors did not yield expected results, leaving the land to lie fallow for almost seven years. He stated that groundbreaking ceremony for the cooking gas cylinders manufacturing facility will be performed in a few weeks by the Minister of State for Petroleum Resources, Chief Timipre Sylva, adding that NCDMB is keen for the project to start immediately because it will create employment opportunities for youths from the state and environs. He indicated that another strong motivation for the facility is the direct linkage to one the Minister’s operational priorities, which is the penetration and utilization of liquefied petroleum (cooking) gas by Nigerians. The Executive Secretary expressed hope that the project will generate up to 200 direct and indirect jobs during

construction phase and about 350 direct and indirect jobs during the full operations phase, in addition to other induced employment and economic activities. He also confirmed that NCDMB had allotted another hectare of the Polaku land to a gas distribution company for the construction of a Pressure Reduction and Metering Station. ”This is meant to supply gas to upcoming industries in Polaku, Gbarain, and other surrounding areas to the distribution of domestic gas for power generation and for other industrial uses.” He explained that the Board changed its strategy after experiencing long delays in getting investors for the planned pipemill. The new strategy will ensure utilization of the site and bring manufacturing outfits to the area for creation of jobs and increase in economic activities, he said. Wabote hinted that NCDMB was also in discussion with other investors to take up the remaining portions of the Polaku land, adding that “we will allocate the land to as many companies as possible for setting-up of viable businesses until the land is fully allocated.” He maintained that NCDMB’s partnerships with investors was in line with its vision to serve as a catalyst for the industrialization of the Nigerian oil and gas industry. Identifying reasons why Yulong Pipemill did not continue with the pipemill project, the Executive Secretary said the company had concerns about security, cooperation from the host community and return on their investment, especially after the crash of crude oil prices in the international market. He noted that the company moved to Lekki Free Zone in Lagos and set up the pipemill within six months

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in 2016. He charged the Polaku chiefs and leaders to support the new investment because it will place their community on the map of oil and gas manufacturing activities and provide job opportunities for their children. “Your roles should include checkmating any individual or group that wants to derail this wonderful opportunity from coming into fruition in your community,” he advised. He also promised that the Board will set up a community interface committee that will comprise of representatives of the community, the investor and NCDMB, with responsibilities to ensure community participation in the project, enhance cordial relationship and promote compliance with the Community Content elements of the project. He however warned that the Board would move the investment to another location if the Polaku community became difficult, uncooperative or unreceptive. In their comments, leaders of the community pledged their support to the incoming investment and assured that it will not be disturbed in any way. They stated that Polaku is a peaceful community and was desirous of development. The women leaders also welcomed the project and expressed willingness to be part of the workforce during the construction stages of the gas cylinder manufacturing plant. The first Board had signed a Memorandum of Understanding (MoU) and agreement with Rungas and two other companies during the 9th Practical Nigerian Content (PNC) Workshop held in December 2019 at the NCDMB Conference Centre, Yenagoa.

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LOCAL CONTENT

NCDMB, Waltersmith to support Equatorial Guinea on Modular Refinery Development

he Nigerian Content Development a n d M o n ito r i n g B o a r d (NCDMB) and Waltersmith Petroleum Oil Limited will assist Equatorial Guinea to develop modular refineries in the central African nation, so it can process some of its crude oil and derive increased value from the hydrocarbon resources. The bi-lateral cooperation was confirmed recently after the Executive Secretary of NCDMB, Engr. Simbi Wabote and Chairman Waltersmith, Mr. Abdulrazaq Isah hosted the Minister of Mines and Hydrocarbons, Equatorial Guinea, His Excellency Gabriel Mbaga Obiang Lima at the 5000 barrels a day Waltersmith modular refinery being developed at Ibigwe in Imo State, with 30 percent equity investment from the NCDMB. Commending stakeholders of the Nigerian petroleum industry for the achievements recorded so far with modular refineries, the Minister stated that his country plans to replicate the initiative, so it can stop the wholesome export of its crude oil and begin to add value to the resources. He said: “we believe that with this cooperation and experience between our country and Waltersmith and the Nigerian petroleum industry, we should be able to replicate it.” Noting that Nigeria had vast experience in the hydrocarbons industry, Lima added that Equatorial Guinea would also understudy the commercial aspects of the modular refinery project to ensure that its planned investments would be economically viable.

He underscored the need for knowledge and experience sharing amongst African countries, particularly in the petroleum sector, stating that “there are a lot of things we can learn from brotherly countries and in this caseNigeria. Rather than go to Europe or United States or Asia, we decided to visit our neighbour, to see what they do.” He expressed delight that a new dawn had come in the African oil industry and nations needed to start utilizing their crude oil resources more efficiently. ”We cannot continue to export crude oil. We should start processing our products and we are watching what Nigeria is doing and we want to replicate them.” In his remarks, the Executive Secretary NCDMB described the cooperation between Nigeria and Equatorial Guinea as a perfect example of the benefits of the recently signed Africa Continental Free Trade Agreement (AfCTA), which encourages African countries to trade and cooperate among themselves. He maintained that governments and businesses in Africa needed to cooperate closely and lift the continent out of its present state, rather than depending on foreign assistance and aid. Wabote highlighted the local content benefits of the Waltersmith modular refinery, noting that ”it is being built by a local company and 90 percent of the workers are Nigerians. Most of these will be replicated to create jobs and put young people out of

idleness.” Welcoming the Minister, Chairman Waltersmith Petroleum Oil Limited informed that the company participated in an international tender in Equatorial Guinea and was declared the winner in one of the offshore blocks. Isah thanked the Government of Equatorial Guinea for the opportunity to participate in the tender, be properly evaluated and declared winner of the asset and explained that ”part of what we indicated to them was our capacity to plan and execute projects and we have submitted that to them.” He also assured the Minister of Waltersmith’s commitment to invest in Equatorial Guinea and support the development of the hydrocarbons industry, adding that “we see a lot of opportunities and similarities about our two countries and we are going to share our experience, capacity, technology and knowledge base that we have as Nigerians who have operated in this industry in the last 50 years.” He also announced that the initial target was to deliver the Ibigwe modular refinery project in two years, but it is now on track to be completed in 18 months. “By May 2020, we are going to commission the refinery and we will also do the ground breaking of the second phase of the refinery, which will take us to a total capacity of 30,000 barrels of oil per day,” he

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LOCAL CONTENT

Bukola Adubi, COO MicCom.

MicCom Cable makes case for Bonga SW, Bosi, Nsiko, others ...enumerates multiplier effect

he chief operating officer (COO) of MicCom Cables, Bukola Adubi recently advocated for the relevant government agencies to enter into robust conversations with the promoters of deepwater projects like Bonga South West, Bosi, Nsiko, Owowo West, Zabazaba, and Etan, among others in order to see them come to fruition. She made this known during a chat with Majorwaves Energy Report at her Ojokoro facility in Lagos. Against the backdrop of NLNG Train 7 FID announcement, Adubi decried the general delay in project approvals, listing countries which had surpassed Nigeria in development of gas projects and gas infrastructures. She emphasized that Nigeria used to be the third largest exporter of gas globally but now trails behind at a distant thirteenth. Today, countries like Algeria, Malaysia, and the United States are way ahead of Nigeria in their volumes of gas exports, revenue, and by extension standard of living. Alluding to the pending deepwater projects, she said “These are multibillion dollar projects with countless benefits to the nation’s economy through a heavily positive impact on several linkage sectors. “A single FPSO like that of Egina was valued at US$3 billion. What’s the size of Nigeria’s 2020 budget? That’s 14

By Jerome Onoja

an equivalent of US$35 billion. Do the comparison. Ten percent of the national budget in a single project!

in order to chart the way forward, and make our business environment more competitive. Besides, it helps improves our ease of doing business index.

“Now, we have the potential of attracting US$58 billion in investment comprising projects which have not been sanctioned by Shell, ExxonMobil, Agip and Chevron.

“Self-examination by government agencies and ministries in charge would help forestall future delays in project.

“You’ll want to ask, what exactly is standing in the way of pulling in two times the value of our laudable 2020 budget? “These projects would also spur rapid developments of capacity for indigenous companies in the country. With new value retention, these indigenous players can export the created capacity to neighbouring African countries and the chain of benefits never ends. Foreign exchange guaranteed too. “In the words of our amiable local content czar, Engr Simbi Wabote: ‘there is no local content when there are no projects!’ “While we celebrate the breakthrough with NLNG Train 7, it would only be smart for us to be proactive and not rest on our oars. The excitement and frenzy will settle soon. “Let’s ask the right questions. What delayed Train 7 until 13 years after Train 6 was commissioned? Where’s Brass LNG, OKLNG? “This is some kind of helpful forensic

Majorwaves Energy Report FEBRUARY 2020, Vol 3 No 2

“With continuous review, we can easily spot the issues with Bonga SW and other big projects. Correct the flaws and move to closure. We can bend backwards, relax some of our terms on a project-by-project basis, just to accommodate these huge capital inflows. Only then can these investors commit to long term capital investment decisions like FIDs”. She regretted the opportunity the country missed in not having the right, competitive fiscals and policies in place much earlier on. Noting that investments aren’t stationary, and are always gravitating towards the environment with the most favourable conditions, Adubi wondered why PIB has taken 17 years and it’s yet to become an Act. “Today there’s some level of hope that the PIGB will be passed before the end of June, this year. At least, the Honourable Minister of State has made that promise and we can only hope it materializes. That should send the right signal across the investing community and elicit the commensurate feedback we’ve been waiting for regarding stalled projects,” she averred.

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LOCAL CONTENT

B.G Technical acquires MFL Pipeline Inspection Technology

.G Technical has acquired MFL Pipeline Inspection Technology, (including the renowned ‘Linalog’ brand) along with the entire global MFL fleet and delivery systems of ‘NDT Global’ at a signing event in Germany.

a Nigerian Oil Services company incorporated in 1988. It executed its first project in the Oil and Gas sector for Shell Petroleum Development Company, SPDC in Forcados, Nigeria in 1994. The company has grown steadily since then in capacity, diversity of services and in

geographical spread. Presently, BGT offers service to most of the Exploration and Production companies in Nigeria and beyond. Some of the companies include Addax Petroleum, Chevron, Total, SPDC and Oando.

This acquisition will enhance BGT’s delivery of top quality pipeline integrity inspection both locally and worldwide and enables BGT to quickly bring up the next generation technology to address unique needs of pipeline operators. It is one of the steps the company has taken to go global. The signing ceremony, which took place in Stutensee Germany, on January 31, 2020, threw the BGT CEO, Geoff Onuoha, the tech entrepreneur owner of NDT Global, Mario L. and BGT COO. Udoka O, into a celebratory mood at the ownership transfer event. B.G.Technical Limited (BGT) is

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LOCAL CONTENT

Chief Joseph Penawou

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

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

“

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

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

“

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

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INTERVIEW

ongratulations on the official opening of GPPSL office complex/operations base in Port Harcourt. How did the company get to this enviable position?

Global Process and Pipeline Services Ltd (GPPSL) was formed in 2002 but commenced operations in 2010 as a frontline oil services company, showcasing Nigerian indigenous capability on land, swamp and offshore terrains. Over the years,

“

we have built our reputation on professionalism and quality service delivery in the oil and gas sector,

without compromising safety and quality standards. We have continued to provide value, reliability, and technically effective solutions to our ever-increasing clientele base. Our critical success factors include, massive in-house capacity in terms of fit-for-purpose equipment; competent, dedicated and resilient workforce; extremely commendable track records; and unbroken focus in our core areas of competency. Our robust and successful collaborative management style is tied to strict ethical standard adherence. We have encouraged our workforce to own and adopt high safety awareness and environmental consciousness. Obi Uzu, Managing Director of GPPS

GPPS currently has the largest incountry pumping, process and pipeline services equipment fleet, capacity and competency. Beyond that, our topdown approach to Health, Safety and Environment, fosters a company-wide ‘safety first’ attitude suited to the needs of our clients. Obviously, the new office complex and operations base will further enhance our operational efficiency for a superior service quality delivery in line with the highest industry standards and best practices and in accordance with the tenets of ISO 9001:2015; with attendant commendations pouring in for such a young and dynamic company acknowledged by the oil industry giants like - Exxonmobil, Total, NLNG, and Shell Companies in Nigeria, just to mention a few. We deploy the best equipment on all our projects. Anyone can rent equipment but using GPPSL equipment means reliability, efficiency, deliverability based on the best inclass industry preventive maintenance standards. What will you say are the achievements of GPPSL since the take-off of the company? 18

We are proud of our rapid growth and this has been attested to by African Business Review report, listing us among the top 10 fastest growing companies in Africa, as at March 2014.

“

I can boldly say that we own the largest fleet of resources in Nigeria for our line of business.

We have become a superior brand name in the pre-commissioning and pumping industry with numerous awards and we have ramped up our safety and quality operating delivery to the admiration of our clients. We are a great success story of collective collaboration of Nigerian talents that is strategically organized to harmoniously work together for the continuous development of a high standard brand in Africa. GPPSL is the only Nigerian company focused solely on process and pipeline product service line with major projects completed in the deep-water

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applications. We have attracted the best hands in the industry, from the multinationals to work with us on our expansion plan into other Sub-Saharan Africa countries. There are accusations that most International oil companies (IOCs) operating in Nigeria devise various means to evade complying with the Nigerian Content Act but here you are, reeling out names of IOCs who believe in you. We came from the background of having been employed by IOCs and multinational service companies. Now, as a service provider, I can frankly tell you that IOCs are happy to patronize competent and reliable local companies once they are sure that the local companies will deliver at acceptable ethical, safe and industryspecific standards. ExxonMobil for instance have greatly supported us from the very start with training, positive feedback, and huge patronage which catapulted our growth to this enviable capacity.

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INTERVIEW We have also continuously delivered good services to Total E&P, Chevron and SNEPCo. There are times we have shown superior capacity ahead of the multinational service competitors. In one of the cases,

“

we were told that ‘it is not possible for a local company to score higher in technical bid (capacity) than a multinational service provider’, but we did score higher.

Secondly, some operators are afraid of insurance liability and escalated project cost that may arise if the said local company becomes unable to deliver as required. Some local companies just want to be agents without capacity. Some of these issues are being addressed by the dynamic Nigerian Content Development and Monitoring Board (NCDMB) team, who are assuring competent Nigerian companies of patronage, fair evaluation and strict adherence to monitoring. How would you assess process and pipeline services as it concerns competency and capabilities of local companies in Nigeria?

Initiative. The leading Nigerian company operating with international standards and industry best practice. I must commend the NCDMB, led by the Executive Secretary, Engr. Simbi Wabote, for the giant strides being recorded under his leadership. They are aggressively propagating the clear essence of local content in creating opportunities and local engagement for very organized and capable Nigerian company. What do you think should be done to deepen local content penetration in the country? The future for Nigeria’s oil, gas and energy industry is very promising, comparatively. The sector is relatively open, the regulators, operators and service providers must learn to work with each other and create value under a common and transparent set of rules. Prior to the NOGICD Act, indigenous capabilities were only in a sort of closed environment; also, the supportive governance structure did not exist. Foreign firms owned specialist management and technical teams, including access to capital. Today, we have a more inclusive industry with increased participation of capable local companies. More importantly, to deepen local content penetration, we should put in place proven systems for monitoring and assessing performances of the indigenous companies; demanding feedback from the operators on level of performance by local companies, postwork completion. We should also have an

incentive to encourage and drive technology transfer from multinationals to local companies; and finally,

“

we need to establish a transparent template for competency and capacity verification,

with a repository of in-country database. This will form the basis for which IOCs will be subjected to use them, without resistance. Where do you hope to take GPPSL in the near future? Our goal is to turn GPPSL into a global brand, spreading into other countries. We have no doubt that GPPSL would become the obvious market leader in her product service line, especially in Africa. I see GPPSL expanding her foot-print and geography into other sub-Sahara African countries in the nearest future. And in terms of financial success, I see GPPS doubling her current revenue base, with massive ramp-up on operational deliverability and efficiency in the near future. Thank you.

Despite their unsteady start, locally owned firms continue to play a significant part in the oil and gas ecosystem in Nigeria. There is still a dearth of competency and capability in local companies operating in Nigeria for this product service line; however, GPPS has differentiated herself with her top-down exceptionally-competent management team. It worthy of note that we have trained our next level managers in some of the world’s best institutions like Harvard and Cambridge Universities. We are increasingly becoming the resource base (equipment and people) for this service line in the Nigeria market. So can we say that GPPS is a product of Nigerian Content initiative? Absolutely! We are proudly Nigerian; and a product of the Nigerian Content

Uzu attending OTC, Houston Tx

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ACROSS AFRICA

Equatorial Guinea to deliver on expectations of African Cross-Border Gas Cooperation

quatorial Guinea is positioning itself as a hub for gas in the Gulf of Guinea and hopes to developing the first successful crossborder gas venture on the continent. Gas is a key priority for Equatorial Guinea and its neighbors. While Cameroon brought on stream Africa’s first Floating LNG project in 2018, Nigeria has declared 2020 the Year of Gas and both countries continue to push for the development of a gasbased economy. the organisers of Africa Oil and Power, stated: “On its side, Equatorial Guinea launched Africa’s first offshore gas mega hub last year when it signed Definitive Agreements with Marathon Oil, Noble Energy, Atlas Petroleum, Glencore and Gunvor to process stranded gas from its Alen and Aseng gas fields, and offset production decline at the country’s Alba field. “The project is of strategic importance for Equatorial Guinea because the Alba field had been until now the sole supplier of gas to its Punta Europa complex, which feeds several industries including an LNG train and a methanol production unit, both seeking expansion. But such receiving infrastructure could also be a godsend for Nigeria and Cameroun who both have several stranded gas fields right across Equatorial Guinea’s maritime boundary and in need of off-take infrastructure. “Equatorial Guinea’s

vision for gas is simple: it wants to become that gas mega-hub for the sub-region by developing several offshore hubs to monetize neighboring gas reserves and develop downstream gas industries spurring industrial development and economic growth. At home, its industries need gas. EG LNG needs long-term gas supplies for its existing LNG export facility and is considering the development of a second LNG train. “Meanwhile, the Atlantic Methanol Production Company has agreed to support the ongoing Year of Investment initiative by expanding its methanol production unit and diversify output into methanol derivatives. As demand for gas grows, Equatorial Guinea’s message to its neighbors is very straightforward: we provide the processing and offtake infrastructure, you provide the feedstock. “While similar projects have been developed in Africa before, they have fallen short of expectations. The West Africa Gas Pipeline for instance is the first regional natural gas transmission system on the continent, yet remains unable to deliver stable gas supplies to Benin, Togo and Ghana. The gas mega hub Equatorial Guinea is developing in the Gulf of Guinea will have its own challenges. Nigeria does not belong to OHADA and operates under a different legal regime than that of Equatorial Guinea and Cameroon. The three

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countries also have different petroleum legislations, fiscal regimes and PSC terms. These are all factors that need to be addressed to turn vision into reality.” In a multilateral meeting in Malabo on Wednesday, H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea, took a proactive step in creating an Executive Committee tasked with the acceleration of the progress of the gas mega hub. The team is also tasked with ensuring that gas be transported in and outside of the region. The meeting, which gathered Marathon Oil, EG LNG and state-owned entities like GEPetrol and Sonagas, sends a clear signal that a public-private partnership is in the making. What is left to be seen is if Minister Obiang Lima can put a deal together to bring stranded, associated and even flared Nigerian gas to EG LNG on Bioko Island. The same will be said of the Etinde gas from Cameroon. Nigeria and Cameroon have enough gas, but its viable commercialization lies across the neighboring maritime border with a facility like EG LNG. Similarly, the ability of Nigerian Petroleum Resources Minister H.E Chief Timipre Sylva to make a deal work is key to the realization of Nigeria and Equatorial Guinea’s gas dreams.

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ACROSS AFRICA The National Oil, Gas and Biofuels A gency (A NPG) signed last Monday a contract with ExxonMobil, Operator of Block 15 in Angola, which establishes the amendment to the current Production Sharing Contract for Block 15. As part of the agreement, the respective production license will be extended until 2032 and Sonangol is integrated into the Contractor Group of that Block, obtaining a 10% stake. From now on, ExxonMobil’s participative interest will be 36%, 24% from BP Exploration, 18% from ENI Angola Exploration and 12% from Equinor Angola.

Angola’s ANPG, ExxonMobil agree extension of Block 15 license

The project foresees a production of approximately 40.000 barrels of oil / day and will generate about 1000 local jobs during the implementation phase. This agreement is the culmination of the commitment signed in 2019.

T he sig ning follows the Commitment Agreement signed on June 5, 2019, allowing ExxonMobil to carry out a multi-year drilling program in the block and install new technology in order to increase the capacity of the existing subsea flow lines. “By means of this agreement, ExxonMobil and its partners will contribute to the increase in the investments needed to increase production in the short term and generate more jobs at the local level”, said the ANPG’s CEO, Paulino Jerónimo. “This collaboration with ANPG will allow Block 15 to optimize recovery and add oil production from mature fields”, said the director general of ExxonMobil in Angola, Andre Kostelnik. Source: ANGOP

Algeria renews LNG supply agreement with Turkey

lgeria and Turkey signed an agreement recently in Algiers to renew the contract for the supply of liquefied natural gas (LNG) for the next five years, according to the country’s Minister of Energy, Mohamed Arkab “We have signed a contract renewal allowing Algeria to supply Turkey with liquefied natural gas (LNG) until 2024,” said the minister on the sidelines of the Algerian-Turkish Business Forum, held on Sunday, January 26 in Algiers. The minister welcomed this agreement “to strengthen relations between the two countries in the energy field,” recalling

that Algeria already held 38% of the Turkish market for liquefied petroleum gas (LPG). In addition, the Minister announced that the construction of the petrochemical complex for the production of propylene and polypropylene (PDHPP), which will be carried out in the city of Adana in Turkey, will be started during the first half of 2020. Recalling that the contracts for this partnership had been concluded last September, Mr. Arkab stressed that the reception of the project and the entry into production of the complex are scheduled 24 months after the start of construction work. The project, whose investment is estimated

at $1.4 billion, is 66% owned by the Turkish company Renaissance and 34% by the national company Sonatrach, said the minister. Arkab estimated that this partnership will also allow a transfer of technology in Algeria which intends to build a petrochemical complex for the production of propylene and polypropylene in Arzew. (APS) Source: Petroleum Africa

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ACROSS AFRICA

Senegal’s Petrosen launches offshore licence round in MSGBC Basin

enegal’s state-owned hydrocarbons company Petrosen has officially launched the country’s first offshore licence round. The licensing round comprises 12 blocks in the Mauritania-SeneGambia-BissauConakry (MSGBC) Basin off Senegal.

of 2D data and over 10,000km² of 3D data. It will also provide more than 50,000km² of Multibeam data with shallow cores and geochemistry to interested parties in the offshore licensing round.

According to TGS, the MSGBC Basin is home to high-profile oil and gas discoveries, both on and off the shelf. Bids can be submitted in the next six months, with final applications delivered to the Senegal Ministry of Petroleum and Energy by July this year. Petrosen has partnered with TGS, GeoPartners and PGS to provide over 14,000km

Furthermore, TGS acquired additional 3D seismic data to offer interested bidders an improved subsurface understanding ahead of bid submissions. TGS Southern Hemisphere executive vice-president Rune Eng said: “The launch of Senegal’s landmark license round is a seminal moment in the nation’s hydrocarbon history. “TGS is delighted to be able to support this

Uganda to Develop Oilfields Worth $5 Billion

n a bid to expedite the growth of its oil industry, Uganda plans to spend at least $5 billion on the development of the Kingfisher and Tilega oil fields, which are currently the subject of a tax dispute between government and three oil companies. This amount forms part of the $15 billion to $20 billion projected to flow to its developing oil industry in three to five years, including the construction of a refinery and crude pipeline, according to Permanent Secretary of Energy, Robert Kasande. “The funding will be used to drill over 500 wells and construct two central processing facilities and a water plant. [There are also] plans to award exploration companies for five blocks by the end of this year,” he said. The five blocks on offer are located in the 22

Albertine Basin; namely: Block 01 (Avivi), Block 02 (Omuka), Block 03 (Kasuruban), Block 04 (Turaco) and Block 05 (Ngaji). The bidding process will run for five months. The licensing round is scheduled to conclude by December 2020, with successful firms set to receive Petroleum Exploration Licenses. Total, CNOOC and Tullow Oil jointly own the Kingfisher and Tilega fields and the Ugandan government is in negotiations with Tullow to reduce its stake in the projects and allow final investment decisions to be concluded. “In Uganda, joint venture conversations with the government are ongoing. Tullow remains committed to reducing its equity stake in the project ahead of a final investment decision,” the company said in its trading update.

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initiative with a full complement of regional data sets that should help E&P companies to de-risk their exploration activities as they seek to take advantage of a world-renowned oil and gas basin.” TGS’ Senegal North Ultra-Deep Offshore (SN-UDO-19) 3D survey is the latest one covering over 5,100km². It is designed to illuminate plays in the ultra-deep, allowing explorers to build upon the success the basin has experienced with the Sangomar field, the GTA complex and Yakaar discoveries. The SN-UDO-19 survey is mostly complete, with fast track data anticipated in the second quarter of this year and full data by the fourth quarter.

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ACROSS AFRICA

Equatorial Guinea announces winners of EG Ronda 2019 bidding round

takeholders will sign an agreement with Chinese lenders by Q2 2020 to fund the country’s biggest pipeline project Nigeria will close a $2.5bn financing agreement with Chinese lenders by the start of the second quarter of 2020 to fund the single biggest gas pipeline project in the country’s history, after months of holding talks with China on financing a project seen as being central to expanding gas output in the West African nation. On completion of the 614km AjaokutaKaduna-Kano (AKK) natural gas pipeline, new gas-to-power plants will push power generation capacity to more than 10,000MW, in a country of nearly 200mn people that has faced perennial electricity shortages for decades. Africa’s biggest economy struggles with power output, generating less than 7,000MW. Three new captive gas-fired plants, to be located in Abuja, Kaduna and Kano, are expected to deliver 3,600MW of power. The pipeline will also supply 2bn ft³/d (56mn ft³/d) of gas, in the short term to domestic customers, “which is quite significant,” according to Mele Kyari, group managing director of the stateowned oil company, Nigerian National Petroleum Corporation (NNPC). Nigeria has 202tn ft³ of proven gas reserves and an additional 600tn ft³ of unproven potential resources. Despite having the

largest gas reserves in Africa, only c.25pc of these reserves are currently productive. Construction of the pipeline will begin in February, or at the latest by March, after financing for AKK is secured, according to the NNPC chief. Developed by NNPC, AKK forms phase one of the Trans-Nigeria Gas Pipeline (TNGP) project, which is scheduled for commissioning in 2020. The TNGP project itself is part of the Trans-Sahara Gas Pipeline System that will ultimately link Southern Nigeria with customers in Europe. The AKK pipeline project, which is being implemented using a build and transfer (BT) public-private partnership (PPP) model, is expected to transport 3.5bn ft³/d of dehydrated wet gas from multiple projects in the southern part of the country. Nigeria had earlier secured 15pc international owner financing of c.$430mn and is expecting to close the remaining 85pc financing, amounting to c.$2.5bn, by the second quarter of 2020, according to Kyari. “We have got every condition required sorted out including the sovereign guarantee for us to go forward. As a matter of fact, we are moving to site in February at the latest and by March we will physically start constructing the pipeline. We have secured the financing both in terms of equity contribution and the

clear indication that we will have 85pc financing from the Chinese. That is sorted out,” he says. This financing deal takes Chinese investment in Nigeria’s oil and gas industry to nearly $20bn, according to figures from NNPC. Chinese investment, mostly from China National Offshore Oil Corporation (Cnooc), rose to $16bn last year, and the oil-dependent nation is seeking a separate $3bn to expand crude production to 3mn bl/d by 2023. China’s wide-ranging investments in Nigeria have drawn a backlash from Nigerians who worry about the rising number of debtdriven infrastructure projects funded by Asia’s biggest economy. During the last decade, financing from China has helped Nigeria build a 186km rail line between Abuja and Kaduna, with another line between Lagos and the northern city of Kano under construction. China C iv il Eng ineer ing C onstr uction Corporation is also working on new international terminals for Nigeria’s four largest airports. Despite domestic apprehension, Chinese investors say they will invest more in a country “short of infrastructure in terms of power and other infrastructure items that are related to oil and gas,” according to Kyari, if conditions allow.

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ACROSS AFRICA

Angola to attract $10 billion FDI from partial privatization of Sonangol

he government of Angola has announced it will privatise 30 per cent of the national oil company, Sonangol, by 2022 as part of ongoing reforms in the Southern African nation’s oil and gas sector. According to a statement released on Tuesday, the government believes that the reform will enable the company to raise money for investment, and also increase its competitive edge. Speaking in London last month, Angola’s Minister of Mineral Resources and Petroleum, Diamantino Pedro Azevedo, said the government had made significant progress in its efforts to restructure the oil and gas sector. He said part of the government’s initial successes include significant cost reductions at Sonangol. This has informed the government’s decision to sell up to 30 per cent of the company’s stake. The privatisation process would entail selling off Sonangol’s subsidiaries that do not belong to the company’s core business of exploration and production. It would offer significant opportunities for new entrants into Angola’s oil and gas sector. According to initial projections, Sonangol’s privatisation would attract foreign direct investment (FDI) flows of up to $10 billion in the next three years into Africa’s second 24

largest oil producing-nation, after Nigeria. As part of the government’s strategies to reform the sector and promote investment, Angola’s Ministry of Mineral Resources and Petroleum has partnered with Africa Oil & Power, a premier platform for energy investment and policy on the continent, to organise the upcoming Angola Oil & Gas (AOG) Conference & Exhibition 2020. The conference, which will be held for a second year to drive new deals into Angola’s oil and gas sector, will take place on June 16-17 in Talatona. “Thanks to the President’s sweeping reforms, Angola has embarked on an ambitious drive to attract foreign direct investment,” said James Chester, Acting CEO of Africa Oil & Power. “Africa Oil & Power is proud to support those ongoing efforts with a global promotional campaign. The AOG Conference & Exhibition, which has become an unmissable, unrivaled investment event, will provide a strong anchor point for the 2020 initiative.” An Organization of the Petroleum Exporting Countries (OPEC) member, the partial privatation of Angola’s national oil company will follow similar efforts by Saudi Arabia’s Aramco, which launched its Initial Public Offering (IPO) in December

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2019. Considered the world’s largest IPO, Saudi Aramco sold 1.725 per cent of its stake and raised $29.4 billion. The restructuring of Saudi’s national oil company is aimed at raising funds to drive the country’s Vision 2030 economic reform plan, which was introduced in 2016. According to a statement by Africa Oil & Power, the AOG 2020 event will focus on promoting bankable projects, including the 2020 oil and gas licensing round, marginal field development, gas monetization, and projects across the value chain, including the international tender for the Soyo refinery and the ramp-up of the Cabinda and Lobito refineries. In November, Angola formed a consortium with five international oil companies, including Eni and Chevron to develop liquefied natural gas (LNG) for its Soyo plant. According to Reuters, the $2 billion Soyo LNG plant is designed to process 1.1 billion cubic feet of natural gas per day and has the capacity to produce 5.2 million tonnes of LNG per year, as well as natural gas, propane, butane and condensate. Source: Financial Nigeria

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GAS

L-R: Manager, Non-Operated Venture Assets, Shell Nigeria Exploration and Production Company (SNEPCo), Yemi Asaolu; Member, Lagos State House of Assembly, Olanrewaju Afinni; Managing Director, SNEPCo, Bayo Ojulari; Lagos State Commissioner for Health, Akin Abayomi; Acting Public Affairs Manager, National Petroleum Investment Management Services, Yetunde Azendah; SNEPCo’s General Manager, Bonga South West Aparo Project, Adam Bradley; and Deputy Manager, Community Development of NAPIMS, Mrs. Clementina Arubi, at the inauguration of medical equipment donated by NNPC and SNEPCo to the General Hospital, Odan, Lagos Island.

NNPC/SNEPCo donates medical emergency response equipment to Nigeria’s oldest public general hospital in Lagos.

agos State Governor, Mr. Babajide Sanwo-Olu who inaugurated the equipment at the General Hospital, Odan, Lagos Island, described the intervention NNPC and SNEPCo as laudable at a time when government resources are being stretched to cater for the rapidly growing population of Nigeria’s commercial capital. The governor, represented by the state Commissioner for Health, Prof. Akin Abayomi, said the donation underscored the importance of publicprivate partnership, adding that the state government would continue to encourage partnerships with the potential to positively impact health and the wellbeing of its citizens. Sanwo-Olu said, “As we all know, 2030 is the timeline to achieve the Sustainable Development Goals. This implies that by 2030, we must have achieved the 17 SDGs, and for us to achieve this, it is of utmost importance that we encourage more of public-private partnership such as

this initiative undertaken by NNPC and SNEPCO, which will impact positively on SDG3 geared towards ensuring good health and well-being.” The governor expressed appreciation to NNPC and SNEPCo for the intervention. “The Government and people of Lagos State are indeed appreciative of the kind gesture of NNPC, SNEPCo and their co-venture partners including Total, ExxonMobil and Agip.” Speaking at the event, the Managing Director of SNEPCo, Bayo Ojulari said that the social investment strategy of NNPC/SNEPCo was centered on health and education initiatives across the country and the donation of the medical emergency response equipment would mark the start of a new medical response experience at the General Hospital, Lagos. He noted that the donation was a product of the partnership between the Lagos State Government, NNPC and SNEPCo under the Lagos

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State Medical Emergency Response Improvement Programme (Lagos MERIP).

“

“Lagos MERIP is aligned with the State Government’s health agenda and therefore guarantees the government’s ownership and drive; and will also ensure the sustainability of the programme,” Ojulari said. The equipment donated included a fully equipped intensive care ambulance; two mini-ambulances; specialised beds; automatic external defibrillators; a mobile x-ray machine unit; ECG machine; operating tables and lamps; autoclave; and medical consumables. “In addition to this, we have also partnered with the hospital to build the capacity of equipment operators and put in place processes and policies to ensure efficient delivery of quality emergency services,”

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SPOTLIGHT

Managing Director, SNEPCo, Bayo Ojulari giving his speech

Vehicles donated by NNPC/Shell

the Ojulari said, adding that another important element of MERIP is the collaboration with LASEMS to strengthen and improve prehospital care through the Lagos State Ambulance Service and hospital-based care at the General Hospital, Lagos. Commenting, the Group Managing Director, NNPC, Mr Mele Kyari, said that the equipment would bring succour to many people in emergency situations. Kyari, represented by the Deputy Manager, Public Affairs Department, National Petroleum Investment

Management Services (NAPIMS), Mrs. Yetunde Asinge,. said that NNPC had embarked on many lifetouching projects across various sectors in different parts of the country. In his remarks, Oba Rilwan Akiolu of Lagos, commended NNPC and SNEPCo for the intervention in medical emergency management, asking other corporate citizens in the state to support any of the people-oriented programmes of the state government. The Medical Director of the General Hospital Odan, Dr Gani Kale, noted that

with the equipment, particularly the mini ambulances, the hospital would be able to extend emergency evacuations to locations which were hitherto difficult to access on Lagos Island. The event was attended the Chairman, Lagos State Health Service Commission, Dr. Bayo Aderiye; Member of the state house of assembly, Mr. Olanrewaju Afinni; Deputy Manager, Community Development of NAPIMS, Mrs. Clementina Arubi, among others.

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SPOTLIGHT

NNPC/ SNEPCo HEALTH PORTFOLIO

eports from UNDP reveal that 1.6 billion people around the world live in fragile settings where protracted crises, combined with weak national capacity to deliver health services present a significant challenge to global health. As part of concerted efforts to achieve Sustainable Development Goal 3, NNPC/SNEPCo continues to invest

in Nigeriaâ&#x20AC;&#x2122;s healthcare development through five areas:

3.Medical Emergency Response Improvement Programme

1.Health System Strengthening Projects

4.Health Insurance Scheme

2.Integrated Humanitarian Assistance Project

5.Community care programs

<< Ong Primar oing constructio Ogun Sy Healthcare n at Ogijo w i l l i tate. The reh Centre in equipm n c l u d e p r o vabilitation o f m e ent, installatio i s i o n o f provisio d i c a l p e r s o nn, training n of me dical co n e l a n d nsumab les

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Medical outreach at IDP camp in Borno State, in response to the humanitarian crisis in the North East >>>

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SPOTLIGHT <<< Sin ha s su ce 2016, NNPC to sup ppor ted a nd /SNEPCo throughp or t d i splace conti nue s relief, s its health, d p er son s shelter olar water, eduemergency interven c tions. ation and

NNPC w i t h /S N E P C o c o commu t h e g o v e l l a b or ate s health nities and HMOr n m e n t , In 2016insurance to t s to bring Health , SNEPCo lauhe people. at Iy i- Insurance P nched the Today, E nu M i s sion rogramme in Ogid it covers 423 inHo spita l. i, A nam bra Stadividuals te.>>>

In 2019 Nationa , SNEPCo eq C ent r e l Hospital Ra uipped the Abuja w at Nat ion a l diotherapy of-the- ith a new bun Ho spit a l machineart linear rad ker, statepersonn and training iotherapy for med el >>> ical

Co N E P ital S p 0 1 9 , l Hos al n 2 Nationaat Nation w I < < < pped the Centre h a ne r equi otherapy uja w it art linea d Radi pit a l A be-of-the- i n e a n l Ho s er, stat y m a c h ersonne bunk o t h e r a p edical p r a d i ing for m train

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SPECIAL REPORT

A Case for Sustainability, Digital Transformation of Nigeria’s Energy Sector ...Seplat deploys novel technologies, advocates knowledge acquisition By Jerome Onoja

Dr Chioma Nwachuku

eplat has made a case for sustainable adoption of current technological advancements in the Nigerian energy sector. This was made known by Dr Chioma Nwachuku, the General Manager External Affairs and Communications in a recent workshop dubbed #TheWorkplan2019, with the theme: The Future of Work and the 4th Industrial Revolution. She delivered the keynote address with the caption: Powering The Future And Digital Transformation Of Nigeria’s Oil, Gas And Renewable Energy Sector With New Knowledge And Skills. The oil and gas sector is known for regular disruptions. Across the entire energy resource mix, the place of disruption is not unusual. Evolution from wood, through coal, to oil and gas, as well as renewables, has been marked with steady disruptions that often redefines human existence and relationship with the ecosystem. Since the world witnessed Equinor deploy the first fully automated oil and gas platform, entirely unmanned in October 2018, it further raised the bar as to the possibilities of digital technologies in the hydrocarbon industry. It is endless! Nwachuku cited the advent of shale technology which has transformed the business into a faster cycle by rapidly scaling production to market conditions while keeping costs per barrel low enough to compete even at low market prices.

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She further added that,

“the pressure to reduce carbon emissions is changing the energy value chain; remember, the idea of electric cars was seemingly impossible but in 2018 alone, 40 per cent of new vehicles sold in Norway were electric cars”. “Denmark has been celebrated for generating 40 per cent of its energy need from wind. There are now solar roads designed to generate power in France, while Morocco is building the largest solar power plant in the world”, she said. She went on to list the digital impacts in Seplat, which include:

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installation of intelligent sensors on all gas plants and select flow stations (at Oben, Okporhuru and Orogho); deployment of Sensor calibration and Site Acceptance Tests (SAT) to ensure data reliability, reproducibility and integrity;

Power BI for efficient decision-making; remote monitoring of wellhead pressure and temperature; use of an ‘as-built’ model of facilities that can be viewed through the Navisworks software; and the use of Infor EAM software to optimize contracting and procurement processes. She averred that embracing digital transformation is important as advances in technology across the globe is affecting oil and gas exploration, production, distribution and marketing, which has provided opportunities for companies to save millions from operating costs, reduce carbon footprint and enable smarter and more efficient asset base. Nwachuku recommended human capital development; investment in technological infrastructure; collaboration among oil and gas companies and the government; digital strategy and security; investment in research and development, to change the narrative in the country’s oil and gas industry. Speaking on how players in the industry can leverage automation, data and artificial intelligence (AI) to improve the energy sector, she said that the analytical advantages of big data could help oil and gas companies improve production by 6-8 percent; and lower operating costs by 3-5 percent in the upstream. She added that technological advancements will promote environmental benefits, including reducing oil spills of about 230,000 barrels of oil and also save about 800 million gallons of water and reduce CO2 emissions by about 1,300 million tons. Stating the challenges of digitization, she informed that only about 4 percent of companies across industries have the talent and skills they need to draw tangible business value from analytics. Nwachuku said, according to Harvard Business Review, finding digital talent is one of the biggest challenges facing companies today. She also mentioned managers failing to leverage digital skill across the organization and; most leaders yet to embrace the potential value of digitalization, as some of the challenges.

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In the last five years, “Seplat has spent over US$8m on training its work force”, she said.

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MARITIME

SPECIAL REPORT

The company significantly invests in human capital and development programmes that promote new, digital thinking to drive a culture of innovation and technology adoption in the organisation. Seplat has also made massive investments in building its gas business. It currently plays a critical role in the country, with

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its supply of gas contributing about 30 percent to the nation’s needed requirement for power generation of clean energy.

Akwa-Ibom partners UAE on deep seaport development, others

kwa Ibom State Governor, Mr. Udom Emmanuel, on Wednesday, 29 January, played host to the United Arab Emirates Ambassador to Nigeria, Dr. Fahad AI Taffaq. Bilateral cooperation were discussed with a zest to pursue common interest in the area of humanitarian support, government to government, business to government engagements towards technology transfer. These, according to the governor, is to bolster the development of Ibom Deep Seaport, maintenance, repair and overhaul facilities at the Victor Attah International Airport as well as several other strategic partnerships. Governor Udom also said the partnership promises greater bilateral relations between the State and the Emirates. In attendance was former Governor, Obong Victor Attah, Dr Iniobong Essien of the Science and Technology Ministry, Mr Edwin James, Abuja liaison officer as well as state government officials.

To ensure long-term sustainable growth in digital transformation in Nigeria, the company sees quality education as a crucial tool for improving the prospects of digital transformation and for the economic growth of the nation. Seplat is currently involved in various ways by which it supports the provision of quality education. They include: social educational programmes; Seplat Pearls Quiz and student scholarships. The aim is to promote science, technology and innovation, by training senior secondary school teachers on requisite skills for understanding the role of innovation and technologies; provide and connect teachers to the collection of digital resources; and provide schools with resources to enable them to provide the conducive environment for students to engage in science, technology and innovation.

NPA, LASG partner to improve investors’ confidence

n a bid to boost investors’ confidence, the management of the of the Nigerian Ports Authority, NPA, has promised to partner with the Lagos State Government, saying that “NPA is always open to fresh ideas and that the organization will always ensure that things are done in a transparent manner according to rules and regulations.” Speaking during a visit of the officials of the Central Business District (CBD) in Lagos, the Managing Director of the NPA, Ms. Hadiza Bala Usman who was represented by the Executive Director Marine and Operations, Dr. Sokonte Davies assured the State Government that NPA will always work with its Stakeholders, Port Users and the general public in line with the organizational frame work to enhance the Ease of Doing Business in our ports. 32

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Similarly, in his remarks, Special Adviser to the Governor of Lagos on Central Business District (CBD), Prince Olanrewaju Elegushi said the purpose of the visit was to familiarize with the Management of NPA as a major player on the Lagos Island and to assure that they are ready to provide support services to NPA where ever and whenever such is needed. Prince Elegushi further confirmed that part of their functions is to ensure effective and smooth traffic movement within the CBDadding that the beautification of the environment and thewellbeing of investors and Businesseswithin the CBD are top priority. He also assured the Government will strengthen the existing synergy with NPA so that both the NPA and the CBD can move together in order to achieve global best practice with result benefiting the state and the country at large.

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MARITIME

MARITIME SECURITY: Amaechi berths Integrated Equipment, explains why Secure Anchorage was stopped ...As Dakuku says 80% of Deep Blue Assets Ready by June.

lmost all the communication gadgets for tackling piracy on Nigerian waters are now in the country as well as the Personal Protective G ear (PPG), the Minister of Transportation Rotimi Amaechi indicated on Monday. The Minister stated this at a news briefing in Eko Hotel Lagos, stressing that this is government’s effort to comprehensively tackle insecurity on Nigeria’s territorial waters and exclusive economic zone. He also said that government is set to deploy its integrated maritime security infrastructure, ahead of the launch of the Integrated National Security and Waterways Protection Infrastructure, also called the Deep Blue Project. The Minister, who addressed the press conference alongside all the heads of agencies under the ministry, also explained the government’s decision to end the secure anchorage project, a private security initiative run outside the country’s port system. He insisted that all ships coming into the country must anchor at the national ports under the Nigerian Ports Authority (NPA). The Director-General of Nigerian Maritime Administration and Safety Agency (NIMASA), while expatiating

on the Deep Blue Project, said 80 per cent of the assets required for the takeoff of the total spectrum maritime security architecture would be deployed by June. Amaechi, who briefed the media after a high level security meeting with maritime stakeholders, restated the President Muhammadu Buhari government’s determination to tackle maritime insecurity headon. He assured that the Deep Blue Project, when fully operational, would drastically reduce piracy and other crimes within Nigeria’s maritime domain and the Gulf of Guinea. The Minister stated, “Recall that we secured an approval from the Federal Executive Council to introduce a maritime security architecture, which is coming to fruition. We engaged the Homeland Security International (HLSI), who are only to provide training and equipment, while the Nigerian Navy would lead the Police, Nigerian Army and Department of State Services, among others that would run the equipment.” He stated that the security of the maritime sector needs a more holistic approach, hence the need to involve other arms of the country’s security services to support the Nigerian Navy working with NIM A SA.

Giving a breakdown of the assets being installed under the Deep Blue Project, Dakuku revealed that a good number of the assets had arrived the country as well as the Personal Protective Gear (PPG). The C4i centre is fully operational in Kirikiri, the NIMASA Research Centre. Those are the assets we have on ground. “However, between now and June this year, over 80 per cent of the assets would be in the country and they would be manned by Nigerian military.” Dakuku stated that the training aspect of the project had since commenced in phases. He said the first set of training for C4i operators and intelligence officers had been concluded. Basic infantry training for soldiers who would fight on land around the littoral areas has also been concluded and the soldiers awaiting deployment, according to him. “These trainings would continue over time as we try to integrate the intelligence officers with the C4i and those operating the special mission vessels and aircraft,” Dakuku said.

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MARITIME

How surveys, reports forced NIMASA to berth floating dock in Lagos ― Dakuku Peterside

he D i re ctor- G enera l of t he Ni ger i a n M a r it i me Administration and Safety Agency (NIMASA), Dakuku Peterside, has revealed that when the agency acquired the multi-billion Naira Floating Dock facility in 2018, it was initially designed to berth in Delta State but berthed in Lagos due to reports and surveys that emanated at the time it was acquired. Speaking in Lagos, during a World Press Conference held recently ahead of the maritime industry corporate dinner and awards, the NIMASA DG stated that series of reports and surveys that emanated after the Floating Dock was acquired debarred the facility from being taken to Delta State. According to Dakuku Peterside: “Initially, when the Floating Dock was acquired, the design was for it to berth somewhere in Delta State. “That was the original design, but at that time, there was a lot of reports and surveys advising that it should not be taken to Delta State. “At that time, when the Floating Dock was acquired, there were a lot of surveys and report advising against the berthing of the Floating Dock in Delta State. Those reports and surveys are still available till date.

“So, NIMASA was forced to review all those surveys and reports and make the best decision in the interest of the nation and the shipping community concerning the Floating Dock. One of the reports came from the firm that built the Floating Dock. “That is why the Floating Dock is still in the Naval Dockyard in Lagos. We arrived at this based on all the reports and surveys we received on the Floating Dock. We are simply following due process on the operating berthing space. What we have now in Lagos is a storage berthing space. Very soon, we will commence operations at the operating location of the Floating Dock.” On prevention of marine pollution, the NIMASA DG revealed that the agency has successfully carried out hazardous wastes and dangerous chemical tracking programmes under the IMDG Code at all operational zones. In the words of Dakuku Peterside: “In line with the Convention on the Prevention of Marine Pollution by Dumping of wastes and other matter 1972, commonly called the “London Convention” and also abbreviated as Marine Dumping, NIMASA is doing a lot in the area of managing and maintaining the country’s marine

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environment by engaging the services of marine litter marshals. “NIMASA is determined to ensure cleaner oceans safe for navigation. The Agency’s Marine Environment Management Department successfully carried out the following, hazardous wastes and dangerous chemical tracking programmes under the IMDG Code at all the agency’s operational zones. “Developed the IMDG portal and installation of exact Earth and Hazcheck Systems software for tracking of dangerous goods in Nigeria. This activity was in fulfilment of chapter 7 of the SOLAS Convention and Annexes 2 and 3 of MARPOL Convention. The identified gaps in the management of chemicals and hazardous wastes management in the maritime domain had been addressed. “C u r r ent ly r emo del l i n g t he Marine Pollution Laboratory to an internationally accepted modern. This will take care of the laboratory analysis aspects of the relevant IMO Marine Environment Conventions (such as the Oil Pollution Preparedness and Response Cooperation (IOPC) Ballast Water Convention, Anti-Fouling Systems(AFS) when completed.”

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COVER STORY

Africa Leaps Into New Decade, Unbundles Gas for Sustainable development

a s i s i n c r e a s i n gly b eco m i n g a m a jor driver of global industrialisation and Africa, despite her numerous challenges, has come to terms with this fact. The continent is today dotted with a number of gas projects, ranging from pipeline networks transversing countries, gas-to-power projects and liquefied natural gas projects among others. This article highlights Africa’s quest to effectively utilise her gas resources for growth, the challenges and opportunities that are presented in the pursuit of this initiative. 36

Africa appears to have awakened to the realization that gas plays a major role in economic development of any nation, as major gas projects have been launched in the continent, while many others are set to come on stream in a couple of months. Gas consumption in Africa has been growing at a rate of about six per cent per year since 2000, while natural gas consumption in Africa, which was estimated to have been about 110 billion cubic meters in 2011, with Egypt and Algeria leading consumption totals and accounting for more than 70 per cent of the continent’s total, has seen significant improvement over the last few years. According to the International Energy Agency (IEA) Africa’s growing population and economic needs are currently being

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felt in natural gas markets as the continent becomes the third-largest source of global gas demand growth in 2019. The IEA, in its Africa Energy Outlook 2019, stated that in North Africa, gas already meets around half of the region’s energy needs, but in sub-Saharan Africa, it has thus far been a niche fuel, while the share of gas in the energy mix is around five per cent, the lowest in the world.

There have been a series of major discoveries in recent years, in Egypt, East Africa — Mozambique and Tanzania; West Africa — Senegal and Mauritania and South Africa,

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COVER STORY gas demand in Africa would likely double by 2040.

According to the IEA, the growth in production is considerably higher than the rise in demand, and Africa – led by Mozambique and Egypt – emerges as a major supplier of LNG to global markets. The IEA said, “Thanks to resource endowments and technology improvements, Africa has the opportunity to pursue a much less carbon-intensive model of development than seen in many other parts of the world. “The challenges and opportunities differ widely across a diverse continent. But renewables, together with natural gas in many areas, are poised to lead Africa’s energy consumption growth as the continent moves away from the traditional use of biomass that currently accounts for almost half of final energy consumption. “With the appropriate policies to support a strong expansion of clean technologies and sufficient emphasis on energy efficiency improvements, Africa could be the first continent to achieve a significant level of economic and industrial growth with cleaner energy sources playing a prominent role than other economies in the past.” Furthermore,

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International Gas Union (IGU), in its 2018 Global Gas Report, stated that African gas consumption growth accelerated in 2017 to nearly seven per cent,

which collectively accounted for over 40 per cent of global gas discoveries between 2011 and 2018. These developments, the IEA noted, could fit well with Africa’s push for industrial growth and its need for reliable electricity supply, constraining the expansion of more polluting fossil fuels. “Much will depend on the price at which gas becomes available, the development of distribution networks, including small-scale liquefied natural gas (LNG) distribution; the financing available for infrastructure and the strength of policy efforts to displace polluting fuels,” the global energy body stated. In its projections, the IEA declared that Africa was gradually becoming a major player in natural gas as a producer, consumer and exporter, stating that

The Minister of Petroleum and Mineral Resources, Tarek El Molla

whereas consumption was flat from 2010-16. Given that majority of gas consumption in Africa comes from oil and gas producing countries, the report noted that 2017 growth reflects the economic recovery in those countries

from rebounding oil prices. Production growth in Egypt, mainly from its West Delta region, the report said, enabled consumption growth of seven billion cubic meter (15%) overall, while domestic production growth in Egypt also helped to displace imports, which were down 1.7 billion cubic meters in 2017 after growing steadily since Egypt began importing LNG in 2015. In Africa, production grew by nearly nine per cent through 2017, with growth from Egypt nine billion cubic meters (BCM), Nigeria four billion cubic meters, and Angola four billion cubic meters led in the region. The report identified Africa as one of the high-growth regions in the world, and it projected that consumption in the continent would increase by 3.5 per cent a year, or 170 bcm by 2040. Driving this growth is a number of projects expected in the continent in the coming months, as well as the already existing ones. Leading this pack is the Nigerian Liquefied Natural Gas, NLNG, which recently took Final Investment Decision (FID) on its gas expansion project, the LNG Train 7 plant, with plans to increase the trains to 12 in the coming years.

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The NLNG train 7 would boost the plant’s facilities from 22 million tonnes per annum to 30 million tonnes per annum,

and the plant is scheduled to be completed by 2024. Nigeria’s plans to build two additional LNG facilities — Olokola LNG and Brass LNG —are still on ground, and FID would likely be taken on these projects within the decade. Nigeria, in conjunction with Morocco, is also planning to build a trans-Saharan gas pipeline stretching from Nigeria to Morocco, with the aim of transporting gas from Nigeria’s Niger Delta to the shores of Morocco, with the ultimate aim of supplying the commodity to Europe. There’s also the West African Gas Pipeline that transports gas from Nigeria to Benin Republic, Togo and Ghana among others, with plans to extend the pipeline to Cote d’Ivoire. Gas resources had also been identified in 14 countries in sub-Saharan Africa, with Nigeria accounting for 81 per cent of proven reserves, while several undeveloped fields in Mozambique and Tanzania account for 62 per cent of total contingent resources.

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COVER STORY Another major gas project is the

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Mozambique LNG project, a state-of-the-art facility being built on the Afungi peninsula in Cabo Delgado province

to tap into the approximately 75 trillion cubic feet of recoverable natural gas said to lie in Offshore Area 1. FID was achieved in June 2019, and even with the change in operatorship happening with the takeover of Anadarko, this project is now running full steam ahead. Still in Mozambique, there is the Coral Floating LNG and the Rovuma LNG projects promoted by ExxonMobil. In addition, located offshore on the maritime border of Mauritania and Senegal, the

recently announced that construction would commence on the plant in 2022, with expected completion in 2028. Tanzania has estimated recoverable reserves of over 57.54 trillion cubic feet (tcf) of natural gas and the LNG export terminal would be built at Lindi in the south of Tanzania, near the offshore natural gas discoveries in deep water. The project will have capacity to produce 10 million tonnes per annum (MTPA) of liquefied natural gas. In addition, the East African Crude Oil Pipeline (EACOP), an oil export project designed to transport crude oil from Kabaale-Hoima near Lake Albert in Uganda to the Chongoleani peninsula, close to Tanga port in Tanzania is on the way. The heated pipeline (due to Ugandan crude’s waxy nature) would be 1,443 kilometers in length with 216,000 barrels per day the expected flow rate per day.

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Tortue Ahmeyim project is a field development operated by BP, who had recently awarded TechnipFMC a large contract, between $500 million to $1 billion,

to build the FPSO unit to be deployed for phase 1 of the project. Total gas resources in the field are estimated to be around 15 trillion cubic feet. That gas will be exported as well as being made available in Mauritania and Senegal, according to BP, which is expected to provide economic boosts to the region as well as create local jobs. Phase 1 reached FID in 2018 in record time, while phase 2 and 3 pre-FEED (Front End Engineering Design) had commenced for the onshore facility, which is due to be ready for production in 2024. Another gas project is

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the $30 billion Tanzania LNG liquefaction plant project, which is being promoted by Shell.

The Tanzanian government had

Mozambique Minister oil Minister Ernesto Elias Max Tonela, Mozambique’s Minister of Mineral Resources and Energy

The project is promising residents of Uganda and Tanzania more local jobs, new infrastructure, enhancements in the central corridor between the two regions and more. Already EACOP has seen $3.5 billion in investment, and a 60 per cent increase in foreign direct investment in Uganda and Tanzania. In a report published January 2020, one of the leading data and analytics company, GlobalData, disclosed that Nigeria is expected to contribute around 35% of Africa’s total planned and announced oil and gas new-build trunk/transmission pipeline length additions between 2019 and 2023. The report, titled, ‘Global Planned Oil

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and Gas Pipelines Industry Outlook to 2023 – Capacity and Capital Expenditure Outlook with Details of All Planned Pipelines’, reveals that Nigeria is expected to provide 6,601.5km of new-build pipeline by 2023. Most of the additions will constitute natural gas, at 6,460km, while crude oil pipelines will account for 142 kilometers. Varun Ette, Oil and Gas Analyst at GlobalData, said:

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“In Nigeria, 11 new-build pipelines are expected to start by 2023.

Of these, eight are planned projects and the remaining three are from early-stage announced projects. Trans Saharan Gas is the longest upcoming pipeline in the country with a length of 4,400km. This announced natural gas pipeline is expected to start operations in 2021.” The company added that Niger has the second highest new-build pipeline additions in Africa with two new-build pipelines, Niger–Benin and Zinder–Torodi pipelines, are expected to start operations with lengths of 1,980km and 1,070km, respectively by 2023. Niger–Benin is a crude oil pipeline, while Zinder–Torodi is a petroleum products pipeline. Ette said, “Followed by Niger, Algeria is expected to add 2,007.3km of infrastructure from five planned and two early-stage announced pipelines by 2023. Haoud El Hamra–Bejaia II is the major upcoming pipeline in the country with a length of 667.7km. The crude oil pipeline is expected to start operations in 2022.” In spite of these laudable projects, a number of challenges still exist that had hampered development of gas in Africa, some of which include the rising exploration of shale gas, global decline in the price of the commodity, inadequate infrastructure across the value chain, pricing challenges, difficulty in accessing finance, insecurity and absence of critical incentives. The IGU’ Global Gas Report noted that African countries without their own reserves would need to develop infrastructure for importation of natural gas to support local demand, which would require sufficient amount of investment. The report added that to enable localized domestic production growth, clear government regulatory structures are essential.

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According to the report, new markets for natural gas production –such as in Africa – frequently

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lack clear fiscal regimes and established regulations for upstream gas development.

Nigeria Minister of State for Petroleum Resources Timipre Sylva

It stated that, “Furthermore, many countries have regulated price structures which can limit incentives for gas production. On a local level as well, even when gas is produced within a country, a lack of domestic infrastructure can constrain access and consumption. In Asia and Africa, this is a particular challenge given the limited or lack of natural gas networks in most countries. “Nigeria has the largest gas reserves and the largest population in Africa, yet without infrastructure, its gas consumption is limited to a small number of power stations and industrial users. Also, there is currently no access to gas for buildings or small-scale industry. “Growing and diversifying gas infrastructure can promote flexible and reliable gas availability while improving supply security. The development and diversification of global LNG trade has played a key role in helping to advance the availability and security of gas supplies, especially with the advent of more flexible contracting and the availability of spot volumes.” In addition, the report stated that access to gas in cities is limited today across most developing countries, noting

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that in sub-Saharan Africa, only 1.6 million natural gas connections were estimated to have been made while the total population now exceeds one billion.

COVER STORY However, to address these challenges, experts are unanimous in their views that all ongoing pipeline projects should be fast tracked, while stalled ones should be revamped. They also called for the adoption of innovative technology in driving gas growth, full compliance to the carbon credit regime and full implementation of the gas capture and Nigerian Gas Flare Commercialisation Programme. Specifically, General Manager, Gas and Renewable Energy Department of Petroleum Products Pricing Regulatory Agency (PPPRA), Mr. Olasupo Agbaje, emphasized the need for more articulate and coordinated action on gas pricing for markets. According to him, current practice which prescribes

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different pricing regimes for existing markets based on products and markets needs to be properly articulated and managed in a more transparent manner.

Mr. Olasupo Agbaje of PPPRA

He called for the collation and development of appropriate Code of Conduct for operators in the gas business along the entire value chain as a means of streamlining operations and enhancing sanity. He identified the need for aggregation and update of existing regulations, as well as provisions on the subject to arrest arbitrariness and opaqueness in the operations of the gas sector. He also highlighted the need for coordinated policy formulation, implementation and tracking to promote the commercial viability of gas markets. Agbaje added that some measure of government intervention and deliberate policy initiative to deepen penetration and expand domestic utilization would have very far reaching impact on the market, while he called for the elimination of fiscal encumbrances in the form of taxes and levies in certain areas.

President of NGA, Mrs. Audrey Joe-Ezigbo

President Nigerian Gas Association, NGA, Mrs. Audrey Joe-Ezigbo, identified key issues needing attention to include the issue of pricing and of deregulation, stating that issues of pricing must be addressed across the value chain to attract investment into the sector. She said, “This is the only way we will be able to ramp up the pace of investment in gas field development to be at par with investments in power generation – a situation which has led to the current demand supply mismatch. “Similarly, the issue of policy needs to be addressed. This indeed is where the PIB discourse comes into play. We need to allow private investment to drive the industry, while the government sticks with providing an enabling environment and regulatory oversight. The government must give attention to enabling policy to drive investment by the private sector. “Investors need to be certain of returns that are secure and sustainable over the long term. Investors need to be assured of sanctity of their contracts. Investors want to be certain that the regulatory environment is stable, and they will not have to contend with regulatory undulations and outright summersaults that have potential to cripple their investments or threaten their revenues. “And then of course,

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due attention, must be paid to the reduction of undue bureaucratic bottlenecks and systemic redundancies that impinge on the close-out timelines for project reviews and approvals,

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COVER STORY in order to minimize cost escalations and distortions. The issue of multiplicity of agencies must be addressed and streamlined to enable smooth process flows.” On his own part, Managing Director/ Chief Executive Officer of Nigeria LNG, Mr. Tony Attah, disclosed that Africa needs the commitment of all its stakeholders to initiatives that support national development and growth. He emphasised the need for the continent to harmonize its resources and assets with its needs – development and growth. He called for increased focus on Liquefied

Petroleum Gas (LPG), stating that it is a valuable resource especially in view of the growing conversation about combating global warming with the use of cleaner fuel. “We must explore avenues that enable us to maximally utilise this resource to drive our industries, our homes and save our environment from pollution and desertification caused by the use of wood for cooking and other biodegradable,” Attah noted. From the foregoing, the future remains bright for Africa and the continent might emerge and remain a controlling force in the global gas industry.

South Africa Minister of Mineral Resources and Energy H.E Gwede Mantashe

FEATURES

The rise and rise of African oil and gas: Seven trends that will shape sub-Saharan Africa’s oil and gas in 2020 and beyond

frica holds around 7% of the world’s proven crude oil and natural gas reserves, yet the c o n ti n e n t re m a i n s l a rge ly under- explored . It’s safe to say that the motherland is far from having exploited its full potential. For this potential to b ear fruit and translate into economic development and jobs, several things need to happen . G ood thing is, they are slowing taking shape. T he rise of the A frican content For example, it is encouraging to see A f r ica n oi l a nd ga s companies becoming more and more a part of the continent’s economic empowerment stor y. In this context, 2020 is likely to see a continuation in the rise of the A frican private sector’s

NJ Ayuk

contr i bution to suppor ti ng industr y g row th and jobs creation. A n emergence of strong A frican Oil C ompanies (AOC s) across the value chain, from field operators to ser vices prov ider s, i s a key emerg i ng t r e n d f o r t h e s e c t o r. M a n y c omp a n ie s f r om We st A f r ic a particularly are seeking regional expansion across the continent and driving the regionalisation of the A frican content. A s most countries strengthen their local content reg ulations, the trend is likely to accelerate. Regional and international cooperation is becoming key 2 02 0 w i l l show if A f r ica n nat ion s have le a r ne d how to cooperate on tra nsnationa l energy deals and infrastructure for the benefit of all participants involved. 2 02 0 could see the un lock i ng of mu lti-bi l l ion-

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dol l a r opp or t u n it ie s t h r ou g h transnational energy cooperation a nd projects. T h i s appl ies to pl a n ne d a nd st a l le d pip el i ne projects in need of revival such as the East A frican Crude Oil Pipeline for instance, but also to up st re a m i nve st ment s a nd development s, e sp e cia l ly i n the Gulf of Guinea. Similarly, the way A f TC A impacts intraAfrican trade could be a boost to Africa’s energy sector if properly utilised. On the international stage and under the leadership of Secretary General Mohammad S a nu s i B a rk i n d o, O PE C h a s welcomed more African producers – Equatorial Guinea (2 017) a n d t h e R e p u b l i c o f C ongo (2018) being the latest ones. A s the orga nisation further expands the OPEC/NonOPE C outreach acros s A f r ica to find consensual solutions to market stability while offering technical assistance to upcoming producers,

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FEATURES

2 0 2 0 m i g ht b e t h e y e a r a new add it ion of a n A f r ic a n oil producing country as OPEC member. E x p a n si on o f A fri ca’s midstream and downstream infrastructure New refinery and petrochemical complexes are being constructed and existing ones are being in the nea r a nd med iu m ter m. T he continent is likely to see the emergence of regional hubs and markets with the strategic ambition of procuring petroleum products a nd natu ra l ga s. E xa mples include E q uator ia l Guinea’s LNG2Africa initiative and the A kinokien import and r e g a s i f ic at ion ter m i n a l, t he Dangote Refiner y in Nigeria, Ghana’s Tema LNG terminal project etc. Market access is a l so i ncrea si ng on the back of s ever a l pip el i ne pr oj e c t s s uch a s t he L ok ich a r- L a mu Crude Oil Pipeline in Kenya, a n d t h e i nt e n s i f y i n g t a l k s ove r t h e 5,6 6 0 k m p ip e l i n e t hat cou ld supply ga s to a s m a n y a s 15 w e s t A f r i c a n cou nt r ie s b etwe en Niger ia a nd M or o c c o. T he St ate of Niger also signed the Transport Convention on the construction and exploitation of the NigerBenin Export Pipeline, key to Niger significantly increasing its crude oil production over the next five years to as high as 10 0,0 0 0bpd. In east A frica finally, Ethiopia and Djibouti have reached an agreement on a gas pipeline that will offer a n ex it route for Et h iopia’s g a s f i e l d s a n d h e lp u n l o c k tremendous value in gas export potential. A fri ca i s tra n si ti on i n g to gas T here is a promising outlook fo r t h e A f r i c a n g a s s e c to r. C ountries without substantial gas resources will be turning to LNG imports to power their homes and industries. Ghana, for example, will is installing a new floating regasification unit in 2020. Ivory Coast, Morocco a nd S out h A f r ic a have a l s o looked at installing these units soon. The urgent need for rapid i ndu st r ia l i s at ion w i l l cre ate

tremendous opportunities for gas to fuel A frican economies in a more cost effective and env i r on ment a l ly su st a i n a ble ma n ner. T he race is on. At the end of the Gas Exporting C o u nt r i e s Fo r u m’s 2 019 S u m m it, E q u ato r i a l G u i ne a lau nched the D ecla ration of Malabo – a document affirming t he i mp or ta nce of reta i n i ng r i g ht s of mem b er c ou nt r ie s for natura l ga s resources – which w ill lead to the securing the energ y transition A frica needs and to meeting sustainable development goals and attracting investment into gas infrastructure projects. Expect vigorous technology adoption to drive operational eff iciencies Africa’s potential for innovation a nd leapf rog g i ng i s slowly a ffecting its hydroca rbons sector – we are finally seeing the adoption of sophisticated s of t wa r e a nd to ol s s uch a s A I a nd M L i n oi l a nd ga s. New ways to drill wells and ha nd le eq u ipment a re b ei ng a d o p t e d , n e w s e i s m i c d at a collection techniques and p et roleu m dat a ma na gement tools are being desig ned. T he trend is also helping the industrial and manufacturing sectors to save cost and address the log istical and power challenges of operating on the continent. We see international technolog y providers investing and collaborating with African companies to drive efficiency and environmentally friendly production methods in 2 02 0 and beyond. 6 . S ec uri ty con c ern s over the safety of Africa’s energy a ss e ts a n d i n fra s tr uc ture will continue rising We are likely to see an increase i n A f r ic a n gover n ment s a nd oil companies doing more to protect the security of energ y infra structure and a ssets on t h e c o nt i n e nt . O i l a n d g a s resources a nd commodities a r e pr one to s e c u r it y r i sk s – le av i n g c ou nt r ie s v ict i m s to energ y t hef t, va nd a l i sm, piracy. Such acts cost A frica’s oil & gas sector several billion dollars a year in losses and repa rations. With insecur ity now spreading to East A frica,

the industr y ha s taken a s a responsibility to ser iously address the issue. R eg ula tor y re form s wi ll b e pursued to remain competitive With hundreds of block s and acreages up for grab in 2020 and a widening energ y inf ra str ucture gap, subS a h a r a n A f r i c a n c o u nt r i e s are increasingly competing for i nve stment s a nd te ch nolog y. Countries like Senegal, Benin, Gabon, A lgeria and Cameroon have a l ready i mplemented str uctura l a nd reg ulator y reforms in 2018/19 to attract new investment. Several others a re sti l l re str uctu r i ng t hei r energy policies to provide more incentives to develop domestic oil & gas reser ves (associated and non-associated), fuel for thermal generation and both e x p a n d a n d d i ve r s i f y t h e i r energ y infrastructure. A bout NJ Ay uk A l e a d i n g e n e r g y l a w y e r, dealmaker, and strong advocate for A frican entrepreneurs, NJ Ay u k i s r e c o g n i z e d a s o n e o f t h e fo r e m o s t f i g u r e s i n A f r i c a n b u s i n e s s to d ay. H e is a Global Shaper with the World Economic Forum, one of Forbes’ Top 10 Most Influential Men i n A f r ic a i n 2 015 a nd New A frican Magazine’s Top 10 0 Most Inf luential A fricans for 2019. NJ is the Founder and CEO of C entu r ion L aw Group, a p a n - A f r i c a n l aw f i r m w it h a fo cu s on oi l a nd ga s a nd impacting A frican societies in a positive way through strong local content development. He i s t he c u r r e nt ch a i r m a n o f the A frican Energ y Chamber and best-selling author of two b o ok s ‘Big Ba r rel s: A f r ic a n O i l a nd Ga s a nd t he Q ue st fo r P r o s p e r it y’ (2 017) a n d ‘Billions At play: T he F uture of A frican Energ y and Doing Deals (2019).

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COVER STORY

r Ibilola Amao is a l e a d i n g a d v o c a te o f L o c a l C o n te n t Laws and its outright implementation in the oil and gas sector. She was very involved in the various activities that greeted the actualization of the Nigerian oil and gas Industry Content Development (NOGICD) guidelines before it was eventually passed into law on the 22nd of April, 2010. Via her STEM and local content activities, she creates value through community, local supplier and human capital development in resource-rich emerging economies. She sits on the Board of various reputable STEM focused firms. She holds a Ph.D. in Computer-AidedDesign and Draughting from Bradford University, UK; and she is recognized as a Forbes Africa Rising Star 2019. Dr A mao is the Principal Consultant of Lonadek Inc., an 42

engineering, technology and innovations solutions consulting company incorpora ted in 1991. As the Energy Woman of our February issue, here are highlights from her interview with JEROME ONOJA. You have established a brand for yourself in STEM pursuits via several global collaborations. What are these collaborations and the goals before you as a social innovator/entrepreneur? The reason I set up the Vision 2020 programme was because I realized there was a disconnect between the skills required in the hightechnology oil and gas industry and what was being churned out from the underfunded educational system in Nigeria. This shocking experience happed in November 2005, when Lonadek was asked to source for personnel by a multinational company. A few staff at Lonadek and I decided

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to engage the next generation through career counselling, industry awareness and youth empowerment activities.

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I realized there was a c h a l l e n g e i n g et t i n g talents and knowledgeable Nigerianâ&#x20AC;&#x2122;s in ST EM. We need to have round pegs in round holes and square pegs in square holes, and organize career talks for young people because it is important to harness the young talents that we have in STEM, Nigeria. Through the initiative (a 15-year project that ends this year), we expose them to the industry and empower them so that they can combine their potential with their talents and passion then deliver on their mandate joyfully for 30/35 years. Since 2006,

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ENERGY WOMAN we have collaborated with many organization and individuals to achieve the aim of educating and empowering Nigerians in STEM. The initiative involves collaboration with stakeholders in Government and the Private Sector to promote science and technology-biased professional and vocational development in youths who otherwise may, for lack of proper career guidance and counselling, resort to restive activity or delinquency. Our core focus is to impact and empower senior secondary school students, 1st and 2nd year undergraduates to become innovators and world leaders in Science, Technology, Engineering and Mathematics (STEM) fields. We have hosted 29 Career Workshops in Lagos, Port Harcourt and Abuja, 13 Summer Camps in Lagos, Shell Women’s Network Career Day in Lagos, World Skills & Science Day in Lagos, 2 Offshore West Africa Youth Empowerment Programmes in Lagos, Girls in STEM Programmes and 1 Jigsaw Puzzle Competition.

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T he goal is to empower 10 0,0 0 0 youths by the 31st of December, 2020.

Since inception, we have empowered over 95,000 youths. Kindly highlight on some of these efforts and the measured impact with the girl child. In line with the Vision 2020 YERI focus; YERI is passionate about the education and empowerment of the girl-child particularly in STEM. The low participation of girls and women in STEM fields can be observed at all levels of education, with the likelihood for female participation to decrease as the level of education rises. This is mirrored in the labor market where there are few women in STEM related careers, and women are largely absent in higher level managerial and decision-making positions. This event is targeted at challenging, mentoring and empowering the girl-child to become global leaders in STEM.

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The Girls in STEM I nitiative is a socia l impact and sustainability initiative

with its full focus on creating an atmosphere where young women and young girls are brought together and exposed to hands-on learning, thereby helping them build skills in digital literacy, STEM, leadership and entrepreneurship as well as mentoring. This project, in line with the Sustainable Development Goals (SDGs), Quality Education and Gender Equality, is committed to empowering secondary school girls (ages 13 - 17) to take up Sciencebased subjects and choose STEM fields like Mobile Application, Website Development, Coding, Renewable Energy, Data Analytics, Robotics, Gaming, and 3D Animation etc. and so on as a future career in manufacturing and other STEM related companies which are already male dominated. It will also increase the number of young girls and women who are actively involved in STEM by also coaching and mentoring of girls by women.

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N inety percent (9 0%) of g i rl s who attended ou r Girls in STEM Programs repor ted a n increa sed i ntere st i n the a rea of ST EM. Data from our follow-up activities state that a number of our female alumni are pursuing a degree in the area of STEM in the University. Please, list some milestone achievements with those goals and the STEM vision. Put numbers to it. In the last 14 years, Vision 2020: YERI has hosted 29 Career Workshops in Lagos, Port Harcourt and Abuja, 13 Summer Camps in Lagos, Shell Women’s Network Career Day in Lagos, World Skills & Science Day in Lagos, 2 Offshore West Africa Youth Empowerment Programmes in Lagos, Girls at the Cinema Show (Watching Hidden Figures, in collaboration with the US Consulate), Girls in STEM Programmes and 1 Jigsaw Puzzle Competition with

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9 5,000 youths empowered through hands-on ST EM prog rammes.

Quite a few of our success stories include testimonies of award winning and ground breaking achievements, international scholarships and leadership positions in STEM at a global level. We emphasize patriotism in the programmes so most of our success story alumni look forward to contributing to the development of Nigeria through sustainable and innovative solutions. We get surprise emails, text messages, LinkedIn connections, social media messages, phone calls and surprise visits from our thriving alumni. How do you rate the integration of present innovative technologies into Nigeria’s tech world, the oil industry and other sectors at large? (Machine Learning, AI, 3D printing, Robotics). The present innovation technologies have tremendously helped in the development of all sectors of the economy by increasing discovery and recovery, reducing costs, enhancing safety and protecting the environment. In the oil industry issues of oil bunkering, quantity of crude lifted have been resolved with the use of latest technology. Countries such as Saudi Arabia have been utilizing big data in its upstream business for years, and they have implemented several advanced analytic solutions including operational, predictive, analytics. The world is moving faster in to technologically advanced stages that we can only dream of in Africa at this point. The curriculums have changed from listen and learn to act, learn, build, and repeat. The curriculum, quality and style of teaching needs to change. The gap between industry and academia needs to be closed. We need to mechanize, industrialize, automate before we can digitalize. With operations and maintenance today being optimized through digital twins, I am worried about how we would optimize our natural and mineral resources when education-spend is nowhere near 26% of our budget.

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We seem like jokers when we st a r t t a l k i ng a b out A I, 3D, robotics. Without the required quantity of power and uninterrupted power, how can we leverage technology at an optimum scale?

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ENERGY WOMAN I truly wonder. What we need to do is develop clusters and innovation hubs where some success can be achieved and demonstrated to spur others on. What improvements would you want to see with technology in the energy space, and how can it be driven? The development in integrated renewable energy planning and investment, and empowerment/education of the youth in STEM courses are areas of necessary improvement in the energy sector.

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E nerg y use, particularly energ y efficiency and renewable energ y, needs to be a core part of the education system as swiftly as possible, with a view to changing public behavior and expanding participation in a growing renewable-energy sector. Smart Grids tied to accurately monetized gas-topower projects would go a long way to alleviating environmental problems while reviving the manufacturing and industrial base of Nigeria. I would like to overhaul the 400 and 500 level curriculum in higher learning institutions so that learning in teams, entrepreneurship and innovation forms 70% of their assessment in STEM. If we promote solutions alongside certificates and degrees, Nigeria would have more fresh graduates as employers rather than job hunters. I would like to see more scientists, technologists, engineers and mathematicians become the go to persons that solve Nigeria’s problems through innovation. If these ones and educators are appreciated and celebrated rather than crooks, we would move forward as a nation. Via your Twitter account, we see an advocacy for a better Nigeria. From the various polls you’ve conducted, what’s the feedback on how best we can move the country forward? #FeedBackNigeria is the expression of a pained patriotic Nigerian who is unbelievably frustrated by irresponsible leadership and bad Governance that exists in Nigeria. It is my heart’s cry to the next generation who would be able to see the lone voice in the wilderness crying out to others to take action.

International Women’s Day in Washington DC.

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It is my humble contr i bution towa rds d at a g at her i n g s o t h at a nyone ha s f ree acce s s to the average Nigerian’s thoughts

about issues at hand. I run a poll on Saturdays to sensitize others about pressing issues with a call to action where there is need for one. What are some of the Women Empowerment programmes you participate in? List them and their goals. Fruitages too. I am a ver y grateful female entrepreneur in a male-dominated space. I cherish this privilege so, I work tirelessly to identify, develop and engage others when the opportunity arises. As a beneficiary of the Vital Voices (VV GROW, VV 100, VV GAP sponsored by Johnson & Johnson USA, Bank of America, Akin Grump), WeConnect WBE, International Women Entrepreneurship Challenge (IWEC) Awardee, WimBiz and WiE member, I do not take investment in women likely. I also set up a Facebook page for Women and Girl in STEM in Africa. I post grant, funding, competition, Award, fellowship and

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scholarship opportunities on this page so that others may benefit. Considering local content, what’s your drive and where do you see Nigeria in the nearest future?

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We mu st c om mend t he P e t r o l e u m Te c h n o l o g y A s s o c i at i o n o f N i g e r i a (P E TA N) t h a t f o u g h t the wa rs of i nd igenou s companies being awarded contracts in spite of their lack of huge capital. The IOCs dominated the industry when it was argued that indigenous companies didn’t have the capacity, capability and competence. However, today, PETAN we were able to establish the importance of local participation. We recognize the efforts of international companies like Schlumberger and Halliburton that helped a lot of Nigerian companies to set up their own, and today, we have Nigerian companies providing services either independently or in partnership. The passage of the law in 2010 created opportunities for indigenous companies.

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ENERGY WOMAN Nigeria has been blessed with a visionary Nigerian Content Development and Monitoring Board (NCDMB) team that have done a great job with Execution of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. I am impressed with the institution built by Engr. Ernest Nwapa and happy that Engr. Simbi Wabote who once questioned the speed at which local content was to be implemented is doing an excellent job at accelerating the progress of NCDMB. I need to add that Simbi’s goal to integrate women in to the Oil and Gas supply chain based on merit and performance needs to be commended. Today, my drive is to see more women-owned businesses achieve outstanding performance.

With nieces & nephew at the cinema

You are an academic doctor why do you prefer the industry to the classroom? I am happiest training, teaching and disseminating knowledge. Unfortunately for me my stint at UniLag and

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t he beauracracy around education in Nigeria has not allowed me g ive of my best in education. The work, projects and activities that give me immense joy are talent focused. I add value through Lonadek by putting an entrepreneurial spin on what I would have done as an individual. Several funds exist to support the growth of women-owned businesses, why aren’t we seeing a huge spike in the participation here in Nigeria? Women in Nigeria need to be better organized. Fund access is tied to strategic value creation through partnerships, alliances and collaborations. No donor agency of repute will take a risk on a one man business.

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A part from sustainability a nd SDG complia nce, the donor wants to see collaboration in networks, g r oup s, c omp a n ie s a nd institutions

Delivering the Keynote address at the 1st TechWomen Conference in UNILAG sponsored by US Embassy

that can form the right synergies to deliver value. I have been blessed through my role on the Governing Council of the Energy Institute UK (2nd Term – Year 2) and my role as a member of the panel of judges of the Royal Academy of Engineers Africa Prize to understand how small and narrow we think as African’s. It makes sense to see the big picture in all situations before considering how one gets in to create maximum value. As African’s we need to work very hard on the trust factor while we rid ourselves of greed and corruption. What is that common denominators you see affect professional women in Sub Saharan Africa; and how can it be addresses? Our common denominator is having a heart for our children and the next generation. We see things from a sustainability perspective more naturally than our male counterparts. We can multi-task and deliver on whatever we set our mind to do. If given a chance, we bring diversity and a wealth of gut knowledge with alternative perspectives to the table. I have enjoyed working with my male counterparts over the years because we see things differently and can create more value when we converge away from our original perspective. When we both win, a lot more people win.

to the position where you are right now? None really. I have positivity in me and I see obstacles with a lens of opportunities. The greatest opportunity I have had is launching out from the peak of any achievement and finding the bottom of something else where I can start from the scratch. It stimulates learning. I have been blessed severally, when an obstacle, problem, limitation or hostility is thrown at me. When I quit, I am divinely redirected to something bigger and better. God has me in the palm of His hands. How do you ensure work-life balance considering the fact that you have so much on your plate? I delegate, I empower, I collaborate and I function better in teams. I have been blessed with awesome people who provide me with support of all kinds and manner. On the home front it was sisters, parents, a very understanding husband and nannies. At work it has been by exceptional talent and in society, exceptional friends. I pick my battles. I am passion driven. I do only those things that make my adrenalin pump. I am not driven by money or the desire to acquire wealth. I am legacy driven. I know my purpose and want to raise the next generation of leaders that would do greater works.

What’s was your greatest obstacle

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POWER

Payment of outstanding bills as a precondition for meters: NERC urges customers to report DisCos By Ikenna Omeje

he Niger ia n E le ct r icit y R e g u l ator y C om m i s s ion (NERC) has urged electricity customers denied opportunity of acquiring meters under the new regulatory framework, on account of outstanding estimated bills, to report their Distribution Company (DisCo) to the commission. The commission said that it is committed to closing the metering gap in the country by eliminating the current practice of estimated billing, noting that there will soon be a cap on estimated billing.

expediting a closure of the metering gap in the Nigerian Electricity Supply Industry thus eliminating the current unwarranted practice of “estimated billing”. In response to customer complaints about the issuance of estimated electricity bills and pending the installation of the estimated over 5m units of meters, the Commission shall soon prescribe a cap representing the maximum amount that a DisCo may charge an unmetered customer.

This was contained in a statement the commission sent to Majorwaves on Thursday, which was signed by the General Manager, Public Affairs, Dr. Usman Abba- Arabi. The statement reads in part: “... the attention of the Nigerian Electricity Regulatory Commission has been drawn to the practice of some electricity distribution companies insisting on the payment of all outstanding electricity debts as precondition for the acquisition of electricity meters under the Meter Asset Provider Regulation. “The Commission is committed to

In pursuit of realising the main objective of the Meter Asset Provider Regulations, the Commission hereby requests customers denied the opportunity of acquiring meters under the new regulatory framework on account of outstanding estimated bills should contact the Commission by sending an email with full details of the circumstances.”

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The commission also asked electricity customers to report DisCos that force them “to invest in the replacement

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of distribution infrastructure such as transformers, cables, etc as a condition for the restoration of electricity supply.” On the current practice by some DisCos removing meters from customer premises under the guise that the electricity regulator directed that all meters that have been in use for more than 10 year’s should be “phased out”, the commission said it didn’t emanate from NERC. “The Commission has issued no such directive to the licensees and no metered customer should be transferred to “estimated billing” on the premise that meters in use for more than 10 years are dysfunctional. All licensees must henceforth adhere to the PART III, SECTION 3.5.2 of the Metering Code which states that “if a metering system fault occurs, the Distributor shall provide urgent metering services to repair or replace the metering system as soon as it is practicable and in any event within two working days of the Distributor discovering that the fault exists”, the statement added.

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POWER

TCN, Nigelec and Mainstream Energy synergizes on bulk power delivery

Renewable energy: NCF seeks import duty removal on solar panel

he Nigerian Conservation Foundation (NCF), recently, called for the removal of import duty on solar panel to encourage the use of renewable energy in the country. The organisation’s Lead Climate Action Manager, Mr Solomon Adefolu, said in Lagos that the high cost of solar panel being imported from China could be reduce if the import duty tax was removed. Adefolu said that encouraging the use of renewable energy would enable the country get to its global obligation of 20 per cent carbon emission reduction by 2030. He said that Nigeria had got funding in millions of dollars from the Global Green Climate Fund (GCF) to combat climate change as agreed by the world in the 2016 Paris Climate change Conference. The climate expert expressed misgivings on government’s slow respond on issues of climate change, adding “Nigeria is not insulated from climate induced crisis capable of wreaking havoc on the people. “The recent Australia wild fire and

the encroaching desertification in the north, should be an eye opener to us to act now to avoid disaster. “The use of fossil fuel generator is emitting 55 per cent of Greenhouse gas into the atmosphere alone, not to talk of varying other uses that increases carbon in the air. “Scientists have linked many global crises to climate change, therefore, every energy should not be spared in changing the situation for a better environment,” he said. He appealed to the Federal Government to ensure that the GCF was channeled to halt climate change effect on people, saying that the facilitation of the production of the solar panel in Nigeria would go a long way in making the panel accessible to people. He said that more efforts should be made by government at all levels to protect the environment and guarantee food security.

he Management of Transmission Company of Nigeria (TCN), the Societe Nigerienne D’Etectricite (NIGELEC), an electricity company of Niger Republic and the Mainstream Energy Solution, operator of Kainji and Jebba Hydro Power Stations met to synergize on effective delivery of bulk power to Niger Republic as part of Bilateral Agreement on Power with Nigerian government. The Director General of NIGELEC, Mr. Alhassane Halid in his remarks during the Technical Meeting with the three companies at the TCN headquarters on Tuesday, January 28, 2020, in Abuja, emphasized the need for mutual cooperation to enable them deliver more efficient electricity to their citizens. He said that the mission of the Minister of Energy of Niger Republic, Mrs. Amina Moumouni who earlier paid a courtesy visit to the Minister of Power, was to settle all outstanding energy bills, and appeal to TCN to upgrade the critical transmission line between Birinin Kebbi and Niamey for more effective bulk power delivery. On his part, the Managing Director and Chief Executive Officer of TCN, Mr. Usman Gur Mohammed said TCN is committed to wheeling bulk power to all its customers within and outside Nigera, Niger Republics inclusive and assured the NIGELEC delegation that TCN was working assiduously to clear the transmission line from Birnini Kebbi to Niamey, explaining that the company was already reconductoring some of its transmission lines, upgrading and building substations in order to provide more flexibility to the grid as well as expand grid capacity. He noted that TCN is already attending to the Brinin Kebbi-Niamey line.

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SOCIAL INVESTMENT

NCDMB trains 1000 Secondary School Teachers

he Nigerian C ontent Development and Monitoring Board (NCDMB) has trained over 1000 s cienc e te acher s i n s e conda r y s cho ol s acro s s t he cou ntr y a s part of its Teachers Development Tr a i n i n g P r o g r a m m e , t h e Executive Secretary, Engr. Simbi Kesiye Wabote said recently. He spoke at the closi ng ceremony of the 2nd phase of the training pr o g r a m me i n K a s t i n a St ate, which benef itted 270 teachers and was organised with support f rom the State M inistr y of E ducation. R epr e s ente d by t he D i r e c tor, Planning Research and Statistics, NC D M B , M r. Pat r i c k D a z i b a Oba h, the E xecutive S ecreta r y prom i s e d t hat NC DM B wou ld i ncrea se the pace of conti nuous development of teachers acros s the countr y. He expla i ned that the Boa rd’s sponsorship of the retra i n i ng prog ra mme is bor ne out of its desi re to create new models in the quest for academic knowledge, adding that trainings g iven to teachers wou ld ena ble thei r students to compete w ith cou nter pa r ts el sewhere i n the world a nd position them i n the knowledge of science, technology, e n g i n e e r i n g a n d m at h e m at i c s (STEM). He expressed hope that the tra i n i ng of teachers wou ld translate to better performances b y t h e i r s t u d e nt s i n WA E C , NECO, JAMB and other national a nd i nter nationa l exa m i nation a nd lead to better tech n ica l sk i l ls a nd cra f tsma nship. 48

He a lso cha rged the teachers to ensure that Katsina State emerge a s nu m ber one state i n ST E M E ducation a nd the student s amongst the leaders in the quest for technolog ica l a nd industr ia l self-reliance. Obah stressed that NC DM B wa s set up to ensure the development a nd utili zation of Nigerian materials, equipment a nd work force i n the Niger ia n Oi l a nd Ga s I ndustr y a nd the realization of this important goal re q u i re d te ch n ic a l work forc e, b et te r t r a i ne d a d m i n i s t r ato r s a n d p e r s o n n e l w it h e s s e nt i a l sk i l ls He ma i nta i ned that “the teach i ng methods of yesterday is no longer suff icient for the cha l lenges of today a nd so we have mo d i f ie d t he de sig n a nd del iver y of this prog ra m me i n re sp on s e to you r ne e d s. T h i s year we have given you electronic ta blets w ith a l l the read i ng mater ia ls a nd we have enoug h rea sons to conti nue to adva nce the methods of lea r n i ng.” S p e a k i n g f u r t h e r, O b a h stated that NC DM B places a hig h premium on capacity development, especia l ly i n the teach i ng of ST E M education acro s s seconda r y a nd ter tia r y institutions in Nigeria. According to hi m, “our ta rget is to tra i n a m i n i mu m of one thou sa nd science teachers each yea r a nd to upg rade a nd eq uip techn ica l schools to provide infrastructure req u i red for the acq u i sition of te ch n ic a l, d i g it i z at ion a nd es sentia l sk i l ls.”

Majorwaves Energy Report FEBRUARY 2020, Vol 3 No 2

He noted that NCDMB has started the upg rade a nd eq u ippi ng of some existing technica l and vocationa l schools and prov ided mo du l a r s c ienc e l a b or ator ie s, modern teaching aids and improved science and engineering i n f ra str ucture i n some ter tia r y i n s t it ut i o n s . I n h i s r e m a r k s , the G enera l Ma na ger C apacity Building Division, NCDMB, D r. A ma I k i r u expla i ned that the Boa rd orga n i zed a pha se 2 of t he pro g ra m me i n K a st i na b e c au s e t he st ate gover n ment wa s receptive of the i n itiative and collaborated effectively with the Boa rd. The Commissioner for Education, K a s t i n a S t ate, D r. B a d a m a s i L awa l commended NC DM B for spon sor i ng the retra i n i ng of te a che r s i n t he s t ate, not i n g that “it is rema rka ble that a n a gency that is ba sed i n Bayelsa S t at e w i l l c o m e a l l t h e w ay to tra i n teachers i n K a sti na.” H e n ote d t h at s t u d e nt s f r o m the state recorded a n i mproved per for ma nce i n the la st WA E C a n d N E C O e x a m i n at i o n s , a n i nd ication that the NC DM B sp on s or e d te acher s r et ra i n i n g pro g ra m me b e g u n i n 2 018 wa s a l ready ma k i ng a positive impact. T he event a lso featured presentations from some seconda r y school students a nd awa rd of pr i ze s to the be st pa r ticipati ng teachers f rom the f ive-week tra i n i ng prog ra m me held during the la st school hol iday per iod.

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INSIDE OPEC

INDUSTRY NEWS

OPEC Secretary General H.E Mohammad Barkindo

Coronavirus: OPEC Joint Technical Committee meet, deliberate production adjustment

he Joi nt Te ch n ic a l Committee, which consists of technical experts from some OPEC Member Countries and non-OPEC partners participating in Declaration of Cooperation, is currently meeting in Vienna, Austria at the time of filing this report. Their role is to review current market conditions and submit report(s) to the Joint Ministerial Monitoring Committee (JMMC), which will consider whether further voluntary adjustments in production are necessary.

adjustments. The death toll in China from the novel coronavirus outbreak has climbed to 491, while 24,324 confirmed cases have been reported so far and 65 people have died in the last 24 hours, according to the country’s National Health Commission (NHC). As Chinese cities are quarantined and factories are halted, refineries are curbing operations and shutting plants, while the nation’s top processor is seeking to re-sell millions of barrels of West African crude it no longer needs because of the squeeze to consumption.

In this case, the meeting has entered the third day as intense deliberation continues over the impact of coronavirus on the global oil market. The outcome of the discussions may determine whether the group convenes an emergency meeting to consider new production

China is the world’s biggest importer of crude oil but it is not yet clear what size of its demand has been affected but oil prices have hit their lowest level in 13 months due to weak global demand. Commending the Chinese resilience, the OPEC Secretary General H.E Mohammad

Barkindo said in a tweet “The proactive public health measures you [China] have undertaken; and the steady flow of data provided to the world at large is impressive and commendable.” In order to trim the over-supply in the market, OPEC and its non OPEC allies had earlier agreed in December to a production adjustment by an additional 500,000 barrels per day, starting January 2020. This decision which was reached before the outbreak of the dreaded virus would increase the present production adjustment to a total of 1.7million bpd, following the existing curb of 1.2 million bpd that had been decided in December 2018.

Majorwaves Energy Report FEBRUARY 2020, Vol 3 No 2 49

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INSIDE OPEC

Mr. Bill Gates, Microsoft co-founder and prominent philanthropist

Bill Gates tells FT divestment from fossil fuels is not the answer

n an interview published in the Financial Times late 2019, Microsoft co-founder and prominent philanthropist Bill Gates says divestment from fossil fuels is not the solution to combatting climate change. Instead, he points to what he calls disruptive technologies and cutting-edge private sector energy companies as the most effective methods for reducing carbon emissions. “Divestment, to date, probably has reduced about zero tonnes of emissions. It’s not like you’ve capital-starved [the] people making steel and gasoline,” he said. “I don’t know the mechanism of action where divestment [keeps] emissions [from] going up every year. I’m just too

damn numeric.” Instead, Gates urges investors to explore innovative, high-tech businesses and the latest energy technology to achieve better results. “When I’m taking billions of dollars and creating breakthrough energy ventures and funding only companies who, if they’re successful, reduce greenhouse gases by 0.5 per cent, then I actually do see a cause and effect type thing,” he said. The FT article also made reference to the 17 September release of the Bill and Melinda Gates Foundation’s annual “Goalkeepers” report, which

Majorwaves Energy Report FEBRUARY 2020, Vol 3 No 2

tracks global progress towards reaching the UN Sustainable Development Goals. Next week, the UN General Assembly is scheduled to convene in New York with world leaders reaffirming their support for achieving these ambitious goals, but Gates says there is still much work to be done. “We’re nowhere near improving fast enough to reach those goals,” he said. “It is a terrible injustice that the people who suffer the most are the poorest farmers in the world. They didn’t do anything to cause climate change, but because they rely on rain for their livelihoods, they are at the front lines of coping with it.”

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Majorwaves Energy Report FEBRUARY 2020, Vol 3 No 2 51

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Articles inside

Coronavirus: OPEC Joint Technical Committee meet, deliberate production adjustment

A Case for Sustainability, Digital Transformation of Nigeria’s Energy Sector

NNPC/SNEPCo donates medical emergency response equipment to Nigeria’s oldest public general hospital in Lagos.

Angola’s ANPG, ExxonMobil agree extension of Block 15 license

Equatorial Guinea to deliver on expectations of African Cross-Border Gas Cooperation

“we have built our reputation on professionalism and quality service delivery in the oil and gas sector,

“This is the only Logistics base in Bayelsa. In terms of proximity, the IOC s have a lot to gain.