Majorwaves Energy Report January 2020 Edition by majorwavesenergyreport

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Majorwaves Energy Report JANUARY 2020, Vol 3 No 1 1

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Majorwaves Energy Report JANUARY 2020, Vol 3 No 1

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Majorwaves Energy Report JANUARY 2020, Vol 3 No 1

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he decade for Nigeria is starting on a beautiful note as championed by NLNG, when it took the final investment decision (FID) on its Train 7 project, just before 2019 ended. This is coming 15 years after the FID on Train 6. A minimum of 12 billion US Dollars is expected to be spent directly on the project. Several more will flow naturally in foreign direct investments on linked projects. This in return will guarantee over 45,000 jobs, directly and indirectly.

SDG 9 advocates for quality infrastructure to support economic development and human well being. It is also understandable that competitive economies have relied on well-functioning infrastructure. In the same vein, we have seen a spike in Federal Government of Nigeria’s spending pattern. Adding 2019 to 2020 budgets on Works gives a figure in excess of N687 billion. It shows the direction of the present administration in comparison to a paltry N11 billion approved in 2015. Our cover focuses on the innovations with Nigeria’s ports as championed by the first female Managing Director, Hadiza Balla-Usman. Significant revenues will accrue to the nation with the completion of the Lekki deep sea ports in 2022. Ibom isn’t left out. Ondo state is also negotiating with foreign investors to have its own, while several significant private initiatives are being tidied up to take advantage of government’s policy to drive indigenous participation in the maritime space. We also bring you the charge by Godwin Izomor, MD of MG Vowgas, Daere Akobo MD of PE Energy and Timi Austin-Peters, Chairman of DormanLong. These industry executives are advocating for collaboration by Nigerian service firms in a bid to reduce capital flight and create jobs. Regular self assessment as seen by the Nigerian Content Development and Monitoring Board (NCDMB) is commendable and recommended to other ministries, departments and agencies of government. Here we look at 20 short term initiatives achieved by the NCDMB. Find these and more in this January issue. Also, let’s hear from you please.

Happy New Year.

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

NNPC records N13.23bn trade surplus in Oct.

he Niger ia n Nat iona l Petroleum C orporation (NNPC) recorded a trading surplus of ₦13.23billion in October 2019. This represented an increase of 54 per cent compared to ₦8.59 billion surplus posted in September 2019. The Corporation disclosed this in its Monthly Financial and Operation Report (MFOR) for the month of October released in Abuja recently. The report reflected the sustained streak of positive results in the operations of the National Oil Company. It added that the September 2019 trading surplus of ₦8.59 billion in turn indicated a significant increase of 65 per cent compared to the ₦5.20billion surplus posted in August 2019. The report noted that the August surplus also beat the ₦4.26billion surplus posted in July 2019, reflecting an increase of 22 per cent. The report revealed that the October surplus was largely due to the improved trading surplus posted by its Upstream subsidiary, the Nigerian Petroleum Development Company (NPDC). On 6

Crude oil and Gas sales, it said that a total Crude Oil and Gas export sales of 483.25 million dollars were made in October 2019. It said this was an increase of 35.77 percentage point, compared to September, implying that in October, Crude oil export contributed 396.94million dollars (82.14 per cent) of the dollar transactions, compared with 267.97million dollars contribution in the September 2019. It noted that the export Gas sales for the month amounted to 86.32 million dollars.

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Overall, the October 2018 to October 2019 Crude Oil and Gas transactions indicated that Crude Oil and Gas worth 5.49 billion dollars was exported,’’ it said. In the Downstream Sector, it said that 1.16billion litres of Premium Motor Spirit(PMS) also known as petrol, translating to 37.30mn liters/ day, were supplied for the month. It noted that the corporation had continued to monitor the daily stock of PMS in order to achieve smooth distribution of petroleum products and zero fuel queue nationwide.

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The report said that in October 2019, 35 vandalized-pipeline points, representing a decrease of 81 per cent from the 186 vandalized-points in September 2019, were recorded. “Out of the vandalized points, eight failed to be welded, while only one pipeline was ruptured, with IbadanIlorin axis accounting for 34 per cent of the breaks. “ATC-Mosimi and other routes accounted for 23 per cent and 43 per cent, respectively,’’ it noted. In the Gas Sector, the report said that out of the 235.82 billion Cubic Feet (BCF) of gas supplied in October 2019, a total of 134.97 BCF of gas was commercialized, consisting of 31.37 BCF for domestic market and 103.60 BCF for export market. This, it said translated to a total supply of 1.01 Million Standard Cubic Feet (mmscfd) of gas to the domestic market and 3.34 mmscfd of gas supplied to the export market. It said that during the month, 57.23 per cent of the average daily gas produced was commercialized, while the balance of 42.77 per cent was re-injected, used as Upstream fuel gas or flared.

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INDUSTRY NEWS

Again, Seplat wins PETAN, Frontier, CAMCAN awards

gain, Seplat Petroleum Development Company Plc, leading Nigerian independent oil and gas company listed both on the Nigerian Stock Exchange and London Stock Exchange, recently won the Petroleum Technology Association of Nigeria’s (PETAN) 2019 Local Content Operator Award, the Frontier Energy Independent Player in Africa (Leopard) Award and the Capital Market Correspondents Association of Nigeria (CAMCAN) Most Profitable Company in Oil/ Gas on the Nigerian Stock Exchange (NSE) Award for the year. The PETAN award was presented to the Company at the PETAN Oil Industry Achievement Award dinner held in Lagos. The Award Ceremony had in attendance leading Nigerian oil services companies, international oil companies (IOCs) and their senior executives, policy makers in government and top political

leaders, the media, amongst others. The Operations Director, Seplat Petroleum, Mr. Effiong Okon, who received the award on behalf of the Company, commended the organisers for the recognition and pledged the Company’s strict adherence to global best practices and effective stakeholder engagement. Also, at the Geological Society in London, Frontier Energy presented Seplat with the “Leopard” Award as the Independent Player in Africa of the Year, which is part of the Big Five Board Awards 2019 ceremony. As part of the rationale for the award, Frontier Energy noted that 2019 has been a year demonstrating the strength of the company, led by top-class CEO, Mr. Austin Avuru. Frontier Energy noted that in a climate of fluctuating prices, Seplat has been able to improve the quality of its balance sheet, make new acquisitions and the ongoing development of the Assa North and Ohaji South (ANOH)

gas field is a highlight. Other finalists included Eland Oil & Gas, Lekoil, Far Limited, Chariot Oil & Gas and Africa Energy Corporation. Awarded since 1997 and with over 100 recipients to date, the Big Five Board Awards honour excellence in Africa’s oil and gas game. In the same vein, the CAMCAN Nigerian Capital Market Performance Awards was aimed at recognising companies that recorded significant feats on the platform of the Nigerian stock Exchange for 2018. Seplat Petroleum recently emerged the overall winner of the 2019 Pearl Awards, clinching four awards, which is designed to celebrate excellence and its leadership in the Nigerian capital market. The company also won the Best Indigenous Exhibitor Award at the just concluded 37th Nigerian Association of Petroleum Explorationists (NAPE)’s Annual International C onference and Exhibition held in Lagos.

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INDUSTRY NEWS

Oil market to witness surplus, low prices in early 2020 — Report

he International Energy Agency, IEA, has predicted that the global oil market will witness surplus, leading to low prices in early 2020. The report is coming at the time many member states and associates, including Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, New Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, The Netherlands, Turkey, United Kingdom, United States, Brazil, China, India, Indonesia, Morocco, Singapore, South Africa and Thailand, are keenly watching developments in the market. In its latest report obtained by The Daily, www.thedailyng.com, IEA stated: “For the last several months in this Report, we have suggested that in early 2020 the oil market is likely to see a significant surplus of supply over demand. On December 6, countries participating in the OPEC+ agreement took a step to address this imbalance by deepening their cuts from 1.2 mb/d to 1.7 mb/d. “Saudi Arabia once again showed its willingness to shoulder a greater

burden by volunteering an additional reduction of 0.4 mb/d to take the total cut to 2.1 mb/d, effective 1 January. The voluntary cut by the Saudis has already been partially delivered but the overall effectiveness of the OPEC+ agreement depends on the willingness of all its parties to fully comply, including those whose compliance so far has been less rigorous. This revised deal excludes from the production ceiling 1.5 mb/d of condensate output by non-OPEC producers. Russia, in particular, now has 0.8 mb/d of supply that can legitimately be increased.” It stated: “If all the countries comply with their new allocations and Saudi Arabia delivers the rest of its voluntary cut of 0.4 mb/d, the fall in production volume versus today will be about 0.5 mb/d. In this Report, we have reduced our forecast for non-OPEC production growth next year from 2.3 mb/d to 2.1 mb/d to take account of lower output from participants in the OPEC+ deal and a weaker growth outlook for Brazil, Ghana and the United States. Even so, with our demand outlook unchanged, there could still be a surplus of 0.7 mb/d in the market in 1Q20. “In the meantime, the market has done its

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own sums and the reaction to oil’s new deal has so far been muted: Brent crude oil was priced at $63/bbl on the eve of the OPEC+ meetings and as we publish this Report the price is $64/bbl.” The report added: “On a historic note, in September, the United States momentarily became a net oil exporter to the tune of 89 kb/d. This is a major milestone on its path to becoming a sustained net exporter, which is likely to be late in 2020 or early in 2021. However, this does not mean that energy independence has been achieved: the United States remains a major crude oil importer. “In September, it received 6.5 mb/d of crude oil, with the largest volume coming from Canada and, with exports of 3.1 mb/d, it remained a significant net importer of 3.4 mb/d. Quality issues and greater market competition indicate that the United States will remain a major crude importer. This exposure to international markets highlights the need to insure against disruptions by maintaining emergency stocks, as reconfirmed in the communique issued at the conclusion of the biannual IEA Ministerial Meeting held last week in Paris.”

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INDUSTRY NEWS

L-R: HONOURABLE MINISTER OF STATE, FOR PETROLEUM RESOURCES, CHIEF TIMIPRE SYLVA, DIRECTOR DPR ENGR. SARKI AUWALU. MNSE AND GMD NNPC MALLAM MELE KOLO KYARI AT THE PRESENTATION OF AWARD OF RECOGNITION TO DPR AT THE EGTL AWARD DINNER IN ABUJA

LPG Utilisation: NLPGA takes campaign to Minister of State for Petroleum Resources

he Executive Management of the Nigeria Liquefied Petroleum Gas Association (N L P GA) h a s t a ke n campaign for the Utilisation of Liquefied Petroleum Gas (LPG) in Nigeria to the Minister of State for Petroleum Resources, Chief Timipre Sylva. Speaking during a visit to the Minister, the President of NLPGA, Mr. Nuhu Yakubu whose presentation focused on the A ffordability, Accessibility, Acceptability and Availability of LPG; expounded several solution focused strategies that when effectively implemented will not only demonstrate FG’s deep commitment in solidifying the sector but also ensure that LPG utilization becomes the norm. He noted that “LPG accessibility starts with cylinder distribution.” In his remarks, Chief Sylva commended the NLPGA for its recently concluded Annual LPG Conference and Exhibition. He noted the importance of Safety and applauded NLPGA’s launch of the LPG Safety Check List, aimed at enthroning Self-Regulation on safe practices across the entire LPG value chain. The Honourable Minister further disclosed that plans are underway to mop up old and obsolete gas cylinders in circulation and replace them with brand new ones while noting the innovation that Techno Oil; a member of NLPGA, has brought to the table with its LPG Cylinder Manufacturing Plant. This has also granted the Company the ‘Pioneer Status’ which exempts

it from paying tax on import of all raw materials for LPG cylinder production and will help to reduce the cost of production. The Technical Adviser on Gas Business and Policy Implementation to the Minister, Mr. Justice Derefaka in his statement, noted the high annual flare volumes of over 2 million tonnes of LPG. He further stated that when this is fully closed out by the Nigerian Gas Flare Commercialisation Programme, it will effectively position Nigeria on the part to deepened domestic gas usage and adoption. The visit afforded the visiting team the opportunity to deeply explore the imperativeness for heightened Government involvement in shaping action plans to grow the Liquefied Petroleum Gas (LPG) industry as well as deepening the utilization of LPG in Nigeria. It may be recalled that amongst the key priorities of Chief Sylva, completion of the Nigerian Gas Flare Commercialisation Programme remains paramount with associated gas focused deliverables that include deepening domestic gas penetration and adoption amongst others. The NLPGA delegation comprised of the President, Nuhu Yakubu; Executive Secretary, Olakunle Oyebanjo; Kenneth O. Abazie (General Manager, Commercial, Techno Oil); Geoffrey Gideon (Northern Regional Manager, Banner Energy Limited) and Daniel Isiocha (AGM, Government Relations, Techno Oil).

DPR DIRECTOR REASSURES INVESTORS OF INCENTIVE BASED REGULATION, AS A PANACEA TO ATTRACT INVESTMENT TO THE NIGERIAN OIL AND GAS SECTOR.

he Director of Petroleum Resources, Engr. Sarki Auwa lu M NSE , ha s reassured investors of DPR’s resolve to drive an incentive based regulatory policy to attract nvestment to the Nigerian oil and gas industry. Engr. Sarki made the remarks at the EGTL/NNPC/CHEVRON dispute resolution agreement and awards dinner, hosted by the GMD NNPC, Mallam Mele Kolo Kyari at Fraser Suites Abuja, on 9th January 2020. The Director further reassured that DPR will work assiduously with other stakeholders to realise the objectives of the EGTL project for the benefit of Nigeria. The DPR was presented with an award at the event by the Honourable Minister, Chief Timipre Sylva in recognition of DPR’s role and support in maintaining harmony in the Oil and Gas industry. The Director who received the award on behalf of the Department was accompanied to the event by Top Management Committee Executives and other Senior Staff officials.

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INDUSTRY NEWS

Kaduna explosion: DPR to sanction illegal gas operators

he Department of Petroleum Resources (DPR) has threatened to sanction all unlicensed LPG retail outlets and operators with stiff penalties. The DPR North West Zonal Operations Controller, Mr Isa Tafida, made this known to newsmen in Kaduna while reacting to the recent gas explosion at Sabon Tasha, Chikun Local Government Area of Kaduna State. The gas explosion killed five persons, including a professor, and destroyed valuable properties on Jan. 4. The Police in a statement, after the incident in Kaduna, confirmed that five persons were killed, while four others sustained injuries. Tafida who condoled with victims of the explosion, said that the gas retailer operated illegally, without even a category D license being issued to retailers in the zone. He urged investors, gas plant operators and retailers to obtain the required license, that would ensure safe handling of gas, to avoid similar accidents in the future. “The DPR Kaduna Zone wishes to extend its sympathy and condolences to the families of the victims, the government and people of Kaduna state. “We regret the unfortunate incident of gas explosion that occurred on Saturday that recorded loss of lives, injuries of various degrees and loss of worthy properties. “The outcome of our preliminary investigations reveal that the facility is an illegal gas retailing vendor that engages in illegal storage, decanting and sales of LPG (cooking) and acetylene (industrial gases). “The operator of that illegal facility is unknown to the department and the facility is not licensed by DPR,“ Tafida said.

Surinam: Total and Apache make significant oil discovery in Block 58

otal and Apache have made a material oil discovery with the Maka Central-1 well on Block 58 offshore Surinam, on trend with the prolific discoveries in the adjacent Stabroek block in Guyana. According to Total, “the Maka Central-1 well was drilled by a water depth of about 1,000 meters and encountered more than 123 meters net pay of high-quality light oil and gas rich condensate net pay, in multiple stacked reservoirs in Upper Cretaceous Campanian and Santonian formations. Further drilling and testing will be carried out to appraise the resources and productivity According to him, the department has variously conducted of the reservoir.” trainings, monitoring of LPG outlets and issued warnings to members of the public not to patronise the illegal operators. He said that DPR had also enjoined such illegal operators to “We are very pleased with this first significant oil follow the laid down rules and regulations, by obtaining license discovery, made just after our entry into Block 58. The to ensure safe handling of gas; considering its volatility. “Gas result is very encouraging and proves the extension retailers who do not have category D license for retailing LPG of the prolific world-class Guyana Cretaceous oil play are desperate for money, because LPG is new source of money into Surinam waters,” said Kevin McLachlan, Senior and the public now know better, that using gas for cooking is Vice President Exploration at Total. “We are optimistic faster and cleaner; but the public need to be aware that it has to about the large remaining potential of the area still to be handled with caution. “Investors should invest in gas business be discovered and will test several other prospects on but they should follow the rules and regulations and do it in line the same block.” Total added: “The Maka Central-1 exploration well was drilled by Apache as operator with with best practices,” he said. 50per cent working interest and with Total as the JV partner with 50per cent working interest. The next The agency said it had approved and licensed 38 LPG plants in exploration well will be drilled on the Sapakara West-1 Kaduna state in 2019. ” Despite this, hundreds of unlicensed prospect and the operatorship will be transferred to Total retailers and gas vendors are still operating within Kaduna city after completion of a third exploration well.” ” Tafida regretted. 10

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INDUSTRY NEWS

Bukola Adubi

MicCom cables, indigenous firms position for Nigeria LNG Train 7 By Jerome Onoja

icCom Cables and other indigenous firms in Nigeria are currently positioning themselves to take advantage of the opportunities that the Train 7 project of the Nigerian Liquified Natural Gas (NLNG) will offer. The final investment decision (FID) for the project was taken in Abuja on the 27th December, 2019 after about 12 years of waiting. According to the Executive Secretary of NCDMB, the project has the potential of bringing in immediate employment opportunities for more than 10, 000 Nigerians directly, and another 40,000 indirectly. Also, it will attract foreign direct investment of about US$25b to the Federal Government. The expansion project will increase the company’s production by 35 per cent and its competitiveness in the global LNG market. Speaking on the project at the just-concluded Practical Nigeria Content, PNC in Yenagoa, the COO, Miccom Cables, Ms Bukola Adubi said, “Considering

the in-country value additions from previous vessels acquired by the NLNG, one sees a steady rise in local content opportunities and compliance. With the NLNG Train 7, the Nigerian Content Development and Monitoring Board (NCDMB) have expressed confidence that Train 7 would be guided by the signed Service Level Agreement, SLA which comes with immense benefits to local contractors”. S h e a d d e d , “s e r v i c e a n d manufacturing companies have invested resources, and grown technical capabilities in preparation for these projects. “We shall see a multiplier effect across several sectors when the project is completed in 2023. But ahead of that, indigenous manufacturers of cables like us have stepped up to the challenge to ensure the cable needs of projects like these are met by local supplies.” Adubi noted, “going by the numbers Mr Tony Attah, MD of NLNG reeled out during his presentation, one cannot help but appreciate the level of local content achievement back in 2016 when they brought in the Abuja II vessel”. She further added,

“with the training of 700 Nigerians in different skills in ship building both in Nigeria and South Korea, along with the utilization of over 500,000 litres of made-in-Nigeria marine paints, one is sure to see an improvement in the proportion of these indices, considering the difference in the project sizes. “It is also noteworthy to mention their use of 180km of low voltage cables manufactured in-country. Today, as manufacturers of cable, we have moved beyond low voltage cables to medium and high. The capacity has been built. So, we are expectant that the contractors, on behalf of NLNG will continue in that part of entrenching local content and improving in-country value retention.” MicCom Cables and Wires, which is the first indigenous cable manufacturing company in Nigeria, has been engaged in the manufacturing and supply of cables and wires for various projects across the country and Africa.

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INDUSTRY NEWS

L-R Ranti Omole; Hon Ochiglegor Idagbo; Simbi Wabote; Ms Patricia Simon-Hart; Abdulmalik Halilu and; Oyetola Muyiwa Atoyebi (SAN)

Experts identify enabling laws critical to oil infrastructure development By Jerome Onoja

xperts in the Nigeria’s oil and gas industry have identified the creation of suitable laws and policies as key factors in ensuring infrastructure development critical to the industry. They stated this at the 9th Practical Nigerian Content (PNC) forum, which held in Bayelsa in December, 2019, themed “Leveraging Local Expertise for Market Growth and Expansion”. The panellists agreed that the industry needs enabling environment by way of suitable laws and policies towards building of infrastructure in order to attract the right volumes of investment inflow. The panel session was moderated by Patricia Simon-Hart, Managing Director and CEO Aftrac, who also doubles as the Secretary of Petroleum Technology Association of Nigeria, PETAN. On improving critical infrastructure for the nation’s oil and gas sectors in order to boost investment, they noted that government needs to 12

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have programmes which would encourage private investors to come into agreement with it. They emphasized the need for a dedicated oil and gas free trade zone which would enable the industry to acquire and operate equipment at cheaper rates due to economy of scale and shared facilities by various Original Equipment Manufacturers (OEMs) and local companies. Noting that present attempt to acquire land at the nation’s free trade zones was a very expensive venture, compared to other investment destinations, they advised government to create the needed laws to encourage investments in such facilities. They also added that, ideally government had no business running businesses like industrial parks in Nigeria. It should be given up to private concerns via publicprivate partnerships (PPP). Mr Ranti Omole, PETA N’s Publicity Secretary, while speaking on how operators in the country can take advantage of the African

Continental Free Trade Agreement (AfCFTA), advised that the country leverages existing frameworks like the AfCFTA, other AU Charters, as well as bilateral frameworks to promote export and free movement of developed capacities. He said, “these tools, if enabled by the right local environment and foreign policies, make operations across the continent seamless and provides ground for companies with developed capacities to integrate into other regions without the needed technical know-hows. Hon. Idagbo said that the General Electric model deployed in Cross River state be deployed by other private investors who need the required skill-set to function in their built facilities. It would be recalled that GE created an avenue to develop local capacities by investing in technical training facilities and adopting the appropriate curriculum to train potential workers so they would be relevant to the operations.

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INDUSTRY NEWS

MG Vowgas collaborates with PE Energy, NCCF; reduce capital flight ....to build deep offshore sea port with international partners By Jerome Onoja

L-R Timi Austen-Peters and Godwin Izomor

ndigenous oil and gas servicing companies, MG Vowgas Limited and PE Energy have set the pace, and charged their counterparts in the oil and gas space to collaborate in order to secure massive projects, create jobs and drastically reduce the ongoing capital flight in the industry. Speaking during the facility visit of MG Vowgas in Port Harcourt, which marked the end of Practical Nigeria Content, PNC 2019, the Managing Director of MG Vowgas, Mr Godwin Izomor stated that, “huge amount of money is leaving the country yearly and it’s only wise for service companies to collaborate, in a bid to stop the trend. Collaboration is the way forward for the industry, as it will promote a vibrant economy and ensure growth of the companies”. “We need to jettison unhealthy competition, come together and take up big projects with different modules of specialties. “MG Vowgas is presently collaborating with PE Energy and we are almost done signing the MoU to carry out some fabrication works. “We have seen SAIPEM, Daewoo and Chiyoda collaborate. What stops us from doing same?” he quipped. Corroborating Izomor’s position, the Chief Executive Officer (CEO), PE Energy Limited, Mr Daere Akobo said, “Competent indigenous companies with the right skills have been identified in Nigeria. So, we should collaborate and not operate in silos”.

He said, “together with MG Vowgas, we are working on a project in which they handle the fabrication, while we do integration of all the electrical systems, control systems, fire and gas, and other works. “All integrations will be done on a facility sitting on 28 plots of land, which we newly acquired,” he added. Speaking on building capacity for in-country value retention, Mr Izomor said, “the Nigeria Liquefied Natural Gas (NLNG) spends over US$180 million annually to service their 26 ships. That’s part of the capital flight we are talking about. So, are we just going to sit back and do nothing? “Consider ships operating in Nigeria. For minor repairs or dry docking, they go to South Africa, Singapore or Europe and we lose all that money! “Up till today, NLNG has about 26 fleet of ships that are serviced and dry docked in Europe and other countries of the world. We are losing all the money due to lack of facilities to cater for these need. “It is high time we built a shipyard in the country. The Nigerian Maritime Administration and Safety Agency (NIMASA) has said, no vessel built outside Nigeria can work in Nigeria by 2024; and we are happy that government has taken the initiative. “This is partly what informed our strategic plan for the next 5 years, when we shall be building a shipyard and a deep offshore sea port”.

Based on projections, the MD said, shipyard and deep offshore port will cost the company over US$2billion. “Our funding will come through European international organisations and banks. But, I must state that we avoid the Chinese. Our business model doesn’t permit that”, he added. However, the MG Vowgas boss had a concern. He expressed disappointment in the level of security. Complaining that companies operating in the Niger Delta set aside huge amount of money to cater for security. He charged the government to create an enabling environment in order to help businesses thrive. “We won’t have been where we are today without the local content law. NCDMB has moved to expand local content to other sectors of the economy, which is a good development, but there is an urgent need for the government to focus on creating an enabling environment, which will help businesses thrive, he explained.” Mr Timi Austen-Peters, the chairman of Nigerian Content Consultative Forum (NCCF) group for Fabrication who was also present at the facility visit said, “This is a project that I commend to International Oil Companies (IOCs) and indigenous producers. We need to patronise ourselves instead of taking the jobs out. Hence, we are seeking projects of sufficient scale to capture the market.” He further added, “we are looking at having an MoU among fabricating companies and other companies with complimentary services in order to create a more formidable entity, such that we can take on the mega projects instead of exporting jobs without regard for the teeming youth population in the country.

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INDUSTRY EVENTS

Crude production efficiency: DPR launches four new guidelines

Shell wins PETAN’s Industry achievements award

hel l compa n ies late November won the Industry Achievement award at the 2019 awards night of the Petroleum Technology Association of Nigeria (PETAN), the umbrella body of indigenous technical oilfield service companies in the upstream and downstream sectors of the Nigerian oil and gas industry. Managing Director, The Shell Petroleum Development Company of Nigeria Limited (SPDC), Osagie Okunbor, was also honoured at the event with the Aret Adams Award for Excellence for leading a formidable team in Shell to deliver value to its partners, stakeholders and particularly the country. PETAN President, Bank-Anthony Okoroafor, said the Industry Achievement Award wa s in recognition of Shell’s consistent outstanding contributions to the development of local content in the Nigerian oil and gas industry over the years. Okoroafor acknowledged the leadership role of Shell companies in Nigeria and described the award was well-deserved. “Indigenous companies look up to Shell and other industry leaders to leverage growth opportunities in the industry,” he said. Managing Director of Shell Nigeria Exploration and Production

Company (SNEPCo), Bayo Ojulari, received the Shell awards on behalf of Okunbor. Speaking on the awards, Ojulari said, “At Shell, we see local content as a critical business enabler, not just a regulatory requirement, and that is why we take cogent steps to encourage community and Nigerian contractors even before the Nigerian Oil and Gas Industry Content Development Act was enacted in 2010.” According to Ojulari, the many ‘intentional steps have matured as contracts and funding and other capacity building initiatives as well as highly rewarding collaborative engagements with Nigerian oil and gas professionals in Scotland and suppliers in China. We are pleased that the milestones have been recognised by PETAN and other organisations.” The PETAN awards came barely a week after Shell companies in Nigeria emerged the top companies to work for in Nigeria according to a survey by Jobberman, an international recruitment website with over 2 million job applicants and 40,000 employers in Nigeria.

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he Department of Petroleum Resources (DPR) has launched four new guidelines for operation in the upstream sector of the oil industry, with the aim to promote efficiency, transparency and accountability. Speaking at a sensization workshop organized by the department for key stakeholders in the upstream sector of the Nigerian oil and gas industry, held in Lagos recently, the new Director of DPR, Engr. Sarki Auwalu said that the guidelines will guide operators on what is expected of them at every stage of their operations. Sarki who was represented by Engr. Enorense Amadasu, Deputy Director and Head of Upstream Division, DPR at the event said, “The essence of our meeting is to engage the industry and sensotize them on the programmes we have embarked upon for the past one year and also to seek more collaborations and for them to buy into our initiatives. “The initiatives will promote efficiency in the industry, promote transparency and meet up with government aspirations by keying into government’s agenda on exploration and to achieve the three million barrels per day (bpd) target by year 2020 and to improve reserves to 40 billion barrels from 37 billion barrels as at today.” He noted that the use of technology has the capability to reduce cost and improve efficiency, especially now that there is uncertainty in the price of crude oil, couple with other challenges like crude theft and vandalism that operators are facing. Giving the stakeholders assurance on the willingness of the department to support them to improve their efficiency, Sarki said,”We will give you all the necessary supports that you need.” The four guidelines launched by the department are: Work Program and Budget Automation; Rig and Vessel Work Process Automation; Drilling/Completion/ Re-entry Work Process Automation; and Nigerian Oil & Gas Content Advertising Portal (NOGCAP).

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LOCAL CONTENT

10 Year Roadmap: NCDMB completes 20 short terms initiatives ...signs deal for 2 Gas Plants, Base Oil Facility

h e N i g e r i a n C o nt e nt Development and Monitoring Board (NCDMB) has completed the i mplementation of 2 0 shor t ter m i n itiatives a s pa r t of the 10 -Yea r Niger ia n C ontent Strateg ic Road map. T he E xecutive S ecreta r y of NC DM B, E n g r. Si m bi Ke siye Wa b o t e s t a t e d t h i s a t t h e o p e n i n g o f t h e 9 t h e d it i o n of the Practical Nigerian C o n t e n t Wo r k s h o p h e l d i n the conference ha ll of the new NC DM B headq ua r ters i n Ye n a g o a , B a y e l s a S t a t e , i n D e c e m b e r, w i t h t h e t h e m e , “Leveraging Local Expertise for Market Growth and Expansion”. He confirmed that 25 initiatives were pla n ned for the f i rst two yea rs of the road map a nd the du rat ion of f ive item s wou ld be extended, add i ng that the percentage of Nigerian C ontent implementation had moved from 26 percent to 30 percent in the la st two yea rs of the 10 -yea r plan. He stated that NCDMB will mark its 10th year anniversar y i n 2 02 0 a nd wou ld orga n i z e 16

a strateg y rev iew ses sion a nd “eva luate the rema i n i ng eig ht ye a r s of t he road map to put i n pl ac e ne c e s s a r y me a s u r e s to meet the 70 percent Niger ia n C ontent ta rget by the y e a r 2 0 2 7.” A s p a r t o f h i s welcome speech, the E xecutive Secretary signed agreements for NC DM B’s pa r tnerships i n the establishment of two gas plants a nd a ba se oi l faci l ity. T he first a g reement wa s w it h D r. M a s o n O g h e n ej o b o of Bu nor r I nte g rate d E nerg y Ltd for t he e st a bl i sh ment of 4 8 , 0 0 0 l i t e r s /d a y B a s e O i l P r o d u c t i o n F a c i l i t y, t o b e located at Greater Port Harcourt A rea, R ivers State. T he second ag reement wa s w ith Mr. L anre Runsewe of Rungas Limited for the esta bl ishment of 40 0,0 0 0 per day Ty pe-3 L PG Cyl i nders ma nu factu r i ng pla nt, to b e developed at Pola ku, Bayelsa State, in pa r tnership w ith NC DM B. T he thi rd dea l wa s executed w ith Eng r. C hi bui ke Achigbu of Chimons Gas Ltd for the establishment of 168,000MT per a n num L PG L oad i ng a nd

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R e c e i v i n g Te r m i n a l , t o b e located at Koko, D elta State. Wa b ote ex p r e s s e d hop e t h at the pa r tnerships would help to reverse capita l f light currently associated with these products, with the estimated turnover put at $ 36 0 m i l l ion per yea r. He tha n ked the G over n i ng C ounci l of NC DM B under the chairmanship of the Minister of State for Petroleum Resources, C hief T i mipre Sylva for g iv i ng approvals for the partnerships. Giv i ng deta i led repor ts of the Boa rd’s achievements, Wa bote repor ted that NC DM B had secured approva ls for the awa rd of n i ne contracts f rom the Federa l E xecutive C ou nci l to progress work on the development of oil and gas parks i n A kwa I b om, Bayel s a, a nd C ros s R iver states, to domici le and domesticate manufacturing i n- countr y. He mentioned that the Board took up equity in the 12,000 barrels per day AZIKEL Hydroskimming Modular in B ayel s a St ate a f ter t he f i r st pa r tnership w ith Wa ltersmith Modular Refinery in Imo State.

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LOCAL CONTENT

s c h e du l e o r s h o d d y j o b s . We mu st t her efor e t a ke pr ac t ic a l steps to ensure that we cu r ta i l the va r ious elements that contr i bute to the hig h cost of pr o duc t ion”. He aver r e d t h at the enti re countr y wa s look i ng up to the sector for i ncrea sed revenue earnings to fund annual budgets a nd develop cr itica l i n f ra str ucture.

He a lso stated that 2 0 ma r i ne cadets sponsored by the NCDMB a re currently oversea s to acq u i re sea-ti me exper ience in inter nationa l waters in Singapore, Australia, USA, Ma laysia, a nd C h i na. He added that “we have set up additiona l 6 IC T labs in various secondar y s cho ol s i n t he l a st one ye a r, bringing the total to 24. We have tra i ned over 1,0 0 0 teachers a s part of the Board’s inter vention i n S T E M e d u c at i o n .” G i v i n g i nsig ht i nto the Boa rd’s pla ns for ye a r 2 02 0, t he E xe cut ive S e c r et a r y s a i d t h e r e w i l l b e roll-out of supplier development prog ra ms usi ng ou r i ndustr ia l pa rk s a s a platfor m, i nclud i ng synergies with NCEC applicants.

a nd i mplement the ha r mon i zed f r a mework for M a r i ne Ve s s el Categorization. He also reported that NCDMB had finalized power supply a r ra ngement for its new Headq ua r ters bui ld i ng a nd the Oi l a nd Ga s pa rk at Emeya l-1, Bayelsa State a nd a power provider for the park in Calabar ha s a lso been identi f ied. With r e g a r d s to t h e S e c to r i a l a n d Reg iona l Ma rket L i n ka ges, he stated “the Boa rd ha s been co opted by the Federal Government into the L oca l C ontent Work ing C om m ittee of the 3,050M W Ma mbilla Hydro Electr ic Power Pla nt to lin k the capacities a nd capa bi l ities bui lt i n the oi l a nd ga s sector i nto the del iver y of the mu lti-bi l lion dol la r project.

He said the Board will also ta ke up 40 ma r i ne cadets for seati me tra i n i ng; upg rade two vocational education institutions a n d s et- up f i ve I C T L a b s i n secondar y schools. NCDMB will also train another batch of 1,000 te acher s i n S T E M E duc at ion. Other plans include the planned commis sioning of 5,0 0 0 ba r rels p er day Wa lter sm it h Mo du la r Ref i ner y i n itiative, completion of the NCDF Remittance Forensic Audit v isitations a nd w rap up of the tr ipa r tite reconci l iation ses sions by 31st D e cem b er 2 019. Sp e a k i ng f ur ther, Wa bote confir med that NC DM B i ntend s to rol l- out a L o c a l c ontent i mplement at ion r e c o g n it ion pr o g r a m i n 2 0 2 0

“I n the comi ng yea r, we i ntend to extend our collaboration with sister agencies and other MDA’s to enhance enduring partnerships that suppor t the patrona ge of l o c a l i n v e s t o r s .” D e l i v e r i n g his M inister ia l Addres s, C hief T i m ip r e Sy l v a , c h a r g e d l o c a l vendors to deliver premium services and support the Federal G over n ment’s strateg y of usi ng L o c a l C ontent to d r ive dow n the cost of crude oil production, increa se the contribution of the oil sector to the Gross Domestic P roduct (GDP) a nd g ua ra ntee the secur ity of oi l production. H e s a i d o p e r ato r s “mu s t n ot a l low L oca l C ontent to become a n excuse for cost over r uns, sl ippa ge s i n project del iver y

T he M i n i ster a l so com mended N C D M B fo r t h e d e ve l o p m e nt of it s 17 stor ey he adq ua r ter s bu i ld i n g, w it h a World C la s s C on ference C entre r ig ht i n the hea r t of the Niger D elta, executed by a wholly Indigenous Construction Company, Megastar Te c h n i c a l a n d C o n s t r u c t i o n C ompa ny L i m ited. He tha n ked P resident Mu ha m madu Bu ha r i a nd the Federa l E xecutive C ou nci l for g ra nti ng ti mely approvals which helped to speed up the completion of the project. Accord i ng to hi m, the bu i ld i ng ser ve s a s a strong atte station o f M r. P r e s i d e n t ’s l o v e a n d commitment to the development of the Niger D elta Reg ion. He further charged multinational oil compa nies a nd their indigenous counter parts to ta ke a cue from NC DM B a nd enga ge more loca l contractors i n va r ious projects i n the oi l a nd ga s i ndustr y.

“

I n the coming year, we intend to extend our collaboration w ith sister a gencies and other MDA’s to enhance enduring partnerships that support the patronage of local investors.”

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LOCAL CONTENT

Wabote commissions TECON’s Rigs, Visits Xirea Apparel

he Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has commissioned two Snubbing Rigs/Hydraulic Workover Units – ISS 340k and ISS 460k – acquired by TECONN IGE R BL OS SOM Group, a n indigenous oilfield services company. The company executes several activities, including Oil Well Fishing, Casing and Tubing Running, Oil Well Snubbing/Hydraulic Workover S er v ices, Machine shop/ Tool Fabrication and many others. The company had provided services for multinational companies within Nigeria and in countries such as Congo and Ghana. Speaking at the event, the Executive Secretary commended TECON for acquiring the assets despite the huge capital outlay and skills required to operate them safely. He noted that about 300,000 barrels of crude oil are locked-in and require well intervention techniques such as snubbing to unlock. 18

He expressed the Board’s excitement that the unique area of need had got the attention of a local company to help access some of the industry’s locked-in production. He emphasized that asset ownership represented one of the key yardsticks used by NCDMB to define a Nigerian company as contained in the provisions of Nigerian Content Act. “Acquisition of these types of assets buttresses the point that there are genuine Nigerian businesses that are not middlemen or commission agents but are truly on ground and are positioned to offer top-notch services in-country,” he added. Wabote also hailed the company’s expansion plans, including the development of an Energy Park at the Oginigba Waterfront, which will serve as multi-service center for Fabrication, Supply Base, Marine Construction and Machine shop. He stated that “the Board is proud to identify with this type of growth mindset because it tallies with our

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10-year strategic roadmap aimed at increasing the level of Nigerian Content in the oil and gas sector from current levels to 70% by the year 2027.” In a related development, the Executive Secretary visited Xirea Apparel in Port Harcourt as part of the efforts to assess in-country capacities in the oil and gas sector. Speaking during the visit, the Chief Executive Officer, Aerix Group, Mr. Obinna Frederick Eneh said the company was established to “serve independent clothing brands, organizations such as the Military, Oil & Gas companies and E-commerce retailers by satisfying their garment sourcing and production requirements”. In his response, the NCDMB chieftain commended the company for employing young Nigerians, especially women and training them in the business of industrial garment manufacturing.

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LOCAL CONTENT

Executive Secretary lays foundation for PE Energy Centre for Excellenc

he Executive S e c r et a r y, Ni g e r i a n C ontent D evelopment and Monitoring Board ( N C D M B), E n g r. S i m b i Wa b ote r e c e nt l y p e r fo r m e d the foundation lay i ng of PE Energ y C entre for E xcel lence in Port Harcourt, R ivers State. T he faci l ity wh ich s e at s on a 10, 8 0 0 s q u a r e m ete r s o f la nd w i l l prov ide ser v ices s u c h a s Va l v e s a s s e m b l i n g & Automation, HIPPS A s s em bly a nd I nte g rat ion, Meter i ng Sk ids A s sem bly a nd C a l i bration, Automation a nd C o nt r o l S o l u t i o n s , P r o c e s s Solutions, Integrated Services including packaged substations & Control Panels. Speaking at t he o cc a sion, t he E xe cut ive Secretar y commended PE Energ y limited for their c o nt r i but io n to t he g r ow t h of the Niger ia n Oi l a nd Ga s sector a nd the g row th of the Niger ia n C ontent.

H e f u r t he r s t ate d t h at t he C enter of Excellence will also a ssemble E a rly Production Facilities (EPF ’s) and Mobile P roduction Un its (MOPU’s) wh ich a re ver y es sentia l i n ou r c ou nt r y’s a s pi r at ion to increase oil and gas production. According to him, “Instrumentation C ontrol and Automation is a key a rea of interest to the Boa rd a nd ha s a very wide application beyond t h e o i l a n d g a s i n d u s t r y. W hen completed a nd f u l ly operationa l wou ld be uti l i zed a s a C enter of E xcel lence for Human C apacity Development in the area of Instrumentation C ontrol a nd Automation”. He a lso applauded the compa ny for contributing to the r e s u r ge nc e o f Tr a n s A m a d i a s a n i ndustr ia l a rea where i nve s to r s s h o u l d m ove i nto for their businesses to thrive. Wa b o t e a p p r e c i a t e d t h e International Operating Companies for their support in the successful implementation

of Niger ia n C ontent a nd enc ou ra ge d t hem a nd ot her Oil and Ga s ser v ice prov iders to see investments a s a mea ns of cost reduction a nd enhancement of the reliability and availa bility of their production faci l ities. In his remarks, the Chief E xecutive Off icer, PE Energ y L i m ited, Eng r. Daere A kobo c om mende d NC D M B for it s s t r ate g ic i mple me nt at io n o f the Nigerian Oil and Ga s Industry Content Development (NOGIC D) Act 2 010, noti ng that PE E nerg y l i m ited i s a Nigerian wholly ow ned e sta bl i sh ment. He soug ht for more suppor t f rom other international oil and servicing companies in the development o f t h e f a c i l it y s o it wo u l d b e c o m e a hu b fo r O r i g i n a l E q u ipment Ma nu factu rers (OE M s).

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LOCAL CONTENT

Capacity Building Strategies must evolve with tech trends-Wabote

He remarked that massive technological changes were taking place in the industry, including the operation of FPSOs with zero personnel on Board, and robots carrying out underwater inspections and repairs. He added that “the Board wants to champion the industry readiness for change by implementing the human capacity development initiatives from this moment. We need to sow the seeds today so that we will reap the benefits 10-years from now.” He sought for the collaboration of the stakeholders, noting that the Board cannot do it alone.

to modify our training curriculum. The design, mode of delivery, and the desired outcome need to be looked into. The key outcomes should be employability and entrepreneurial skills. It should be such that the training will impact skills that employers are in dire need of. “It should also be possible for the trainee to choose to be an entrepreneur based on the knowledge acquired at our project-based or direct-intervention trainings.” He also harped on the need to provide learning infrastructure for the critical skill areas, a good example being the Board’s partnership with Aker Solution in the development of Subsea Learning Center in Yenagoa. He stated that “we need something similar for Instrumentation, Control and Automation. We look forward to delivery of our collaboration with PTDF on the completion and utilisation of the Skill Acquisition Center here in Port Harcourt.” Wabote also charged the industry to re-ignite the passion and respect for Vocational Education in the country and accord respect to vocational skills such as scaffolders, welders, carpenters, and the rest.

According to the Executive Secretary, “one of the areas to address is the need

Giving a report on NCDMB’s performance in human capacity

he Nigerian oil and gas industry needs to modernize its hu ma n capacity development frameworks and strategies to meet technological changes and emerging trends in our industry and society. The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote gave the advice recently at the 2019 human capacity development workshop organised by the Board in Port Harcourt.

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building, the Executive Secretary said the Board have so far delivered close to 9million training manhours across the project-based and direct intervention training. He also confirmed that NCDMB have put in place 60-20-20 training model, in which 60 per cent of the Board’s and industry’s training resources and efforts will be devoted to providing young Nigerians with specialized skills they need to secure employment. He added that “under the new strategy, beneficiaries are provided with qualitative skills and international certifications that will position them for employment within and outside Nigeria. Twenty percent of the training is geared towards improvement of the productivity of already employed personnel while another 20 percent of spend on training is used for trainings on soft skills.” He reported that a key outcome of the Board’s HCD interventions is that Nigerians now successfully operate fields divested by multi-nationals. “We have indigenous companies with world-class capacities. We regularly export part of the skills acquired outside the shores of the land.”

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LOCAL CONTENT fuel consumption and improving Tu r n A r o u n d M a i n t e n a n c e (TA M) time. “A ser ious study is going on currently to see the thi ngs that wou ld be pos si ble on the Island of Brass in order to br i ng dow n our cost of production.” commenting on the donation of a la borator y a nd IC T C entre to the seconda r y schools i n Bra s s, he sa id that it wa s pa r t of effor t to bu i ld capacity of Niger ia which wa s in line with the mandate of the b oa rd. “C apacity bu i ld i ng i s one of NCDMB’s key objectives a nd the a gency had decided to promote such effor ts f rom the pr ima r y school level up to the un iversity level.

NCDMB, waltersmith petroleum to construct modular refinery in Brass Island

he Nigeria n C ontent Development and Monitoring Board ( N C D M B), s a y s i t w i l l pa r t ner Wa lter sm it h Pet roleu m Ltd. to constr uct a modular refinery in Brass Island in Bayelsa. T he E xecutive S ecreta r y of the board, Mr Simbi Wabote disclosed this i n a statement is sued by the B o a r d’s M a n a g e m e nt i n A b uj a on T hu r s d ay. He sp oke at t he commissioning of a modular science la borator y at Model G over n ment S e c ond a r y S cho ol, Twon Bra s s a nd a n I n for mation Communication Technolog y (ICT) C entre at G over nment S econda r y S chool Okpoa ma, both i n Bra s s L o c a l G over n ment A re a of t he state. According to him, a number of i nvestments oppor tu n ities a re bei ng considered by NC DM B for Brass Island. “They include siting a modular refinery in partnership w ith Waltersmith Petroleum Ltd. a nd uti lising feed stock f rom the Niger ia n A g ip Oi l C ompa ny, which operates i n the location. “It i s a l so a ver ita ble lo cation for even a d r y dock faci l ity or a f loati ng dock faci l ity. “NC DM B is cur rently study i ng a strateg y

for establishing and enhancing all the existing dr y dock facilities to ma i nta i n our ships, l ig ht cra f ts a nd a lso expa nd our i nteg ration ba se i n the countr y. “Bra s s I sla nd development w i l l force dow n oi l production cost,” he sa id. He noted that the Isla nd a s a strateg ic location, had the c l o s e s t p o i nt f r o m w h e r e o n e could access many of the Floating Production Storage and Offloading (F P S O) plat for m s t hat op erate off the shores of Nigerian waters, i nclud i n g B on ga ma i n. Wa b ote s a id t hat s ome of t he of fshore oi l a nd ga s f ields were cur rently being accessed from fa r locations l i ke L a go s, w ith con sidera ble co st i mpl ic ation s. He s a id t hat developi ng a nd uti l i si ng nea rby lo c at ion s l i ke Br a s s I sl a nd for oi l a nd ga s log i stic s operation s would help the industr y meet the recent cha rge by the M i n ister of St ate for Pet r oleu m R e s ou r c e s fo r p l ay e r s i n t h e i n du s t r y to ensure a sig n i f ica nt reduction i n the cost per ba r rel of Niger ia’s cr ude oi l pr o duct ion. “Pa r t of the strateg y i s to site log i stic s req ui rements where it is ea sy to acces s, reduci ng ti me,

“S o fa r, NC DM B had donated 25 IC T centres to seconda r y schools across the countr y and built the capacity of teachers in some states as part of its capacity bui ld i ng a nd cor porate socia l responsibility prog ra mmes. “We bel ieve i n en ha nci ng the quality of Science, Technology, Eng i neer i ng a nd Mathematic s ( S T E M ) e d u c a t i o n .“ I t i s s ad t h at i n s ome s e c ond a r y schools, particularly in remote locations, students a re taug ht these su bjects w ithout a ny pract ic a l ex p er ienc e. “O u r strateg y goi ng for wa rd i s to encou ra ge ST E M education a s wel l a s IC T i n seconda r y s c h o o l s a c r o s s t h e c o u nt r y. “ T he s e d ay s ever y ent r a nc e examination is done online and i f we don’t sta r t i ncu lcati ng those k nowledge i n seconda r y students, most of them will fall behind in meeting up w ith the IC T a ge,” he sa id. On strateg ies for ma i nta i n i ng the centres, Wabote explained t h at NC DM B h ad i n st it ute d a su st a i n a bi l it y pr o g r a m me, which includes a one yea r ma na gement a r ra ngement a nd training of staff and locals t o o p e r a t e t h e c e nt r e s . H e a s su re d t hat NC DM B wou ld r u n p er io d ic a s s e s s ment s of the faci l ities a nd develop new strategies to sustain them. “We have a strateg ic objective a nd a pla n to fol low throug h on most of these centres we have esta bl ished for susta i na bi l ity. For u s, it i s a n end to end thinking in most of these a c t i v i t i e s w e a r e d o i n g ,” Wa bote sa id.

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PNC 2019 PHOTOSPEAK

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YEAR-END PARTY PHOTOSPEAK

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ACROSS AFRICA

Somalia’s Upper House Equatorial Guinea announces approves new winners of EG Ronda 2019 bidding round petroleum law

quatorial Guinea’s Ministry of Mines and Hydrocarbons has announced the winners of the 2019 licensing round for its oil, gas and mining acreage. Officially launched in April, the round received interest from 53 international and national companies, with 17 companies submitting official bids and seven companies awarded concessions for nine blocks. Block EG-27 (formerly Block R) in the Niger Basin, was awarded to Russian energy multinational Lukoil and GEPetrol. Block EG-23 in the Niger Basin, which hosts the Estaurolita gas discovery, was granted to WalterSmith, Hawtai Energy and GEPetrol. EG-09 in the Duala Basin was awarded to Noble Energy and GEPetrol. In the Rio Muni Basin, EG-18 was awarded to Africa Oil Corporation and GEPetrol; EG-03 to Vaalco Energy, Levene Energy and GEPetrol; EG-04 to Vaalco Energy, Levene Energy and GEPetrol; EG-19 to Vaalco Energy, Levene Energy and GEPetrol; Block P to Vaalco Energy, Levene Energy and GEPetrol; and Block EG-28 to GEPetrol. “This demonstrates that Equatorial Guinea can attract significant interest of investors in the petroleum community. Hopefully, next year we will attract even more investments to our country,” H.E Gabriel Obiang, remarked.

The Ministry of Mines and Hydrocarbons has also signed a cooperative agreement with Russian geological research company Rosgeo and Venezuelan state-owned oil company PDVSA for the study of prospective onshore mining area on the country’s mainland. The Ministry aims to sign production sharing contracts as soon as possible to enter into the next phase of negotiation. To work more collaboratively with potential investors, all of the blocks were offered on a drill-ordrop basis, with a reduction of signature bonuses to a minimum of $1 million and elimination of all pre-qualification requirements. The drill-or-drop policy provides each company with an initial two-year period to explore, process seismic data, define well locations, bring in additional investment, if necessary, and begin drilling. Only after this period, in which a company has the opportunity to evaluate and reduce its risk from the data obtained, will the company have to decide whether it wants to proceed with the exploration well or relinquish its license. Equatorial Guinea’s next licensing round will take place in 2020 and will include a different set of criteria by which to select potential blocks and new acreage on which to bid.

he upper house of Somalia’s parliament has approved a new petroleum law, which aims to provide a regulatory framework that will help to attract investment in exploration by major oil companies. The country currently does not produce any oil but production could transform the economy as seismic data has shown there could be significant oil reserves offshore. The new law will establish revenue sharing between the central government and states and will provide a legal framework for an industry the country hopes will bring jobs after decades of conflict. “This is a major step forward for Somalia and its people as the petroleum law is approved by the upper house and moves closer to completing its legislative process,” Abdirashid Mohamed Ahmed, the minister of petroleum and mineral resources, said in a statement on Monday. The legislation still needs to be signed by the president before it can come into effect. In November, Ahmed told Reuters Somalia, which has been marred by violence since clan warlords overthrew a dictator in 1991, was planning to announce its first ever oil and gas licensing round off the country’s coastline in December. Government hopes the petroleum law will help to entice big oil companies like ExxonMobil and Shell to return to the country where they held legacy blocks from the 1990s. Last October, the two companies paid $1.7 million owed to Somalia for leasing these offshore blocks, although operations there remain suspended. Source: Radio Dalsan

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ACROSS AFRICA

South Africa seeks 20% passive interest in oil E&P rights 20% is the minimum passive interest that the South African state plans to control in oil exploration and production projects. This is provided for in a bill under preparation. The text also provides for a participation of at least 10% for black partners and the creation of an Petroleum Agency which will regulate the sector. This project was published in advance last week by the Ministry of Mineral Resources and Energy in the Official Journal. It must be said that the bill separates the rules governing the petroleum resources sector from the laws that apply to mineral exploration. The dissemination of this information is intended to reassure investors, because in recent years, exploration companies like Shell have slowed down their activities in the country on the grounds of legislative uncertainty. The finalization of the petroleum code has also become urgent since Total announced last February, the first significant discovery in deep waters, off the coast of South Africa. It is a large deposit of natural gas condensate on block 11B / 12B in the Outeniqua basin.

Source: Agence Ecofin

Woodside’s SNE field renamed off Senegal

enegal President Macky Sall has chosen to rename the Woodside Petroleum-operated SNE development, located 100 kilometres offshore to the south of the capital Dakar, as the Sangomar field “to better reflect its association with the people of the Senegal”, Australian independent Woodside operates Sangomar with a 35% stake alongside UK explorer Cairn Energy 40%, Australian junior FAR Ltd 15% and state-owned Petrosen 10%. The surrounding acreage, combining parts of several former blocks, is known as the Rufisque-Sangomar-Sangomar Deep (RSSD) licence where the SNE find was made on the Sangomar Deep five years ago this month, refocusing attention on the Mauritania-SenegalGambia-Guinea-Bissau-Conakry (MSGBC) basin. Sangomar is the geographical name for an island located at the southern point of the so-called Petite Cote, the coastline that runs south from Dakar, home to the Serer people and part of the Saloum Delta National Park, an eco-paradise of sandy islets, mangrove-lined creeks and woodlands. Entering into the spirit of this change of nomenclature, Woodside partner

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FAR highlighted that “the Sangomar field development will deliver key benefits to the country via revenue generated throughout the life of the project, vital for the country’s 2030 Emergent Plan for development”. The Sangomar field development will generate up to $4 billion of direct revenue for the government during the first development phase in addition to revenue resulting from state-owned Petrosen’s equity participation, FAR said. Joint venture partners Woodside, Cairn and FAR are still aiming for a final investment decision by the end of the year, with Woodside chief executive Peter Coleman meeting Sall last week to iron out the remaining obstacles. With five billion barrels of oil in place, phase one will target 230 million barrels of oil and a peak gross output of 100,000 barrels per day, while phase two promises an additional 253 million of resources. All phases combined may develop an estimated 643 million of oil equivalent resources, according to FAR – “and tremendous upside in the field remains from improved recovery factors”.

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INFRASTRUCTURE He added that with Nigeria having the largest road network in West Africa, a regional road network plan was necessary as it would have a direct impact on the Gross Domestic Product (GDP) of West African states. In his remarks, the South Africa’s Deputy High Commissioner to Nigeria, Booby Moore, said the collaboration between Nigeria and South Africa on PPP-driven Infrastructure development was vital for the continent, because of the economic size of both countries. He promised that the initiative would spread to other economic sectors such as rail transport and aviation to ensure trade facilitation.

ICRC: Road transport infrastructure will speed -up development

uilding effective, quality road transport infrastructure has been described as the fastest way of driving full-scale development in African communities. This can only be achieved through bankable Public Private Partnerships (PPP). Engineer Chidi Izuwah, DirectorGeneral of the Infrastructure Concession Regulatory Commission (ICRC), stated this at the maiden Nigeria-South Africa Road Transportation Infrastructure and Public-Private-Partnership (PPP) collaborative initiative held in Abuja. “Through road networks, linking up population centers, rural communities with industrial clusters will lead to shared prosperity,” Izuwah said. “Roads not only link up communities and cities, they also drive technology.”

Nigeria currently has an expansive road network that spans nearly 200,000 km, but budgetary constraints have forced the Federal government to adopt a hybrid of direct budget allocation and the PPP template to meet the nation’s road transportation needs. Consequently, the event – an initiative of ICRC and Federal Road Maintenance Agency (FERMA) in collaboration with the Development Bank of Southern Africa – is to serve as a catalyst for producing and supporting West African-focused regional transport and logistics infrastructure development programme.

Public private partnership key to unlocking Nigeria’s LPG potential – ICRC boss Chidi Izuwah

r Chidi Izuwah, Director General, Infrastructure C once s sion Reg u lator y Commission (ICRC) has said Public Private Partnership (PPP) was pivotal to unlocking Nigeria’s Liquefied Petroleum Gas (LPG) potential. Izuwah spoke during a panel session at the 2019 Nigeria LPG Summit in Lagos, jointly organised by the Nigeria Liquefied Petroleum Gas Association (NLPGA) and LPG Summit, based in Singapore.

Ghana, South Africa and Senegal. He noted that the Federal Government, under the leadership of President Muhammadu Buhari, was committed to using PPP to develop Nigeria’s infrastructure across all sectors of the economy, including oil and gas. Izuwah said: “The ICRC is saddled with the responsibility of monitoring and ensuring the efficient execution of all PPP projects entered into by Ministries, Departments and Agencies on behalf of the federal

The News Agency of Nigeria (NAN) reports that the summit has the theme,” LPG: Harmonising Development and Growth in Nigeria and Africa.” Izuwah said Nigeria’s gas reserve was enormous, hence there was need for more local and foreign investors to come into the sector to help develop it. According to him, Nigeria is lagging behind in LPG penetration when compared to its African counterparts like

government. “As at July 2019, there are 69 post contract PPP projects under implementation in Nigeria and from 2010 to 2018, we have been able to attract $8 billion investments to the country through PPP.” He noted that opportunities in the LPG industry included production, supply, retail, distribution and manufacture of equipment such as cylinders and skids. Also, Mrs Nkechi Obi,

Vice Chairman, Techno Oil Limited, urged the Department of Petroleum Resources (DPR) and Standard Organisation of Nigeria (SON) to check the influx of substandard LPG (cooking gas) cylinders into the country. Obi said: ” We have set up a manufacturing plant where we are producing very high quality cylinders here in Lagos. “We are asking the government to discourage substandard imports from coming in through taxation so that our business can thrive.” Similarly, Mr Ahmad Damcida, Chief Executive Officer, Energy Culture Limited, said the DPR should ensure that all importers of cooking gas cylinders are properly licensed while SON should step up its certification processes. Damcida said there were specifications that must be adhered strictly to, noting that the age of some of the cylinders being brought into the country was unknown to the authorities.

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POWER

INFRASTRUCTURE

FG moves to ensure skilled PPP manpower pool

s part of efforts to ensure a skilled pipeline of PPP professionals in Nigeria, the Federal Government through the Infrastructure Concession Regulatory Commission (ICRC) has taken practical steps towards the training and retraining of PPP practitioners with the successful registration of the Nigeria Institute of Infrastructure and Public Private Partnerships (Limited by Guarantee) by the Corporate Affairs Commission. This was made known by the Director General of the ICRC, Engr. Chidi Izuwah Snr in a congratulatory message to staff recently.The move which is consistent with a key aspect of the Commission’s mandate, is set to revolutionize the teaching and learning of key concepts in Public Private Partnership. The Institute which is similar in structure and form to what is obtainable in South Africa and Turkey, is expected to become operational in 2020. 28

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Nigeria To Attain 20,000MW Electricity Transmission Capacity- TCN

or effective power supply across the country and to boost its economy in 2023, Transmission Company of Nigeria (TCN) made it known that Nigeria’s electricity transmission capacity may attain 20,000 megawatts (MW). Although the current capacity hovers around 8,100MW but in real term, only an average 4,00WM is wheeled to consumers, Managing Director of TCN, Usman Mohammed, had also disclosed that Nigeria can achieve a wheeling capacity of 10,000MW in 2020. Speaking in Abuja on the capacity that would be realised by implementing the Transmission, Rehabilitation and Expansion Programme (TREP) policy of the company, TCN General Manager, Public Affairs, Ndidi Mba, said the agency has energised another brand new 100MVA 132/33kV power transformer installed in Ogba Transmission Substation in Lagos. According to Mba, “TCN is working assiduously to implement the Transmission, Rehabilitation, and Expansion Programme (TREP) under which the capacity of the company will be expanded to 20,000MW by 2023.” However, there is a need for commensurate distribution capability to improve supply of electricity to consumers, Mba noted that the new transformer, which was installed under the supervision of TCN’s engineers has increased the capacity

of the substation from 165MVA to 265MVA. The TCN publicist disclosed that “Prior to the installation of the 100MVA power transformer, Ogba Substation had a total of two (2) units of 60MVA 132/33kV power transformers, and one unit of 45MVA 132/33kV mobile power transformer. To ensure optimal utilisation of the newly installed power transformer, a brand-new switchyard made up of 132kV, 33kV and three number 33kV feeders were equally installed and commissioned.” She said the increase in the substation’s capacity from 165MVA to 265MVA, means that the substation has more bulk electricity available for Ikeja Disco to take to its customers within Ikeja Industrial Area, Ogba – Ijaiye, Agege Pen Cinema, Mangoro Cement, Ojodu and Ifako-Ijaiye areas of Lagos. Mba added that to optimise the capacity of the newly-inaugurated 100MVA at Ogba and other substations feeding Ikeja DisCo, TCN imported high capacity conductors, and would soon conclude on the re-conducting contract that would expand the transmission lines under IKEDC to double the current capacity. TCN gave hope and reassures that transmission will be improved despite itches in the country’s power sector.

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POWER

Electricity tariff: there will be no increase without consultations — NERC

he Nigerian Electricity Regulatory Commission (NERC), says there will be no increase in electricity tariff without consultations. Prof. James Momoh, the Chairman of NERC said this at a news conference in Abuja recently. According to him, what the commission has done is a tariff review which is usually done twice a year. NERC had on Saturday published new tariffs for the different DisCos and categories of customers on its website which was signed by its chairman and Secretary Prof. James Momoh and Dafe Akpeneye respectively. The commission said that the order super-ceded the earlier one issued on the subject matter, and “the new tariff regime takes effect from Jan. 1, 2020.’’ NERC noted that the order had taken into consideration other actual changes in relevant macroeconomic variables and available generation capacity as at Oct. 31, 2019. The commission said the order was in line with updating of the Multi Year Tariff Order (MYTO) operating -2015 Tariff Order for 2019. According to NERC, this is in line with provisions of the amended MYTO Methodology.

“Projections are made for the variables for year 2020 and beyond based on the best available information. “The commission, however, based adjustments in the tariff on the relevant data obtained from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) such as average monthly inflation rate of 11.3 per cent, exchange rate of N309.97.’’ It said that projections are made for the variables for Year 2020 and beyond based on the best available information It also added that it obtained its data on inflation rate from the U.S. inflation which projected 1.8 per cent for the period of January to October 2019. According to the commission, the price of gas, which is one of the MYTO variables 2.50 dollars per MMBTU and its transportation, is 0.08 dollars per MMBTU. The announcement of the increase in tariff have continued to elicit criticisms from Nigerians. He said that the first minor review of the MYTO was done in June 2019, and “the review we are trying to do in January’’. “We have done the review and is subject to public consultation and in the next three months, the entire

commissioners and myself will be running from place to place to inform Nigerians for consultation. “We have done our review and we have given a report card of what we saw on all the indices of doing a review. We have not said it is binding tomorrow morning, so we have to do the next thing which is consultation. “The order is simply an indication of what we have done as a regulator on what it takes to increase or decrease tariff, if at the end of our meeting back and forth, we said no increase and if there is increase it will be based on engagement at the public forum,’’ he said. In another development, Momoh said that NERC in collaboration with Howard University, with support from the National Science Foundation (NSF), U.S would be organising an international conference on Power System Operations and Planning (ICESOP) 2020 He said that the conference which is scheduled to hold from Jan. 20 to Jan. 23 has as its theme: “Empowering Micro Grid with Smart Grid Attribute to Development’’. “The conference, a bi-annual event that was first held in 1992 in Nigeria, would focus on challenges in the power sector across the world.

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COVER STORY

By JEROME ONOJA & AMOS IKE

INFRASTRUCTURE: IBOM, LEKKI DEEP SEA PORT FUNCTIONAL BY 2022. ....Digital system to clear gridlock in coming weeks Bala-Usman, NPA Boss By JEROME ONOJA

s Hadiza Bala-Usman, was appointed the Managing Director of Nigeria Ports Authority by President Muhammadu Buhari in July 30

2016. Before her appointment as the first female Managing Director of the Nigerian Ports Authority (NPA) in its 63 years of existence, Hadiza worked at the Bureau of Public Enterprises

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(BPE), after which she was hired by the UNDP for the Federal Capital Territory Administration as Assistant to the Minister on project implementation.

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COVER STORY She is currently pursuing an aggressive 25-year port development plan that would prepare the NPA for the future of the global maritime industry. In this interview with JEROME and MARGARET, she spoke about the short, medium and long term goals of NPA. She also bares her mind on the right attitude of a winning female professional. What is the 10-year strategic plan of the President Muhammadu Buhari administration as regards the nation’s ports? We want to ensure that our ports are competitive by providing the needed infrastructure. This is by developing our deep sea ports because the trend is going towards having deeper draughts and having larger vessels. So, Nigeria needs to have those deep sea ports to ensure competitiveness. For us, this decade defines the need to expand and have deep sea ports within our country and to deploy automation in our port locations. That is, having a Single Window system, which is a tool that would facilitate interaction between all government agencies that are operating in the port. Therefore, this decade is geared towards these two critical achievements. As regards deep sea ports, how is that coming along against the backdrop of government’s prohibitive directive on acquisition of foreign built vessels, two years from now? As it relates to deep sea ports, we have Lekki deep sea port currently under construction.

“

Her wide-ranging impact on these positions culminated in her appointment as the Chief of Staff to the Executive Governor of Kaduna State, again, the first female to be so appointed in that part of the country.

Concerning automation, are there specific plans? Well, it is an existing tool that other ports have. It’s called a Single Window system. Other countries typically have various names for it, but it’s a trade facilitation tool that needs to be deployed. The lead agency on that deployment is the Nigerian Custom Service (NCS); then we will have all other government agencies plug in. This would seek to reduce human intervention in the processes. That way, you can sit from home and clear your cargo. We also seek to ensure that customs deploy the necessary scanners in the port locations. This is an integral part of trade facilitation that is currently absent in our operations. We have a situation where our cargoes are all physically examined and that definitely translates to delay. That is contrary to what is obtains in ports around the world, where cargoes are scanned and items in them identified through the xray. These equipment need to be deployed. Back to the Single Window system; as the Customs are working on deploying the needed equipment, we are doing everything to provide the necessary infrastructure for larger vessels, and to institute an intermodal transportation for cargo evacuation. One of the challenges we had is that our port locations are not all connected to the rails as we need to have rail connection to the terminals. However, this is currently being done as you must have seen aggressive rail projects that is ongoing nationwide. Right now, there’s an ongoing linkage of the Lagos port to the rail there. In fact, certain demolitions of warehouses in the port are being carried out to make way for the rail tracks construction.

This is a project we have embarked on, and we are focused on seeing it come into operation in the next two years.

Aggressive pursuit of digitization will ensure increased traffic from efficiency, and eventually increased revenue. Does NPA have the capacity for an increase in activities from all over the world?

We also have the Ibom deep sea port that is also ongoing. We are going to make the necessary reviews of the outline business case and provide the necessary approval. These initiatives will allow vessels of any size come into Nigeria. Our ports will then be able to comply with restrictions around vessel types and ensure that those specifications are met and that we have the necessary infrastructure for those big vessels to come and berth in our ports.

Yes! This is why we are talking about having deep sea ports and expanded scope of access for vessels that are calling into our port. We noted that for every increase in infrastructure and digitization, expect a commensurate increase in the volume of activities. We are mandating and tasking our terminal operators to have the necessary equipment for cargo offloading. We regulate the activities of the terminal operators that are operational in port locations. We ensure that they provide

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COVER STORY the necessary equipment like the cranes needed to move the cargoes from the vessels. We are enforcing that they need to be up to date with the current modern equipment that will facilitate faster offloading of cargoes. It excited a lot of stakeholders to see you revoke the Secure Anchorage Area fees which comes to about US$133 million. What spurred that decision and are we likely to see further sanitisation? Absolutely. We felt that vessel owners should not be charged for calling for security when they’re coming into our ports. What existed was a secure area where vessel owners are required to pay US$2,500 on the first day for anchoring their vessel at the anchorage area. And we felt that no vessel owner should be made to pay for his vessels being secured in Nigeria. That doesn’t exist anywhere in the continent, so we cannot do that. We need to make our ports competitive, ensuring that we reduce the cost of doing business. That amount of money that is being paid by the vessel owner, automatically transfers into the cargo, and from the cargo to the consumers. So there’s a clear linkage. And I believe that a lot of times when we speak about making our country more competitive, reducing the cost of doing business, these are the activities or actions that increase the cost of doing business. So we must take concise actions. We cannot pay lip service and not take deliberate steps by removing such projects that we feel challenge our cost of doing business. Nigeria Navy and NIMASA are mandated to provide the security in the water ways. So, that should come at zero cost to the vessel owners. That is our position

“

If the Navy feels it lacks the capacity to secure the waterways and wants to engage the services of a thirdparty contractor, then they should.

I believe that action was in obedience to the Presidential Executive Order (EO1). Again, we recently saw you move against the customs as regards multiple 32

layers of scrutiny. How is that coming along? We felt that the Executive Order was required for all agencies to have a single interface of cargo inspection, and that interface is where all agencies do the inspection. After the inspection is done, the cargo is free to go because it has been certified. Having other layers of inspection outside the port or on the highway is duplicity and it hinders efficiency, as well as the ease of being business in Nigeria. That was the directive signed in the Executive Order. Following that, we observed that some agencies of government were not complying. Nigeria customs had units at port gates and outside the port locations; the Nigeria Police Force were stopping containers on the road, requesting same documentation which had been done at the port. That defeats the purpose of the Executive Order issued by the President. About the Apapa gridlock , what immediate and long-term solutions are you proffering? In the long term, it is having intermodal transportation for cargo evacuation..

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It is not sustainable to evacuate 95% of the cargoes from a port via road.

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It gets congested, and eventually the road networks become bad. So it’s important for us to have an intermodal to mini rail evacuation, inland waterways evacuation, pipeline evacuation. So right now, Nigeria Railway Corporation is deploying rails. Historically, there was marginal rail collection in the port. It wasn’t non existent, though very marginal. They didn’t have the wagons or the necessary cart. So now, there is an aggressive push towards providing intermodal transportation. Looking at inland waterways,

“

we are providing approvals for barge operations to move cargoes in order to facilitate de-congestion of the Apapa area

We are also keen on having truck parks that service the port locations. We are working at having an electronic call up system for trucks, whereby the trucks are kept outside the port environment, and outside the city. They are only granted access

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to the port when they’re cleared and required to. Today, we see trucks arrive on a daily basis, and they spend hours on long queues. To facilitate the introduction of this electronic call up system, we are in talks with Lagos and Ogun State governments, to provide for truck parks that would form the fulcrum for accessing the port location. Once achieved, only trucks coming from those parks will be permitted to access the port location. It becomes mandatory to park all trucks in such locations, and they only come out when called upon by the programmed electronic call up system. When is this electronic call up system likely to be deployed? That will be by first quarter in 2020. Presently, what notable PublicPrivate Partnership arrangement does government have with private partners as regards the ports? We have quite a number of PPP partnerships. One exists on our towage services where companies provide third-party towages. We are also looking to explore PPP in energy, to provide power in the port locations, as well as water to the vessels. So these are areas we shall explore this year: basically, having public-private partnership in the provision of energy, utilities, power and water. What’s the relationship between NPA an d L a gos C hann el Management Company (LCM), as well as Bonny Channel Management Company (BCM)? They maintain the channels on our behalf. These are joint venture partnerships. The Nigerian Port Authority has to ensure that the channels are navigable and deep enough for the vessels to come. There is no port that the NPA does not regulate. In the same vein, are you open to private investors as regards ports infrastructure building and development? Absolutely. We are working on developing our 25-year Masterplan that will enable us have clarity on the locations of new ports, and then we can have investors come in.

COVER STORY We’ve had several discussions, like the European government as it relates to port development. We’re working with them to identify a location where they could embark on that. We have also had

“

“DP World”, the largest marine terminal operators in the world, come to explore what they can do in the Nigerian port environment.

So we’re looking to see how we could partner with them and avail them the locations within the environment. We’re keen to have several initiatives that will drive that it. For example,

“

the Ondo state government has submitted a proposal to us on a proposed deep sea port in Ondo state.

We have reviewed it and we are anxious for them to get the necessary international partners that will work with them to enable them get that to fruition. What are your thoughts on China and some of the loans it gives to African countries? It has been revealed that, they tend to repossess the ports of defaulting countries. I think it has to do with looking at the terms and the payment plan. For whatever loan is given, there should be clarity in the revenue generation of the project that would enable payback. So I think that our Federal Ministry of Finance have looked at those repayment terms before signing on. Currently there are no China loans on any of the port facilities in Nigeria. But even to the extent that we do that, we will definitely have clarity on the payment plan, whereby federal government is clear on how those loans will be repaid without us losing authority over the key infrastructure.

What’s the blueprint as regards the dry sea ports into the hinterlands in Nigeria, and how has it fared since introduction? The dry ports are supervised by Nigerian Shippers’ Council (NSC), so we don’t have oversight over them but they provide an avenue where cargoes are cleared. When they come, they are destined for the dry port. For example, the Kaduna dry port. When a cargo arrives the country, the cargo clearance will be done in that port location, not here. So once they come in here, it is only considered as part of the journey; it only arrives when it gets to the dry port. So, that is how it works. You were very vocal with the Bring Back Our Girls (#BBOG) movem en t; thankf ully, we registered some remarkable achievements with the global support via the hashtag. Have you always been a fighter? I’m not sure that was a fight, in terms of asking the government to do its responsibility by protecting the citizens. I’ll call it more like making you do your work. I felt the need to raise the voice of the vulnerable. This is something that I’ll say, I instinctively respond to. I feel we should be more. We should, as a people, be conscious of rising up for vulnerable groups and persons that have found themselves in challenging circumstances.

“

For me, I would always be at the forefront to raise the voices of the vulnerable people. Were you into activism back in school? Well, it’s probably a second nature. My father was quite a very vocal person. I may have inherited that.

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I’ve been nurtured to believe in standing for what you think is right, irrespective of whether it challenges the status quo and authority.

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COVER STORY

What’s the state of #BBOG campaign now? It is still ongoing. I go to Falomo round about every Saturday when I’m available to raise a voice, but there have been successes. Girls have been rescued. I think we have 116 girls that are still held in captivity up till now. And I think the campaign for the Chibok girls is beyond the girls. It is also to raise awareness of the situation in the North East; to highlight the fact that there are many other people being abducted beyond the Chibok girls. They are symbolic to the whole insurgency. I think speaking about them and raising the voices for them is to highlight every other person abducted and rescued on a daily basis. 34

Former US President, Barrack Obama recently made a statement that women are better leaders. Do you agree with the statement?

for a leader.

I wouldn’t say that women are better leaders. But you know, the leadership traits are traits that are found easily in a woman and you can see that when a woman has the opportunity to lead, she tends to put herself out there.

Well, for me, it has more to do with all genders having equal opportunity. I believe in equal opportunity. I don’t believe in being given a token because I’m a woman. I believe, when you are given the opportunity to sit on the table, you must excel.

“

And as I always say, women are factory built to multitask.

So we’re made to have the capacity to multitask, which is a critical skill

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What are your thoughts on feminism?

Do you think we have more women in the maritime sector? No, we don’t have more women in the maritime sector. And we have to make conscious effort to encourage women. For example,

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COVER STORY

Hadiza is a go!

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put your all in it and excel.

I’m the first female CEO in 64 years of the existence of the Nigerian Port Authority. What’s your support system like? My extended family is a huge support that I rely on for strength. As a woman, what’s that challenge you faced while climbing, and what is that guiding philosophy you hold dearly? For me, any task you’re given,

That includes being committed, dedicated and ensuring that you apply all the necessary skills. I believe in excelling, and accountability. A lot of times, people might undermine a particular task. But whatever you’re given, do it well. I have been Secretary for a lot of committees, taking notes and action points. That prepared me for what I’m doing now. At that time, I didn’t shy away from taking that responsibility. That is where you get your references. People around observe you. You must be wise to realize that. Experience itself has no substitute, it is a learning curve for understanding. People should also rebuild the reading

culture. So before you’re given an opportunity, you must be seen to be capable of taking that role. So you must show diligence and hard work. That is what determines being given the position of leadership. You work hard when you’re not in the position of authority. Don’t wait till you get there. How will you get there, if you don’t have a reference for being hard-working and committed? What is the Nigeria of your dream? It is a Nigeria where we have equal opportunity for all and basic infrastructure are available to enable our economy grow.

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POWER

Ikeja Electric Upgrades Mobile App To Enhance Customer Satisfaction prepaid and post-paid accounts on customers cell phones and whistleblow on unethical IE staff”. “The additional benefits complement the existing ones which include access to information relevant to Ikeja Electric, service centers and other key stakeholder information, making it the most effective and customer friendly app in the sector”, Ofulue explained.

n its continued drive for excellent service delivery that reflects the Company’s long-standing commitment to providing practical solutions and enhanced customer experience, Ikeja Electric has upgraded its mobile app to include cutting edge capabilities to make customers’ experience even better. Head, Corporate Communications, Felix Ofulue explains that the selfservice and secure app is built to offer the most captivating user experience

with a variety of functionalities for different categories of customers. According to Ofulue, “the upgraded app delivers easier, faster and more convenient solutions that makes transactions very easy and seamless. It is currently available for download on the Google play store. Among features and benefits available on the upgraded app is the easy access to electronic bills, payments for both

To download the app simply go to Google Play Store and setup your account on the App using your IE Account Number, verify your customer phone number, set and confirm password and you are all set. The upgraded app is expected to further consolidate and boost Ikeja Electric’s move to position itself as a pioneer in providing business solutions for customer satisfaction in the power sector, as well as creating value and exceptional service delivery.

New MD/CEO of REA, Ahmad Salihijo resumes office, excited to get started

he new MD/CEO of REA, Ahmad Salihijo (middle), flanked by top management and some staff of the REA after taking a tour and meeting staff members of the agency. As the Agency continues to drive the Next Level Agenda of the Nigerian Government, the brand new MD/ CEO of the Rural Electrification Agency (REA), Ahmad Salihijo 36

arrives REA HQ and officially met with management and staff of the Agency. He stated “What you have been doing here is so impressive. You have been doing a fantastic job. Together, we can work as a family to take the REA mandate even further. What you do not know, I might know. What I do not know, you might know. We are all here to achieve one goal.. I am so glad

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I have resumed. I am excited to get started. I feel we can do a lot. Honestly, we can touch every life in Nigeria, directly or indirectly and lets believe in that”

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gas development:

chevron's success story is

nigeria's success story...

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

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MARITIME

Maritime security: Nigeria takes delivery of special mission vessel ... NIMASA Graduates New Intelligence Officers Under Deep Blue Project

n another major step towards the full realisation of an integrated sur veillance and security architecture to broadly tackle insecurity in Nigeria’s waterways, up to the Gulf of Guinea, the country has taken delivery of the first special mission vessel under the Deep Blue Project. Chairman of the Project Monitoring Team for the Deep Blue Project, also known as Integrated National Security and Waterways Protection Infrastructure, Mrs. Olu Mustapha, disclosed this recently in Lagos at a graduation ceremony organised by the Nigerian Maritime Administration and Safety Agency (NIMASA) for a new set of C4i system operators.

capacity to man the assets under the Deep Blue Project, especially with commencement of the receipt of the special assets. According to her, “The assets of the Deep Blue Project must be manned by competent personnel and that is what we are committed to through various training programmes for different components of the project. This graduation of C4i system operators will produce additional personnel for the optimisation of the system.”

security architecture comprising all military and security services as well as NIMASA to ensure a conducive environment for maritime to thrive.” Dakuku, who was represented by the Agency’s Executive Director, Operations, Engr. Rotimi Fashakin, added that the Federal Government, through NIMASA, had invested ample resources in infrastructure, including the critical manpower component required to run the Deep Blue Project effectively and efficiently.

In his remarks, the DirectorGeneral of NIMASA, Dr. Dakuku Peterside, lamented the negative effects of insecurity in the Nigeria maritime domain and the Gulf of Guinea. Dakuku said the President Mohammadu Buhari administration was committed to diversifying the economy and saw maritime as an economic game changer in this direction. He said security of the maritime environment was a top priority of the administration. Dakuku stated, “The Nigerian maritime domain and the Gulf of Guinea are known globally as major maritime security flashpoints. In addressing the challenges, a bi-ministerial collaboration of the Federal Ministries of Defence and Transportation, as well the Office of the National Security Adviser (NSA) developed a maritime

The DG asked the graduands to bring the skills and experience they acquired during their training to bear on the national security assignment. The highlight of the event was the presentation of a certificates by Mustapha to the 24 graduands including Mr. Ibrahim Gana, who emerged the best graduating student. It would be recalled that the C4i centre was commissioned in August. It is equipped with alert setting capabilities, Coastal Automatic Identification System (AIS), and SAT AIS signals all over the world, in liaison with some international security networks, for access to database for vessel movement, with capacity for six-year retrospective monitoring of vessels movement.

The Command, Control, Computer Communication and intelligence (C4i) centre located at the NIMASAowned Nigerian Maritime Resource Development Centre (NMRDC), Kirikiri, acts as the nerve centre for operations and workflow management for all platforms under the Deep Blue Project. The graduation of the C4i operators marks another milestone towards the total commencement of the project. Mustapha, who is also the Director, Project Services, at the Ministry of Defence, said the essence of the training for the intelligence officers was to ensure adequate 38 Majorwaves Energy Report JANUARY 2020, Vol 3 No 1

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MARITIME

NIMASA To Honour Maritime Stakeholders, Raise Investors’ Appetite To Blue Economy

he Niger ia n Ma r itime Administration and Safety Agency (NIMASA) is set to again, honour maritime stakeholders’ at the annual dinner and awards night scheduled to take place in Lagos on Saturday, January 18, 2020. A statement issued to this effect said the ceremony is part of activities by the Director General, Dr. Dakuku Peterside to appreciate stakeholders in assisting the Agency achieve its mandate over the years. In his remarks, he said part of the aim of organising the annual programme is to encourage industry players to keep striving to ensure global best practices are imbibed in their various activities, attract more investors that will help open up the blue economy and to also ensure compliance to maritime regulations, thereby making Nigeria a force to reckon with in the comity of maritime nations. He said “Over the years, our stakeholders have made us proud and put us on our toes as there will be no NIMASA without the shipping community and vice versa. There have been times of criticisms, sanctions and enforcement; all these

were geared towards ensuring the right thing is done and laid down rules and regulations are adhered to. We must therefore reward hard work and encourage more investments in the maritime sector by appreciating those who have done well, hence we are organising this auspicious event.” Dr. Petersideu further observed that this year’s award will focus on various categories to include; Most Compliant ISPS Offshore and Onshore Facility; Best Terminal and Jetty Operator; Best Maritime Training Institution; Best Shipping Company (Marine Environment Management). Others are; Overall Shipping Company; Best Cabotage Operator; Company with Largest Combined Tonnages and Best Maritime Financing Banks among other categories of awards. He also said that the event will provide opportunities to expose both local and international stakeholders to the inherent opportunities that abound in the nation’s maritime sector. Business Hilights gathered that in order to ensure transparency in the process of selection for the various award

categories, the Management of the Agency engaged an independent panel of judges, headed by a former Managing Director of the Nigerian Ports Authority (NPA), Chief Adebayo Sarumi. The NIMASA DG who inaugurated the panel in Lagos a few months ago, disclosed that the terms of reference of the committee include; to identify the various categories of awards for the industry; invite applications from industry stakeholders and the general public for various categories of the award; set criteria and benchmark for the selection process; and finalise the list of awardees in the different categories for submission to the Agency. In pursuance of this, the Agency has already put out a notice for nomination from companies and individuals for the various categories. Besides, the award ceremony will also be an opportunity to reward staff who have contributed meritoriously to the service Agency, ranging from fifteen to thirty years.

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OPEC in the News

One billion people lack access to electricity worldwide- OPEC By Ikenna Omeje

he Organization of Petroleum Exporting Countries (OPEC) has said that almost one billion people worldwide lack access to electricity while three billion are without modern fuel for cooking. OPEC Secretary-General, Mohammed Barkindo stated this at the 2019 United Nations Climate Change Conference, also known as COP25. Barkindo who started his speech discussing Yola, the capital of Adamawa State, where he grew up, said that things like keeping lights in houses, insulating homes and access to clean water, which many countries take for granted, remain fundamental needs to the vulnerable in developing countries. “Mr. President, yours sincerely standing before you, grew up in town called Yola, in Adamawa State, Northeastern part of Nigeria. In this town, Mr. President, that I grew up even today, keeping the lights in our houses; insulating our homes; or accessing clean water - amenities taking for granted by many countries, are beyond the reach of the most vulnerable in our communities. Sadly, Mr. President, this is a situation experienced in many developing countries. There are almost one billion people worldwide, who currently lack access to electricity and three billion without modern fuels for cooking, are not just statistics on a page. They are real people; each one, Mr. President is an individual,” he said. According to him, fuel poverty is a major challenge for sustainable development. He noted that OPEC will not accept energy transition from one source to another, 40

adding that the organization listens to scientists, supports Paris Agreement and the efforts of multilateralism that underpins it. “Fuel poverty is not an abstract concept, rather it is a profound challenge for sustainable development. It is an all too brutal reality for hungry families living in the cold or dark for the millions of children currently attending schools without power and for many hospitals without reliable energy. Nobody should be left behind by the energy transition. Mr. President, we reject energy transition from one source to another. At OPEC, we listen attentively to scientists, we wholeheartedly support the Paris Agreement and the efforts of multilateralism that underpins it. The core elements of the convention, particularly historical responsibility and national circumstances must be adhered to.We recognize, Mr. President, the complexity and magnitude of climate change. We live it in our countries.” Giving suggestions to some of the solutions to climate change, Barkindo opined that all mitigation and adaptation measures are necessary, noting that technological innovations including Carbon Capture, Utilisation and Storage (CCUS), investment for access to energy and energy efficiency should be part of the solutions to climate change. In his words,”There is no panacea for group global warming. All viable mitigation and adaptation measures a re neces sa r y. Technolog ica l innovations including CCUS, enhance investment for energy access and improved energy efficiency must be

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part of the solution. The oil industry, Mr. President, is committed to both. The oil industry must be part of the solution to the impact of climate change. The energy transition must be holistic, inclusive, fair and equitable in accordance with the core UNFCCC Principle of common, but differentiated responsibilities and respective capabilities.” The 2019 United Nations Climate Change Conference, also known as COP25, is the 25th United Nations Climate Change conference. The conference was held in Madrid, Spain, under the presidency of Sebastián Piñera, President of Chile. The conference, which commenced on December 2, will end on December 13, 2019. The conference incorporates the 25th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), the 15th meeting of the parties for the Kyoto Protocol (CMP15), and the second meeting of the parties for the Paris Agreement (CMA2). The conference was planned to be held in Brazil in November 2019, but a year before the planned start, newly-elected President Jair Bolsonaro withdrew the offer to host the event, citing economic reasons.Then Chile stepped up and became the new host, but social unrest in the lead up to the meeting forced it late October 2019 to withdraw from hosting. Then by mutual agreement between the UN, Chile, and Spain, the latter became the new host.

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OPEC in the News

Saudi Arabia Says OPEC+ Focus on Oil Cuts Undeterred by Unrest

-Barkindo

OPEC Implements Additional 900,000 bpd Cut, Balances Global Oil Market The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) has hinted reporters at the International Petroleum Technology Conference which held in Saudi Arabia on the decision by OPEC and its nonOPEC partners to implement its resolve, taken in Vienna between the 5th and 6th of December 2019, of a timely cut in production by 900,000 barrels daily in order to balance the global oil market. This production cut consists of an additional production adjustment of 500,000bpd by partners to the Declaration of Co-operation, which now brings total production cut to 1.7 million bpd, plus an additional over conformity by the Kingdom of Saudi Arabia which voluntarily cut 400,000 bpd of its production. According to the OPEC boss, that puts the sum total of overall production cut at 2.1 million bpd. “We are confident this will keep the market in check and maintain stability in the crude oil market through the first and second quarters of 2020”, he said.

He added, “the decision which was taken in Vienna on the 5th and 6th of December during the OPEC and Non OPEC combined meeting has just kicked in. It’s basically on the full and timely implementation of an additional production adjustment of 500,000 bpd. This is further increased by the Kingdom of Saudi Arabia’s over conformity, which willingly added 400,000bpd in production cut”. Earlier, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman had said his country will do “all it can” to ensure stability in the oil market amid tensions in the Middle East. Oil prices soared last week after Iran carried out retaliatory strikes on American bases in Iraq in response to Washington’s killing of its top General Qassem Soleimani. However, crude has since dropped as fears of an armed conflict in the Middle East faded after Iran said its revenge was complete and United States President Donald Trump announced he is “ready to embrace peace.”

audi Arabia’s Energy Minister said that OPEC and its allies remain focused on using production cuts to reduce oil inventories to normal levels, undeterred by the flare up of political tensions in the Middle East. Oil prices have erased all of this year’s rally, which saw Brent crude surge to a three-month high of almost $72 a barrel as Washington and Tehran faced off after the U.S. assassination of a top Iranian general. Crude retreated again as the countries backed away from full-blown conflict, while supplies remain comfortable. The Organization of Petroleum Exporting Counties and its allies, which pump about half the world’s oil, thus remain resolved to press on with output cuts aimed at draining away any excess stockpiles, Saudi Energy Minister Abdulaziz bin Salman said in a Bloomberg television interview on Monday. “Our endeavor in OPEC+ is to try to bring inventories to a certain level, where it is within the contours” of recent years, bin Salman said in Dammam. That range should be around the average of the last five years and the period from 2010 to 2014, he said. Bin Salman said he was “very comfortable” with the implementation of production cuts by OPEC+ nations in December, the final month before the alliance is due to implement even deeper curbs. Iraq, which has long been lax in its performance, didn’t meet its target last month but made a “reasonable” effort, he said. He declined to say what the alliance may decide in March, when the current cutbacks are scheduled to end and they will have to decide whether to prolong them. In the Strait of Hormuz, the narrow waterway through which tankers carry Persian Gulf oil to international markets, concerns over a threat to shipping because of the friction between Washington and Tehran only lasted about 24 hours, he said. The kingdom is “doing everything in the book” to safeguard its oil production facilities, he added.

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GAS

Nigeria LPG Association RE: GAS EXPLOSION IN SABON TASHI KADUNA, KADUNA STATE, NIGERIA By JEROME ONOJA

he Nigeria LPG Association (NLPGA) is the umbrella body for all stakeholders in the LPG industry in Nigeria. Our attention has been brought to the unfortunate accident of January 4, 2020 , at Sabon Tashi, Kaduna, Kaduna State and to several communiqués, as well as pronouncements from the Federal Government, State Governments, MDAs, and Regulatory Agencies (specifically the Standards Organiztion of Nigeria (SON) and the Department of Petroleum Resources (DPR)) with regards to the accident and the proposed actions on legitimate businesses. We have also been monitoring the situation closely. First of all, the NLPGA commiserates with the good people of Kaduna State, especially the families of those affected, as well as the residents in and around the site where this accident occurred. The NLPGA joins the State Government to extend condolences to the bereaved and we wish those severely injured a speedy recovery. Based on several erroneous stories in the media it is pertinent to set matters straight on the nature and immediate root cause(s) of the accident as follows: Immediate onthe-site inspection and investigation indicated that the accident was not caused by Liquefied Petroleum Gas (LPG) (a.k.a. cooking gas) but rather by Oxyacetylene (a.k.a. welding gas). There is no similarity whatsoever between the two except that both gases are flammable and are moved in cylinders. The source of the accident has been corroborated by the Zonal Officers of the State’s SON, DPR and the Environmental Protection Agency. Pronouncements calling for the cessation of cooking gas sales 42

within residential areas therefore seem at variance with the above, especially given that there are multiple properly licensed and safely operated facilities already in Kaduna. It would be tantamount to an injustice to punish law-abiding business owners in one industry for unsafe practices of another, wholly unrelated, industry. It would instead be more productive for all arms of Government to align on the urgent need for awareness sensitization, capacity building and improvements in operational safety as promoted by the NLPGA in order to avert similar accidents in future in either industry. In November 2019, the NLPGA, through its Safety & Technical Committee, in collaboration with FG’s approved Joint Working Committee (JWC) and supported by the SON and DPR, developed and published a comprehensive Safety Audit Checklist. This document comprises self-assessment and self-auditing guidelines for all industry operators at every stage of the value chain. This document is freely available to stakeholders and the general public for download at www.nigerialpgas.com/ downloads (http://www.nigerialpgas. com/downloads/704962.pdf). We strongly urge all stakeholders to access this document and familiarise themselves with it. The NLPGA Secretariat would be happy to take any enquiries on this document via info@nigerialpgas.com; it is our aim that adoption of this document will assist in preventing incidents and accidents of this nature in future. LPG is the fastest growing fuel and serves a role in reducing energy poverty and health issues, particularly amongst women. A disturbance to the safe use or availability of LPG is

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to be discouraged, as it is at direct variance with and may be counterproductive to the actualisation of the FG’s unique agenda to deepen the safe use of LPG in Nigeria. Nonetheless, the NLPGA is committed to promoting international best practices in the safe handling of LPG across the entire value chain and seeks to work with State Governments to rid the market off of illegal and unsafe LPG operators. NLPGA already works in close collaboration with several state governments, most notably Lagos State Government through the Physical Planning & Urban Development Ministry and the Lagos State Safety Commission. The NLPGA’s Safety & Technical Committee has a robust range of training material and well experienced faculties to continue to sensitise operators and prospective operators alike in order to promote and deepen the safe use of LPG in Nigeria. NLPGA commends and will continue to support all government regulatory agencies in their tireless efforts to enforce safety regulations and monitoring activities with a view to further sanitise the industry of those who disregard already established guidelines as provided by the agencies and as well encapsulated in the JWC Safety Audit Checklist available for self-assessment. At NLPGA we remain committed to the general acceptability, availability, affordability and accessibility of LPG in Nigeria and its safe utilisation in different sectors of the evolving Nigerian economy.

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