Energy Transition: Germany Moving Away From Nuclear & Fossil Fuels by OIL AND GAS REPUBLIC

MARCH 2019

SPECIAL EDITION

Canada’s Growing Role in Nigeria’s Major Industries Maersk Drilling Records Strong Profitability & Cash Flow in 2018 NCDMB Presents Oil & Gas Opportunities at NOGOF 2019 ABB Powers Offshore Oil Platforms With Renewable Energy

Dr. Stefan Traumann, Consul General of Germany in Lagos - Page 28

INTRODUCTION Dear Industry Stakeholders, OGR welcomes you to a new era in the history of mankind. An era in which old-thinking is rapidly giving way to new-thinking. This is especially so concerning the whole gamut of energy management – from exploration, exploitation, processing, conservation, distribution, marketing and eventually to utilization by everyone on the planet!

Published by Nobilitas E.C. Limited No.1, Abegbe Ariyo Street, Off Addo Road, Ajah, Lagos - Nigeria

Publisher & Editor-In-Chief: Engr. Idowu Babalola (MBA, MNSE, MEI)

Editor: Tobi Owoyimika

Senior Correspondent, Technical and Creative Writer: Ndubuisi Micheal Obineme

All of us need energy always, in one appropriate form or another, yet it is scarce! Therefore, many nations of the world place special strategic emphasis on ensuring and managing energy security to enable their citizens to live sustainable comfortable lives, so that they could efficiently perform their various roles in the society, thereby fulfilling their dreams of making the world a better place for generations yet unborn! One of the few countries that do all these very well is Germany, the most industrialised nation in Europe! In this edition, OGR is pleased to share with you our interview with the German Consul General in Nigeria, Dr Stefan Traumann, in his office in Lagos. He spoke on a lot of issues surrounding the German government’s efficient approach to energy matters. He confirmed that Germany is presently generating “one-third” of its total national electricity supply from renewable energy! He espoused on the goals of the current national “Energy Transition” programme (called “Energiewende”) which is guiding the “process of overhauling Germany’s energy supply, moving away from nuclear and fossil fuels, towards renewables and better energy efficiency”. Also, in this edition, we featured some of the latest trends in the industry especially in the Nigerian Oil & Gas sector with other interesting stories from around the world.

Correspondents: Genevieve Aningo Jackson Olagbaju

Thank you for reading and enjoy a blessed day!

Contributing Authors: Ayobami Adedinni Binutiri Samson

Engr. Idowu Babalola Publisher & Editorial Director

Oil and Gas Republic (OGR) Reg. Number: 2347423

EDITORIAL CONTENTS Oil and Gas Republic is an international publication covering the entire value chain of the Renewable Energy, Power & Electricity, Aviation, Mining, and Oil & Gas Industry. For more information, please visit www.oilandgasrepublic.com Email: info@oilandgasrepublic.com oilandgasrepublic@gmail.com Phone: +2349098095532 +2348065187468

Page 4 Local Content: Nigerian Content Success Stories: The progress, the opportunities, the hopes

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Page 8 Industry News: More oil and gas projects in Nigeria are expected in 2019

...................................................................... Page 16 Special Report: Nigerian Petroleum Sector

MARCH 2019

...................................................................... Page 19 Country Report: Canada's Growing Role in Nigeria's Major Industries

SPECIAL EDITION

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Page 22 LNG World News: NNPC, NLNG committed to Train 7 Realization

...................................................................... Page 23 Top Story: Germany's Energy Transition

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Dr. Stefan Traumann, Consul General of Germany in Lagos - Page 35

Page 28 Exclusive Interview: Dr. Stefan Traumann

...................................................................... Page 34 Energy News: ABB Powers Offshore Oil Platform with Renewables

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NIGERIAN CONTENT DEVELOPMENT & MONITORING BOARD

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LOCAL CONTENT

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Nigerian Content Success Stories: The progress, the opportunities, the hopes Looking back at the revolution of Nigerian Content in the past years, Total's Egina FPSO has the highest deepwater local content ever recorded in Nigeria, about 77 percent local content was carried out during the project, Ndubuisi Micheal Obineme writes

efore now, upstream oil and gas industry in Nigeria had remained an enclave that provided no stimulus to the domestic economy as key industry services and products were procured abroad on the pretext that infrastructure, technology and capacity were deficit in the domestic environment.

Since the inception of the Nigerian Oil & Gas Industry Content Development (NOGICD) Act enacted in 2010, Nigerian Content has started to spring up again across the oil and gas value chain.

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The law mandated the Nigerian Content Development and Monitoring Board (NCDMB) to deepen the participation of Nigerians and indigenous companies in the oil and gas industry, by facilitating local capacity development and ensuring that the execution of large components of any project is domiciled in-country. Looking back at the revolution of Nigerian Content in the past years, Total's Egina FPSO has the highest deepwater local content ever recorded in Nigeria of about 77 percent local content carried out during the execution of the project.

In order to carry out the local fabrication and integration of the Egina FPSO as required by Total, and the NCDMB, Samsung Heavy industries surveyed local facilities, but eventually Samsung decided to build a new fabrication and integration yard in Nigeria with $300 million of investment to keep the international standard level of quality and safety, located within Tarkwa Bay LADOL Free zone which was virgin land mass in Lagos. In the past, the country had lacked facilities for integration of FPSOs before Total awarded the Egina FPSO contract to Samsung Heavy Industry (SHI). The investment led to the creation of an independent entity, Samsung Yard (SHI-MCI FZE) in LADOL Freezone Tarkwa Bay in Lagos. The local fabrication and integration of the Egina FPSO boosted technology transfer and the development of indigenous manpower and facilities, as evidenced in the construction of the Samsung Yard and the training of Nigerian technicians,

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LOCAL CONTENT

Issue 2 - 2019 www.oilandgasrepublic.com

engineers and other professionals by SHI. The yard has already provided over 1,200 employment opportunities in the areas of welding, fitting and other support services; while the cascade effect outside the yard generated a lot of jobs.

integration of the Egina FPSO has helped Nigerians to build more local capacity in increasingly challenging skills. By executing these jobs locally, the funds that could have left the shores of Nigeria for financing the fabrication in foreign yards are retained in the Nigerian economy.

All the FPSOs operating in Nigeria’s oil and gas industry currently were built and integrated in foreign yards, thus denying Nigeria the huge benefits of growing her Gross Domestic Product (GDP) through in-country domiciliation of the huge expenditure, and local capacity development, as well as job creation.

Apart from Nigerians acquiring new skills set in the oil and gas sector, the execution of the project locally also contributed to Nigeria’s GDP. Many scopes of the Egina FPSO project were executed in local yards, such as Saipem Contracting Nigeria Ltd. (SCNL), Engineering Works Technology Limited, Dorman Long, Nigerdock and Aveon Offshore, among others, thus ensuring the development of local capacity and capability, in line with the NOGICD Act of 2010.

In Nigeria’s oil and gas industry, there are currently about fourteen FPSOs all built in foreign yards. Out of these fourteen FPSOs, five were built for giant deep offshore oil fields – Shell’s Bonga, ExxonMobil’s Erha, Chevron’s Agbami and Total’s Akpo and Usan fields, all located several kilometres offshore, in water depths ranging from 1400m - 1750m. The uniqueness of the Egina FPSO lies in the fact that apart from being the largest FPSO in Nigeria, it will also be the first FPSO to have 6 large Topside modules locally fabricated and integrated onshore Nigeria. The local fabrication and

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The Egina field started production in December 2018, is being developed by Total Upstream Nigeria (24%) in partnership with CNOOC (45%), Sapetro (15%) and Petrobras (16%) and Nigerian National Petroleum Corporation (NNPC) as Concessionaire. It will add 200,000 barrels per day to Nigeria’s oil production (approximately 10% of the country’s total oil production). The Egina FPSO project was built by Korea-based Samsung Heavy Industries (SHI), with LADOL acting as the local content partner in Nigeria. The capital

expenditure (Capex) for the six packages in the oilfield development is $16 billion, out of which $3.3 billion is allocated for building the FPSO. Today, reference is being made to Total as the industry benchmark for the Nigerian content, given its significant support and investment in local content development through major oil and gas projects such as Egina projects. The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote, said that the Nigerian oil and gas industry will between now and year 2027 aspire to domesticate the full capacity and capability required for the integration of Floating Production Storage and Offloading vessels (FPSO). The new target for the industry follows from the successful completion of the Total's Egina FPSO, the first time these feats would ever happen in Nigeria. The FPSO is the biggest component of deepwater oil and gas project and the fabrication and integration of the modules at any location spurs multidimensional development and creates thousands of jobs. Speaking at a press conference in Lagos on the sideline of the Nigerian Oil & Gas Opportunity Fair (NOGOF) 2019, Wabote, said the enforcement and provisions on local content

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LOCAL CONTENT

Issue 2 - 2019 www.oilandgasrepublic.com

act has led to key achievements for the board which include the establishment of about five world-class fabrication yards in Nigeria that is capable of handling about 60,000 metric tons for fabrication works in the industry. "We also have engineering houses that has been established to carry out all manner of engineering works from conceptual design up to detail design in Nigeria. These were activities that was done outside the country and we continue to loose foreign exchange through that process." "Today, we also have in the country pipe mills for the transportation of hydrocarbon. Before 2010, there are no pipe mills in the country but today we have about two world-class pipe mills in Nigeria, located in Abuja and Lagos near the Lekki free trade zone. "In the past, we use to import concrete pipes that are coated into the country without any value addition and the pipes are taken straight to where they are utilised. Today, we have about 5 world class coating plants and as such we have been working with the Nigerian customs to stop the importation of coated pipes into the country. There are different types of pipes that we produce and our pipe mill in the country cannot produce all manner of pipes. Even, if we have to import pipes, the value added to that is the coating will be done in-country and you can imagine the number of people that are employed in that process. "Also, not too many people know that we consume more cables such as electric cables than even the building sector of our industry. In the oil and gas sector, a lot of cables are utilised. Today 80 percent of the cables we use in the sector are manufactured here in Nigeria. We have about three recognised internationally certified cable manufacturing companies here in Nigeria," he noted

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“Talking about paint, almost 90 percent of our construction materials in the oil and gas sector is steel. And, steel corrode and you have to manufacture paint to mitigate corrosion.

“Also, we have a world-class oil and gas facility in Port Harcourt. It is a facility that you cannot find anywhere in Africa. Well integrated facility providing services to the oil and gas sector.

"Today, the paint we use for such activities including manufacturing works, and as a matter of fact, in the EGINA project that we have just completed. It is on record that its the biggest FPSO in the world. About 200,000 barrels per day production and all the paints that was utilised for the project was manufactured in Nigeria and exported to South Korea to be utilised including the cables and other components of the project.

"To a large extent, we have made considerable progress in the oil and gas sector as we encourage and support the establishment of these capacities and capabilities in-country," he added

“And, we have been able to establish the first in Africa, an FPSO integration facility in Lagos which is the SHI-MCI FZE yard located in Apapa established between the Samsung Heavy Industry and LADOL. It is a great achievement for Africa and Nigeria in moving the oil and gas industry forward. “We believe that with that kind of facility in no distance time neighboring countries who have discovered oil will want to integrate FPSO and fabricate modules as they will also have the opportunity to access the facility.

While speaking about the projects and investment opportunities, Wabote, said that within the past two years there have been about $20 billion worth of investments pushed into the Nigerian oil and gas sector. In the last two years, the Nigerian oil and gas industry continues to see high demand of projects which has led to the signing of several FIDs and more FDIs to be signed in the coming months. Some of the projects include; SPDC's Assa North Gas project in Imo State, Total's Ikike oil project, SNEPCO Bonga South West project, Exxon Mobil $1.6bn Gas-To-Power Project In Akwa Ibom, NLNG Train 7 project, among others.

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INDUSTRY NEWS

Issue 2 - 2019 www.oilandgasrepublic.com

A look at Angola’s new oil-licensing strategy (2019 – 2025)

By Adriano Rioja Ciprian, Associate Attorney, Centurion Law Group For reasons of national strategic interest, a second modality will be a limited public bidding, restricted to a number of previously-selected companies. The modality applies to the blocks and contract areas that have been returned to the State, and eligible bidders will be selected from companies that have demonstrated knowledge, expertise and both technical and technological competence operating in Angola. The procedure will follow the rules set out in Presidential Decree No. 86/18 and will apply in 2021 to maritime blocks 7, 8, 9, 16, 33 and 34, and to free area blocks 31 and 32, and in 2025 to blocks 22, 24, 25, 26, 35, 36, 37, 38, 39 and 40.

Adriano Rioja Ciprian

ngola’s oil production has been decreasing since its peak of almost 1.9 million bopd in 2008 to reach 1.478 million bopd last year

Under the terms of the decree, petroleum concessions are to be awarded under three different modalities: public bidding, limited public bidding and direct negotiation.

In yet another landmark reform for its hydrocarbons sector, Angola released in February 2019 a new Presidential Decree detailing the country’s oil licensing strategy for the next six years.

The public tender and bidding avenue follows the legally-established procedure for the award of oil concessions under a competitive auction, as detailed in Presidential Decree 86/18. Under such an auction, state-owned Sonangol is entitled to a 20% stake in research operations in the case where it is not operator of the block.

Published in February 2019, Presidential Decree No. 52/19 is a continuation of the Lourenço administration’s efforts to incentivize investments into exploration and arrest declining output. Angola’s oil production has been decreasing since its peak of almost 1.9 million bopd in 2008 to reach 1.478 million bopd last year. With the objective of “increasing the production of oil and gas” and “ensuring the substitution of reserves to replace the evident decline in production in recent years,” the new decree hence defines the country’s new general strategy for the attribution of its petroleum concessions up until 2025.

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In 2019, Blocks 11, 12, 13, 27, 28, 29, 41, 42 and 43 in the Namibe Basin, and Block 10 in the Benguela Basin are to be awarded under public bidding. In 2020, blocks CON1, CON5 and CON6 in the Congo Basin (onshore) and blocks KON5, KON6, KON8, KON9, KON17 and KON20 of the Cuanza Basin (onshore) are proposed to be awarded. Finally, blocks CON2, CON3, CON7 and CON7 of the Congo Basin (onshore) and blocks KON1, KON3, KON7, KON10, KON13, KON14, KON15 and KON19 of the Cuanza Basin (onshore) are proposed to be subject to public bidding in 2023.

Finally, blocks 6, 30, 44, 45, 46 and 47 are open to direct negotiations, which must be concluded before the end of the first semester of 2019. Successful companies must enter into a Service-at-Risk Contract and demonstrate relevant proven experience, expertise, technical and technological capabilities operating in Angola or other oil provinces. The legislation is in line with Angolan President João Lourenço’s implementation of a bullish reformist agenda that is drastically transforming the governance of sub-Saharan Africa’s second largest producer since the 2017 elections. In May 2018, Angola had already released three presidential decrees related to the governance and regulation of its oil & gas sector: Presidential Decree No. 5/18 establishing the framework for the exploration activities of the Development Areas; Presidential Decree No. 6/18 regulating the development of marginal fields and Presidential Decree No. 7/18 regulating the prospection, research, evaluation, development, production and sale of natural gas. The clarity provided by the new oil licensing strategy, and its promulgation by Presdiential Decree is expected to provide sufficient incentives to raise interest of African, independent and international majors in exploring Angolan acreages. It will also be coupled with the country’s first Marginal Fields Bidding Round, set to be launched at the Angola Oil & Gas Conference in Luanda on June 4-6, 2019.

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INDUSTRY NEWS

Issue 2 - 2019 www.oilandgasrepublic.com

More oil and gas projects in Nigeria are expected in 2019

il and gas projects continues to expand at a rapid pace in the Nigerian oil and gas industry, and the operators have signed the Final Investment Decision (FIDs) and some are expected to sign their own FIDs over the next couple of months in order to commence work on their respective projects. As deepwater projects, FPSOs, and other vessels multiply and spread into deep offshore in Nigeria, the need for more investments increases greatly.

In the fourth quarter of 2018, Shell Petroleum Development Company of Nigeria Limited (SPDC) made the Final Investment Decision (FID) on the Assa North Gas Development Project in Imo State, a major momentum to the domestic gas aspiration of the Federal Government for increased power generation and industrialization. The project is expected to produce 300 million standard cubic feet of gas per day and will be treated at SPDC JV’s Gas Processing Facility and distributed through the Obiafu-Obrikom-Oben pipeline network. Mr. Osagie Okunbor, SPDC's Managing Director and Country Chair, said that the Assa North Gas project would be a major game-changer in Nigeria’s quest for energy sufficiency and economic growth, and a key driver to Nigerian government plans of marching away from a mono-economy through diverse industrial growth. "It is premier amongst the Seven Critical Gas Projects initiative led by the Ministry of Petroleum and the Nigerian National Petroleum Corporation (NNPC). Their integrated focus, support and drive were instrumental to this investment decision.” While enphasizing on the project's contribution to GDP growth in Nigeria, SPDC’s Director and General Manager Projects, Mr. Toyin Olagunju, said the Assa North project would be a significant contribution to GDP growth in Imo State and across Nigeria as the gas produced will be utilised in-country across diverse industries, while

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providing economic opportunities for local communities. SPDC JV has also signed a gas supply and aggregation agreement with Geometric Power Aba Limited (GPAL) for the supply of about 43 million standard cubic feet of gas per day to support the 140MW Aba Integrated Power plant at Ossisioma in Abia State. With this agreement, SPDC will supply gas from the SPDC joint venture gas plant in Imo River traversing Abia and Rivers States to the power producer, GPAL, via a gas pipeline network which is already installed. Meanwhile, the French Oil Major – Total made a Final Investment Decision on Ikike Project in the OML 99 licence offshore Nigeria on 29th Jan, 2019. The field is expected to commence production Q2 2021 and will deliver 70 Mboe to a maximum daily production of 32000 barrels per day of oil. The project will promote Nigerian Content in the Oil and Gas industry. Total CEO, Patrick Pouyanne, said: “There is a huge potential in Nigeria, it is probably the most prolific country in West Africa in terms of oil and gas and it is time to launch new projects and we are working on many of them.” “The market is very good today to do that, it is a very interesting project and the partners

are in line to develop it... 2019 should be the year of expanding Nigeria LNG,” he added. Moving forward, ExxonMobil and Qua Iboe Power Plant Limited (QIPP), have initiated plans to invest a combined $1.6 billion in the development of gas and power projects in Akwa Ibom State.The initiative would see QIPP invest $1.1 billion in the building of a gas power plant with ExxonMobil investing $500 million in a gas project in the area. The CPA was executed with the communities under the auspices of the Akwa Ibom State Government with His Excellency, Governor Udom Gabriel Emmanuel, Dr. Emmanuel Ekuwem, the secretary to the government, Elder (Engr.) Ufot Ebong, senior special adviser to the governor on technical matters & due process, and other top government officials of the state. The agreement covers critical areas such as community employment opportunities, procurement and supply contracts, and socio-economic development projects. NCDMB has projected that in the next two years there will be an additional $25 billion investments to be invested into the oil and gas sector of Nigeria. And, with the resolution of some of the cash call challenges the joint ventures were facing which stagnated projects & investments in the oil and gas sector, a lot of opportunities are springing up again.

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INDUSTRY NEWS

Issue 2 - 2019 www.oilandgasrepublic.com

Shell invite Bidders for $10bn Bonga South West Project

n the first quarter of 2019, Shell Nigeria Exploration and Production Company (SNEPCo) announced the release of Invitation to Tender (ITT) to contractors for the development of the Bonga South West Aparo (BSWA) oil field. The project’s initial phase includes a new Floating, Production, Storage and Offloading (FPSO) vessel, more than 20 deep-water wells and related subsea infrastructure. The field lies across Oil Mining Leases 118, 132 and 140, about 15km southwest of the existing Bonga Main FPSO. The ITT is for engineering, procurement and construction contracts for the 150,000 barrels per day project in the Gulf of Guinea.“This is a new vista for deep offshore oil and gas exploration in Nigeria based on a revised commercial framework embraced by government and the project investors,” SNEPCo’s Managing Director, Bayo Ojulari said.Ojulari said, “SNEPCo has concluded OML 118 negotiations with the NNPC. We now have a clear

commercial framework, supported by the government and project investors, toward a potential Bonga South West Aparo Final Investment Decision (FID).”

water. This is a model that we see being replicated in the industry to further unleash Nigeria’s potential in deep-water exploration.”

Ojulari described the conclusion of the commercial framework as a key milestone for the project and the development of Nigeria’s deep-water oil and gas industry. “The new framework marks the start of the second generation of deep-offshore exploration and development, not just for SNEPCo but for all players in Nigeria’s deep

On the estimated project cost, SNEPCo’s General Manager for BSWA, Adam Bradley said, “The release of ITT will allow ourselves, government and investing parties to understand the actual costs for the initial phases which we expect will be very competitive.”

NCDMB Presents Oil & Gas Opportunities at NOGOF 2019

igerian Content Development and Monitoring Board (NCDMB), has concluded arrangements to host its second edition of the Nigerian Oil and Gas Opportunity Fair (NOGOF) themed “Maximizing Investments in The Oil and Gas Industry for the benefit of the Nigerian People”.

At NOGOF press conference in Lagos, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote, presented the Compendium of Nigerian Content Opportunities in the Oil and Gas Industry, a large size hardback coffee table book that contains all the current opportunities in the Nigerian oil and gas industry. According to him, the hard copy of the Compendium which contains all the project opportunities as well as local content specific opportunities will be distributed to delegates during the fair. Industry stakeholders and investors will

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see the opportunities available within the next five years in the oil and gas sector of Nigeria. "The maiden edition of NOGOF was held in Uyo, Akwa Ibom State. Over 1,200 delegates, 33 exhibitors and presentation of industry opportunities covering engineering designs, pipe construction, facility upgrades and projects of various segments of the industry was highlighted," he said "We discussed Brownfield and Greenfield opportunities at the fair and inspite of the challenging business environment during that period; we are able to provide a platform for industry players of the inherent opportunities in the sector. "This year event will be spectacular with the current stability in the industry and the current oil price. During the Practical Nigerian Content, NCDMB made a commitment that it will encourage the participation of female gender in the oil and

gas sector. “This event is been organized by a female which tells us that we are fulfilling our commitments and we believe that with this approach, it is going to be spectacular, and from what i have seen, it is promising to be a great event. "We have put all things together to make sure we bring all the players in the industry from upstream, midstream and downstream sector of the Nigerian oil and gas industry. "The fair attracts the highest quality of speakers as our sessions are led by leaders of the industry such as ministers, heads of NOCs, leading geoscientists and CEOs of major oil and gas companies, IOCs will be in attendance," he added NOGOF 2019 will be held in Yenegoa, Bayelsa State within the premises of NCDMB headquarters on 4th - 5th April, 2019.

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INDUSTRY NEWS

Issue 2 - 2019 www.oilandgasrepublic.com

Maersk Drilling Records Strong Profitability and Cash Flow Generation in 2018

he Board of Directors of Maersk Drilling Holding A/S has approved the annual report for 2018. Despite the challenging market conditions, Maersk Drilling retained strong profitability and cash flow generation.

“Maersk Drilling retained strong profitability and cash flow generation in 2018, driven by high contract coverage and a good operational performance. With our strong revenue backlog and robust balance sheet, we have a high degree of financial visibility and flexibility,” says Jørn Madsen, CEO of Maersk Drilling and continues: “We are with a modern fleet well positioned in the most attractive market segments of the offshore drilling industry. We are making good progress towards our strategic ambition of entering into even closer collaboration and partnerships with our customers to further improve efficiency and generate value for both our customers and Maersk Drilling.“ Financial performance 2018 (2017 performance in brackets) Revenue of USD 1,429 million (USD 1,439 million) EBITDA before special items of USD 611 million (USD 683 million) EBITDA-margin of 43% (47%) Cash flow from operating activities of USD 593 million (USD 652 million) Cash flow used for investing activities of USD 136 million (USD 448 million) Net debt of USD 1,097 million Liquidity reserves of USD 772 million Revenue backlog of USD 2.5 billion (USD 3.3 billion) Financial and operational development In 2018, revenue declined by 1% to USD 1,429 million (1,439 million) due to lower average day rates across the fleet, partly offset by an increased number of contracted days. The decline in EBITDA before special items to USD 611 million (USD 683 million) was mainly a result of increased costs due the increased number of contracted days as well as increased costs due to the build-up of the organisation to operate as a stand-alone company.

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Jørn Madsen, CEO of Maersk Drilling

The operational performance remained high with a financial uptime of 99.1% (98.5%), and the customer satisfaction increased to an all-time high of 6.6 (6.3) on a 1-7 scale. With an overall utilisation of 69% (66%) of the rig fleet, Maersk Drilling has begun to see the effect of higher activity with an increased number of tenders and projects. During the year Maersk Drilling secured 12 new contracts and 13 contract extensions adding USD 503 million to the contract backlog. By the end of the year the revenue backlog amounted to USD 2.5 billion (USD 3.3 billion). Maersk Drilling has a forward contract coverage of 63% for 2019 providing a relatively high degree of visibility into 2019. The jack-up segment carries the highest forward contract coverage of 75% compared to 39% in the floater segment. Maersk Drilling continues to see high demand for its ultra harsh environment jack-up rigs in the Norwegian sector in which Maersk Drilling holds a leading position. The market for floaters remains

challenged with overcapacity and utilisation at a level not yet able to support material pricing improvements. During 2018, Maersk Drilling continued the effort to support its customers in reducing inefficiencies and waste by entering into new more integrated business models with deeper collaboration and partnerships. The strategic alliance with Aker BP was further advanced with the signing of two drilling contracts for jack-up operations offshore Norway. As of 31 December 2018, Maersk Drilling had a net debt of USD 1,097 million and liquidity reserves of USD 772 million. Separation from A.P. Moller – Maersk Since the announcement on 17 August 2018 of the intention to separate Maersk Drilling from A.P. Moller – Maersk by way of a demerger and listing in 2019, Maersk Drilling has made the planned organisational progress with all key management positions relevant for the demerger preparation being filled or confirmed. Further, as part of the preparation for the separation, debt

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INDUSTRY NEWS

financing of USD 1.5 billion and a revolving credit facility of USD 400 million was secured in December 2018, from among others a consortium of international banks. The process to establish a separate Board of Directors for Maersk Drilling, as well as an independent governance structure, was further progressed in January 2019 with the announcement of Kathleen McAllister, Robert Routs, and Robert M. Uggla as new board members joining Chairman Claus V. Hemmingsen, Martin N. Larsen and Mads Winther. Guidance for 2019 In 2019, EBITDA before special items is

Issue 2 - 2019 www.oilandgasrepublic.com

expected to be around USD 400 million. The lower EBITDA before special items compared to 2018 is primarily due to rigs coming off contracts entered during more favourable market conditions with higher day rates than current market level, as well as off-hire days due to rig upgrades and yard stays in connection with the 5-yearly special periodic surveys (SPS) of 7-10 rigs in 2019 versus four rigs in 2018. Capital expenditures are expected to be in the level of USD 300-350 million, an increase compared to 2018 due to the above-mentioned rig upgrades and yard stays.

and yard stays are subject to commercial and operational planning. Details about current and future contract status for the rig fleet are provided in the fleet status report as of 7 February 2019. Capital Markets Day On 25 February 2019, Maersk Drilling will host a Capital Markets Day for institutional investors and financial analysts in Copenhagen, Denmark. Financial calendar 2019 Maersk Drilling will publish the financial calendar for the remaining part of 2019 in due course.

Final scheduling and scoping of rig upgrades

OGTAN Holds Second Annual International Conference & Exhibition

he Oil and Gas Trainers Association of Nigeria (OGTAN), in collaboration with Nigerian Content Development and Monitoring Board (NCDMB) has concluded arrangements to host its second annual international conference and exhibition dubbed “Human Capital Development: as a Driver for National Transformation”, billed to take place next month at Eko Hotel and Suites, Lagos from 13 to 16 of April, 2019.

OGTAN recognizes the link between the quality of a nation’s workforce and its economic growth, noting that an onslaught of complex and broad ranging socio-economic challenges including poor governance, corruption, inadequate infrastructure, outdated educational curriculum, poor funding of research centres, social unrest and increasing poverty, just to mention a few, have affected the Nigerian human capital over the years. The training association, in identifying this gap shall assemble resource persons to deliberate on the solutions as it relates to generating sustainable employment with a direct impact on the country’s GDP. While it admits the urgent need to address the widening debt profile of states and unemployment among Nigeria’s young population, OGTAN is also using this conference to address

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the rapid advancement of digitalization, automation, artificial intelligence, and how it compounds the increasing concern about the future of job security, wealth redistribution, and comparatively rising cost of implementing local content where these advancements are lacking. His Excellency, General Yakubu Gowon (GCFR), the chairman of the occasion shall lead the discussants, comprising the honourable Minister of State for Petroleum Resources, Dr Emmanuel Ibe Kachikwu; the Executive Secretary of Nigerian Content Development and Monitoring Board, Engr Simbi Wabote; and Dr Christopher Kolade. Others include Mr Brent Omdahl, Commercial Counsellor US Consulate; Mr Emeka Okwuosa, MD Oilserv; Mr Pade Durotoye, MD Nigerdock; Mr Femi Omotayo, MD AOSOrwell; Prof Sunny Iyuke, Principal PTI; Mr Ifeanyi Nwagbogu, MD Schlumberger; Vice Chancellor of FUPRE, ABU and University of Ibadan; as well as representatives of the Ministry of Energy Gambia; Ghana’s Petroleum Commission and GOGSPA, among others. The welcome and networking cocktail which is open to all delegates shall take place on the eve of the conference while distinguished individuals shall be decorated with awards. Award categories include: • “The Nigerian Oil & Gas Key Drivers Award” which goes to (i) the Honourable

Minister of State for Petroleum Resources, Dr Emmanuel Ibe Kachikwu; (ii) the GMD NNPC, Dr Maikanti Baru; and (iii) the Executive Secretary of NCDMB, Engr Simbi Wabote for their various roles and quality of leadership in the oil and gas industry over the last 3years which has brought stability and innovation. • “The Local Content Achievement Award” goes to Engr Ernest Nwapa, former Executive Secretary of NCDMB. • “The Nigerian Content Project of the Year Award 2018” which goes to TOTAL Exploration and Production. In line with improving the skill set to take on highly technical job roles and even ensure regional integration of Nigeria’s work force across West Africa, and other climes, OGTAN is introducing the short courses which will precede the conference. This year’s edition shall focus on Process Piping and Engineering Design; Managing Tax Issues; Tendering for Local Content Projects and Winning Bids. The Young Professionals Forum is dedicated to young engineers, geoscientist and all categories of graduates and final year students from varying disciplines will run simultaneously. The focus for these youngsters getting facilitators to equip them on how surmount job interviews, and have handy soft skills that are quite necessary for new job placements and their future roles in the industry.

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INDUSTRY NEWS

Issue 2 - 2019 www.oilandgasrepublic.com

The Johan Sverdrup living quarters topside at Kværner Stord. (Photo: Kværner ASA)

Johan Sverdrup living quarters topside ready for sail-away Johan Sverdrup is one of the five biggest oil fields on the Norwegian continental shelf. With expected recoverable resources estimated at 2.7 billion barrels of oil equivalent, it will be one of the most important industrial projects in Norway over the next 50 years.

ith 560 beds the Johan Sverdrup living quarters topside is the largest of its kind in Norway. The fourth and last platform for the first phase of the giant project is now ready for sail-away from Kværner’s yard on Stord to the Johan Sverdrup field, where it will be installed in a single lift.

“This is an important day for Equinor, the Johan Sverdrup partnership and the Norwegian continental shelf (NCS). This is the last platform in the first phase of the project development, and the completion of the living quarters topside takes us one significant step closer to the start-up of Norway’s big source of income for the next 50 years,” says Arne Sigve Nylund, executive vice

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president for Development and Production Norway. The Johan Sverdrup field – owned by license partners Equinor, Aker BP, Lundin Norway, Petoro and Total – is expected to provide value and revenue to the Norwegian state and society of more than NOK 900 billion over the field’s life. A joint venture between Kværner and KBR was awarded the NOK 6,7 billion contract in June 2015 for constructing the Johan Sverdrup utility and living quarters topside. Leirvik AS was assigned to construct the living quarters modules for the platform. At peak, more than 2000 people have been involved in constructing the platform. On 15 February this year the joint venture

formally handed over the topside to Equinor, just as planned more than 3 ½ years ago. One month later, after further preparations, the living quarters topside is now ready for sailaway to the Johan Sverdrup field in the North Sea where it will be transported on board the lifting vessel Pioneering Spirit.

“Kværner, KBR and Leirvik have delivered a high-quality platform on time and cost. As regards health, safety and environment, the project had a few incidents in the early phase. But the way our suppliers have turned this around has been commendable, so the overall results also in this area have been good,” says Trond Bokn, senior vice president for the Johan Sverdrup development. “The platform’s high quality and degree of completion at the moment is vital to be able to start field production as planned in November this year,” says Bokn. “This is perhaps the closest to a «plug-n-play» platform of this size we have ever seen, proving that the joint venture in collaboration with Leirvik have delivered an excellent product,” says Aud Hove, Equinor’s project manager for the utility and living quarters topside.

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The Kværner yard with the Johan Sverdrup processing platform in view, and the living quarters and Njord in the background. (Photo: Roar Lindefjeld - Espen Rønnevik) «This is also a result of the good collaboration and high quality in execution which the project has had since day one. We’ve met every milestone as originally planned, which is quite unique,” says Hove.

At the Rosenberg WorleyParsons yard in Stavanger yesterday Equinor and the Johan Sverdrup partners celebrated that the two last bridges and the flare tower for the processing platform were ready for sailaway to the field.

The high degree of completion has been achieved by, inter alia, use of the Pioneering Spirit lifting vessel. The vessel’s ground-breaking lifting technology enables completion and testing of bigger topsides onshore before they are installed in a single lift offshore. Carrying out the work onshore instead of offshore leads to major savings and reduced health, safety and environment risk.

With this, Johan Sverdrup is ready for installing the five last pieces constituting the first phase of the giant project puzzle.

The single-lift installation technology was introduced globally during the installation of the drilling platform on Johan Sverdrup last summer. Now the vessel will be put to work again, first by lifting the 26,000-tonne processing platform for Johan Sverdrup which according to plan will occur in the next couple of days, before the vessel returns to Stord to pick up the 18,000tonne living quarters topside.

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Peak production on Johan Sverdrup will be equivalent to 25% of all Norwegian petroleum production. Power from shore reduces carbon emissions from the field to just 0,67kg CO2 per barrel – which is among the lowest worldwide being 25 times lower than average emissions from oil and gas fields. Johan Sverdrup will be developed in several phases. Phase 1 is expected to start up in November 2019 with production capacity estimated at 440,000 barrels of oil per day. Following start-up of phase 2 in Q4 2022, full field production is estimated to peak at 660,000 barrels of oil per day. The plan for development and operation (PDO) for phase 2 was submitted to Norwegian authorities in August 2018.

Estimated combined income from Johan Sverdrup amounts to 1430 billion NOK over the life of the field. Income to the Norwegian state and society is expected to amount to more than 900 billion NOK. According to Agenda Kaupang the field can in the operations phase contribute with employment in Norway amounting to more than 3,400 man-years each year. In the building phase between 2015-2025, employment in Norway from the project is estimated at more than 150,000 man-years in total. Johan Sverdrup is one of the largest oil discoveries ever made on the Norwegian Continental Shelf (NCS).The field will be operated by electrical power generated onshore, reducing offshore emissions of climate gases by 80%—90% compared to a standard development utilising gas turbines on the NCS. PARTNERS: Equinor: 40.0267 % (operator), Lundin Norway: 22.6 %, Petoro: 17.36 %, Aker BP: 11.5733 % and Total: 8.44 %.

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Supported by:

23-25 July 2019 | Four Points by Sheraton, Lagos, Nigeria

Digitalising Africa’s refneries to evolve from a crude exporting powerhouse to a smart refnery hub

Top speakers and technical committee members

Prasanna Kumar Burri, Group CIO, Dangote Industries, Nigeria

Debo Fagbami, Chairman, Society of Petroleum Engineers (SPE), Nigeria

Narendranath Ramaiah, Head of Pipelines, Shell, Nigeria

Engr. Kapuulya Musomba, Acting Managing Director, Tanzania Petroleum Development Corporation, Tanzania

Engr. Onochie Anyaoku, President, Nigerian Society of Chemical Engineers, Nigeria

DIGITALREFINERIESAFRICA.IQPC.COM • ENQUIRY@IQPC.AE

SPECIAL REPORT

Issue 3 2018 www.oilandgasrepublic.com

Egina field discovered in 2003 & Exploration Phase 2004

Appraisal Phase 2005 - 2007 3G Studies Validation 2008 - 2011

The Nigerian Government currently owns and operates 3 refineries through NNPC in Port-Harcourt, Warri and Kaduna. But, Nigeria still depends on imports for over 80% of its petroleum products requirements.

igeria is the world’s 7th largest crude exporter in the world, and 3rd largest importer of refined petroleum products. About 88% of foreign exchange earnings are from crude oil exports. Today, Nigeria’s current capacity for production is 2.5 Million Barrels/day but budget is 2.3Million Barrels/day whilst actual production has been consistently less than 2.0 Million Barrels/day. But, with the country’s ambitious plan to produce 4 million bpd would mean a new dawn for Nigeria’s oil and gas industry. With such a major boost in the upstream production of crude, it is crucial to revive existing refineries, along with the new ones that are being built, in order to cope with domestic fuel demand.

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This article features the key developments in the Nigerian petroleum sector, and workable solutions to building and operating a Modular Refinery in Nigeria which was presented to the Federal Government by the Nigerian Society of Chemical Engineers (NSCHE), the professional body that caters to the practice of Chemical Engineering. The Nigerian Government currently owns and operates 3 refineries through NNPC in Port-Harcourt, Warri and Kaduna. But, Nigeria still depends on imports for over 80% of its petroleum products requirements because over the last decade these refineries have operated at barely 20-25% of their capacities.

SOR - Well Preparation 2012

Port-Harcourt Refinery The Port-Harcourt refinery covers about 900 hectares of land, located at Alesa-Eleme community. The Port Harcourt Refinery Company (PHRC) consists of two refineries the oil refinery commissioned in 1965 with production capacity of 60,000 barrels per stream day (bpsd) and the new refinery commissioned in 1989 with an installed capacity of 150,000 bpsd. The successful integration of the two plants in 1989 brought the combined crude processing capacity of the Port Harcourt Refinery to 210,000 bpsd. The Port-Harcourt refinery produces Liquefied Petroleum Gas (LPG), Premium Motor Spirit (PMS), Kerosene (aviation and domestic), Automotive Gas Oil (AGO - Diesel), Low Pour Fuel Oil (LPFO) and High Pour Fuel Oil (HPFO). The planned co-location of a new refinery within the precinct of the current plant would increase the daily refining capacity to 310,000 barrels from current 210,000 barrels per stream day.

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SPECIAL REPORT

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In the paper, building and operating a modular refinery in Nigeria, the Nigerian Society of Chemical Engineers (NSCHE) recommends that the refineries should be private sector driven with well-structured technical and operational capabilities covering the entire value chain of the petroleum sector such as the size of the refinery, specification and technologies, type of product to be refined, infrastructure, human capacity, and market price. However, a modular refinery sited close to a crudeoil production location with existing infrastructure and ready feed of crudeoil will tend to have a better chance of success.

NSCHE in a meeting with Prof. Yemi Osibanjo, Vice President of Nigeria

Kaduna Refinery The Kaduna refinery occupies a total land area of 2.89 square kilometers (289 hectares) in Kaduna state. The Kaduna Refining and Petrochemicals Company, KRPC, effectively commenced operation with the commissioning of the Fuels Plant in 1980. However, the Lubes Plant was commissioned in 1983 and the Petrochemical Plant in 1988. The refinery was designed to process both imported paraffinic and Nigerian crude oils into fuels and lubes products. In December 1986, the design capacity of the fuels plant of the refinery was successfully increased from 50,000 barrels per stream day (bpsd) to 60,000 bpsd, bringing the total refinery installed capacity to 110,000 bpsd. In March 1988, the 30,000 MT/Yr. Linear Alkyl Benzene Plant under the then Petrochemicals Sector of NNPC was commissioned. The plant was designed to derive its entire raw materials including utility supplies from the refinery. In 1988, it was decided that the two plants should merge into a single subsidiary company of NNPC in view of their interdependence, common goal and proximity. The company thus formed is the Kaduna Refining and Petrochemical Company Limited (KRPC). Conceptualised by NNPC engineers in alliance with the consulting firm King Wilkinson of Hague, Holland and constructed by Chiyoda Chemical Engineering & Construction Company of Yokohama, Japan, the lubricating oil complex of Kaduna Refinery is the first of its kind in West Africa and one of the largest in Africa.

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The Kaduna refinery produces Liquefied Petroleum Gas (LPG), Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) ir Diesel Oil, Kerosene, Fuel Oil, Sulphur, Base Oils, Asphalt (Bitumen) and Waxes are also produced from the lubricating oils complex. Warri Refinery The Warri refinery is the first Nigerian government wholly owned refinery, the facility was commissioned in 1978 to process 100,000 barrels of crude oil per stream day (bpsd) but was later debottlenecked to process 125,000 bpsd in 1987. Efficiently the Warri Refining and Petrochemical Company was incorporated as a limited liability company on the 3rd of November 1988 after the merger of the then Warri Refinery and the Ekpan Petrochemical Plants. The petrochemical plant consists of the 35,000 MTA polyprophylene and 18,000 MTA carbon black plant. The Warri refinery produces Liquefied Petroleum Gas (LPG), Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) or Diesel Oil, Kerosene, Fuel Oil, Polyprophylene Pellets (Nipolene) and Carbon Black Oil. The palnned co-location of a new refinery within the boundaries of the current plant would increase the daily refining capacity to 242,000 barrels from the current 125,000 barrels per stream day. As part of the government efforts to revive and eliminate illegal refineries which has also led to stolen of crude oil in the country, it is setting up a Modular Refineries as a strategy to simultaneously eliminating the highly undesirable illegal refineries and reducing dependence on imported petroleum products into Nigeria.

Resolving the issues in the Niger Delta region, NSCHE recommends that the amnesty programme should be extended to the youths in illegal refining business, training and rehabilitation programmes for these youths, provision of infrastructure such as marine support, roads, water supply, schools, hospitals etc. The establishment of privately operated modular refineries in the Niger Delta region isn't the one time solution, but, NSCHE recommends that government should put more efforts for the training of the youths in the Niger Delta community and equipping them with requisite skills to meaningfully participate in diverse economic activities. The training should also include stipends for livelihood and opportunities in the riverine and ocean environments such as commercial scale aquaculture and commercial fishing, which indeed generates high demand and revenue. The training should also cover all aspects of refining business, maintenance and refinery operations in preparation for employment by private investors in modular refineries. According to report, Nigerian demand for petroleum products is estimated at about 60 million litres per day out of which about 45-50 million litres/day are imported. To close the gap, it will require over 50 small, modular refineries producing at best one million litres per day from each of the refinery but its not an efficient solution as modular refineries can only make a limited impact on the supply situation. The real solution, NSCHE, suggests that government should take measures by restructuring the existing NNPC refineries, reducing its stake to minority holding of not more than 49% and partnering with private investors with the required technical, operational and financial capabilities in petroleum refining, as majority stakeholders and also fully deregulating the industry in order to attract the right investors. NSCHE is of the strong view that government involvement in building and operating modular refineries or building and transferring such

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SPECIAL REPORT

Issue 3 2018 www.oilandgasrepublic.com

More so, the ongoing development of the 650,000bpsd refinery in Lagos State, by the Dangote Group if completed will go a long way to transform Nigeria from a net importer to a net exporter of petroleum products. In view of all this, International Quality & Productivity Centre (IQPC) will be organising a 3 day summit, Digital Refineries Africa, scheduled to hold on 23-25 July 2019 at Four Points by Sheraton in Lagos. The Digital Refineries Africa Conference will focus on increasing production capacities in Africaâ&#x20AC;&#x2122;s refineries through technologies such as AI, IoT, process automation and many more. The summit will also explore the concept of modular refineries, which will curb illegal refining, eventually leading to a boost in production capacities. assets to community groups with very limited managerial, technical and operational capabilities will not be an appropriate solution to any of the problems in view. NSCHE recommends that government should not get involved directly in development of modular refineries. It should however strive hard and honestly to provide a conducive environment and incentives to encourage genuine private investors who may be interested to invest on building a modular refinery in Nigeria. Such incentives should include quick approval processes, tax incentives, access to project finance at reasonable interest rates, deregulated pricing of products. However, a new development has begun in the Nigerian petroleum sector as the Federal Government of Nigeria recently announced that December 2019 is deadline for the exit of importation of refined products. The Management of the NNPC working together with the Ministry of Petroleum Resources and other stakeholders to implant a novel refining model and other strategies which would not only restore the refineries but will expand existing capacities to record levels.

To ensure continuous work flow at the refineries, the committee are headed by a Steering committee, chaired by the GMD, other committees are: Rehabilitation; Stakeholder Management; Financing; Legal; Procurement; Pipeline and Crude Oil Supply and Security as well as Staffing and Succession Planning. Also, the Corporation has already gone back to the original refineries builders, which are JGC Corporation of Japan for Port Harcourt Refinery, Italy based Snamprogetti, for Warri refinery and Japan based Chyoda, for Kaduna refinery. Several measures have been taken so far by the current administration to restoring the three refineries back to its full operational capabilities. Industry players and stakeholders in Nigeria are optimistic that the current NNPC Management has all it takes to convert the seemingly incurable refining challenge faced in Nigeria into a productive and selfsufficient petroleum sector.

Digitalising refineries would not only curb the domestic demand-supply gap, it will also reduce the burden on imports and create a million jobs. The summit will also highlight the possible solutions to the biggest problems oil and gas companies in Africa face today such as developing a robust cyber resilient response strategy, building a quick incident response plan for cyber-attacks and a digital corrosion management plan. Top regional and international CXOs including Dangote Industries, Tanzania Petroleum Development Corporation (TPDC), Nigerian National Petroleum Corporation (NNPC), and Ghana National Petroleum Corporation (GNPC) will discuss how to improve production capacities through digitalisation as a core business strategy. Engr. Onochie Anyaoku, President, Nigerian Society of Chemical Engineers, is a featured speaker at the summit. He will be speaking on 'Improving Asset Life Cycle with Continuous Corrosion Monitoring and Risk Managementâ&#x20AC;&#x2122; in order to prevent asset failures.

About eight committees have been inaugurated by The Group Managing Director of NNPC, Dr. Maikanti Baru, charged with the express directive to return the refineries to their main capacities by the year 2019. The target for the refineries rehabilitation was to restore them to 90% capacity utilization before the end of 2019.

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COUNTRY REPORT

Issue 1 2019 www.oilandgasrepublic.com

Oil and Gas Republic Media Coverage

Canada’s Growing Role in Nigeria’s Major Industries By Ndubuisi Micheal Obineme

ver the years, Canada and Nigeria began bilateral relation to promote investment opportunities between both countries. And, a Foreign Investment Promotion and Protection Agreement (FIPA) was developed. The FIPA was signed by Canada’s Minister of Development, Christian Paradis and the Nigerian Minister of Industry, Trade and Investment, Olusegun Olutoyin Aganga on May 6, 2014. Canada then ratified the agreement in 2015, but it hasn’t made it that far in Nigeria yet.

leading technology solutions. “In terms of investment, there’s actually more Nigerian investment in Canada than vice versa. Our team is engaged in investment promotion in both directions, and is looking for ways to identify potential Nigerian investors in Canada as part of our programming for the next year. We’re also doing a lot of work to promote innovation linkages between our countries, and are seeing increasing interest from Nigerian startups looking to grow in Canada.”

Since the signing of the FIPA, Nigeria has developed a new model for further agreements, and both countries are in discussions to formally ratify the agreement. The FIPA will provide greater predictability and certainty for Canadian investors considering investment opportunities in Nigeria. Canada’s objective in entering these negotiations is to secure a comprehensive, high-quality agreement which will protect investors through the establishment of a framework of legally binding rights and obligations. And, with the recent visit by the Governor General of Canada to Nigeria has ushered in a season of increased and more meaning engagement between both countries. During the first edition of NigeriaCanada Investment Summit (NCIS) in Abuja in November 2018, Deputy High Commissioner of Canada in Nigeria, Ryan Ward, highlighted its country interest to explore investment opportunities in major industries in

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Ryan Ward, Deputy High Commissioner of Canada in Nigeria, Nigeria such as oil & gas sector, education, telecommunications, mining, clean technologies, and arts & culture. “With the shifting winds of international trade, Canada is looking to exciting and dynamic markets like Nigeria to build and expand strong trade and investment relationships in ways that are mutually beneficial to our countries.” According to him, there is significant interest in both Nigeria and Canada in growing its mutual trade and investment relationship. Some of the sectors of greatest potential in Nigeria – particularly around the extractive industries – are areas where Canada has strong experience and

"Nigeria is the largest source of investment from Africa into Canada – with a total value of CAD895 million in stocks as of 2017, it was also the 31st largest source worldwide. In the other direction, there is CAD483 million of Canadian investment in Nigeria, making Nigeria the 61st largest destination for Canadian investors. There is a lot of space to increase this bilateral investment through the implementation of the FIPA, and the continued development of Nigeria’s mining sector. “If you look at the sectors of growth in Nigeria, they are in line with Canadian expertise whether infrastructure, telecommunication, natural resources, aviation, technologies,” he said Ryan further explained that as part of the mandate given to Canada’s minister of international trade, there will be more interest for Canadian companies to explore Africa, and to make more trade & investment in Nigeria. And, Nigeria is Canada’s largest trading partner in SubSaharan Africa, as well as the largest investor in Canada from the region.

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COUNTRY REPORT

Issue 3 2018 www.oilandgasrepublic.com

Ryan Ward with Adeyinka Asekun, Nigerian High Commissioner to Canada at NCIS 2018

“Nigeria bilateral relationship with Canada is different from what we have with other African countries that has experienced Canada’s presence in the market,” he added. "Our Trade Teams in Lagos and Abuja are always out and about in Nigeria, meeting with companies, and looking for opportunities to share with Canadian companies. We participate in key trade shows, both in Africa and Canada, where we have a chance to connect Canadian and Nigerian delegates with a view to sparking collaboration. These trade shows also give us a platform to meet with groups of Canadian businesses, and share information on industry trends in Nigeria, and why they should be thinking about the market." In his speech, Ambassador Adeyinka Asekun, the Nigerian High Commissioner to Canada, said that Nigeria offers attractive Return of Investment (ROI) for investors with an investor friendly climate. “As a nation we have made bold and meaning reforms that has improved our ranking in World Bank’s Ease of Doing

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Business index. Nigeria also have the largest market for goods and services of over three hundred million in Africa with easy access to West African sub-region.” "Nigeria and Canada have a relationship since we gained independence in 1960, and i think it became more cordial from 1999 to our present democratic dispensation," said Ambassador Adeyinka Asekun, the Nigerian High Commissioner to Canada. "Canada has a High Commission in Abuja and Lagos that takes care of immigration, consular and other matters which Ryan Ward oversees. Nigeria has a High Commission in Ottawa which is the only office we have in the country” "Nigeria has a lot of students that is studying in Canada. In 2016, Nigeria came fourth after China, India and France in terms of visa that was issued to students who came to study there. "In 2017, Canada issued ten thousand visas to Nigerian students. It is quite clear that Canadian education has a high pertination and attraction for Nigerians which has also led to collaborations between our universities to make sure that the relationship takes on a deeper dimension. There are more Nigerian students studying in Canada than any other countries in Sub-

Saharan Africa," Asekun concluded. The Nigeria-Canada Investment Summit is inspired by the Federal Government Economic Diploma Initiative which is aimed at supporting Nigerian economy and growth plan. The summit also aims to establish Nigeria as a very viable option for consideration, and the sector selected for the summit are areas in which Canada has a strategic advantage and achievements over the years. The summit brought together the Vice President of Nigeria, Professor Yemi Osibanjo, Ambassador Adeyinka Asekun, the Nigerian High Commissioner to Canada, Ryan Ward, Canadian Deputy High Commissioner to Nigeria, Geoffrey Onyeama, Minister of Foreign Affairs, Okechukwu Enelamah, Minister of Industry, Trade & Investment, Audu Ogbeh, Minister of Agriculture, Babatunde Fashola, Minister of Power, Works & Housing, Hadi Sirika, Minister of Aviation, Abubakar Bawa, Minister of State for Mines and Steel Development, William Babatunde Fowler, Executuve Chairman of Federal Inland Revenue Service (FIRS), Ade Shonubi, Deputy Governor of Central Bank of Nigeria, Industry Players, Canadian Investors, Nigerian Enterpreneurs and Diasporas living in Canada.

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COUNTRY REPORT

Issue 3 2018 www.oilandgasrepublic.com

Germany's FDIs to Nigeria hit €183 million TRADE & INVESTMENT | All stakeholders in Nigeria and Germany are working collaboratively to maintain a harmonious and mutually beneficial relationship between both countries. The Nigerian German Business Association is at the forefront of tranforming businesses from both countries. Niger State. Niger State government is one of the five partner states that is under the Nigerian Energy Support Programme. Aside from Niger, other states in the partnership include Sokoto, Cross River, Ogun and Plateau. The NESP aims to improve the conditions for investments in renewable energy, energy efficiency, and rural electrification. Policy advice to improve relevant institutional and policy framework conditions is provided on the federal level. Five selected states will also be supported on measures for electrification of rural and peri-urban areas through the usage of renewable energy, particularly small-scale hydropower and solar plants.

ermany's Foreign Direct Investment (FDI) to Nigeria exceeded its 2015 target of EUR 140 million, reaching over EUR 183 million a year ahead of time. The country's yearly FDI rate between 2015 and 2016 exceeded the baseline that was needed to increase its investments in Nigeria.

Both countries established the Nigerian-German Energy Partnership (NGEP) in 2008, and German-Nigerian Binational Commission in 2011. The Nigerian-German Energy Partnership is a business-tobusiness platform launched under the auspices of the German Federal Foreign Office and the Nigerian Federal Ministry of Power. It seeks to foster beneficial ties between German and Nigerian companies in the power sector, and one of its key initiatives is the construction of largescale solar power plants across the country. While, the German-Nigerian Binational Commission is a forum for discussing the entire spectrum of bilateral topics as well as international issues. Nigeria is ranked as the most populous country on the African continent. More than 80 German companies are doing business in Nigeria. Apart from that, there is another project

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that was implemented which is known as the Nigerian Energy Support Programme (NESP), fully supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. GIZ offers workable, sustainable and effective solutions in political, economic and social change processes. It aims to enhance the capacities of individuals, organizations, and societies, so that partners can articulate, negotiate and implement their own ideas for reform and development. GIZ currently has offices in the capital Abuja as well as in Jos (Plateau State), Minna (Niger State) and Abeokuta (Ogun State). In total, 31 international seconded experts, 122 national staff members and another 4 experts of the Centre for International Migration and Development (CIM) work for GIZ Nigeria. Over the years, the European Union and the German government provided a total sum of €25m (N8.1bn) as energy support fund for the first phase of the Nigerian Energy Support Programme. According to the Federal Ministry of Power, Works and Housing, five states in the country are already benefiting from the NESP project, explaining that the programme was part of the Sustainable Energy for All initiative of the United Nations. Other states that benefits from the NESP is

The Nigerian-German Energy Partnership, NGEP, installed a 10 megawatt solar plant project at the University of Ibadan in 2016. The project, worth about $17,670 USD approximately N3.52 million naira. The project of the University of Ibadan is a project which is very promising and serves as a pilot project for universities in the country. The solar plant provides electricity for the university and also serve as a training site for engineering students of the institution and technicians. German Ambassador in Nigeria, Mr. Bernard Schlagheck, said the project was aimed at empowering universities in the country. He further explained that the next university in line was Ahmadu Bello University, Zaira, after which the project would be taken to Modibo Adama University of Technology, Yola; Bayero State University, Kano; University of Maiduguri and others. German government advocated for an active involvement of the German private sector in the whole Nigerian economy – not just in the energy/power sector. The Nigerian-German Business Association (NGBA) was established on the 15 October 1986 with the aim to ensure better trade collaboration between both countries. NGBA has pioneered initiatives and collaborated with stakeholders to promote bilateral relations between both countries.

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LNG WORLD NEWS

Issue 3 2018 www.oilandgasrepublic.com

NNPC, NLNG committed to Train 7 Realization

he Nigerian National Petroleum Corporation, NNPC, and the Nigerian Liquified Natural Gas, NLNG, say they would work closely towards the realization of Train 7 Liquified Natural Gas Project.

This was one of the resolutions arrived at on Monday, when Mr. Chima Ibeneche, Managing Director, NLNG, led a delegation to pay a courtesy visit to the Group Managing Director of NNPC, Mallam Shehu Ladan.

hampered as a result of the shortage of gas to satisfy local requirement. He argued that the development of Train 7, complemented by the Brass LNG, in the same region will not only help in disarming militants in the Niger Delta through the numerous job opportunities they would create, but will also cause a ripple effect in both the regional and national economy.

Welcoming the NLNG delegation to his office at the NNPC Towers, Abuja, Ladan stressed that one of his priorities during his tenure is to ensure the realization of Train 7, which has been in the pipeline for a long time.

“Luckily the shareholders of the LNG project are not asking us for money because they have money of their own for the project. So the devlopment of the project will not only disarm the militants fighting in the region, but also generate a lot of industries that will employ the youths and keep them occupied, and this will have a multiplier effect in the economy of the region and of Nigeria,” Ladan said.

Mallam Ladan said during his tenure he would mobilise resources to ensure that the LNG Train 7 comes to fruition after ensuring the availability of gas for domestic use.

Also expressing commitment to the Train 7, the NLNG Managing Director, Mr. Ibeneche, said the Liquefied Natural Gas project is the most profitable additional capacity in the LNG.

The NNPC GMD noted that Train 7 is very significant to Nigeria’s economy which development has been

Mr. Ibeneche stated that apart from the LNG project, the NLNG is equally committed to ensuring the availability of

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other gas products such as the Liquefied Petroleum Gas, LPG. To this end, the NLNG boss sought the support of the NNPC to construct a new LPG jetty and depot in Port Harcourt, Rivers State, for ease of supply and distribution of the product in the country. Mr. Ibeneche posited that NLNG is promoting the expansion of LPG usage in Nigeria by guarranteeing availability of the product, adding that there is every need to increase existing facilities to bring LPG closer to the people. “There is one major LPG jetty in Lagos, but because of congestion the jetty is not as effective as it should be in product distribution. There is also a small jetty in Calabar, but there is none in Port Harcourt. So if the NNPC with some of its partners can deliver a jetty and a depot in Port Harcourt, we will have broken a jinx on the availability of LPG in Nigeria,” Mr. Ibeneche observed. In addition, Mr. Ibeneche stated that the NLNG is equally ensuring the availability of gas for power generation in the country by providing the means for Mobil Producing to transport its gas to meet domestic supply needs.

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...wind, solar, biomass and hydropower major source of energy

oday, 25 years after reunification, The Federal Republic of Germany is a valuebased, democratic, economically successful, and cosmopolitan country. Berlin, its capital, is home to art and nightlife scenes, Munich is known for its Oktoberfest and beer halls, including the 16th-century Hofbräuhaus. Frankfurt, with its skyscrapers, houses the European Central Bank. Germany is one of the countries with the highest employment rates in Europe and lowest youth unemployment percentage. This article provides an insight on Germany's Energy Transition and the country's innovative approach of focusing on renewables as its major source of electricity supply.

Germany is the largest economy in the European Union (EU) and the fourth largest in the world after the USA, China, and Japan. It is also the fourth largest country in the European Union after France, Spain, and Sweden.

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It shares its borders with nine countries, eight of which are EU member states. No other European country has more neighbors than Germany. In the north, Germany has access to the North and Baltic Seas. According to report released by Federal Statistics Office (Destatis), the German economy shifted into a higher gear in the second quarter of 2018, defying the global economic and political uncertainty triggered by trade tensions. “Germany remains on track for a golden decade,” said ING Bank economist Carsten Brzeski, noting that the economy has grown in 34 out of the last 37 quarters. “The German economy continues on a growth path,” Destatis said, with secondquarter GDP boosted by “positive impulses” from the nation’s domestic economy, including increases in both household and state spending. Businesses also stepped up their investments in equipment.

By Ndubuisi Micheal Obineme

“The recent agreement in the trade dispute between the EU and the United States has led to a considerable rise in expectations for Germany and also, to a lesser degree, for the Eurozone,” said ZEW President Achim Wambach. Recent GDP data showed that the German economy is expanding by 2 per cent in the second quarter compared with the same period a year earlier. Year-on-year GDP stood at 2.1 per cent in the first quarter. The German labour market also remained a bright spot. Annual inflation in Germany slipped back to 2 per cent in July 2018 from 2 per cent plus in both June and May 2018, Destatis said. An average of 44.8 million people was employed in Germany in 2018, the highest number in Europe's largest economy since reunification.

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The figures were announced recently by the Federal Statistical Office in the city of Wiesbaden on the basis of preliminary calculations. Despite Germany's ageing society, the number of people in work grew by 1.3 per cent over the year to reach the highest level since 1991. A higher proportion of employed German nationals and an influx of foreign workers would have compensated for the negative effects of the ageing population, the Wiesbaden authority said. The number of employees climbed by 638,000 in 2018, exceeding 40 million for the first time, while the good situation on the job market meant that fewer people were self-employed: At 4.22 million, the number was at its lowest level since 2003. "We continue to look positively into the future," the head of the Federal Employment Agency, Detlef Scheele, said, adding that growth would not continue to be quite as dynamic as in the past year. A reversal in the employment trend is not expected, despite international uncertainties such as Brexit and trade conflicts. The head of the Munich Institute for Economic Research (IFO), Clemens Fuest, expects a new employment record in 2019. The high level of employment is also associated with a falling unemployment rate, most recently recorded at 4.8 per cent. In the meantime, unemployment is falling to 2 million. Scheele does not believe that this barrier will be breached in 2019. The biggest risk for the German job market is the shortage of skilled workers, he said. On the international level, Germany enjoys a very broad network of close contacts. It maintains diplomatic relations with almost 200 countries and is a member of all the important multilateral organisations and informal international coordination groups such as the "Group of Seven" (G7) and the "Group of Twenty" (G20). The Federal Foreign Office, which is based in Berlin.

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Detlef Scheele, Director of the Federal Employment Agency

In total, Germany maintains 227 missions abroad. Together with its partners, Germany promotes peace, security, democracy, and human rights all over the world. At the World Economic Forum 2018, Germany tops in innovation. According to an analysis by the World Economic Forum (WEF). German entrepreneurs like to take risks while science and industry are developing a great deal of patentable innovations. In its Global Competitiveness Report for 2018 the Geneva-based WEF said Germany tops the innovation list, followed by the United States. Among other determining factors were the number of patents reported, scientific studies published and the satisfaction of customers with German products â&#x20AC;&#x201C; all things which stimulated companies to seek further improvements and innovations. In the overall competitiveness rankings â&#x20AC;&#x201C; which include the strength of the financial system, infrastructure, education and health services â&#x20AC;&#x201C; Germany ranked third behind the United States and Singapore. In 2017, Germany ranked fifth, but the WEF stressed that the two years cannot be compared because of completely new evaluation methods that were employed.

Germany enjoys a moderate climate. In July, the mean maximum temperate is 21.8 degrees Celsius, the minimum 12.3 degrees. In January, the mean maximum is 2.1 degrees, the minimum -2.8 degrees. The highest temperature since records began was recorded on 5 July 2015 in Kitzingen am Main, namely 40.3 degrees Celsius. Germany's Energy Transition is the single most important economic and environmental policy task in Germany. The German government is currently restructuring the country's energy supply sources away from nuclear power and fossil fuels, towards renewable energies. In the year 2000, the Federal Government agreed with the German energy companies on an exit from nuclear power by 2022. As such, the resolutions the Federal Government passed in 2011 follow in the tradition of restructuring of the energy sources. By 2050, the government targets at least a minimum of 80 percent of electricity and 60 percent of all energy in Germany will come from renewable energies. In this regard, Germany has begun to shut down all nuclear power stations with a target of 40 to 45 percent electricity to come from renewable sources. Since mid-2015 there have only been eight nuclear power stations still in operation, providing around 15 percent of the country's energy mix. But, the Federal Government of Germany is pressing ahead

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with the sustainable restructuring of the energy systems, which began as long ago in 2000 with the first resolution on an exit of nuclear power and the promotion of the Renewable Energy Sources Act. In Germany the promotion of renewable energies began back in the 1990s and in the year 2000 was made into law in the form of the Renewable Energy Sources Act. German Economy Minister Peter Altmaier has argued in favour of a mechanism to audit Germany's progress on ending its reliance on coal by 2030 in order to ensure the security of the country's electricity supply. "A high volume already has to be replaced by the withdrawal from nuclear energy by 2021-22," Altmaier said. That has to be reflected in the timetable for exiting coal and turning toward renewable energy sources in order to guarantee the continued security of the energy supply, he said. "A date should be set to review the progress, sometime around 2030," he said. A government commission tasked with developing a comprehensive plan for Germany's exit from coal is due to meet in the coming days and present a draft plan for the energy shift. A compromise could come as early as Friday. Germany needs to start producing energy without coal if it plans to stick to international climate change agreements. But the shift is a problem for states that have long relied on the coal industry, with tens of thousands of jobs still directly or indirectly related to coal mining. More than a third of German power is still derived from coal production. However, it is not only the environment and climate that are intended to benefit from the Energy Reform, but the German economy as well - the primary aim being to eliminate reliance on international imports of crude oil and natural gas. To date, Germany spends around 80 billion euros annually on the import of coal, oil, and gas. In coming years, this amount will be gradually eliminated by domestic value added in

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Johan Sverdrup Peter Altmaier, German Minister for Economic Affairs and Energy

the field of renewable energies; moreover, these measures result in additional export opportunities and the prospect of more jobs. At a two-day international conference attended by ministers and top ranking delegations, as well as business and civil society representatives, from 40 countries, German Economy Minister Peter Altmaier, said that German companies producing electricity from renewable energy sources will have to reckon with an end to their state subsidies in a few years’ time. “I expect that renewables will have completely reached full competitiveness in the foreseeable future, meaning in four to five years, and that we then will be in a position to finance renewable energy without additional subsidies,” he told an international energy conference in Berlin. Altmaier noted that the costs for expanding wind power in rural areas had been cut in half. “Today, the expansion of renewables is possible at only a fraction of what it was in the past,” he said. Altmaier said that Germany’s energy transition – the push to cover the country’s electricity needs without nuclear power and increasingly through renewable energy sources – was admired by many countries around the world. A “business model” should emerge from the energy transformation, he said.

Altmaier said that he wanted to accelerate the expansion of electricity networks in the country. “We have succeeded in reducing the costs for renewables in the past few years. We have succeeded in better organizing the expansion, making it market-based. Now we must see to it that power lines are built everywhere,” he said. This is a key aim of the federal government, together with the states and municipalities. “In the past few years we were prepared to accept more underground cabling. We want to accelerate the approval procedures and want to make it clear that the energy transformation can only work if the necessary power lines are available,” Altmaier said. Germany's Energy Reform seeks not only to minimize risks, but also to enhance climatecompatible energy consumption and high supply security. The dynamic development of renewable energies has meant an increase in the proportion of carbon dioxide-free energy in the electricity mix. About 1.79 million kilometers is the length of the German national grid. You could circumnavigate the globe at the Equator 45 times using the cables. The vast majority of the grid, namely a total of 1.44 million kilometers or 80 percent, is underground. Around 350,000 kilometers are power lines. The supra-regional high voltage lines are 34,810 kilometers long. About 2,650 kilometers of new power lines are being planned as part of Germany's Energy Reform.

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According to report, in 2014, green electricity had a 26 percent share of gross electricity generation, and in the first six months of 2015 it accounted for 32.5 percent of total electricity consumption. On sunny work days, solar PV plants can cover up to 25 percent of electricity demand, and on Sundays and public holidays even as much as half. Moreover, 38.7 percent of all new residential buildings are already heated with renewable energies. In early 2015, there were 1.5 million solar PV systems installed, generating approximately 38.5 gigawatts in rated power, positioning Germany in third place behind China and the USA in terms of nameplate capacity. In the first four months of 2018, German solar energy producers set a new record for the period, E.ON reported. Through April 30, solar output came to 10.1 billion kilowatthours, a company spokesman disclosed this. “Compared with the same period last year this was more than seven per cent higher, and was even 25 per cent above the first quarter of 2016,” noted Victoria Ossadnik, the head of Eon Energie Deutschland’s executive board. The electricity produced can cover the average annual needs of more than four million households. During the winter weather of March, sunshine was clearly less abundant than the long-term average for the month. But German Weather Service data showed that in April, there was an average of more than 200 hours of sunshine, above all in the south of Germany where much of the country’s solar power facilities are located. This assured a high capacity utilization of the some 1.6 million solar power units. Just in the region of Munich alone, there was more than 260 hours of sunshine. In Stuttgart and Nuremberg, the figure was around 250 hours. But Frankfurt had around 230 hours, while the northern city of Hamburg had some 190 hours and Cologne 180 hours for clearly more sunshine than usual in April.

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Johan Sverdrup

Dr. Victoria Ossadnik, head of Eon Energie Deutschland

The proportion of electricity that is generated from renewable sources in Germany reached 38 per cent in the first nine months of 2018.

Ecology (Oeko-Institut). Some 50 per cent more skilled workers are needed for improvements to windows and outside walls, and also for heating and equipment technology.

The figure has grown three percentage points since the same period of 2017, the Centre for Solar Energy and Hydrogen Research (ZSW) and the Federal Association of the Energy and Water Industry (BDEW) reported.

“The safeguarding of skilled personnel for the implementation of the energy revolution must take on a priority role for the political agenda,” the report says.

In the months of January, April and May, the proportion of renewable electricity climbed as high as 43 per cent, because these months were particularly windy and sunny.

They recommend that the government do more to ensure there are enough new people training to do the upgrades, and provide planning security for firms working in the area.

If the fourth quarter has the average amount of wind, the proportion of renewable electricity for the whole year 2018 should remain at 38 per cent, the bodies said.

“Short-term support programmes and constant political discussions about the introduction of instruments are counterproductive,” according to report.

According to a report made known to Oil and Gas Republic, Germany’s require 100,000 more skilled workers for its climate targets. In order for Germany to reach its long-term climate targets, an additional 100,000 skilled workers are needed to upgrade homes for greater energy efficiency.

The German government plans to achieve “virtually climate neutral” buildings nationwide by 2050. Buildings – especially through heating, hot water provision and airconditioning units – accounted for one third of Germany’s total energy use in 2015.

Each year, 2 per cent of the buildings in Germany will need to be better insulated and made more climate-friendly, according to the study by the Institute for Applied

Germany’s leading association for building technology, the German Cement Works Association (VdZ) has said it needs 20,000 new workers by 2025. In a study for the Federal Association for

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Energy Efficient Building Envelopes (BuVEG), the Munich-based Research Institute for Heat Insulation (FIW) estimates that 215,000 new workers are needed for energy improvements. Germany's Federal Agency for Nature Conservation (BfN) said that more care for nature is needed in the country's energy transition. According to BfN, the expansion of renewable energies must in future take more account of the conservation of animals, plants and landscapes. It is important to pay attention to the efficient use of space and the impact on the environment right from the planning stage, according to the "Renewable Energy Report," which BfN President Beate Jessel presented recently.

Beate Jessel, President, German Federal Agency for Nature Conservation (BfN) Johan Sverdrup

Preserving "landscape qualities" also helps to increase the acceptance among the population for the construction of wind turbines, for example, she said.

made by renewable sources is constantly growing. One third of Germany's electricity comes from wind, solar, biomass and hydropower.

"The expansion of renewable energy is imperative to achieve climate protection goals and must also protect species and habitats from the effects of climate change," said Jessel.

Wind, sun and other sources of renewable energy represented 35.2 per cent of total power production in Germany in 2018 - the same amount as coal, the Agora Energiewende think tank said in the report. The share of renewable energy consumed across the country rose to 38.2 per cent in the same period, the think tank said. Germany exported electricity again last year, yielding a consumption figure that was higher than of production.

But the transition to green energy must be natural and environmentally compatible. According to the BfN, renewable natural resources such as forests or grassland are being used increasingly for renewable energy sources. In order to save space, it is also very important to use energy more efficiently to limit power consumption, Jessel said. The agency continues to call for greater use of city roofs for solar energy systems and greater involvement of citizens in planning. The BfN sees the cultivation of socalled energy crops such as maize for biogas plants in principle with skepticism: For this Jessel sees "no options for action that are capable of being developed and are compatible with nature." â&#x20AC;&#x153;greener" every year as the contribution

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An increase in the amount of renewable energy, particularly of solar power, fostered the development, as did a marked decline in energy production from black coal. The decrease of lignite or brown coal power was only "marginal," according to the think tank's experts. Emissions of carbon dioxide plummeted last year by more than 50 million tons, or 5.7 per cent. The drop put greenhouse gas emissions for 2018 nearly a third below values from 1990. Germany aims to reduce emissions by 40 per cent by 2020. Last year's reduction owed itself for the most part to a mild winter that required less household heating than usual, as well to a lower production level in energy-intensive industries and high prices for diesel and petrol, the think tank said.

The expansion of renewable energy is one of the central pillars in Germany's energy transition as the country want to make electricity supply more climate-friendly and, in light of an increasing scarcity of resources, become less dependent on fossil fuels. The Federal Government of Germany will be hosting the 5th Berlin Energy Transition Dialogue on 9 - 10 April, 2019, at the Federal Foreign Office in Berlin, Germany.The event is fully supported by the German Federal Government and a joint initiative of German Renewable Energy Federation (BEE), German Solar Association (BSW-Solar), German Energy Agency (dena) and eclareon. Berlin Energy Transition Dialogue (BETD) has become a leading international forum for key stakeholders of the energy sector. High-level policymakers, industry, science and civil society are given the opportunity to share their experiences and ideas on a safe, affordable and environmentally responsible global energy transition. In 2018, the conference attracted over 2,000 participants from over 90 countries, including 40 ministers and state secretaries and more than 100 highlevel speakers, exchanging on investment flows, system integration or long-time scenarios against the backdrop of dynamic innovation and the digital transformation. The inspiring dialogue on the global energy transition will continue in 2019 with high-level participants from politics, industry, science and civil society.

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Exclusive Interview NIGERIA AND GERMANY BILATERAL RELATION IN ENERGY SECTOR DR. STEFAN TRAUMANN I GERMAN CONSUL GENERAL IN LAGOS

In this interview with NDUBUISI MICHEAL OBINEME of Oil and Gas Republic, the new Consul General of Germany in Lagos, DR. STEFAN TRAUMANN, speaks on the current trends in Germany’s energy sector and how the German government is supporting renewable energy development in Nigeria through various initiatives. I would say in Lagos, there is never a dull moment as events always happen all the time. And, I am looking forward to working here in the coming years in this big city of Lagos. OGR: Please could you tell us about yourself and your recent career as a diplomat? Dr. Traumann: I have served in Brazil before I came to Lagos. I was Consul General there in the city of Porto Rico, Southern Brazil, with a huge European influence and we have immigration especially from Germany. It was really interesting working there to build relation not only on Consular services but also supporting science and economic cooperation. 30 years ago, I started my career in Germany as a diplomat and my academic background are African studies. And, the first country I served abroad was Cameroon. I was posted back to Bonn and later in Berlin. But, abroad, I was posted twice in United States in Washington DC and Miami, and in South Korea, Israel and now in Africa again. OGR: Please could you tell us more about Germany and the current trends in its energy sector? Dr. Traumann: The debate in our energy sector centers around the completion of the goals set by the German government in the so called “energy transition” (Energiewende). It was initiated after the catastrophe in Fukushima. Fukushima was one thing to move away from the nuclear energy and also fossil fuels because of climate change.

OGR: Welcome to Nigeria Dr. Stefan Traumann. What was your first impression when you first arrived in Nigeria? Any surprises? And how has being your experience working in Nigeria as a diplomat so far? Dr. Traumann: I have been here for 6 months. Lagos is a mega city of about 20 million people. Traffic is another challenge in Lagos and sometimes it is very complicated. For me, it is amazing to see the energy of the people with a business creative mindset such as startups, young artists and much more.

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We are in the process of overhauling Germany’s energy supply, moving away from nuclear and fossil fuels towards renewables and better energy efficiency. We have already achieved quite a lot, with almost one third of our electricity coming from wind, solar, biomass and hydropower. Renewable energy is a very important component of our electricity supply. Germany is not only increasing the share of green energy in its supply. We are also using energy more economically. Primary energy consumption has been cut significantly in recent years in Germany – by 7.6 percent 2008 and 2015.

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The success of the energy transition will also much depend on our ability to expand the large supra-regional transmission grids and also local distribution grids. This work to expand the grids must go hand in hand with efforts to step up demand-side management and to render conventional power plants more flexible. Introducing smart meters will help us digitize the energy transition to better balance supply and demand and to harness the potential for energy efficiency. We have achieved a lot. But we are still in a substantial discussion on transmission grids, because we are depending on Wind Power as one of main sources of renewable energy, and, wind energy is available throughout the country but mostly nearby the sea in the north and many of Germanyâ&#x20AC;&#x2122;s industrial clusters are located in the west, south west and south of the country. Therefore we have to extend the transmission grids and naturally there is a discussion about it first due to the environmental impact and second because nobody wants a big transmission line to be installed on his backyard. But, we will find solutions for this. Another big challenge is battery cell manufacturing not only for ecars but also for the storage of energy. It is a factor especially for wind and solar energies because it is not we don't have available at the same level 24 hours, 7 days a week. For energy transition targets, 40-45 percent share of renewables to be reached in our power consumption by 2025. While, in 2022, the remaining nuclear power plants are to shut down.

Last year in August, German Chancellor Dr. Angela Merkel visited Nigeria. She was accompanied by a high level business delegation. Later that year the Vice President of Nigeria, Prof. Yemi Osibanjo, travelled to Germany. We hope to continue working with the new government in place after the election. We are also looking forward to continue the successful cooperation in a number of areas such as security, fight against terrorism, and stability of Lake Chad region. Last year, we had a Chad Lake conference in Berlin which brought together the countries from the Lake Chad region. And, we discussed how we will continue to assist in fighting terrorism, and developing the region. About 90 German companies are present in Nigeria and seek to increase their businesses in and with Nigeria. Germany supports those initiatives in order to reach mutual benefit. In 2016 the amount of German FDI in Nigeria was 183 million EUR, compared to 140 million EUR in 2015. Trade volume in 2017 reached 2.53 billion Euros. But I see a lot more potential for trade and investment if favorable conditions are met. Development cooperation is also one of the pillars of our cooperation here and it will be part of my focuses in the next couple of years especially in the field of vocational training.

OGR: Please give us an overview of Germany's major interests in Nigeria?

If you look at demographic statistics technical and vocational training becomes increasingly a factor for developing the economy of this country. We are already supporting it with several programs and will continue to do so in my opinion, education is crucial for the Nigerian youth, and vocational training is an important part of it.

Dr. Traumann: We are looking forward to continue our good relations on international issues and also cooperation in number of areas such as the Binational commission and we still have many visits of German officials in Nigeria and vice versa.

OGR: As the new Consul General of Germany in Nigeria, what are your plans about improving Nigeria and Germany bilateral relations, with emphasis on your action-plans to bring German investors to the Nigerian energy sector?

And, 40 percent amount by which greenhouse gas emissions are to be reached by 2020 (from 1990 levels).

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Dr. Traumann: We have the framework of the Nigerian-German Energy Partnership (NGEP), founded and enacted on 19th August 2008 with an MOU signed. From the German side, it is mostly private sector driven. As a government, it is part of our economical and development cooperation. We will continue to cooperate in this field, most prominently under the framework of the Nigerian-German Energy Partnership (NGEP). From the Nigerian side, the partnership falls within the ambit of the Ministry of Power and the National Energy Council. Since 2012, both our governments discuss topics related to the NGEP on the occasion of the Binational working group on energy issues. The recent meeting took place in the beginning of the year in Abuja and our state secretary was there. The idea behind the NGEP is the complementarity of interests and potentials of both Nigeria and Germany. Germany improves Nigeria’s energy supply through know-how and innovative technologies, especially in the field of renewables and energy efficiency. In return, Nigeria contributes to Germany’s energy supply in the oil and gas industry. The dynamic development in the areas of electricity, oil and gas offers interesting business opportunities for German investors. Examples of completed cooperation under the NGEP include; • Azura power plant: by Siemens and Julius Berger Nigeria. (improvement by 461 MW, and overall Nigerian energy supply by 10 percent) • Geregu II power plant: by Siemens (improvement by 434 MW, and overall Nigerian energy supply by 10 percent) • Examples of ongoing cooperation projects under the NGEP: installation of solar power stations at Universities (i.e. Ibadan, Calabar etc.) Apart from that, the project implemented by GIZ called “Nigerian Energy Support Programme” closely coordinates with the activities of the NGEP. It is aimed at ensuring better access to reliable and sustainable energy. The programme builds upon an initial five year phase from 2013-2018, during which it supported activities geared towards the improvement of access to and investments in Renewable Energy (RE) and Energy Efficiency (EE). The second part of the programme, NESP II, implements a multilevel approach by combining advisory on energy policy/economy and technical knowledge for a wide range of stakeholders. Lastly, the Delegation of German Industry and Commerce (AHK) here in Lagos has been an essential partner in promoting bilateral trade and in particular in organizing events, market exploration trips, seminars to bring German investors to the Nigerian energy sector. OGR: The German Government has been organising renewable energy events both in Lagos and Abuja before, what are the success stories so far? What are the current partnership trends between Nigerian and German companies in the renewable energy sector? Dr. Traumann: It is already a success story that we have been able to organize an average of three seminars in Lagos and in Abuja each year since 2014. The interest does not seem to be decreasing since we have an average of 50 to 80 participants each time.

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Dr. Traumann with 25 instructors from eight Nigerian universities at the Lagos Energy Academy

I think is very important here in Nigeria to show that renewable energy is really a success story not only in Germany as it could also be in Nigeria. We are talking about power and energy which is really a big factor and if there is lack of power and energy supply, you have to find alternatives especially when you look at off-grid solutions. I think in Nigeria, many industry experts say solar energy would be natural solution for that rather than burning more generators and buying diesels. The mindset has to change. In Germany, in the beginning the people were hesitant that it is very expensive and not affordable but it changed overall. And, today the approach is totally different. We need to change this mindset here in Nigeria and also we can offer technical solutions in different levels. I think the success of these seminars is that it was probably in the beginning one of the few platforms where very diverse stakeholders (press, experts, business community, civil society but also government officials) were able to exchange views about innovative topics such as energy efficiency, renewables etc. It gives stakeholders the occasion to exchange about challenges and also to create awareness. For the German private sector, it creates an opportunity to explore the Nigerian energy market. The Delegation of German Industry and Commerce will know more about the details but there have been valuable business contacts that have been established, both for the Nigerian but also the German side. The current partnership trend between both countries is on Photovoltaic panels. OGR: From your experience so far in Nigeria, and in your opinion, what kind of business opportunities does Nigeria offer to German companies? Dr. Traumann: There are so many. As I said before, both countries are big economies with so much to offer each other. It is no secret that Nigeria is a country of many opportunities. Together with South Africa, Nigeria is Germany’s largest trading partner in Sub-Saharan in Africa.

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During the conference Ghana was often highlighted as a positive example and target for cooperation and not Nigeria. Why? Because Ghana - for instance - takes part in the G20 “Compact with Africa” -initiative and Nigeria does not because the government chooses not to participate. In addition we signed European Partnership Agreements with couple of African countries to facilitate trade, investment and other cooperation. Unfortunately, Nigeria hasn’t signed the APA agreement yet. OGR: What are your expectations from Nigeria in terms of providing an enabling-environment for German Trade & Investment? Dr. Traumann: We have noted that progress has already been made by bodies like PEBEC. Enhanced economic climate after the recession Nigeria went through. Nigeria made profound improvements in the field of ease doing business. Nigeria moved up 24 points in the World Bank Ease of Doing Business index and was therefore among the 10 economies which improved the most. Nevertheless there are things that still need to be addressed: legal security, custom valuation, speediness at port clearance to name but a few.

We see a lot of cooperation projects from Germany to Nigerian companies and lots of interests in Germany. The most advanced business relations are in the field of finances (Deutsche Bank, Commerzbank, chemical industry (BASF, Bayer) and energy (Siemens) but other new sectors are explored as well: Launch of Allianz Group in Nigeria in the insurance market. And, there is an increasing interest of small and medium size businesses which are – often as “hidden champions”- the backbone of Germany’s economy. OGR: What is the worth of German FDI in Nigeria so far in recent years? What can Nigeria do in order to attract more FDI from your country, Germany? Dr. Traumann: The most important thing is setting up the right legal framework and infrastructure. Another issue is image building. It is very important because People very often don’t see the positive things about Nigeria. Whenever we had and have delegations and business people come to Nigeria, they are surprised to find so many positive things. It is usually not easy to convince them to travel to Nigeria at first but with their personal experience of the trip most of them said they we will be back. Third: Recently, I attended the German-African Business summit in Accra, Ghana. This was the third summit where German and Sub-Saharan Africa businesses meet attracting over 600 participants. I think 70 percent of the participants were from Ghana and Nigeria.

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OGR: The 13th German-African Energy Forum is scheduled to take place in Hamburg from 27th to 28th March, 2019, please tell us more about this event? Dr. Traumann: The 13th German-African Energy Forum focuses on the financing of energy projects on the African continent. The 2 day Africa energy dedicated conference will in addition to new financing opportunities within the context of the G20 Compact with Africa, feature innovative approaches for financing off-grid projects and financing partnerships, feature digitalization in the energy sector, renewable energies technologies such as hydropower and hybrid systems, and the thermal recycling of waste. The program highlights include among others: • G20 Compact with Africa: African-German cooperation in the energy sector • Innovative off-grid financing models • Partnering for energy finance • Renewable energies/hydropower and hybrid systems: stabilizing energy supply • High level outlook: Can Africa fund its own energy revolution? • Digitalization in the energy sector • Waste-to energy: What role will waste play in Africa’s future energy mix? OGR: How have the Organizers of this event been creating awareness about this event to ensure full participation by Nigerian companies? Dr. Traumann: The organizer of this event is mainly the AfrikaVerein der deutschen Wirtschaft. Awareness has been created via local media and cooperation partners who include the Delegation of German Industry and Commerce, Nigeria.

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Online ads, one-on-one information sharing with relevant stakeholders in the industry, regular email blast and follow-up calls with interested participants are some of the avenues that have been employed. OGR: How many Nigerian companies have been invited to attend the event? And how many have positively responded to confirm their participation so far? Dr. Traumann: About 200 carefully selected public institutions, indigenous and international private companies with physical presence in the country have been duly contacted by AHK Nigeria. OGR: Apart from this event, what are the other opportunities for Nigerian companies to engage and do business with their German counterparts? Dr. Traumann: - German-Nigerian Business Forum which takes place every year alternately in both Germany and Nigeria. - Trade fairs like the agro-food & plastprintpack Nigeria in March 26th – 28th in the Landmark Center and MWA – Medic West Africa in October 9th – 11th in the Eko Convention Centre Market exploration trips in both directions Seminar series that bring together companies and other stakeholders in the field of renewable energy and waste management. Queries about business partners, cooperation and joint ventures can always be addressed to the Delegation of German industry and Commerce in Nigeria.

OGR: What are the available services in your organization for Nigerian companies who have trade enquiries or seeking business opportunities in Germany? Dr. Traumann: In the business field we do most of our work in strong cooperation with our implementing partner, the Delegation of German industry and Commerce (AHK). The delegation functions as a first point of contact if interested companies from both Nigeria and Germany that either want to use one of the services that the delegation has to offer or that want to establish contacts with potential business partners.

OGR: How can Germany assist Nigeria to reduce the huge demand-supply gap of energy in the Nigerian economy?

Services range from market information, market entry strategies up to the connection of legal experts who can provide basic information on relevant matters.

Dr. Traumann: - With our activities underneath the roof of the NGEP and with programmes run by the GIZ such as the “Nigerian Energy Support Programme”.

OGR: What can us at Oil and Gas Republic (OGR) do to assist your organization to achieve its goals in Nigeria?

OGR: What is your advice to Nigerian/German companies desiring to do business with their counterparts? Dr. Traumann: My advice to companies from both countries would be simply to seek opportunities and keep your efforts high even when times get a little rougher. And, you have to find the right partner, that’s very important. I have witnessed already several great success stories of companies that prove that the effort is worth it. OGR: Is there a plan to bring a trade mission into Nigeria soon to enable German businessmen engage with their potential Nigerian partners? Dr. Traumann: There is already the very active Delegation of German Industry and Commerce (AHK) here in Lagos with its Delegate Dr. Marc Lucassen which has been an essential partner in promoting bilateral trade and in particular in organising events.

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Dr. Traumann: I think publicizing information will help a lot. Inform the audience about the potential and - if you have the opportunity to travel to Germany - advertise Nigeria, show the opportunities but don’t hide the challenges. OGR: Besides your formal official duties as a diplomat, do you get the chance to go out to see our country on non-formal occasions? Dr. Traumann: Been here 6 months, Lagos has kept me busy so far. Therefore I was only travelling to Abuja to formally introduce myself to the foreign affairs ministry and meet with our Ambassador and the Embassy staff and to Ile Ife to visit the Obafemi Awolowo University. But I am planning to discover much more in the years to come.

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ENERGY NEWS

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ABB Powers Offshore Oil Platform with Renewables The first phase of the field development will also include all preparations needed to meet the power requirement of a full development of the Johan Sverdrup field as well as other fields on the Utsira by 2022. Today, Johan Sverdrup has reached another milestone, when power from shore was switched on by the Norwegian Minister of Petroleum and Energy, KjellBørge Freiberg, about a year before production start-up. With electric power supplied from shore, Johan Sverdrup operations will run without the use of fossil fuels for more than 50 years, which makes it one of the most carbon-efficient fields worldwide. The Johan Sverdrup field in the North Sea has been through the busiest installation campaign ever for a field in the North Sea.

BB, a global leader in the energy sector, uses renewable energy to power offshore oil platform in the oil and gas industry.

Over 60 years ago, ABB has been operating in the entire value chain of the energy sector, and providing innovative technologies that transform the world of energy. The company has a new way of transmitting electricity across long distances with minimum losses through its High Voltage Direct Current (HVDC) technology. As part of its success stories, ABB have commissioned more than half the global HVDC installed base, setting many world records in the process. ABB's HVDC technology transmits large amounts of power over long distances with minimal losses. It is ideal for integrating remote renewable energy into the power grid and plays a key role in making ABB partner of choice for enabling a stronger, smarter and greener grid, in line with the company's strategy. The company has commissioned several transmission systems across the world ranging from underground, marine and back-to-back

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converters as well as those positioned on offshore platforms. Johan Sverdrup field development ABB won a multi-billion dollar contract from Equinor worth around NOK 1.1 billion, to supply power to phase 1 of the Johan Sverdrup field development. The contract covers delivery of electrical equipment for a converter station by the Kårstø processing complex at Haugsneset in the municipality of Tysvær, and a power module on the riser platform at the Johan Sverdrup field centre. ABB used high-voltage direct current (HVDC) equipment to transform the onshore grid’s alternating current (AC) to HVDC at the Haugsneset converter station before the current is transmitted in a 200kilometre long direct current submarine cable to the Johan Sverdrup field centre. On the riser platform the power was transformed and converted to AC for field centre operations. The Johan Sverdrup oil field will be operated by land-based power supply. During the first phase of the field development, a system will be established for supplying power from shore to production start late in 2019.

“This is an important day for Equinor and the Johan Sverdrup partners, so it is a great honour to get help from none other than the Minister with this final task to fully operationalise the power-from-shore solution,” says Jez Averty, senior vice president for operations in the south of the North Sea. “With estimated resources of up to 3.2 billion barrels, and a production horizon of more than 50 years, it is key that Johan Sverdrup production is as effective as possible with the lowest possible emissions. Low carbon production is a key element of the company’s strategy and fully aligned with our roadmaps for climate and for the Norwegian continental shelf,”says Averty. Johan Sverdrup full-field production is estimated to reach 660,000 barrels of oil per day, with a break-even of less than 20 dollars per barrel, and with CO2 emissions of only 0.67 kg per barrel. Power from shore to Johan Sverdrup will help reduce emissions by an estimated 460,000 tonnes of CO2 per year, equivalent to the emissions of 230,000 private cars each year. Working closely with partners and suppliers, Equinor has taken initiatives to enable the supply of power from shore already in the commissioning phase offshore. With several energy intensive operations planned prior to production start-up – including the tieback of the eight predrilled production wells – the early supply of electricity from shore helps further reduce the carbon footprint of the project.

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“While this is primarily known technology, the size of Johan Sverdrup increases the complexity of this. Seamless collaboration across the project has been key to the success of Johan Sverdrup so far – also as regards power from shore,” says Bokn.

Power from shore switched on by Norwegian Minister of Petroleum and Energy, Kjell-Børge Freiberg

ABB delivered the HVDC equipment for the two converter stations, onshore at Haugsneset close to Kårstø and offshore at the Johan Sverdrup field centre. First, at Haugsneset, the electric current is converted from alternating current (AC) to direct current (DC), enabling the transmission of electricity for 200 km offshore, while minimizing loss. Then, offshore, the electric current is converted back to the alternating current needed to run the field centre equipment. Aibel was responsible for all construction related to the onshore converter station at Haugsneset. Aker Solutions was responsible for the engineering and Samsung Heavy Industries built the riser platform including the converter module where the HVDC equipment is placed offshore. And NKT was responsible for fabrication and installation of the 200 km power cables from Haugsneset out to the Johan Sverdrup field centre offshore.

The Johan Sverdrup partnership has also, in collaboration with the supplier Master Marine, taken steps to ensure that the temporary accommodation rig Haven – where most of the offshore workers currently live – is also supplied with power from shore during the remainder of the project finalization stage. “Johan Sverdrup has in many ways become known for its focus on continuous improvement, also in terms of our focus on reducing our climate footprint and finding more environmentally sustainable solutions. As soon as power from shore became part of the Johan Sverdrup development concept, we’ve worked hard with our partners and suppliers to capture the full potential of this solution,” says Trond Bokn, senior vice

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president for the Johan Sverdrup development. “Another important benefit of power from shore is that the working environment for the almost 900 workers offshore also improves significantly. Noise offshore is significantly reduced as are local emissions, so it is a win-win all around,” says Bokn. In phase 1 of the Johan Sverdrup development the power-from-shore solution has a capacity of 100 MW, based on a production capacity of up to 440,000 barrels per day. Several suppliers across several countries, both onshore and offshore, have been involved in developing and delivering the chosen solution for power from shore to Johan Sverdrup phase 1.

In Johan Sverdrup phase 2, with start-up expected in Q4 2022, the power from shore capacity will be expanded with 200 MW, giving a total capacity of 300 MW. This enables Johan Sverdrup to facilitate access to power from shore to the other fields at Utsira High – Edvard Grieg, Gina Krog og Ivar Aasen. The expanded power capacity will also be needed for the added Johan Sverdrup production capacity of 220,000 barrels per day, and the total full field production capacity of 660,000 barrels daily. The Johan Sverdrup partnership consists of Equinor, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil. The partnership has recommended Equinor as operator for all the field’s phases. 20 years ago, ABB pioneered VSC-based HVDC Light technology and is today the market leader, having delivered 19 of the 25 VSC HVDC projects commissioned around the world. In the upper range, the technology now reaches ±640 kV and can deliver 3,000 MW – enough electricity to power several million households, enabling power transmission over 2,000 kilometers. The system design enables compact converter stations – a big benefit in applications like offshore wind and interconnections.

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ENERGY NEWS

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Schneider's EcoStruxure Increases Profit, Boost Energy Efficiency for Companies

By Ndubuisi Micheal Obineme

chneider Electric, the foremost innovator and specialist in energy management solutions is making headway to providing companies with a digital solution called - EcoStruxure, designed to enhance profitability and optimize costs. Schneider Electric's Marketing Communication Manager, Viviane Mike-Eze, disclosed it to our correspondent at a media chat in Lagos. According to Viviane, Schneider Electric's EcoStruxure Platform uses the Internet of Things (IoT) with Connected Products, Edge Control Solutions, Apps, Analytics & Services in order to provide greater value to maximize profit and increase energy efficiency. "EcoStruxure is basically the foundation of all Schneider Electric Solutions. All our solutions are smart. We are really making our equipment work for companies and buildings in order to achieve greater efficiency," she said. "At the basis of EcoStruxure, it is an architecture that organizes into three layers. At the foundation, you have Connected Products. If we want operations to be smart, then, it needs to be connected. We are able to monitor what is happening. With all the sensors that are required, Connected Products will gather Data. We also have EcoStruxure for Building, Power, IT, Machine, Plant, Grid. "For example, in Building, if there is a connected breaker and with EcoStruxure solutions, you will be able to monitor the energy usage and other components you would want to monitor such as the temperature, number of people inside the Building. "At the second layer, we have the Edge Control. This include Software that will enable you interface with the Data that

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is collected. At the first layer, the Data is collected. At the second layer, the Data is visible through an interface in the backend but it also enables you to monitor and control what is happening as you can also decide on the Edge Control Solutions maybe to setup an equipment so that when the office reaches such a temperature the ACs will turn off, and when there is no body around, the lights will go off. It can be done with the Software. "At the third layer, we have Apps, Analytics & Services. At this layer, it is becoming really smart because in this layer we have EcoStruxure IT adviser, which is software with all these data that is collected, it will Analyze it and provide more information on how you can increase your savings in your Building by 40%. "If i take the example of a manufacturing plant in oil and gas to change segment. At this level, Apps, Analytics & Services, will be able to monitor what is happening in different plants but all the Data will be collected, analyzed, and the Software will provide more information about the plant

or equipment that will go off in the next five months and informing you to change it much earlier to avoid future downtime. Thatâ&#x20AC;&#x2122;s what we call Predictive Maintenance because it will show you how to increase your profitability in the plant through making some updates via the settings," she noted. Schneider Electric also has service contractors that does the work for clients in a way of monitoring the plant and provide feedback in regards to any changes that is required. In IT, Schneider Electric is involved in the 21st Century Project - Biggest IT Data Center to be built in Nigeria. All the equipment from the building of the Data Center to the UPS Solutions including the alternative power is EcoStruxure enabled. The Data Center will be built based on Schneider Electric's EcoStruxure Technology. Schneider Electricâ&#x20AC;&#x2122;s key clients include; NLNG, LAFARGE, Nestle, I.T.B. Nigeria Limited, MTN, Ministry of Power River State, Zenith Bank.

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E.ON to build combined heat and power facility for DS Smith in UK

S Smith, the leading provider of sustainable packaging solutions, and E.ON, a leading energy company in Europe, has signed a major agreement to construct a state-of-the-art combined heat and power (CHP) facility at Kemsley Paper Mill in Kent (UK).

The facility will replace the existing CHP and extend E.ON’s partnership at the site with DS Smith for the next 20 years. The facility has been specifically designed to set the standards in efficiency, sustainability and reliability. The new plant will enable a carbon reduction of 36,000 tons per year. This is the equivalent of 30,000 medium-sized cars driving 10,000 kilometers a year. Once complete, it will have an electrical capacity of 75 megawatt (MW), generating steam and power for DS Smith’s production processes at its flagship Kemsley Mill site. With 830,000 tonnes of paper manufactured at the mill every year, the partnership will further improve resource efficiencies and contribute to DS Smith’s corporate goal of reducing carbon emissions by 30 percent by 2030. The program will be one of E.ON’s largest customer solutions projects in more than a decade. E.ON will finance, build and operate the CHP. The two-year construction phase of the CHP plant is due to start this year. The facility is planned for commission in 2021. Colin McIntyre, CEO for DS Smith Paper and Recycling Divisions: “Embracing world-leading innovation to minimize our environmental impact is a key corporate goal for DS Smith. Partnering with E.ON to develop a state-of-the-art solution to meet our long-term energy requirements is a vital element to achieve this ambition and we expect

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to see a 36,000 tons per year carbon reduction from improved efficiency at the new facility. We are looking forward to construction beginning later this year as we are delighted with the benefits the new plant will bring to our business, as well as the opportunity this gives us to continue our strategic partnership with E.ON.” Anthony Ainsworth, CEO E.ON Connecting Energies: “Generating steam and power on-site, where it is needed, gives energy-intensive industries the benefit of a highly efficient energy solution that improves their operations. We want to help our customers reach their carbon reduction goals and show that sustainability and profitability can go hand in hand with the right solution tailored to their business needs.” DS Smith is a leading provider of sustainable packaging, supported by recycling and papermaking operations. Headquartered in London and a member of the FTSE 100, DS Smith focuses on creating innovative sustainable packaging solutions in 37 countries employing around 32,000 people.

Siemens opens MindSphere Application Center in India

iemens has opened its new MindSphere Application Center in India. The facility is a state-of-the-art digitalized technology center, supported by Siemens’ MindSphere, an open, cloud-based IoT operating system that lets customers connect machines and physical infrastructure to the digital world and their thermodynamic digital twins. The MindSphere Application Center, opened in Gurgaon, is the first in the world specifically aimed at digital solutions for coal and steam-based power plants. It will offer Siemens digital technology solutions such as Remote Diagnostic Services (RDS), performance optimizer, remote maintenance, power plant management, digital whiteboard and will act as a platform for agile way of working with virtual collaboration, customer co-creation and an open culture. "At the MindSphere Application Center in Gurgaon, the digital solutions of tomorrow will be developed in direct collaboration with our customers in the power sector," said Tim Holt, CEO, Siemens Power Generation Services. "It provides the ideal environment for co-creating innovative digital solutions adapted to optimize customers’ asset value and performance for coal and steam-based power plants." Siemens will be offering additional solutions from its Omnivise digital services portfolio at the center.

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