www.orientenergyreview.com
Orient Energy Review Vol 6 No.12 December 2017 1
7 - 8 February 2018
www.waipec.com
Eko Convention Centre, Lagos At the Heart of West Africa’s Exploration & Production Community
Official Event Publication
Special offer for Orient Energy Review readers:
MEETING WEST AFRICA'S POTENTIAL Emeka Ene, CEO, Oildata Energy Group
Hosted with the support of an esteemed steering committee: Ademola Adeyemi- Bero, Managing Director, FIRST Exploration & Petroleum Development Company Limited and Chairman, Nigerian Independent Oil Companies
Book now and save 10% with the code OER10 Visit www.waipec.com/registration to book or contact dgrogan@gep-events.com
Ahmadu-Kida Musa, Deputy Managing Director, TOTAL Exploration and Production Geoff Onuoha, Vice Chairman, Petroleum Technology Engineers Association of Nigeria (PETAN) Dr. Mazadu Bako, Nigerian National Petroleum Company (NNPC)
Bank Anthony Okoroafor, Chairman, Petroleum Technology Engineers Association of Nigeria (PETAN)
Austin Ojunekwu Avuru, Chief Executive Officer, SEPLAT Petroleum Development Company
Bayo Ojulari, Managing Director, The Shell Nigeria Exploration and Production Company (SNEPCo)
Mordecai Ladan, Director Department of Petroleum Resources
Engr. Simbi Kesiye Wabote, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB)
Ranti Omole, Chairman, Conferences Committee PETAN
Tony Attah, Managing Director, Nigeria LNG
Gbite Adenji, Senior Technical Advisor on Upstream & Gas to Hon. Minister of State for Petroleum Resources
Organising Committee: PETAN T: 080 372 55190 E: secretariat@petan.org
Dan Grogan (International Consultant) T: +44 1737784952 E: dgrogan@gep-events.com
Contact the organising committee today for full participation details and join the following companies already involved with WAIPEC; Associated Oil and Gas Services Hangzhou Fortune Gas Catobi Hobark International Limited Chevron National Petroleum Investment Daroots Management Services Dorman Long Nigerian Content Development and Emval Group Monitoring Board (NCDMB) First Exploration & Production Company Nigerian Independent Oil Companies South African Oil & Gas Group Nigerian National Petroleum Company Frandrick International Limited Oildata Energy Group Future Concerns Limited Oilserv Technologies Geoplex Drilling 2 Orient Energy Review Vol 6 No.12 December 2017 Global Process & Pipeline Services Limited Oiltest Group
PE Energy Limited
Hosted by
Radial Circle Group SEPLAT Petroleum Development Company Slot Engineering Nigeria The Shell Nigeria Exploration and Production Company Thompson & Grace Investments Limited Total Exploration and Development
Organized by
Westfield Energy Resources Limited Well Fluid Services Nigeria Zitadel Group
www.orientenergyreview.com Global Event Partners
EDITOR’S NOTE As the industry wraps up for the year, we take a close look at the shape of the oil and gas sector as 2018 beckons. With the rebalancing of the global oil market in sight, the Organisation of Petroleum Exporting Countries (OPEC) has called for further collective efforts in achieving sustainable oil market stability. OPEC Chief, HE Mohammad Sanusi Barkindo said that the Organization is also f designing a framework for a continuity strategy for supply management to help ensure a stable and sustainable oil market, while also stressing that OPEC-non-OPEC landmark, historic Declaration of Cooperation has established a platform to provide the necessary insurance of sustainable stability in the oil market with multiplier effects on the global economy. More details can be found inside. The GMD of Nigerian National Petroleum Corporation (NNPC) Dr. Maikanti Baru has told Nigeria’s body of Explorationists (NAPE) that alternative funding is crucial in sustaining oil and gas production in Nigeria as well as ensuring the survival of the country’s energy future; flip through the pages for details of the NAPE Conference report inside. In Ghana, the Ministry of Energy has unveiled plans to deepen transparency and access to information in the oil and gas industry by publishing a register detailing all activities in the sector, get more information on this story inside as well.
PUBLISHER/EDITOR-IN-CHIEF: Nneka Ezeemo EDITOR: Margaret Nongo-Okojokwu PRODUCTION: Chiamaka Umeh CORRESPONDENTS: Oge Obi (Lagos) Dirisu Yakubu (Associate Editor) Vivian Osuji Isreal (Head,South South Bureau,Port Harcourt) Jerome Onoja (Lagos) Gilbert Boyefio (Ghana Correspondent) Godspower Ike (Port Harcourt) Obinene Mike Margaret Ahiakwo (Houston Texas, USA)
We hope the year ends on a high sounding note for you and wish you a more robust and fruitful year 2018. Have a wonderful read and please send us your feedback, we‘d love to hear from you. From all of us here at Orient Energy Review, this is wishing you a Merry Christmas and a prosperous New Year! Cheers!
Margaret Nongo Okojokwu Editor, Mobile +234 8170334471 m.okojokwu@orientenergyreview.com
CONTENTS 4
GM Business Development Jerome Onoja
INDUSTRY NEWS
......................................................
Energy at Crossroads as OPEC Seeks New Balance
Business Development Executive: Arit Asuquo Dan Ruth Muo (South Africa) Stanley Etim CRE CREATIVE: DEE GRAPHICS (dennilsone@gmail.com) CIRCULATION MANAGER : Ajayi Kayode
POWER
Disband South – East Disco, Rights Groups Tell Fashola
24
COVER STORY
Takeaways for Africa at ADIPEC 2017
LONDON OFFICE: Charity Place, Unit 1 Thurrock Pack Way Thurrock Parck Ind. Estate Tilbury,Essex Rm !87Hz. +447974199137 GHANA OFFICE: +0243915206 orientenergyreviewgh@gmail.com ORIENT ENERGY REVIEW has emerged to be the platform and voice for the growing local content policy across the world.It is a monthly publication of Orient Magazine,Newspaper and Communications Limited 5, Dipo Dina Drive, www.orientenergyreview.com Abule Oshun,Badagry Express Way Lagos www.orientenergyreview.com email: info@orientenergyreview.com
35
EXPLORATION / DRILLING
16
‘NAPE 2017 Nigeria’s Huge Hydrocarbon Reserves Still Lies Untapped - Chevron Boss
10
LOCAL CONTENT
SNEPCo Links Nigerian and Chinese Suppliers in Latest Effort To Develop Nigerian Content
18 GHANA REPORTS Ghana to Launch Public Register Detailing Activities In The Oil And Gas Sector
NCDMB to Build 90 Homes In the North East Region
WOMEN IN ENERGY
14
‘Women Integration, Most Important Step
to Sustainable Development’ Orient Energy Review VolGrowth 6 No.12 and December 2017 3 - Kenneth-Divine
INDUSTRY NEWS
Energy at Crossroads as OPEC Seeks New Balance Pegs oil demand growth for 2018 at 1.51 million barrels a day By Oge Obi
W
ith the rebalancing of the global oil market in sight, the Organisation of Petroleum Exporting Countries (OPEC) has called for further collective efforts in achieving a sustainable oil market stability. Stressing that OPEC-non-OPEC landmark, historic Declaration of Cooperation has established a platform to provide the necessary insurance of sustainable stability in the oil market with multiplier effects on the global economy, the OPEC Secretary General, HE Mohammad Sanusi Barkindo said that the forum is also designing a framework for a continuity strategy for supply management to help ensure a stable and sustainable oil market. Speaking on a theme, ‘Energy at Crossroads: Seeking New Balance’ during the fifth International Energy Executive Forum 2018 in China recently, Barkindo noted that the partnership of the OPEC and nonOPEC members is not only holding together but also thriving, adding that there is no ceiling on how many countries that can join the forum towards achieving a greater result. 4 Orient Energy Review Vol 6 No.12 December 2017
With the extension of the Declaration of Cooperation to cover the whole 2018, Barkindo, calling on all stakeholders for another strategic efforts, said “it presents an open invitation for all oil producers to join with us and work responsibly towards market rebalancing in the interests of all. The Declaration of Cooperation and the enhanced relations between its participating countries constitute a fundamental and essential feature of the “new in the world of energy.” While noting that change has been a permanent characteristic of the story of oil, the OPEC Secretary General said, “Nowhere is the tendency for change more apparent than in the history of the oil price. Price cycles have always been part of the market and they always will be. They are integral to its evolving nature and their characteristics correlate with changes in market dynamics and structures. “During the course of our research on price cycles, OPEC has identified six since the early 1970s. This has been an illuminating exercise as it has revealed some interesting similarities among the cycles, as well as some discrepancies. “There have been
instances of demand driven cycles, whereas in other cases they have been supply driven. At other times, a combination of supply and demand factors has driven prices. Moreover, it is apparent that in recent time, nonfundamental factors like speculative financial activities have also had a significant impact on prices,” he said. Speaking further, the OPEC scribe hinted that with the excellent conformity levels of 116% on the production adjustment as at October 2017, paves way for a positive OPEC’s World Oil Outlook , which among others places the 2018 output at 1.51 million barrels per a day. “There are further positive signs for the global oil market. Global economic growth is forecast at 3.7% for both 2017 and 2018. China’s GDP growth is forecast at 6.8% in 2017 and 6.5% in 2018. Correspondingly, global oil demand growth has also been on the rise, with the 2017 forecast having been revised up by nearly 400 tb/d since the beginning of the year to now stand at 1.53 million barrels a day. For 2018, the encouraging dynamic is set to continue with a forecast of 1.51 million barrels a day.”
www.orientenergyreview.com
INDUSTRY NEWS
Shell, Eni to Be Tried For Malabu Oil Scandal
E
ni’s current CEO Claudio Descalzi, former CEO Paolo Scaroni, Chief Operations and Technology Officer Roberto Casula were also ordered to face trial alongside four Royal Dutch Shell staff members including Malcolm Brinded CBE, former Executive Director for Upstream International and two former MI6 agents employed by Shell. Royal Dutch Shell and Italian oil giant Eni have been ordered to stand trial in Milan on charges of aggravated international corruption for their role in a 2011 $1.1bn deal for Nigerian oil block OPL 245. Mrs Justice Barbara handed down the ruling today. The judge set March 5 as the date for the trial to begin. Eni’s current CEO Claudio Descalzi, former CEO Paolo Scaroni, Chief Operations and Technology Officer Roberto Casula were also ordered to face trial alongside four Royal Dutch Shell staff members including Malcolm Brinded CBE, former Executive Director for Upstream International and two former MI6 agents employed by Shell. No company as large as Royal Dutch Shel l or such sen ior executives of a major oil company have ever stood trial for bribery offences.The investigation by the Milan public prosecutor was triggered by a complaint filed in Autumn 2013 by Global Witness, The Corner House, Re:Common and Nigerian anti-corruption campaigner Dotun Oloko. The case has also been investigated in Nigeria and the United States following the groups’ complaints. Public prosecutors in The Netherlands are also investigating the case. “The Nigerian people lost out on over $1 billion dollars, equivalent to the country’s entire health budget, as a result of this corrupt deal. They deserve to know the truth about what happened to their missing millions. We welcome the prosecutor’s efforts to bring this case to trial. It will be the biggest corporate bribery trial in history – and act as a warning to others who see corruption as a route for quick financial wins”, said Simon Taylor, co-founder of Global Witness.
www.orientenergyreview.com
In a statement today Shell said “We are disappointed by the outcome of the preliminary hearing and the decision to indict Shell and its former employees. We believe the trial judges will conclude that there is no case against Shell or its former employees.” Eni said “Eni’s Board of Directors has reaffirmed its confidence that the company was not involved in alleged corrupt activities in relation to the transaction. The Board of Directors also confirmed its full confidence that chief executive Claudio Descalzi was not involved in the alleged illegal conduct and, more broadly, in his role as head of the company. Eni expresses its full confidence in the judicial process and that the trial will ascertain and confirm the correctness and integrity of its conduct.” Antonio Tricarico of Italian NGO Re:Common said, “Prime Minister Renzi was utterly wrong in 2014 when he defended Mr Descalzi’s appointment as Eni’s CEO, by warning that it would ‘not allow a media scoop to put jobs at risk, or a notice of investigation issued on newspapers to change the business policy of a country’. If the deal for OPL 245 represents business as usual for Italy’s biggest company, partly controlled by the government, prosecutors were right to investigate and right to bring this matter before the courts. Renzi should apologise to the Italian and Nigerian public”. “This case heralds the dawning of the age of accountability, a world where even the most powerful corporations can no longer hide their wrongdoing and avoid justice.” Said Lanre Suraju, Chairman of Nigerian NGO Human and Environmental Development Agenda. For years, Shell had claimed that it only paid the Nigerian Government for the oil block. But after the joint investigations of Global Witness and Finance Uncovered, Shell confessed it had dealt with former oil minister Dan Etete, via his front company Malabu. Dan Etete was convicted of money laundering in France in 2007. Etete had awarded the OPL 245 oil block to his secretly owned company
while serving as oil minister. In December 2016, the Milan Public Prosecutor alleged that $520 million from the deal was converted into cash and intended to be paid to the then Nigerian President Goodluck Jonathan, members of the government and other Nigerian government officials. The prosecutor further alleges that money was also channelled to Eni and Shell executives with $50 million in cash delivered to the home of Eni’s then Head of Business for Sub-Saharan Africa, Roberto Casula. Nigerian authorities have also filed charges against a Shell subsidiary and Eni as well as several of their staff. In January Nigerian law enforcement also charged Mohammed Adoke, the former Nigerian Minister of Justice and Attorney General with money laundering over his receipt of $2.2m in alleged proceeds of the OPL 245 deal. T h e Ni g e r i a n g o v e r n m e nt successfully recovered US$85m in proceeds of the deal from the UK. The money had previously been frozen as suspected proceeds of crime at the request of Italian au t h o r i t i e s . T h e Ni g e r i a n government has also issued a billion dollar civil claim against JP Morgan for their role as a banker to the deal. JP Morgan has stated that they consider the allegation against them to be “unsubstantiated and without merit”. “This is not a case involving a few rotten apples,” said Nick Hildyard of Corner House. “The evidence points to systemic corruption – from the top down. In this case Italy has championed the rule of law over abusive corporate power. The world waits to see if the UK and The Netherlands, where Shell is based, will have the backbone to follow suit.”
*Courtesy: Sahara Reporters
Orient Energy Review Vol 6 No.12 December 2017 5
INDUSTRY NEWS
NAPE 2017 : Alternative Funding is Crucial to Sustaining Nigeria’s Oil and Gas Industry Survival
T
he Group Managing Director, Nigerian National Petroleum C o r p o r a t i o n (NNPC), Dr. Maikanti Baru has said that alternative funding is crucial in sustaining oil and gas production in Nigeria as well as ensuring the survival of the country’s energy future. Speaking at the 35th Annual Conference of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos, recently, Baru disclosed that the Corporation had embarked on several successful Alternative Funding Programmes for several joint venture projects where the government is expected to wreck in not less $38b revenue. “Within the last three years, we have embarked on several successful Alternative Funding Programmes to sustain and increase the national daily production and producibility.” According to the GMD, the $3.7bn AFP package included the $1.2Billion multi-year drilling financing package for 23 onshore and 13 offshore wells under NNPC/Chevron Nigeria Limited Joint Venture termed Project Cheetah and the $2.5Billion alternative funding arrangements for NNPC/SPDC JV ($1Billion) termed Project Santolina; NNPC/CNL JV ($780Million) termed Project Falcon, as well as the NNPC/First E&P JV and Schlumberger Agreement ($700Million). The NNPC boss further disclosed that the Project Cheetah is expected to increase crude oil production by 41,000bopd and 127Mmscfd with a Government-take of $6Billion over the life of the Project. And that the Projects Santolina, Falcon and the NNPC/First E&P JV and Schlumberger Funding Arrangement are expected to increase combined production of crude oil and condensate by 150,000bopd and 618MMscfd of gas with a combined Governmenttake of about $32Billion over the life of the Project. Speaking further,
6 Orient Energy Review Vol 6 No.12 December 2017
Baru noted that government is committed to working out a new funding mechanism that would eliminate cash call regime, enhance efficiency and guarantee growth in the nation’s oil and gas industry. He explained that given the cash call underfunding challenge which rose to about $1.2bn in 2016 alone, NNPC and its JV partners began exploring alternative funding mechanisms that would allow the JV business finance itself in order to sustain and grow the business. And that with average JV cash call requirement of about $600 million a month, coupled with flat low budget levels over the past years, the budgeted volumes were hardly delivered. “The truth is that it is difficult to deliver the volumes without adequate funding. The low volumes and by extension low revenues had resulted in the underfunding of the Industry by Government, which has stymied production growth. “Today, with the new Alternative Funding Arrangement in place, JVs will now relieve Government of the cash call burden by sourcing for funds for their operations (estimated at $7-$9 billion annually). Com mend i n g NA PE for its contributions towards shaping the nation’s oil and gas landscape, said that NNPC is glad to associate with a professional body that has continued to make a valuable impact on the industry as well as the country. “It is on record that key pieces of legislation such as the Marginal Fields Act and the Deepwater Fiscal Policies, the Nigerian Content Act, as well as the Unitization Policy were all based on templates that came out of previous NAPE Conferences,” he said.
Baru spoke on a theme: “Review of the Current State of Funding for the Upstream Sector and the need for a New Policy Initiative”. Delivering the keynote paper on a theme, “Transforming Nigeria’s Oil and Gas Industry to Meet Global Demand-Supply Realities, Dr. Emmanuel Egbogah said that the industry will remain the highest source of revenue to the Nigerian government. However, Egbogah challenged the government to do more to improve the sector and create more opportunities. Egbogah noted what is more important is for the government not to see the oil and gas industry as a source of income to just fund her budget, rather they should see it as a value creation opportunity to improve the economy. NAPE President in his opening remarks said that the 2017 conference was a continuation of the conversation that started at last year’s conference when the nation’s oil and gas industry was ex-rayed and attempts were made to proffer solutions to tackling the realities then. Other speakers at the 2017 NAPE conference included: Mr Toyin Olag u nju, G enera l Manager Corporate Services, SPDC, who stood in for Mr. Osagie Okunbor, Managing Director, SPDC and Chairman, Shell companies in Nigeria; Mr. Nicholas Terraz, Manag ing Di rector/ Chief Executive, Total E & P Nigeria; Dr. Mason Oghenejobor who represented Mr. Austin Avuru, FNAPE, Chief Executive Officer at Seplat Petroleum Development Company Plc.
www.orientenergyreview.com
INDUSTRY NEWS
Nigeria Assembly Insists Nigeria Remains a Viable Business Environment By Oge Obi
T
he third edition of the Oil and Gas Council’s Nigeria A s sem bly, a n a n nua l convergence of policymakers, industry players and experts, investors as well as stakeholders in the Nigerian oil and gas sector, x-rays the industry from different angles and while considering its unique challenges have said that in spite of all, Nigeria still remains an investment haven for all classes of investors in the sector. Looking at the current status of Nigerian oil and gas sector, the Assembly, however, noted that there is still work to be done in terms of in-country infrastructure, petroleum policy legislation, collaboration among stakeholders, among others. The topics that were discussed du r i n g the two - day event included ‘the Current Climate for Investment, Exploration and Production in Nigeria?’; ‘Appetite for International Investment into the Nigerian Oil and Gas Sector’; ‘Aims and Desired Impact of PIGB National Gas Policy and the Petroleum Policy’; Reactions from the Industry on PIGB, National Gas & Petroleum Policy; Collaboration to Ensure Efficiency and Profitability; Monetising Gas: Overcoming Current Challenges, among others. In one of the sessions that focused on the appetite for international investment into the Nigerian oil and Gas sector and moderated by an industry analyst, Dr. Ifunanya Nwokedi, the discussants said that Nigeria still remains a prospect for international investment. Adding that more work needs to be done in areas like in-country infrastructure, collaboration among government agencies and ministries and making the PIB work in reality. Accordi ng to the i ndustr y
www.orientenergyreview.com
analyst, “There has to be an open communication or else when there is poor and insufficient communication, what you find is that investors are being scared away. “For an environment like Nigeria’s that is not very stable, investors want to make want a guarantee that the risk that they are taking coming to Nigeria will actually yield them a tangible benefit”, she said. Also speaking during the panel that looked at how oil and gas companies and local banks can secure international investment, the Executive Director, Natural Resources, JP Morgan, Paul Van Zijl, revealed that inspite of Nigeria’s huge resources, investors are still scared of committing much money into the country owing to some bottlenecks around policy approvals and implementation. According to Zijl, “why should I wait for your policy trends which take a long period of time to be approved when I can as well invest in another African country without much delay in execution?” “Although we have all the resources, Nigeria is perceived as a difficult place to work. The ease of doing business should be worked upon,” he added. The African Portfolio Manager, Alex Bell in her opening remarks, had noted that since the 2014 oil market crash, the Nigerian oil and gas sector has been somewhat overwhelmed by challenges that elongated the negative impact of the crisis. And that as the market takes a turn for the better “with the oil price slowly and steadily rising, investors are revisiting investing into the Nigerian upstream oil and gas sector.” In a chat with Orient Energy Review, Alex disclosed that realizing the predominant role
of Nigeria in the oil and gas business, the organizers changed the conference from West African Assembly to Nigeria Assembly. According to the Alex, “We need to have an honest discussion about why people are investing in Nigeria and how we can improve on that; to highlight those things people are doing and winning investments. “What is really interesting about this year’s conference is that it is a turning point. I think people are really waking up realizing and demonstrating that they are open to investment and are willing to make changes to help investors relax. The panelists at the Nigeria Assembly included; Ademola Adeyemi – Nero, Managing Director, First E & P, Lekan Akinyanmi, CEO, Lekoil, Frank Edozie, CEO, Neconde Energy, Richard Turner, CFO, Jagal Group, Oliver Andrew’s, CIO, Africa Finance Corporation, Eme Essien Lore, Country Manager, IFC, Adebayo Kareem, Principal Partner, The Carlyle Group, Vincent Gueneau, Chairman Kappafrik, Dada Thomas, CEO Frontier Oil, Gbenga Olawepo, Chairman Transitional Energy and Sena Anthony Associates. Other panelists were Valerio Coppini, Maire Tecnimont, Josh Egba, USTDA, Emeka Ene, Oil Data, Anthony Adebulugbe, Chairman Green Energy International, Olabode Sowunmi, Consultant to the Senate Committee on Gas and David Ige, CEO Gas Invest amongst others. The 2017 edition of the Nigeria Assembly was jointly moderated by Chigozie Hilary, Partner, Stream Sowers & Kohn, International Media Personality, Wofai Samuel, Adeyemi Akisanya, Partner, Adeyemi Akinsanya & Associates and Ifunanya Nwokedi, Analyst US Government Accountability Office.
Orient Energy Review Vol 6 No.12 December 2017 7
INDUSTRY NEWS
Africa Unites To Attach Investment at Africa Oil Week in Cape Town By APO
T
he A f r ican oi l i ndustr y met recently to d iscuss the potential, but also the challenges, that the industry faces as the continent moves towards the commercialisation of its huge gas and oil reserves. Six of Africa’s oil ministers from Cote d’Ivoire, Namibia, Nigeria, Ghana, Mali, South Africa attended, including US Secretary for Energy Rick Perry. The event drew speakers from the highest echelons of government, operators, service providers, legal, advisory and research firms. The key themes discussed were the development of the continents’ oil and gas resources, with a focus on exploration, regulatory frameworks and governance. Identifying the way forward for the industry was a strong theme, as Africa competes for investment capital. The African continent accounts for 16% of active offshore fields and 70% of offshore fields, these are either under development or represent potential developments. It was agreed that there are big opportunities to use Africa’s substantial gas resources to meet the constant and evergrowing need for power. This in turn will trigger economic growth within the continent to meet the
8 Orient Energy Review Vol 6 No.12 December 2017
needs of a projected population of 2 billion in 2035. But in order for this to happen, there needs to be greater cooperation to move energy around the continent. In addition, African countries need to address the regulatory and fiscal conditions in order to attract investment and reignite the development of identified deep-water assets and to exploit the substantial latent exploration potential of the continent. Ref lecting on the Ministerial presentations and those 160 experts that spoke at the conference, Paul Wilson Africa Oil Week’s (www. Africa-OilWeek.com), Portfolio Director, ITE Group said, “The conference has confirmed that the African oil and gas industry is set to grow as it realises its true energy potential”. As US Energy Secretary said, “We see progress, we see signs of political and economic freedom that bring stability and prosperity.” Phil Loader, Executive Vice President, Global Exploration, Woodside Petroleum, Australia, said, “There is a significant amount of resource potential”, and BP’s Jasper Peijs, Vice President of Exploration, Africa confirmed that, “We are growing our
footprint in Africa”.Advertisement But perhaps Tullow Oil’s CEO Paul McDade, summed the conference up by saying,” Africa will need to compete for capital, competition is going to be tough, where the lowest cost producers will win. In that race Africa has a number of critical advantages, it is perfectly placed between the main global refining centres in the US, Europe, Asia where demand does continue to growth. The quality of the oil in East and West Africa is good generally light, and critically it has low sulphur content… Africa has significant potential to deliver low cost crude both from new developments and existing operating areas…Africa has got a full range of opportunities on-shore, off-shore, deep water, shallow water and can suit all companies large and small … there is immense opportunity”. And finally, he praised Africa Oil Week as, “The eminent conference in Africa, a world class event”. The dates for Africa Oil Week were confirmed as 5-9 November 2018 where the conference will once again take place in Cape Town, South Africa.
www.orientenergyreview.com
www.orientenergyreview.com
Orient Energy Review Vol 6 No.12 December 2017 9
LOCAL CONTENT
SNEPCo Links Nigerian and Chinese Suppliers in Latest Effort To Develop Nigerian Content
M
ore than 20 Nigerian and 60 Chinese suppliers met in a strategic sourcing development forum in Shanghai mid-November in the latest effort by Shell Nigeria Exploration and Production Company (SNEPCo) to boost the capacity of indigenous vendors in the oil and gas industry. Coming shortly after the 4th edition of the Global Nigerian Forum in Aberdeen, Scotland, the latest event, which held in a global financial powerhouse with the world’s busiest container port, offered the Nigerians a compelling opportunity to engage their Chinese counterparts on cost leadership, more efficient supply chain and transfer of technology. In an opening speech, the General Manager of Shell China Strategic Sourcing Development, Ding, Hiu Kwong said local content development is not peculiar to Nigeria but a global trend and Shell continues to focus on safety, quality and cost reduction in its quest for growth through strategic sourcing in China. The Director of Monitoring and Evaluation at the Nigerian Content Development and Monitoring Board (NCDMB) Mr Tunde Adelana who represented the Executive Secretary thanked Shell Companies in Nigeria for pioneering the effort to create collaboration between Chinese and Nigerian suppliers. He challenged 10 Orient Energy Review Vol 6 No.12 December 2017
the Chinese to establish visible presence in the Nigerian oil and gas industry and compete with the other international companies that are taking the lead in major projects. The Vice Chairman of the Petroleum Association of Nigeria (PETAN) Geoff Onuoha said Nigerian companies were keen to develop partnerships and effective collaborations for better service delivery lauded Shell “for the tenacity and commitment in pioneering a game-changing initiative.” The NAPIMS Group General Manager represented by Alexander Chukwu enthused: “We expect to see the birth of new joint ventures and collaboration between Nigerian and Chinese suppliers.” He advised the delegates to look beyond the event and take advantage of the opportunity to deploy technologies and solutions that deliver quality services and reduce cost. SNEPCo’s Nigerian Content Development Manager, Austin Uzoka said there were many areas in which Nigerian and Chinese suppliers could collaborate in the oil and gas company and that Shell would continue to provide the required opportunities within the limit of its resources and operations.
Hilong and MSP Drillex facilities to help deepen their appreciation of best practices. The Chinese suppliers, on their part, obtained guidance on business development and capital investment in Nigeria, even as they set up initial connections with potential Nigeria partners. SNEPCo’s Contracting and Supply team will track the identified cost opportunities and work to embed them as part of an overarching cost reduction drive and faster supply chain transactions. The Nigerian and Chinese companies found the network session very useful. “This event was beyond my expectations for a maiden edition. It has exposed our organization to significant opportunities and immediate benefits to us and Shell through alternative sourcing,” said Tunde Oduwole of Future Oilfield Services (Nigeria) Limited. Molly Zhu Xiuping of Morimatsu (China) Group. “The workshop helped us to understand the opportunities in Nigeria and how to do business in Nigeria. It was worth my while and I hope to develop further partnerships with the Nigerian company that has agreed to visit our facility here in China.”
The Nigerian suppliers also visited some companies, among them, Neway valves, the world’s largest valve manufacturer, Sulzer Pumps, www.orientenergyreview.com
LOCAL CONTENT
Lawmakers, Stakeholders Begin Collaboration on Extension of Local Content to Construction, Power Sectors was in line with the Federal Government’s Executive Order on Patronage of Made in Nigeria Goods. Ekon assured that members of the committee would work with stakeholders in the various sectors to develop a robust Local Content legislation. In his presentation, the E x e c u t i v e S e c r e t a r y, NCDMB, Engr. Simbi Wabote commended the National Assembly for the support they provide to the Nigerian Content i mplementation process. He added that the achievements in the oil and gas industry made it imperative that the Nigerian Act should be extended to other key sectors of the economy.
M
embers of the Federal House of Representatives have begun working with stakeholders in Power, Construction and Information Communication Technology sectors towards extending the Nigerian Content Act to the three sectors of the economy. The collaboration was firmed up at the recent workshop organized by the Nigerian Content Development and Monitoring Board (NCDMB) for members of the House of Representatives Committee on Local Content, in Port Harcourt, Rivers State. The consensus at the event was that extending the Act to those key sectors would replicate the achievements recorded in the oil and gas industry through the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. In his presentation on Operationalizing Local Content in the Construction Sector, Chief Executive Officer, Megastar Construction Company ,Arch Harcourt Adukeh stated that the construction industry could be a key driver of the Federal Government’s economic diversification programme when the prevailing dominance of the industry by international companies is reversed.
www.orientenergyreview.com
Adukeh underscored the need to encourage indigenous participation in the construction sector, adding that the industry was a key enabler of ancillary services like financial services, education, retail, real estate and hospitality. Speaking on Local Content in the power sector, Commissioner, Engineering, Performance & Monitoring, Nigerian Electricity Regulatory Commission (NERC), Prof. Frank Okafor, stressed that “no country in the world had grown its power network through the importation of all components and devices.” He canvassed for a legislation that wou ld promote del i berate utilization of local human and material resources, goods and services in the power sector. Chairman, House of Representatives C om m it t e e on L oc a l C ont ent , Honourable Emmanuel Ekon, in his address, highlighted some of the achievements recorded in the oil and gas industry through the implementation of the Nigerian Content Act. He explained that the planned extension of the Nigerian Content Act to other sectors
According to him, some of the capacities already developed in-country in the oil and gas sector could easily be deployed in other sectors. Speaking further, Wabote informed that the Nigerian oil and gas supply chain is now able to retain $5billion from the annual $20billion spend, a marked departure from the past when almost the whole budget ended up in foreign economies. He added, “today we have two worldclass pipe mills and five impressive pipe coating yards. Nigerians control and own 38 percent of marine vessels that are used in the oil and gas industry. Over 30,000 direct jobs have been created on the back of implementing the Act.” The Executive Secretary added that the Nigerian industry had developed capacity to handle more than 60,000 tonnes of fabrication per year while all cables required in the oil and gas sector are being manufactured in-country. “We are proud of these achievements but our vision is to achieve 70 percent in-country value retention within the next 10 years and retain $14billion out of the $20billion yearly spend.”
Orient Energy Review Vol 6 No.12 December 2017 11
LOCAL CONTENT
Total Concludes 2 Year Training For 11 Engineers (UFR) modules by Saipem Nigeria for Tota l. Speaking at the graduation ceremony, the Executive Secretary, Nigerian Content
I
n fulfilment of its commitments to Nigerian Content Human Capacity Development initiatives, Total Upstream Nigeria Limited (TUPNI) has concluded the training of eleven engineers at Saipem yard, Port Harcourt, Rivers State. The 24 -month exercise was conducted as project based trainings on the back of the execution of the Umbilicals, Flowline and Risers
Development and Monitoring Board (NCDMB), Engr. Simbi Wabote commended Total for ensuring that the youths received qualitative training, adding that the company had become a veritable partner of the Board in the implementation of the Nigerian Content Act.
NCDMB, Engr. Maurice Iwhiwhu Kelly also hailed TUPNI and Saipem for their commitment towards the Board’s Human Capacity Development Initiative (HCDI). Kelly congratulated the trainees on the successful completion of their programme and commended the zeal they displayed during the training. He charged the participants to use the skills they have acquired in their future endeavours. In his comments, the Nigerian Content Coordinator, Egina Project, TUPNI, Mr. Adedamola Adenubi, commended the Board’s dedication to human capacity development in the oil and gas industry. He encouraged the participants to remain good ambassadors of the project. The programme produced seven Installation Engineers, two Quality Assurance/Quality Control (QA/QC) Engineers and two Fabricating Engineers.
The Executive Secretary who was represented by the Manager, Human Capacity Development,
NCDMB to Build 90 Homes In the North East Region country. This is part of the oil and g a s i n d u s t r y ’s contributions towards rebuilding areas that were devastated by the activities of the Boko Haram sect.
T
he Niger ian Content Development and Monitoring Board (NCDMB) has concluded plans to construct 90 homes in the North-Eastern region of the
12 Orient Energy Review Vol 6 No.12 December 2017
The Board is using t h e ‘D ow n To Earth’ (D2E) model in the intervention and is set to acquire t wo Hyd r au l i c Compressed Earth B l o c k ( HC E B) Oskam machines, to be used in mold i n g block s f rom clay. The blocks will be used to erect the homes and they will have utilities, medical center, school and community gardens. Mr. Abdulmalik Halilu, General Manager, Corporate Services and Logistics and NCDMB lead on the intervention, said the
Board will train youths from the region on the use of the HCEB machines as a strategy of creating employment. Halilu added that the Board had conducted a detailed study of the HCEB machine and found that it is very durable. “The usage is simple and it takes just a month to train operators. Buildings erected with clay blocks could vary in design, in accordance with usage, culture and community acceptance,” Another key project undertaken by the Board include the Fair Chance Initiative, under which 107 internally displaced persons will be trained on different crafts and some of them engaged in the construction of the 90 homes. The trainees will be provided with starter packs and linked to the virtual market. NCDMB will also construct a vocational center and deworm and administer Vitamin A supplements to 50,000 primary school children in the six North Eastern states.
www.orientenergyreview.com
O R G A N I Z E D B Y:
C E L E B R AT I N G T H E F U T U R E O F E N E R G Y. J U N E 1 2 - 1 4 , 2 0 1 8 / C A L G A R Y, A L B E R TA
G L O B A L P E T R O L E U M S H O W. C O M EXHIBIT • NETWORK • SPONSOR • ADVERTISE
www.orientenergyreview.com
Orient Energy Review Vol 6 No.12 December 2017 13
WOMEN IN ENERGY
‘Women Integration, Most Important Step to Sustainable Growth and Development’ - Kenneth-Divine in 2003, and then I was assigned with responsibilities in the oil and gas sector. “To drive my interest in the oil and gas sector, I embarked on a selfdevelopment training programme and short courses, among which was a mini MBA course with the CWC School of Energy in London. In 2006, I obtained a Master’s Programme on Public Administration from the University of Lagos just to satisfy my political interest. I started off politics early in school days, voted into the Student’s Union Government of the University of Benin and became Acting President. That same dynamism, led me to be appointed in 2015 as Africa Representative on The Foreign and Common Wealth Board where I influenced policies on local staff issues.
P
atricia Kenneth-Divine, an Energy and Sustainability Expert has over a decade been committed to developing capacity, market intelligence - exploring the Nigerian renewable sector, getting foreign investors to engage with new opportunities. The Principal Consultant and Trade & Investment specialist for Synergy Systems Consults (UK) Limited and the President of Association of Certified Protocol Practitioners in Nigeria in this interview speaks on her enthusiasm about renewable energy, oil and gas, among other issues, OGE OBI reports
Determined to dig deeper into the then new line of career, KennethDivine was soon overshadowed by passion and zeal to render excellent support service to both international and local companies within the Nigerian oil and gas sector. And responding to the inner hunger for excellence, saw her shod her feet with several but relevant professional trainings, which has not just left with the requisite professional experiences but has become a force to reckon with in issues of renewal energy, oil and gas, invest advisory, policy making, among other.
The emergence of a beautiful butter f ly w ith an adorable and gorgeous colours from an unattractive adult caterpillar, could best describe the transformation process of an agriculturist into an expert in oil and gas sector. With a first degree in Agriculture from the University of Benin, Patricia Kenneth-Divine developed interest in the oil and gas sector during her primary assignment (NYSC) year with the Chevron in Lagos.
While sharing her background, the Principal Consultant and Trade & Investment specialist for Synergy Systems Consults (UK) Limited and the President of Association of Certified Protocol Practitioners in Nigeria said, “It will surprise you to know that my first degree was in agriculture from the University of Benin. I took interest in the oil and gas sector when I was posted to Shell Lagos for my youth service assignment, after which I worked briefly before joining the British Deputy High Commission, Lagos,
14 Orient Energy Review Vol 6 No.12 December 2017
Asked how she became a successful oil and gas expert especially within the Nigerian oil and gas sector, the energy and sustainability expert attributed it to a lot of hard work, motivation, determination, and zeal to provide excellent support service “to numerous international/local companies who have recorded good success stories within the Nigerian oil and gas sector.” Stating that attitude plays a key role in the successful execution of one’s goal in life, Kenneth-Divine said that it also helps in the management of opportunities or challenges. “If you can dream, believe, and achieve, then you are sure for success.” And that in her quest to know more, she started exploring the Nigerian renewable sector, getting foreign investors to engage with new opportunities. “It is interesting to see some of those projects become successful. To understand the technicality of the renewable sector, I secured training certificates from the Robert Gordon University Aberdeen on Energy and Sustainability. We can achieve anything if we put our hearts to it.
www.orientenergyreview.com
WOMEN IN ENERGY “ Today, I am a n Energ y a nd Sustainability Expert with proven ability for developing and leading new strategic business’s, advisory, leading on implementation of huge projects, turning around global opportunities, and increasing export performance for both international and local companies. The fact that I am married to Kenneth Divine, who is my coach, best adviser and a strong motivator to my success is an advantage, she said. Outlining some of her achievements, the multidimensional expert said, “I worked for over 12 years with the Foreign and Common Wealth Office (FCO) Lagos, Nigeria on International trade advisory and business development. In 2015, I was appointed as Africa Representative on The Foreign and Common Wealth Board, where I was able to influence policies on local staff issues. I have also occupied major roles on international women leadership platforms promoting women in the business environment, and providing partnership platforms for them have always been my passion. With a number of laurels to her credit from both academic and corporate organizations, Kenneth-Divine was awarded an honorary fellowship certificate by the Institute of Carbon Accountants and Traders’ UK, London in 2015. And in acknowledgement of her expertise, she presently functions as the Principal Consultant, Trade and Investment Specialist for Synergy Systems Consults (UK) Limited, a company that specialises in promoting and identifying partnership and investment opportunities within Africa, with Nigeria in focus. According to her, “It is our objective to influence dynamic changes in view of exporting international expertise that will enhance productivity in Africa. “We are currently promoting and supporting major projects within the renewable energy and oil & gas sectors that will bring significant job creation to the SubSaharan market, especially in Nigeria. We are very focused in supporting the right partnerships and investments to promote opportunities in Africa.” And on what drives her, the Energy and Sustainability Expert, said that driving new opportunities, dynamic initiatives and ensuring they are successful have always been an exciting experience for her. Adding that being the president of the Association of Certified Protocol Practitioners in Nigeria has given her the platform to influence and institute change within the industry driving international standards, best practices, influencing investment opportunities and rebranding the concept of protocol practice in Nigeria. “The rebranding journey of the protocol industry has been a success story as over 150 protocol experts have been
www.orientenergyreview.com
engaged under the platform giving a new framework of successful business networks, delivery, and achievements. Protocol Practice has become a strategic asset in business, this singular act of facilitating and managing various procedures for people of different culture to find common purpose to significantly creating long-term relationships.” On what Association of Certified Protocol Practitioners in Nigeria is all about, Kenneth-Divine said, “The Association of Certified Protocol Practitioners in Nigeria (ACPPN) is a non-profit and non-governmental organisation aimed at promoting and raising the standards of protocol practice in Nigeria and sharing best practices globally. The Association is also focused on advancing the career, skills, and visions of its members by rebranding the concept of protocol professionalism through the best certifications and qualifications that will enhance capacity building and good leadership qualities. “ACPPN also provides a platform to develop good business relationships and methodologies for promoting service delivery and strengthening supply chain. Protocol officers are one of the most crucial components of any successful organisation defining proper procedures, systems of rules, organisation from presidential to diplomatic; we have defined a true sense of decorum, etiquette, and cross-cultural respect. “Today, we celebrate our strengths and commitment as we announce a rebranded protocol face, a rebirth to professionalism, a consciousness of integrity and embraced diplomatic influence. The Association of Certified Protocol Practitioners in Nigeria – is a testimony of vision. Speaking on the need for women empowerment, the feisty professional noted that the 2030 Agenda on Sustainable Development defines the realisation of gender equality and women empowerment as a priority to sustainable development. And that it will also help to improve the standards and quality of life for women, families, communities, workplace, job creation, poverty eradication and so on. According to her, addressing women’s inequality within the value chain and across the globe has become a complex issue. I think with an extensive strategic partnership with relevant networks, NGO’s, financial institutions, market research groups there could be a successful initiative that will promote the role of women in nation-building, financial institutions, market research groups there could be a successful initiative that will promote the role of women in nation-building.
that will build stronger economies. This will also help to improve the standards and quality of life for women, families, communities, workplace, job creation, poverty eradication and so on. According to a 2016 BNP Paribas Global Entrepreneur Report, women entrepreneurs are also more successful and ambitious, 90 per cent of the female entrepreneurs that took part in the survey expected to see an increase in profits within the next year and were reporting higher revenues than their male counterparts. It is expected that women will make up 50 per cent of the workforce by 2020 if they are given the opportunity to reshape traditional work environments. “The importance of women involvement in the supply chain recognises the fact that women have a low-risk tolerance and have high values of financial management which tend to have wider community benefits according to the World Bank. There is a growing recognition within the private and public sector of the importance of promoting women as business leaders. Although, women-led SME’s involvement within the supply chain are faced with financial and non-financial barriers; Social, cultural, legal and gender specific barriers also deprive women of engaging in some industry supply chains that is extractive industries. “Most studies have shown that women will reinvest their income up to 90 per cent, in their communities, families compared to 40 per cent for men. Also, it is relevant that women’s equality is advanced, including economic participation. The engagement of more women in the work force could add up to $12 trillion to global growth by 2025 according to McKinsey. “Investing in women-owned business and assimilating them into corporate supply chains can also contribute significantly to the world’s economy. Today’s economy records less than one per cent of spending by large businesses on suppliers as produced by women-owned business, generating new employment opportunities and so on. By closing gender gaps, organisations can unlock opportunities for increased growth, profit, and innovation. To strengthen competitiveness, the greater indicator of a robust and innovative culture must centre on women empowerment. Integrating women into our political, economic, and cultural institutions is the most important step a country or organisation would take to achieve an innovative environment, she said.
“The empowerment of women has a great potential to boost economic growth and facilitate the goal of an inclusive sustainable development. There is need to change the story of women empowerment especially the successes and transformative framework
Orient Energy Review Vol 6 No.12 December 2017 15
EXPLORATION/ DRILLING
NAPE 2017 : Nigeria’s Huge Hydrocarbon Reserves Still Lies Untapped - Chevron Boss By Oge Obi
B
elow the existing infrastructure lies significant unpenetrated and undiscovered hydrocarbon re sou rc e a nd re ser ve s, the Chairman /Managing Director Chev ron Niger ia / Mid-A f r ica Strategic Business Unit, Mr Jeff. Ewing, has said. The Chevron boss made this known while delivering his keynote addressing during the Opening Ceremony of the 35th Annual International Conference/Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos, recently. According to him, the nation’s oil and gas industry has the opportunity to rejuvenate old frontier basin exploration to discover impact resource additions for strategic reserves replacement and growth. And that it could be achieved through “Regional Geological Assessment of the Niger Delta basin; new thinking and technology in seismic acquisition and seismic processing; deep drilling and prospecting, as well as cost-efficient future developments.” He noted that “It is evident that there is significant unpenetrated and undiscovered hydrocarbon resource and reserves just below existing infrastructure. Average drill depth below mudline in the Niger Delta is approximately 10,000 to 12,000 feet. We, therefore, need to build a robust inventory of drillready prospect portfolio in readiness for more favourable oil price and business environment.” Commending NAPE for its role in achieving the objectives of the Nigerian oil and gas industry, Ewing noted that NAPE has always played a pivotal role in the cross-pollination of ideas and exchange of best practices. Adding that NAPE is credited for its bold step at championing the discourse that helped to drive policies and reforms such as Nigerian Content and Marginal Oil Fields Development. Speaking further, the Chevron boss noted that Nigerian
16 Orient Energy Review Vol 6 No.12 December 2017
is set on the path of steady growth and development. “The Economic Recovery and Growth Plan provides a framework for diversifying the Nigerian economy. The oil and gas sub-sector has and will continue to support the efforts of the government to grow the economy, but a lot more can be achieved by better utulising existing processes and competencies, and sustaining value creation through innovative technology.” According to him, the professional body is well-positioned to encourage industry-academia collaboration for local research and development and provide a platform for the articulation of ideas that will help advance the oil and gas industry and the nation’s economy. Speaking on Chevron’s commitment to national development, Ewing, said Chevron Nigeria has continued to sustain efforts towards delivering exploration and production projects and activities as well as making significant investments in gas projects in the country. “We are proud to be partners with the Nigerian government to actualize progress in Nigeria’s oil and gas sector and we have been active in the country’s upstream energy business for over 50 years. We will continue to engage in lasting, collaborative partnerships with the relevant stakeholders to effectively increase Nigeria’s global competitive edge in the energy equation, Ewing said.
recognize that we cannot build longterm development and prosperity on the back of oil receipts alone. An economy built solely on a commodity that is susceptible to revenue shocks and global market volatility is a highly vulnerable one.” The Minister noted that Nigeria’s recent stint with economic recession had further driven the fact home clearly. “What is however clear is that oil revenues are simply not enough to match the demands for social mobility, economic opportunities and public goods now being levied on the government by a fast-growing population. We bear witness to this not only in the form of the fiscal crisis evidenced by the inability of states to fulfill their obligations to their employees but also in the telltale signs of social discontent around us,” Feyemi said. Declaring Mining as Nigeria’s next frontier of opportunity, the Minister noted that the country’s obsession with oil revenues has long distracted her from the untold potential for wealth and jobs creation that subsists in the mining sector. “Nigeria’s bountiful resource base goes far beyond the popular impression that Nigeria is all about oil,” he said.
In his keynote presentation themed: “Exploitation of Nigeria’s Mineral Resources: Building hope for Economic Diversification”, the Minister of Mines and Steel Development, Dr. Kayode Fayemi said that Nigeria has long realised that oil revenue would not be enough to match the demands for social mobility, economic opportunities and public goods,hence the efforts by different administration to diversify the economy. “There has long been a realization in policy circles that Nigeria’s dependence on proceeds from the oil and gas sector is unsustainable. We all
www.orientenergyreview.com
EXPLORATION/ DRILLING
Statoil to Focus Exploration on Home Turf in 2018 to Curb Risk UK, including potentially a follow-up on this year’s Verbier discovery in the outer Moray Firth. Statoil plans to release details of exploration spending at its capital markets update in February 2018.
Angola: Eni Becomes Operator of Cabinda North
E
N
orway’s Statoil ASA will focus exploration on its home turf next year as it seeks more oil and gas to run through existing platforms rather than gigantic deposits in frontier areas. While global plans aren’t yet complete, it’s clear that the bulk of efforts will be in the company’s own backyard, exploration head Tim Dodson said. He confirmed that Statoil plans to participate in 25 to 30 exploration wells off Norway next year, with as many as two dozen of those split between the North and Norwegian seas, where platforms have long been in place. “It’s not really a year of big-impact prospects,” Dodson said in an interview ahead of Statoil’s annual Autumn Conference in Oslo. “It’s more a year of value-creating, infrastructure-led exploration activity in Norway and the UK.” Oil companies have slashed exploration spending since crude crashed in 2014. Statoil will invest $1.3 billion searching for new resources this year, about a third of the amount in 2013. Nevertheless, cheaper drilling has allowed it to increase the number of wells to about 30 globally this year from 23 in 2016, and next year’s campaign marks a potential doubling of exploration in the North and Norwegian seas. That will be music to the ears of Bente Nyland, head of the Norwegian Petroleum Directorate, who recently expressed concern that exploration in
www.orientenergyreview.com
the North Sea could fall to an 11-year low in 2017.“It’s really about making full use of the position we have, the infrastructure that’s in place,” Dodson said. “That infrastructure doesn’t get any younger, so it’s really about trying to hoover up and generate value. We can create a lot of value from these small discoveries.” While mature areas will make up a higher proportion of Statoil’s Norwegian exploration efforts, the company will drill five or six wells in the Arctic Barents Sea in 2018 — at least as many as this year. The 2017 campaign there yielded disappointing results, especially at the much-anticipated Korpfjell prospect. While Statoil will drill a deeper well at the same license next year, it now has lower expectations, Dodson said. The executive declined to estimate how many wells Statoil will participate in outside Norway next year, but shed light on some of the company’s plans. Statoil will operate a rig off Brazil through the year. It plans one welltest on the southern part of Carcara oil field — thought to hold about 2 Bbbl — and one exploration well on the northern part. It will also drill at the “sizable” Guanxuma prospect. It plans one well in Tanzania early in 2018, the last remaining “commitment well” in Block 2 Statoil will probably participate in “a couple” of non-operated wells in the Gulf of Mexico in Argentina, Statoil sees “some activity” in the Baja del Toro permit in the Vaca Muerta shale formation, which it entered this year It also sees as many as three wells off the
ni’s CEO Claudio Descalzi and Sonangol’s Chairman of the Board of Directors Carlos Saturnino signed today an agreement that assigns operatorship of Cabinda North block to Eni, as well as 48% the block’s rights. The signing took place in Luanda at the presence of the President of the Republic of Angola João Gonçalves Lourenço and the Prime Minister of Italy Paolo Gentiloni. Cabinda North, of which Eni previously controlled 15%, is an onshore block located in a little explored oil basin in the north of the country, where Eni will be able to leverage the mining knowledge acquired in activities in a neighbouring area in the Republic of Congo. In case of significant discoveries, production will be facilitated by existing infrastructure. In addition, the two companies signed a Memorandum of Understanding to define joint projects throughout the whole value chain of the energy sector. The MoU provides for the assessment of associated and nonassociated gas resources in Angola’s offshore, to be traded on both domestic and international markets, and the optimization of exploration activities and identification of new opportunities for joint exploration. Also, it provides for the study of optimization measures in the refining and trading sector in Angola, and the evaluation of opportunities in the sector of renewable energy and, in particular, in photovoltaic. These agreements expand the scope of Eni’s activities in Angola and strengthen its presence in the country, while consolidating the strategic alliance with Sonangol. Eni has been present in Angola since 1980 through its subsidiary Eni Angola. Equity production amounts to 155,000 barrels of oil equivalent per day.
Orient Energy Review Vol 6 No.12 December 2017 17
GHANA REPORTS
EXPLORATION/ DRILLING
African Petroleum Announces Upgraded Prospective Resources in Sierra Leone
A
frican Petroleum announced December 21 an update, on behalf of its wholly owned subsidiaries European Hydrocarbon and African Petroleum Sierra Leone, to the prospective oil resources at the 100% owned and operated licence blocks SL-03 and SL-4A-10, offshore Sierra Leone. T he Compa ny en gaged the independent petroleum consultant, ERC Equipoise (‘ERCE’), to prepare an updated assessment of prospective oi l resources attributable to the Company’s Sierra Leone Licences (the ‘ERCE Letter’). The ERCE Letter of prospective resources includes six undrilled prospects and estimates the net prospective oil resources relating to the Sierra Leone Licenses as follows:
The upgrade to the independently assessed prospective resources follows the recent announcement on 5 December 2017 regarding the entry into the Second Extension Periods for the two Sierra Leone Licences and takes into account two new material prospects identified by the Company: Leo and Vega. Pursuant to its commitments on the licences, African Petroleum will, on conclusion of further assessment with ERCE, provide the Sierra Leone Petroleum Directorate with confirmation of its drilling programme ahead of the notification deadline of 31 October 2018 for both SL-03 and SL-4A-10.
18 Orient Energy Review Vol 6 No.12 December 2017
Commenting on the update, African Petroleum’s CEO Jens Pace said: ‘We are delighted that we have seen such a material increase in our independently assessed prospective oil resources in Sierra Leone to over 2.5 billion barrels (unrisked). African Petroleum has experienced increased industry interest in this acreage due to technology improvements and cost reductions in ultra-deep water drilling together with the materiality of the prospects identified by the Company on the SL-03 and SL-4A-10 licences. We will continue our de-risking efforts on these licences and, in due course, work towards formulating a suitable drilling strategy that meets with the current licence commitments.’
Ghana to Launch Public Register Detailing Activities In The Oil And Gas Sector
D
eputy Min ister of Energy Dr. Mohammed Amin Adam unveiled the intentions of his cabinet to deepen transparency and access to information in the oil and gas industry by publishing a register detailing all activities in the sector. The information was released recently by Ghana Web . Mr Amin Adam indicated that the registry will be launched in the second week of January 2018. The information comes as last July, the same official announced that the government will publish in late 2017, the complete list of contracts signed since the beginning of the exploitation of black gold in 2010, “with the aim of ensure transparency in its oil sector . “The register will contain the texts governing the sector, the permits, the authorizations, the names of companies bidding for the oil blocks and the winners of these blocks. These are the types of information that interest the public because they will allow the public to effectively control the government and the authorities involved in the allocation of oil rights , “he said. Ghana’s new president, Nana Akufo-Addo, promised during the election campaign greater transparency in the extractive sectors, under his mandate.
www.orientenergyreview.com
www.orientenergyreview.com
Orient Energy Review Vol 6 No.12 December 2017 19
ADIPEC PICTURES
ADIPEC PICTURES
20 Orient Energy Review Vol 6 No.12 December 2017
www.orientenergyreview.com
ADIPEC PICTURES
www.orientenergyreview.com
Orient Energy Review Vol 6 No.12 December 2017 21
ADIPEC PICTURES
22 Orient Energy Review Vol 6 No.12 December 2017
www.orientenergyreview.com
ADIPEC PICTURES
www.orientenergyreview.com
Orient Energy Review Vol 6 No.12 December 2017 23
Dirisu Yakubu
Takeaways for Africa at ADIPEC 2017
T
he gathering of petroleum experts and big players in Abu Dhabi recently, opened yet multiple windows of opportunities for the world to do business a new way. For the various regional powers, the takeaways are expected to reshape their respective oil industries in the years ahead.
Africa, Europe, and the MENA region, as ADIPEC 2017, the 20th edition lived up to its billing by hosting more than 10,000 delegates, 2,200 exhibiting companies, 900 speakers, and in excess of 100,000 visitors from 135 countries.
The Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) is the largest oil and gas exhibition and conference in Asia,
Held under the patronage of the President of the United Arab Emirates, His Highness Sheikh Khalifa Bin Zayed Al Nahyan, and organised by the Global Energy
24 Orient Energy Review Vol 6 No.12 December 2017
division of dmg events, ADIPEC is the global meeting point for oil and gas professionals. Standing as one of the worlds top energy events, and the largest in the Middle East and North Africa, ADIPEC is a knowledge-sharing platform that enables industry experts to exchange ideas and information that shape the future of the energy sector. It is hosted by the Abu Dhabi National Oil Company (ADNOC) and supported by the UAE Ministry of Energy, www.orientenergyreview.com
COVER STORY
He said the power of cooperation had been essential to the efforts of both OPEC and non-OPEC nations to restore confidence in oil markets during the past year. We are confident that the oil industry, and indeed the global economy, are pivoting and the market is rebalancing at an accelerating pace and stability is returning,he said. While speaking on the future of Oil demand, the OPEC boss said that the cartel’s projections did not foresee oil demand cresting over the coming decades, and that his organisation sees no reason for investors to expect oil to hit peak demand before 2040. Instead, he argued, a dramatic increase in global population would likely result in even more people living without access to electricity, cooking gas or heating. “These parameters suggest there will not be peak oil demand before this time (2040),” Barkindo said. OPEC had recently thrown a forecast of higher demand for its oil in 2018 and said its production-cutting deal with rival producers was reducing excess oil in storage, pointing to an even tighter global market next year. In a monthly report released by OPEC, the organization said the world would need 33.42 million barrels per day (bpd) of OPEC crude next year, up 360,000 bpd from its previous forecast.
Masdar, the Abu Dhabi Chamber, the Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi), Abu Dhabi Ports and the Department of Education and Knowledge. This years edition had the theme Forging Ties, Driving Growth. Attracting major players in oil and gas exploration and production from around the world, the event is also a showcase for companies wanting to raise their global profile in support industries, such as oilfield services, equipment, construction, infrastructure, transport and marine. In an important change for this year, ADIPEC expanded to include the oil and gas industrys downstream sector for the first time, www.orientenergyreview.com
including refining and non-fuel processing such as petrochemicals, reflecting the increasingly diversified operations of NOCs and IOCs as they move to generate revenue from multiple layers of the petroleum value chain. Speaking at the Abu Dhabi International Petroleum Exhibition Conference (ADIPEC), General Mohammed Barkindo emphasised ADIPECs vital role in facilitating discussion and collaboration within the global oil and gas industry, and as a showcase for technical innovation.
“
These parameters suggest there will not be peak oil demand before this time (2040),”
Orient Energy Review Vol 6 No.12 December 2017 25
COVER STORY A Case for China in GCC Major Chinese companies were ranked among the biggest national contingents at (ADIPEC), as they plotted towards securing an increasing share of global resources and markets. Almost 160 Chinese companies attended ADIPEC 2017, booking around 2,600 square metres of floor space, while the Chinese national pavilion ranked among the largest within the exhibition halls. The China National Petroleum Corporation (CNPC) was conspicuous with its design after signing a landmark platinum sponsorship agreement for the event. Abu Dhabi is a global hub for the oil and gas industry, and ADIPEC offers a gateway to new partnerships in the Middle East, Africa and beyond,said Yueliang Guo, Executive Director of CNPC International (HK) Ltd. Being at ADIPEC gives us access to the very top level of decision makers at every layer of the oil and gas industry, contributing to sustainable longterm growth for our business. China and the Gulf Cooperation Council (GCC) states are moving quickly to develop closer bi-lateral business partnerships, as Chinese companies move to secure access to resources, while oil-exporting countries look for new markets and opportunities for downstream investment. In March 2017, Saudi Arabia and China signed a series of preliminary deals that could be worth up to USD 65 billion if finalized, with oil and gas agreements ranging from exploration and production, through to downstream industries such as petrochemicals. Besides, some Chinese partners had further indicated interest in substantial investments in the planned Saudi Aramco share issue when the management concludes plans to hit the market. China is the second-biggest consumer of oil after the United States, and the GCC is the biggest supplier of oil, so it is clearly in the interest of both sides that they develop closer economic and trade ties, said Christopher Hudson, President Global Energy at dmg events. ADIPEC helps create those ties, while also offering a platform for deal-making beyond the Middle East. We bring together one global industry, in one city, at one time, driving growth, forging ties, and creating partnerships. Any company that is serious about building a
26 Orient Energy Review Vol 6 No.12 December 2017
global footprint comes to ADIPEC. China Petroleum Engineering and Construction Corporation and China Petroleum Pipeline Bureau are both leading contractors at the centre of one of the United Arab Emirates most important oil and gas infrastructure projects. A case for African countries in GCC The Abu Dhabi International Petroleum Conference and Exhibition (ADIPEC), one of the worlds most influential events for the global oil and gas industry, under the patronage of H.H. Sheikh Khalifa Bin Zayed Al Nahyan, President of The United Arab Emirates offered industry players a rare and great window to meet many of regional International Oil Companies (IOCs) and National Oil Companies (NOCs) within a few days. The event hosted by the Abu Dhabi National Oil Company (ADNOC) aimed at creating a meeting place for energy ministers and C-level executives from the worlds oil and gas giants. ADIPEC provides a unique platform for high level discussions on the future of the global oil and gas industry, focusing on current challenges, solutions and trends that will provide a positive and lasting impact for all. The focus of the 2017 discussions were centred around the reality of a lower-for-longer oil price strategy, technology, disruptive innovative strategies, as well as prepping todays youth for a thoroughly diverse energy future. Going by the volume of crude in the African continent coupled with cutting-edge technology and trained manpower, the prospect of the petroleum industry in subSaharan Africa is as bright as the day. Group Chief Executive of Oando Plc, Wale Tinubu emphasized it this way: With the help of innovation and technology, decision making is faster and cheaper-there is off the shelf technology at different price levels, he said, adding that The sub-Saharan Africa is the worlds top innovation leaner. As it were, constant innovation to bring about cost-effective mode of doing things in the ever dynamic oil industry is the way to go, for a world inching close to a cleaner environment devoid of man-made pollution. According to Tinubu, There needs to be a bigger drive towards efficiency because we are dealing with a much lower oil
price. Taken as given, the reality of todays oil and gas industry is one that requires constant evolution, a steep devotion and commitment to thinking outside the box. In the case of Nigeria, the grip of economic squeeze made worse by a two-year old recession revealed the futility of poor thinking; the gross danger in the use of old habits and status quo to handle and treat todays challenges. The Petroleum Industry and Governance Bill (PIGB) will be good step to start the total overhaul of the Nigerias oil industry. One, the incessant attacks on oil installations and facilities will take a back seat as soon as an official eagerness to harmonise the bill for Presidential assent is mustered. Angola, Ghana, Libya and other key continental players must take advantage of the huge gathering ADIPEC offers to leverage on their natural endowment for the growth, development and sustenance of their respective economies. However beyond individual efforts, African countries must pay serious attention to the imperative of collaboration, if only to capitalise on their economies of scale, thereby culminating in less production cost and best risk bearing.
www.orientenergyreview.com
ADIPEC FEATURE
Sokol deploys Russian technology; beyond directional drilling
S
okol Drilling Motors and Tools is an independent Russian technology directional drilling and motor tools manufacturer which has been in engineering, manufacturing and delivering downhole drilling tools, services and solutions for use in today’s most complex and challenging drilling conditions for about a decade. Sokol is known to demystify challenging drilling projects, given its track records across the world. The company has successfully developed and implemented new engineering solutions and gained the trust of partners and clients
www.orientenergyreview.com
across major countries of the world. All these have helped it to become the leading drilling motors and tools manufacturer in Russia. In an encounter with our Jerome Onoja, Angelina Golovacheva, Sen ior Specialist for International Projects in Sokol traced the beginnings of the company, its range of products, its spread and the takeaways from ADIPEC 2017.
“Beyond Russia, we supply our products to the United State of America and are willing to spread further” she said, adding that “Last year, we exhibited here and the year before 2015. In 2015 we were just here like visitors and now we are exhibiting (at ADIPEC).
Sokol is known for its shock tools, bypass valves, float valves, column filter, nonmagnetic drill collars among others.
Orient Energy Review Vol 6 No.12 December 2017 27
ADIPEC FEATURE
Churchill exerts global presence via distribution agencies
C
hurchill Drilling Tools is a specialist oilfield service company delivering innovative solutions to the industry. Primarily making use of down-hole tools activated by pumping darts from surface, the company offers operators higher levels of performance and reliability on range of specific operations and contingencies. It has today gained global recognition as a technology leader in drilling, completions and abandonment tools. Approaching 2,000 deployments and trusted by over 65 major operators and service companies globally, Churchill is gradually emerging as the most preferred choice on technical matters within its scope of focus. With constant improvement in service delivery, the company has the International Organization for Standardization (ISO) 9001 registration by Devon Energy Corporation (DVN) since 2009. In addition to being regularly audited
28 Orient Energy Review Vol 6 No.12 December 2017
by major operators and service companies, all tools are independently third party inspected prior to delivery, with critical deepwater integrity elements verified by the industry’s leading string integrity specialists. Churchill has in its employment more than 60 staff at its regional operation base in Aberdeen (Scotland), Houston (United States) and in the United Arab Emirates with a number of indigenous distributors and agents across the world. Founded in 2002 by two brothers Andy and Mike Churchill, the company is today spreading its operational wings into new emerging markets around the world. In a short interface with this medium recently, Niall Dowds, Marketing and Communications Manager of Churchill Drilling Tools, told OER the scope of operations of the company and the uniqueness of the products on offer. “We provide tools
for the oil industry. Our tools are quite innovative. We have a base here in Abu Dhabi; we have a base in Aberdeen and in Houston. We also have agents all across the world so that we can provide tools on a global basis,” adding that the products of the company are unique as they “are activated by darts which makes drilling faster, more efficient and safer.” On the spread of the company, Dowds noted: “I don’t know much about Africa. In Houston, we are well established, in Abu Dhabi our operations opened about a year and half ago and it is growing; and in Aberdeen, we have been around since 2002.” He spoke of the 2017 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) this way. “It has been a really successful exhibition for us and we have had really positive conversations with lots of operators, lots of suppliers and we exhibited here for the first time last year. That was successful and it was even more successful this year.” www.orientenergyreview.com
ADIPEC FEATURE
Fairman introduces “green” pigging valves to Middle-East and African markets ahead of One Planet Summit
O
ne of the unique environmentally-friendly companies Jerome Onoja ran into at the just-concluded ADIPEC conference was Argus Machine Company Ltd, a manufacturing firm based in Alberta, Canada. The original equipment manufacturing OEM company has to its credit over 50 years’ experience in manufacturing machinery for the oil and gas industry. Noted for its commitment to producing high quality machinery as well as maintaining a brand name that stands out among its contemporaries in the industry, Argus is said to have kept tabs with the everevolving technological advancement i n mach i ne ma nu factu r i n g. On its clientele list are such industrial giants like Halliburton, Schlumberger, Weatherford, among other.
industry for 60 years. I mean for a business providing machine services for company such as Halliburton, Schlumberger, Weatherford, and those companies who manufacture down-hole equipment around the world. Being around for quite a long time, Argus has ploughed back her experience into the business by creating new lines of production that meet the industry’s everchanging needs. “That is one part of our business; and we also tread tubular casings and work with companies such as Tenaris and Nipon, the major pipe-producing companies around the world. “We also manufacture a proprietary line of production equipment and our focus is on pigging valves which is a device that is applicable to pipeline and gathering systems for effective cleaning of the internal part of pipes”, Fairman said.
In an interview with the company’s Sales and Marketing Manager, Rick Fairman, Argus was discovered to have been in business since 1958 and that the company celebrated its 60th anniversary this year. According to him, “We are very proud of the fact that we have been able to survive the tumultuous oil and gas
And on the standards Argus manufacture its products to, the Sales and Marketing Manager explained that the company manufacture largely its products lines to API60, an API specification, 6FA. Adding that the manufacturing company has Q1 specification qualifications for its products.
www.orientenergyreview.com
Renowned for its environmental friendliness, Fairman averred that “this equipment is green because there is a large component of the pigging valve and that changes the pigging operations by reducing the volume of gas emissions to atmosphere or gas flare. It also regulates the amount of liquids that would be disposed of using the old technology.” The f lagship product at the exhibition, being the manual pigging valve with an automated feature, takes cognizance of climate change demands. “The manual pigging valve has an automated feature which eliminates the need to vent gas into the atmosphere or sent to flare. Thus, it reduces emission into the atmosphere by 80%. You can perform eleven big rounds without any venting. We see the need for this pigging valve here in the Middle East and Africa due to lack of awareness. North America has been exposed to the technology for almost 50 years now.
Orient Energy Review Vol 6 No.12 December 2017 29
ADIPEC PICTURES
30 Orient Energy Review Vol 6 No.12 December 2017
www.orientenergyreview.com
ADIPEC PICTURES
www.orientenergyreview.com
Orient Energy Review Vol 6 No.12 December 2017 31
Surpassing Expectations With Cutting-Edge Technology At TRANOS we believe in continuous improvement of Process, Technology and People. Our vision, values and forward-thinking approach to all projects has propelled us to become the company we are today. After delivering some of Nigeria’s most innovative and critical engineering solutions, Tranos has a strong opinion about what it takes to deliver complex projects in a creative, timely and cost-efficient way.
Our Capabilities Onshore and offshore steel fabrication and installation Design, Fabrication and installation of Mechanical & Process equipment packages/skids including rotating equipment packages Design, Fabrication and Installation of Electrical and Automation systems and panels Onshore and Offshore facility maintenance
We Think Further.
www.orientenergyreview.com
32 Orient Energy Review Vol 6 No.12 December 2017
www.tranos.ng
sales@tranos.ng
234 1 271 7120
GAS
Nigeria Begins Implementation of Gas Master Plan Awards $2.8bn Ajaokuta-Kano pipeline contract
T
he implementation of the Nigerian Gas Master Plan (NGMP) got underway at the weekend as the federal government announced the award of $2,809,522,548.36 gas pipeline contract designed to run from Ajaokuta-AbujaKaduna-Kano. The Senior Special Assistant to the President on Media and Publicity, Malam Garba Shehu, who made the a n nou nc ement ye sterday, note d that it marks the beginning of the implementation of the first phase of the gas master plan that was approved in 2016. Shehu did not give details of the contract, but Sweetcrude Reports had reported last week that contract for the 614-kilometre 40-inch pipeline was presented by the Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, and approved by the Federal Executive Council (FEC) presided by Vice President Yemi Osinbajo. Shehu also said a second contract was also approved under the scheme and was meant for the engineering, verification, procurement, and construction of 40 inch-30 kilometres Odidi to Warri gas pipeline expansion project. He said the second contract was designed to transport additional gas supply from upstream producers to various demand points at the cost of N7.7 billion and $56 million. He described the projects as parts of the President Muhammadu Buhari’s pet projects, which he said dated back to his days as the Federal Commissioner for Petroleum Resources. Buhari is the current Minister of Petroleum.
www.orientenergyreview.com
According to him, when Buhar i was federal petroleum c om m i s s ione r, a s a colonel, he led some think-tanks to plan the country’s gas future and consequently initiated the contracts for the laying of a massive network of petroleum pipelines. He also said the pipelines were meant to link the length and breadth of the country as well as lay the foundation for the construction of three refineries in Warri, the second Por t H a r c ou r t refinery and another in Kaduna with the aim of augmenting the supply and distribution of petroleum products in the country. Shehu described the period Buhari was petroleum minister as the golden era of the country’s petroleum industry when domestic refining not only met the requirements of home consumption but also produced in excess of 150,000 barrels of refined products for export. He said, “The bold step taken by the President on Wednesday seeks the integration of the Eastern and Northern parts of Nigeria, which had suffered past neglect into the gas economy.“Gas pipeline infrastructure had been concentrated in the coastal areas and the North and the East had been left largely untouched by the industrial revolution that has come with the gas pipeline network. It is therefore not surprising that the western part of the country is having more economic activity.” The presidential spokesman explained that, “The All Progressives Congress, APC, which had campaigned on the issue of inclusive growth holds the view that the achievement of a balanced and equitable national development can only come with a balanced growth of the states and the regions. The party manifesto had identified the development of natural gas transportation infrastructure as a key project in this regard. “These contracts for pipelines and LNG terminals to be set up at various points will, therefore, expand opportunities for balanced national development to counter the backwardness and geographical disadvantages of the North and the East. “In line with the country’s rapid growth
in energy demand, the connection of the south and the north should serve as a boost to the nation’s energy security.” According to him, “The increased energy transportation networks will be a shot in the arm for the struggling manufacturing industry which is suffering from the acute crisis in the energy sector. It will cater to the needs of cement and fertilizer plants; power plants, transportation systems, and even household consumers thereby increasing gas share in the country’s energy consumption mix. “Gas which is classified as clean energy will, in addition to the promise of energy security, provides efficient fuel for power generation and reduces air pollution leading to improved quality of life.” He added that, The Trans-Nigeria Gas Pipeline (TNGP), the East-North network starts from Qua Iboe Terminal, QIT, to Cawthorne Channel in Rivers traversing Obigbo-Umuahia-Enugu-Ajaokuta and now Ajaokuta-Abuja-Kaduna-Kano is likely to be completed in 2019. “The extension of this network to the East and the North is potentially the precursor of the Trans-African pipeline that will cross the Sahara en route Europe. Nigeria’s eyes have for many years been fixed on the European Gas consumer markets.” He noted that the contractor financing arrangement has been adopted and the project sponsor, the Nigerian National Petroleum Corporation (NNPC) and the Federal Government are expected to reach common terms with the contractors on how they will be repaid over a 15-year period. “Although the loan repayment is expected from revenue accruing from both existing and the expanding pipeline network, the NNPC and the Federal Government are expected to meet financial gaps and guarantee the return on net investment,” he added. Shehu explained further, “The Buhari administration came into office at a time when Nigeria faced a crisis of inadequate and crumbling infrastructure and has, as a matter of priority embarked on a number of positive interventions to ease the infrastructure crunch. “The administration has been raising short-term and long-term funding for road projects, railway and power projects. “The President is strongly optimistic that all these infrastructure projects will increase the scope of economic activities and contribute to the overall economic growth and development of the country. This is the Change.” Courtesy: Sweetcrude Reports
Orient Energy Review Vol 6 No.12 December 2017 33
34 Orient Energy Review Vol 6 No.12 December 2017
www.orientenergyreview.com
POWER
Disband South – East Disco, Rights Groups Tell Fashola
T
hirteen right groups in the South-East under the aegis of South-East based Coalition of Human Rights and Good Governance Organisations recently protested against the activities of the Enugu Electricity Distribution Company. The groups, in a petition to the Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN), accused the EEDC of illegal deals and sharp practices which had kept the people of the area in perpetual darkness.
the Chairman Senate Committee on Power, Senator Enyinnaya Abaribe; and the Chairman, House Committee, Effiong Daniel. The petition partly read, “This letter contains EEDC’s untamed and unbearable criminality, recklessness and lawlessness in the entire 18 business districts of the company in South-East.
The groups asked the minister to disband the DisCo to save the people of the area from hardship.
“These findings arise from our in-depth investigation. The joint letter seeks an expeditious and competent intervention of its recipients to rescue the people of the South-East from the shackles and manacles of EEDC in the Zone.”
T he petition was sent to the Acting Chairman of the Nigerian Electricity Regulatory Commission, Dr. Anthony Akah;
“We are deeply concerned about sundry criminal activities and other forms of lawlessness going on in the EEDC. Electricity, the
www.orientenergyreview.com
LiveWire of the people of SouthEast zone and driving force of the economy of the zone, has been brutally denied the people of the South-East. “The most disastrous of it all is the reckless abandon and impunity with which the EEDC breaches the clear provisions of the Nigerian Electricity Regulatory Commission Act (Electric Power Sector Reform (EPSR) Act No 6 of 2005) and the fundamental human rights and other relevant provisions of Nigeria’s 1999 Constitution ( As amended).”
Source: IWIN
Orient Energy Review Vol 6 No.12 December 2017 35
COMMUNITY REPORTS
Ogoni Clean-Up: Group Trains Youths on Skills to Monitor Remediation
A
n environmental pressure group known as Environmental Rights Action/Friends of the Earth International, ERA/FoEI, has begun the training of youths in Ogoniland on skills to monitor and assess the forthcoming clean up process of oil-polluted sites in the area. The youths numbering over 50 from the four local government areas that make up Ogoniland, namely, Khana, Gokana, Tai and Eleme, have been given skills needed to detect when a site is properly remediated and restored to normalcy. Speaking at the end of the two days training for the youths christened Toxic Brigade for the Monitoring of the Clean up of Ogoniland and the Niger Delta, the Programme Manager of ERA, Mr. Mike Karikpor emphasised the need for impacted communities to be actively involved in the clean up, said the monitoring of the clean-up exercise was imperative in a bid to rule out a substandard job. Karikpor explained that the personnel trained would collect samples from the remediated site, forward same to a laboratory for examination. According to him, “We are preparing to monitor the cleanup. It is the first clean up in the Niger Delta and it has to be successful, this means that the communities need to be actively involved. “The samples they(toxic brigade) will get would be taken to a laboratory for examination and verification. “They would be mindful of the ethics and integrity and will do the work with all honesty as it requires.” For her part, the Executive Director of Lokiaka Community Development Centre, Ms. Martha Agbani, explained that it would be inappropriate for an all-important job as the remediation process of Ogoniland to be carried out without effective monitoring.
36 Orient Energy Review Vol 6 No.12 December 2017
Green Energy Secures Approval from DPR for LPG Extraction Plant
She added that the trained youths would also serve as a watchdog to the Hydrocarbon Pollution Remediation Project, HYPREP during the cleanup process. “We are training these youths in env i ron mental toxic waste management. “This is so that when the companies do the cleanup, we will have alternative personnel that will visit the sites to verify if the job was done properly. “These youths will serve as our toxic brigade and our intention is positive just to ensure that the right thing is done. When we do this, we are helping HYPREP to facilitate their work. “And if the federal government is sincere they will allow us to work with them to determine if they are doing well or not,” Agbani said. Also speaking, an environmental geologist and facilitator of the training for the toxic brigade, Dr. Ferdinand Giadom, expressed disappointment over the delays in the commencement of the remediation process. Giadom who is a lecturer in the Department of Geology, University of Port Harcourt, said the trainees were exposed to different approaches in soil remediation, in order to be able to ascertain the state of their environment whenever the clean up commences. Courtesy: Sweetcrude Reports
G
reen Energy International Limited, the operator of the Otakikpo marginal field in OML 11, has secured the Federal Government’s nod for the establishment of a Liquefied Petroleum Gas (LPG ) extraction plant at Ikuru Town, Rivers State. The License To Establish (LTE) the 12MMSCFD capacity plant was issued to the company by the Department of Petroleum Resources (DPR) as the company moves to fulfill its obligations as a pilot project approved by government for zero gas flare operations in the Niger Delta. The company, which began production last February, said it was determined to ensure full utilisation of the gas produced from the field for LPG and power generation. It stated that the approval has made it possible for the company to make a final investment decision (FID) by awarding the engineering, procurement, construction and installation of the LPG extraction plant to PCC-LAMBDA Consortium, formed between Nigerian indigenous companies and a Chinese company, Peiyang Chemical Equipment Co. Ltd (PCC), which is the original equipment manufacturer (OEM) and will be responsible for manufacturing and design activities associated with the project.
Coutesy: The Sun
www.orientenergyreview.com
COMMUNITY REPORTS
Militants Demand $1bn for Niger Delta Region, Threaten Pipeline Bombings Says it won’t honour terms of ceasefire with FG
I
n the aftermath of the December 15 resolution by the National Economic Council (NEC) to withdraw $1 billion from the Excess Crude Account (ECA), purportedly to fight Boko Haram insurgents in the North East of the country, militants in the Niger Delta region have issued a four-week ultimatum to the Federal government demanding it withdraws $1 billion to develop the region, failing which they will resume bombings of pipelines in the country. The militants acting under the aegis of Reformed Niger Delta Avengers (RNDA) described the plan as insensitive and designed to ridicule the Niger Delta. In a statement signed by ‘Major General’ Johnmark Ezonbi and made available to the media on Thursday, the group threatened to ensure a total destruction of oil facilities in the region to ensure there is no oil revenue to finance the 2018 budget if their demands were not met. The group accused the Federal government of applying double standards in tackling security
www.orientenergyreview.com
issues in the country, adding that the government had reneged on the agreement reached with the group. The group said it would no longer honour the terms of the ceasefire agreement reached with the Federal Government. The statement read in part, “Through the ceasefire, the country is enjoying daily crude oil production of between 2.2 and 2.4 million barrels of crude oil production which amount to billions of naira daily for the Federal Government. “It also helped the country to get out of recession. So, the government should not take our patience and silence for granted. “We want to state categorically that the President Muhammadu Buhari–led Federal Government is insensitive and practically negating the principles of natural justice by using resources derived from a neglected region to combat insurgency in the North East in the senseless Boko Haram war to the tune of $1 billion from the ECA.
According to the RNDA, “Why not access the fund from the excess account from the sale of agriculture products in the northern part of the country? Why must it be from the creeks of the Niger Delta? “ T he Fe dera l G over n ment’s insensitivity to the Niger Delta development has obviously reached its crescendo. We will not take this but resist with our might. This broad daylight robbery against the Niger Delta people will not be accepted by us. We are going to resist this perpetual injustice against our longneglected people in the region.” The group equally advised foreign oil workers to vacate the region before the expiration of the fourweek ultimatum to avoid becoming victims.
Orient Energy Review Vol 6 No.12 December 2017 37
SUSTAINABLE DEVELOPMENT
Shell Companies Emerge Best In Sustainability Innovation in Africa
S
hell Companies in Nigeria (SCiN) have emerged the 2017 Best Nigerian companies in Sustainability Innovation in Africa, beating two other finalists at the 11th edition of the Sustainability, Enterprise and Responsibility Awards (SERAs) for Corporate Social Responsibility held in Lagos recently. Shell companies also defeated three other contestants to win as the Best Company in Affordable and Clean Energy, and got the second runnerup prize for the Most Socially Responsible Nigerian Company for the year. “We’re delighted at the continued recognition of our modest support to Nigeria and Nigerians to make life better and to create opportunities to individuals and institutions, particularly in our host communities,” said the Managing Director, The Shell Petroleum Development Company of Nigeria Limited (SPDC) and country Chair, SCiN, Mr. Osagie Okunbor. “We are challenged by these
38 Orient Energy Review Vol 6 No.12 December 2017
laurels to do even more as CSR remains part of the DNA of the Shell business, and we are striving to improve our par tnership with NGOs, government and communities to ensure our people participate more in the execution of programmes and own them for greater sustainability,” he added. L everag i n g its suppor t for entrepreneurs for bright energy ideas through the globally acclaimed Shell LiveWIRE programme, SPDC showcased its numerous social intervention programmes including the training and empowerment of hundreds of youths particularly in its host communities to clinch the prize as the best company in affordable and clean energy. The sustainability innovation award resulted from the renewable energy solution as an alternative for powering the Shell-supported Obio cottage hospital, Port Harcourt which led to significant cost savings in energy consumed and enabled the hospital to focus its resources on its core aspiration of providing quality healthcare for the people.
Due to its success, the solution has been replicated in seven other Shellsupported health facilities in the Niger Delta. T he SER A– C SR Awa rds i s an annual event to celebrate organisations investing resources in the improvement of lives of stakeholders and contributing to the development of Africa through their social performance and investment programmes. A total of twenty-six awards were won by corporate organisations and individuals in recognition of their sustainable development and social investment efforts in Africa. Apart from their three winning entries, Shell companies also got nominated in four other categories: B e st C ompa ny i n Pover t y Eradication; Best Company in Provision of Clean Water and Sanitation; Best Company in Partnership for Development; and Best Company in Support of SMEs
www.orientenergyreview.com
www.orientenergyreview.com
Orient Energy Review Vol 6 No.12 December 2017 39
GLOBAL PETROLEUM SHOW NORTH AMERICA’S LEADING ENERGY EVENT
JUNE 12-14, 2018 C A LGA RY, C A N A DA
2018 C ALL FOR ABSTR AC TS N OW O P EN With the 2018 call for abstracts now open, oil and gas industry professional have the opportunity to submit proposals before Wednesday, February 28, 2018, to be considered for the GPS 2018 Technical and Business Conference. We encourage you to submit an abstract online and share your knowledge, experience and solutions with industry colleagues from around the world. The conference is projected to host 100+ speakers from more than 30 leading energy countries, providing you with access to a wealth of critical, much needed information. Selected speakers will meet the people that matter: key international companies, strategic, technical and project influencers from Middle Eastern, American, European, African, and Asian markets.
TECHNICAL CATEGORIES INCLUDE • E&P GEOSCIENCE
• PEOPLE AND TALENT
• UNCONVENTIONAL RESOURCES
• OFFSHORE AND MARINE
• FIELD DEVELOPMENT
• IOR/EOR
• DRILLING AND COMPLETION TECHNOLOGY
• PRODUCTION FACILITIES TECHNOLOGIES
• PROJECT ENGINEERING AND MANAGEMENT
• PETROLEUM ADVANCED ANALYTICS
• OPERATIONAL EXCELLENT
• CARBON MANAGEMENT
• HSE
• ALTERNATIVE ENERGY
• GAS TECHNOLOGY
• SECURITY
TO DOWNLOAD THE C ALL FOR ABSTR AC TS BROC HURE OR SUBMIT AN ABSTR AC T PLE ASE VISIT GLOBALPE TROLEUMSHOW.COM/SPE AK
40 Orient Energy Review Vol 6 No.12 December 2017
www.orientenergyreview.com