ENERGY rient O R e v i e w
w w w .o r i e n t e n e r g y r e v i e w .c o m
Covering Local Content in Energy, Oil & Gas N1000 10 Ghc US $5.00
Vol 7 No. 05 May 2018
PIGB: Nigeria’s Oil Industry Shaping Up To Global Standards, Ready For Investments
Women Work twice as Hard for Impact - Maseli ‘Africa needs to start www.orientenergyreview.com Orient Energy Review Vol Focusing on Industrialisation’ - Adegbite
7 No. 05 May 2018 1
2 Orient Energy Review Vol 7 No. 05 May 2018
www.orientenergyreview.com
www.orientenergyreview.com
Orient Energy Review Vol 7 No. 05 May 2018 3
INDUSTRY NEWS
NNPC Seeks Funding To Complete NPDC’s Asset By Anthony Okafor
T
he Group Managing Di rector of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, has assured of the corporation’s commitment to securing funding for the completion of a new head office of the Nigerian Petroleum Development Company (NPDC), one of the flagship upstream subsidiary companies of the corporation. According to a statement by the NNPC in Abuja, Baru gave the assurance whi le lead i ng NPDC’s Board Members on an inspection tour of the new office building in Benin, Edo State. Baru, who described the new head office building as world-class, said work on the project had currently reached 92 per cent completion and would continue once the necessary approvals for the project’s re-design have been sought from relevant authorities. “We are making effort to get the Bureau of Public Procurement (BPP) to give us the certificate of no-objection to enable the Federal Executive Council’s approval of the variations. Once we obtain those approvals, we can remobilize the contractor fully. In a week’s time or so, we look forward to meeting the BPP’s requirements to enable us obtain FEC approval towards the project completion,” he noted. Baru charged that the project should be completed as soon as possible, stressing that now, most of what was left borders around Information and Communication Technology (ICT) facilities installations, which, he said, were a very vital component in modern buildings and especially for an upstream operator like the NPDC. The NNPC said the project, which commenced in August 2012, was billed to be completed by 2014. However, following enhancements
4 Orient Energy Review Vol 7 No. 05 May 2018
on the initial designs, the project cost and delivery schedule increased, thereby requiring further approvals to go ahead with its execution Also speaking, Managing Director of the NPDC, Mr. Yusuf Matashi, commended Baru for leading NPDC Board members to inspect the building for the second time, which, he noted, demonstrated his leadership and commitment towards the project completion. Matashi further called on Baru and the board members to sustain the effort by complying with all the prerequisite requirements towards delivering the project which at the end will not only add significant value to the company, but will also make its staff proud. “At this stage of its development, NPDC deserves a befitting office accommodation and convenient operating environment. It is also significant in terms of organisation and security of the company and its staff,” Matashi observed. Speaking in the same vein, NNPC’s Chief Financial Officer, Mr. Isiaka Abdulrazaq, assured that once the corporation got through with the requirements around the extant laws and the necessary approvals, there would be adequate funding
to complete the project. On its part, the contractor, Bouyg ue s Ni ger ia L i m ited, represented by the Site Manager, Mr. Ameh John, assured the GMD of his company’s commitment to deliver on the project once the remaining contract technicalities were concluded. Located along the Airport/Ogba Road in the heart of Benin City, the NNPC said the new NPDC head office building consists of a training centre that will accommodate 250 persons at peak periods. It added that the training centre can also be used as an independent 60-seater training room with flexible folding partitions, ancillary spaces for storage and lounge activities.
“
It is a magnificent tower made up of seven floors including the basement level, and a modern auditorium that can become a meeting place for the entire NNPC management,” the NNPC said.
www.orientenergyreview.com
INDUSTRY NEWS
Nigeria Approves 14 of Shell’s 17 Renewal Applications
Nigeria’s Ministry of Petroleum has approved the recommendation by the Department of Petroleum Resources (DPR), to revoke three Oil Mining Leases (OMLs) operated by Shell Petroleum Development Company, a local arm of Shell, the Anglo Dutch major. The 17 acreages that Shell submitted for renewal purposes were: OMLs 11, 17, 20, 21, 22, 23, 25, 27, 28 31, 32, 33, 35, 36, 43, 45 and 46. The properties were due to expire in 2019. The acreages revoked include OMLs 31, 33 and 36. Licences for 13 of the remaining 14 leases were renewed but the DPR proposed that OML 11 be split into three because it is too large (2,800sq km). Those renewed have a new lease of life for another 20 years. Shell will have a new OML 11, which is one of the three tracts carved out from the old OML 11, but it can apply for only one of the remaining two, according to ranking sources at the Ministry of Petroleum Resources in Abuja. In other words, the DPR expects Shell to re-apply for the “new” acreages carved out of OML 11, either in sum or in parts, but ministry sources say that the company is unlikely to be re-awarded all the three. Shell had not re-applied as of April 17, 2018. The old OML 11 was actually under a Shell divestment programme when the AngloDutch giant applied for its renewal; Shell is talking with Transcorp, a Nigerian company which is scouting for $1Billion to pay for 45% of OMLs 11 &17. It is not clear how that transaction will work under the government’s “split it to three acreages” instruction. Other interests, including a company named Robo Michael, claiming to be championing a community cause, have laid claim to those parts of the old OML 11 which lie in Ogoniland, a piece of territory where Shell had been refused access by the communities for upwards of 23 years. Bodo, Bodo West and Yorla fields, all in Ogoniland, are in the south of the old OML 11. It’s not clear where they would be, when the government concludes the split.
in wholesale or in pieces, improves the investment climate around the asset. Tr a n s c o r p h a s struggled, without success, to raise money to purchase the 45% because of the nearness of the licence expiry date. Shell Offshore Inc. has taken the final investment decision for Vito, a deepwater development in the US Gulf of Mexico. This decision sets in motion the construction and fabrication of a new, simplified host design and subsea infrastructure. A forward-looking, breakeven price is estimated to be less than $35/bbl. Located over four blocks in the Mississippi Canyon area, the Vito development will consist of a semisubmersible host facility and eight subsea wells with deep (18,000 ft) in-well gas lift. First oil is scheduled for 2021. Vito is expected to reach peak production of about 100,000 boe/d. Estimated recoverable resources are 300 MMboe. The Vito development is owned by Shell Offshore Inc. (63.11% operator) and Statoil USA E&P Inc. (36.89%); the field is located beneath more than 4,000 ft (1,219 m) of water, about 150 mi (241 km) southeast of New Orleans. In 2015, Shell began to redesign the Vito project, reducing cost estimates by more than 70% from the original concept. The cost savings, the company said, are due to the simplified design, in addition to working collaboratively with vendors in a variety of areas including well design and completions, subsea, contracting, and topsides design. “With a lower-cost developmental approach, the Vito project is a very competitive and attractive opportunity industrywide,” said Andy Brown, Shell Upstream Director. “Our ability to advance this world-class resource is a testament to the skill and ingenuity of our development, engineering and drilling teams.” * www.offshore-mag.com
Kachikwu Debunks Alleged Interest in Transfer of OML 11 to Chevron Nigeria Limited
Kachikwu
I
BE Kachikwu, the minister of state, Petroleum Resources said his attention had been drawn to a letter dated April 10, 2018 written to President Muhammadu Buhari by the Ken Saro Wiwa Associates, KSWA, alleging his entrenched interest in relation to OML 11. He said a copy of the same letter was published as an open letter in the April 14, 2018 edition of ThisDay Newspaper. A statement issued by Idang Alibi, Director, Press and Public Relation, Ministry of Petroleum Resources, said that having the publication, the minister stated categorically that: “Chevron Nigeria Limited has controverted the allegation in its entirety in the April 20, 2018 edition of The Guardian Newspaper and reiterated that it does not have any equity in OML 11. “The Honourable Minister of State has not held any conversation with Chevron Nigeria Limited to discuss OML 11 nor made any recommendation to Chevron in respect of OML 11, nor indicated an interest in any company that might be collaborating with Chevron or any party to develop OML 11. “The Honourable Min ister of State for Petroleum Resources is resolutely committed and focused on delivering on the key aspirations of the #7BigWins of which Business Environment, Investment Drive, Niger Delta and Security remains key themes.”
But a renewal of OML 11 licence, either
www.orientenergyreview.com
Orient Energy Review Vol 7 No. 05 May 2018 5
INDUSTRY NEWS
CSOs Gives KAEDCO 4 Weeks’ Ultimatum to Evacuate 8% Allotted Power, Others to Avoid Shutdown
By Prince Okafor
it is impossible for a big organization of such to say it cannot attend to multiple programs simultaneously. But they insisted that they will not come. “TCN which was represented by its top management team led by the General Manager Engr. I. L. Alim then resolved that they cannot discuss anything since the other party that had made allegations against them in the media, was not at the meeting. The report further noted that after series of persuasion and obvious plea, they accepted to speak from their own angle of the issue. After which participants unanimously absolved TCN of all allegations levelled against her by KAEDCO and resolved as follows: Communique:
T
he Coalition of Civil Society Organizations (CSOs) has given the Kaduna Electricity Distribution Company, KAEDCO, a four weeks ultimatum to evacuate all of the eight per cent power allotted to it to service as well as provision of transformers, poles, cables and all other installations to the people of Kaduna to avoid shutdown of it operation. This is sequel to recent agitations by the people of Kaduna on the inadequacy of power supply despite unprecedented increase in generation and transmission and its availability as noticed in Kebbi, Kano and other places. The Management of KAEDCO had informed its customers within Kaduna metropolis in a press release that there will be interruption to some parts. The outage was scheduled for Wednesday, 18th of April, 2018, it stated, to enable its engineers decommission an existing transformer to enable it change the control panels in the transformer to new ones for the period of installation and commissioning of new control panel of the 2x15 MVA 33/11KV Transformer T1 and T2. Areas that would experience outage were NAF Base, Rigasa, Unguwan Dosa, State House, Hayin Banki, Kawo, Legislative quarters and Zaria road. The release then added that normal supply would be restored as soon as TCN is done with the work. We don’t own 33/11kV power transformers and do not supply directly to houses -TCN But the Public Affair Manager, Ndidi Mbah, described the statement as a misinformation, stating that, every 33/11KVA transformer is distribution transformer. According to her, “TCN does not own 33/11kV power transformers, they are distribution transformers. If work
6 Orient Energy Review Vol 7 No. 05 May 2018
is being carried out on a distribution transformer by Kedco, why involve TCN In it’s release, it’s purely a Kaduna Disco affair. We do not have the mandate to supply power to homes, TCN only supply electricity to Distribution Companies such as the Kaduna Distribution Company and if Kaedco is working on its own transformer what has that got to do with TCN?. CSO’s Mandate to KAEDCO Meanwhile, the CSOs had engaged with the management of Kaduna Electricity Distribution Company (KAEDCO) to seek answers to the above mentioned challenges faced by electricity consumers in Kaduna State, but the bulk of the fault were hipped on the Transmission Company of Nigeria (TCN). That necessitated a meeting with the management of TCN who debunked all the allegations with facts and figures at the instance of the CSO. The allegations and counter allegations necessitated a tripartite meeting with KAEDCO, TCN and the people of Kaduna represented by stakeholders. According to a statement signed by the convener of the meeting, Yusuf Amoke, it stated that: “Seeing that it was imminent to hold such a meeting, the CSOs called a meeting and discussed, after which a date was agreed and letters were sent to KAEDCO, TCN and Stakeholders. “At the tripartite meeting, TCN, Stakeholders, CSOs, media were all present except KAEDCO. Right at the floor of the meeting and to the ears of everybody present, KAEDCO was called to remind them that they were the only party every other party was waiting for. “They responded to the ears of everyone present that they have an already scheduled program for that day, as such cannot participate in the meeting. The CSO insisted that they should send in representatives, even if it is one or two people that will clarify issues, for
“KAEDCO should hence forth evacuate all of the 8 per cent power allotted to it to service the people of Kaduna. Transformers, poles, cables and all other installations needed to give adequate, safe and reliable power to home must be provided by KAEDCO as a mandate not consumers or government as it is made to look like. “All homes should be metered and charged appropriately, to avoid people paying for power they did not consume, which has been the trend. Community Associations should encourage people to pay their light bills, guide electricity installations like transformers against vandalism and expose neighbours who bypass their meters. “KAEDCO should adhere strictly to the NERC guidelines, the law that established them and business ethics. KAEDCO should improve on its costumer services and its poor public relations. ’We give 4 weeks to the Kaduna Electricity Distribution Company to comply with the above demands of the people to avoid a shutdown of their head office.’’ KAEDCO to CSO: Shutdown, intimidation can’t solve power situation In a statement to Orient Energy Review, the Management of KAEDCO stated that: ‘’we were unable to attend the meeting because sufficient notice was not given and we had earlier scheduled an interactive session with some premium customers. We believe organisers of such a meeting which was on our prompting by the way should have consulted all parties before fixing a date. ‘’The problems bedevilling the power sector are myriad and cannot be solved by threats of shutdown or intimidation. All critical stakeholders such as the presidency, power ministry, national assembly, NERC are aware of this and are doing everything possible to resolve them. ‘’We urge civil society groups to also toe this line as our doors are always open to dialogue with them about issues not only affecting Kaduna Electric but the power sector as a whole. We have demonstrated this before when we hosted them and we are willing to continue on this path.’’
www.orientenergyreview.com
POWER
Schneider Electric Unveils New Range of Products, Rewards Performing Partners By Jerome Onoja
S
chneider Electric, global specialist in energy m a n a g e m e nt , s o f t w a r e and automation unveiled a new range of cable management systems customised for new and modern buildings, during a grand Retail Partners event in Lagos. The engineering design of the products enhances architectural finishing of structures and buildings while facilitating access to electronic devices and appliances. Aesthetics are improved upon by this range of desktop and flooring units, power poles and perimeter trunking which seamlessly blend into the décor in a sleek and sophisticated way. With its range of connected products in building automation, UPS, switch gear, as well as motion and presence detectors, Schneider Electric has shown its willingness to drive innovation in energy management.
www.orientenergyreview.com
“
In the West African market where the building construction sector is booming, our range of sophisticated products has elicited sizeable inquiries from the hospitality and banking sectors, just to mention a few”, Mr Mojola Ola, the Head of Partner Projects said at the close of the event. Retail partners of Schneider Electric welcomed the presentation of the iReward program for its APC resellers, which rewards high performance through the issuing of points that are convertible to monetary value for use globally. Top performing partners were also rewarded for their performance with choice gifts including washing machines, television sets, UPS units and a power bike. Marketing and Communications Manager, Mrs Viviane Mike-Eze, also used the opportunity to re-introduce the Schneider Electricians Club which was launched earlier in the year at Alaba
international market. “The club is unique in its approach to encourage electricians, fight counterfeit products and promote retail partners as it awards points and gifts to electricians and contractors who buy products from Schneider Electric accredited channels”, she said. The event was attended by over 300 retail partners including Schneider Electric and APC by Schneider Electric distributors Bolamark, Mikano, Technology D i st r i but ion s , Mu lt ipower, Arihant, Kon-X, Coscharis and Stag Engineering, in a bid to drive synergies between Schneider Electric’s electrical and I.T channels. This was appreciated by partners who shared ideas and opinions during the feedback session, where facilitators explained strategic plans to assist partners in growing their business. Referrals and networking were spontaneous amongst attendees.
Orient Energy Review Vol 7 No. 05 May 2018 7
POWER
Politics, Economy to Blame for Our Power Woes - Fashola scenario where we are still talking about deregulation.” He bemoaned the slow pace of the exercise (deregulation), and called for quick action to make it happen once and for all.
T
he Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN) has stated that the failure of the Nigerian power sector to deliver optimal service to the Nigerian people has more to do with the lack of sufficient political will to the right thing than the nation’s technical know-how. Fashola stated this at the 11th Nigerian Association for Energy Economics& International Association for Energy Economics Annual Conference in Abuja recently. Represented by the Permanent Secretary in the Ministry, Louis Edozien, the Minister noted that the “economics of energy,” which the nation was yet to master have left gaps in the quest to make the most of the sector despite the efforts of past administrations. He said, “The reason why our industry is not delivering has very little to do with technology; it has to do more with the economics of energy, the politics of energy, the legality of an industry where multiple private and public companies are interacting through contracts.” The minister also argued that while advanced economies were already moving toward a no-oil future; Nigeria is said has not displayed sufficient readiness required to build an economy that is not reliant on the black crude. In his words, clean energy has, in the past couple of years, been occupying the epicentre of world thinking, noting that unless the nation looks into ways of transforming its vast mineral and human endowment; not much would 8 Orient Energy Review Vol 7 No. 05 May 2018
be gain in the pursuit of the current energy paradigm. Also, speaking at the event, Executive Secretary, Petroleum Technology Development Fund, Aliyu Gusau, and a former Group Manag i ng Director, Nigerian National Petroleum Corporation, Funsho Kupolokun noted that the oil and gas sector was still failing the transparency test, more than a decade and a half after the return to democracy in 1999. According to Kupolokun, “Everybody is talking about transparency in the petroleum industry. Everybody is talking about it; what is happening is that we are still not doing it. We keep talking about it. “In 1999 when I came back into the government system, it was a key issue; a number of bodies were set up by the government; yet today, we are still talking about it.” The former NNPC GMD further stressed that the difficulties being faced in the industry would continue if the downstream sector is not deregulated to unlock its incredible potentials. Deregulating the downstream sector in the words of the Petroleum Engineer would open up the oil and gas industry for effective service delivery. His words: “We have been talking about deregulation since 1993. It went up and down with fuel price moving up and down. If we had continued to move gradually that way, we would have finished the liberalization of the downstream sector. But we reversed ourselves and today, we are in a
“How many years, some 25 years we have been talking of deregulating the downstream sector, yet, it is still undone. I just hope we do it and do it rapidly because unless and until it is done, we will continue to have the problems that we have in the downstream petroleum sector.” On his part, Gusau stressed that more focus should be placed on the midstream and downstream sector of the industry, saying, “I believe that oil is still central. The oil industry in Nigeria is the only sector that has the capacity to provide the foundation for the post-oil economy journey. But it cannot be done with the current business model that is focused essentially on the upstream. “The business of taking oil from the ground and marketing it across the globe has to stop. The only way that the oil and gas industry can provide the foundation for the journey of a post-oil economy is to move from its focus on the upstream, down to the midstream and downstream where the value is created,” he said. Gusau added, “This is the area where value, wealth and jobs will be created. This is the area that will create the fertilizer, the electricity and the petrochemicals that we require. This should be, going forward, the norm in the Nigerian oil and gas industry. But what is the strategy to achieve this? “Unfortunately, I have gone through all the four bills of the petroleum industry waiting to become law. I have seen the fiscal and regulatory provisions of the midstream and the downstream, but I have not seen anything in all the four bills that incentivize value generation. This is the challenge I must put forward, because this is the key in our journey to a post-oil economy in Nigeria.” The deregulation of the downstream sector is one of the cardinal focus of the newly passed Petroleum Industry and Governance Bill (PIGB) which is now awaiting Presidential assent, with energy players unanimous that when it eventually becomes a law, the nation and her citizens will be the better for it.
www.orientenergyreview.com
Host
One global industry. One city. One meeting place.
12 - 15 November 2018
ADIPEC FAST FACTS 135,000 Gross sqm
102,601 Attendees
2,109 Exhibiting Companies
26 Country Pavilions
THE DRIVING FORCE BEHIND TOMORROW’S OIL & GAS PARTNERSHIPS Over 80% of exhibition space at ADIPEC 2018 is now sold out. Due to unprecedented demand ADIPEC 2018 has increased exhibition space.*
BOOK YOUR STAND NOW adipec.com/bookastand
*The new Grandstand Hall 14 will be located next to the Atrium.
189 Conference Sessions
959 Expert Speakers
10,115* Conference Delegates
17
16
National Oil Companies
International Oil Companies
*repeat delegate numbers
Supported By
Host City
Knowledge Partner
www.orientenergyreview.com
Official Broadcast Partner
Official Media Partner
ADIPEC Organised By
Orient Energy Review Vol 7 No. 05 May 2018 9
INTERVIEW
‘Africa need to start Focusing on Industrialisation’ - Adegbite
A
s Chief Executive Officer of Marine Platform, Taofik Adegbite is charged with the overall responsibility of strategy formulation, performance monitoring and improvement for the company. Prior to his assumption of the role of Chief Executive Officer, he was the Director of Strategy and Business Development. He holds a B.Sc. (Hons.) in Computer Science from the University of Ibadan, a certificate in Strategy & Organization Management from the London School of Economics and he is a graduate of Harvard Business School OPM 44. Taofik started his career with Agricultural Project Monitoring & Evaluation Unit, (World Bank Project). He later proceeded to the UK where he bagged his Cisco certification and worked on contract with NHS (Hammersmith Hospital) as an IT Engineer. In this brief chat with Orient Energy Review, he speaks vibrantly about is company, the progress of the Nigerian Content Act so far especially in the Maritime sector amongst other issues of national interest. Exceprts. What model did you deploy to reach this enviable height? The God dimension is important anyway, marine platform is set on God’s principle, but I think critically, any business must have one: the
10 Orient Energy Review Vol 7 No. 05 May 2018
mental discipline, two, deferred gratification, and if marine platforms’ success can be articulated in the temporal, it is simply deferred gratifications, where you plough back profitability not to develop personality and lifestyle, but of cause to grow capacity; human and material capacity, for the busi ness sustenance that is what Marine Platform’s success is being linked to. 90% of our success is based on that but we plough back to the business to build human and material capacity, and by doing that, we have been able to transit from renting equipment from foreign companies, to owning equipment. As you know, the local Yoruba adage says that, “the owner of the hoe is the owner of the farm”; so he who owns the equipment, owns the job and that is what has sustained Marine Platform over the years. Owning the equipment doesn’t come out of the blues, it takes one having that mental discipline; two, deferred gratification where your profitability is retained in that business to grow capacity, so that is simply what I see. I remember two years ago in Accra, you talked about how you started off with bank loans, getting jobs outside? Nigeria, Accra precisely and how you were able to execute that job at a loss, and then how you were able to pay back the loan. Do you still use that model or did anything changed? I remember I was saying it that the essence of going outside Nigeria to go and operate is that we needed to create awareness and not to be seen as a one-client company. We wanted our footprint on other fields, which is important especially in deep water space; where you have worked to show on your company’s experience. We were able to discount, going to the Jubilee field, especially knowing that it was on the world map for the attention even though
profitability wasn’t equal to what we were making in Nigeria. So it was a strategic decision, more than a business decision. You move beyond renting equipment from foreign companies to owning them; are you also planning to have a facility in the country with regards to government recent policies on promoting industrial revolution via parks. Absolutely. We already acquired land in Onne to build a multi-purpose facility there; we have finalized all that relates to the construction work. We had a glitch with regards to what was going to happen to Onne especially because of the Intels-NPA face-off but we are glad that it has been resolved, so we are progressing. It is a facility where we are looking at having our pressure testing, and clean room. So, that is the next level for Marine Platform in the pipeline. It is already budgeted for. What do you think about business financing in Nigeria, how have you fared? The same thing, if you do not have that mental discipline, the business is dead ab initio.In Nigeria, the i nterest alone is outrageous! How would you sink in 25%-27% profitability ratio, it is dead. The interest rate regime naturally does not encourage profitability ratio in Nigeria. Secondly, until and unless we externalize government borrowing, it will compete and crowd the finance space. As we know it, treasury bills are on 15%-20%, that naturally will make banks complacent as they will not be incentivized to lend to the real sector. If you can lend to government, which is guaranteed via treasury bills, why bother myself lending you 100 million when you are going to pay in 3-5 years which with all the risks associated? I would rather, as a bank, lend to government at guaranteed 20%. So finance is the number one“No-No”! As an investor, will you not rather buy treasury bills than set up a business, knowing you will not recoup your investment from such business until about 5-10 years?
www.orientenergyreview.com
INTERVIEW You are successful, so how do you manage that? Like I said deferred gratification and that mental discipline. Just take out your personal interest, your ego and the rest lifestyle of affluence. It’s natural to wonder: “How will you make money and not go for the wonderful things of life, instead you start building a brand”. That is the reason why you are not seeing a lot of start-up and organically-grown businesses in Nigeria. What you see are opportunistic, governmentassisted, acquired government venture so as to have that platform to launch out. I mean you buy a moribund government sector, sell the assets, and start raising money. There a lot of them around today. I recently saw your advert on CNN, what you are doing with Skye bank Yes, that was to tell the Skye bank story as not too many banks were able to act like they did at the time we needed the support. At our early stages, no one would touch us; they would rather go for safer zones, but Skye bank ventured with us and that is commendable. Now you own vessels, is it encouraging and would you have loved to own a lot more? Maybe we would have built ten today, because we would have loved to build more but the problem is, it is not so easy building two because, it is only when you shut down the engine of the boat, you keep spending money. Operational expenses would come on you; so when you have reduced revenues, reduced opportunities, you would want to force it down on your sub-contractors. I mean, it is not as easy as you would want. It is largely dependent on the operators. Opportunities for them are not opening up any more, so you are constrained and confined in a small space. Now, the critical element is, you now have excess capacity because it is a global phenomenon; so you have excess tonnage from abroad that are now focusing on your market, and because of that cheaper interest rate regime, they are more than delighted to take out of your quantity at reduced prices. So the operator left between the devil and the deep blue sea because
www.orientenergyreview.com
they want reduced cost to pursue but must respect the local content law. It is not so easy for them. We respect their situations and are constantly considering how to further squeeze cost down, without breaking. Also, this is an industry where safety is so important and records should be intact; and you don’t want to squeeze too deeply that you would compromise safety and cut corners. Everybody is having a serious, delicate balance to strike here, so it has not been so easy. However, we keep pushing on and keep looking for innovative ways to tackle the challenges we face. You have friends in ‘’high places’’, have you taken advantage of the Cabotage Vessel Financing Fund? I tell you, I don’t have friends in “high places”, Marine Platforms is non-partisan, and we are not politically exposed. We build relationships, but again it comes to a moral dilemma. Let’s say it is the minister of transport who sits on the Cabotage Fund, and he considers the volatility of Nigeria, how very petty the polity has become and doesn’t want to release the fund to avoid a scenario whereby such fund will not actually go do what they are supposed to do. If that happens, it will damage him completely because the day he releases the fund, it would be seen as already polarized. If he gives some, they would term it his friends; if he gives a Northerner, they could say it’s Buhari-inspired; if he gives one from Niger Delta, it would be his clans; so the man is trying to find out how he is going to approach it in the midst of all these issues. Because he is stalling as a result these, the microcosm of private players and associations in the industry are trying to come up with a clearly-articulated modality, and procedure, which will be transparent, professional and ethical, such that outcomes can be predicted. We shall pass on this document to the minister through NIMASA, so that we can come up with something very transparent and workable such that it won’t be compromised and it will expand the capacity building which the CVFF is meant for. The same goes with the NCD fund, however NCD is already out of the station because the issue of partial guarantees has been handled and
the administration is being able to put some monies through Bank of industry, so we are seeing an outof-station kind of experimentation on the NCDMB side. I also think that the bad experience of National Shipping Line, and of Aviation Fund that they had in the transport section is what is holding back the CVFF, but I think we are getting there, the discussion has started and hopefully, we will be able to come up with modalities that will make it happen. What do you think Nigeria and Africa should focus on beyond 2018, particularly now that fracking cost per barrel is being driven down, I think is something around $40? We shou ld move away f rom subsistence in Africa, because we have been in subsistence for too long in Africa and we should start going to industrialization. Honestly and respectfully, I think the Dangote industries are leading the pack that see even in the non-oil sector. We have seen now that cement is being manufactured from the limestone we have here. Instead of exporting the raw materials, we have it processed here, you can imagine the ripple effect it has in the economy. So, if you flip into the oil and gas space, we still need the associated industry to come and benefit from it, like the petrochemicals. When Dangote begins refining like a million barrel or 1.5m barrel daily, it means we will have very little to export because we are producing 2 million barrels. If there are more refineries, it means we will be exporting refined products like petrol, kerosene, diesel to the world and that would give us huge benefits. On the contrary, when you export the crude, you are only developing those societies involved in the associated products. I think moving away from subsistence, if you like, to industrialization is what Africa should focus on, yes we are seeing that being championed by these few companies, but I think that is what should be encouraged. So incentives for such and various macro incentives, tax incentives, tax grace, waivers, and all of that are items government stimulus points should come into so as to get us out of the subsistence level. I think we are slowly but surely getting there.
Orient Energy Review Vol 7 No. 05 May 2018 11
INTERVIEW Talking renewables and going green, the World Bank have said it would not fund exploration activities anymore, how do you see Africa handling its energy needs against this developing trend? World Bank is largely developmental in their approach. What is the size of projects they have been funding before now? How many businesses have come up to say they secured purchase of drilling rigs from World Bank? The number is quite low. They would rather sponsor mining of precious minerals like gold, copper, and more in places like Liberia, Sierra Leone and other East African places just coming out of wars. They are moving their guarantees away from stable commodities like oil to focus on developmental activities. It has been businesses and business monies that have financed projects
in the industry. But, what you might start seeing now is, the likes of the Norwegian Export Finance, and other sovereign wealth funds saying they don’t want to go into that space again. What that does is that it reduces the equity that is in the oil and gas space, it increases prices. The danger is that the world should already have gone into sufficiency in alternative energy, because what will happen is that if the cost of the crude is getting high because there are fewer funds going after it, what you are seeing is a spike in the price of the product. So, if the World Bank statement is over-dramatized or sensationalized, it starts rippling other funding or muzzling other funding, and the world is not ready for alternative energy to feed the needs, consequently, we are still going to see poverty growing because there will be increment in the final price, which will ripple in the price of other commodities and services like a cycle. The man whom
the World Bank wants to take out of poverty will further go into it, so that is the possible future and why it is not attracting any serious interest in international discussion. What is the next big thing for marine platform? We have had the 2002-2007, 20072012, 2012-2017, so we are in the 4th strategy period of 2017-2022,and that is when we talk about our financial re-engineering, that is what we are trying to do now especially, of cause diversification. So primarily, we have started looking at cheaper sources of funding, reducing our cost, and if we do that, we will move into profitability and start de-risking the business by looking at associated areas that we can go into, that is what our next idea is all about, which started last year, 2017-2022.
Morpol Engineering Services, Changing the Local Content Narrative in Nigeria
LOCAL CONTENT
By Jerome Onoja
its projects cost are lesser than what foreign service companies would bill the International Oil Companies (IOCs). He narrated a scenario this: “there was a project titled GbaranUbie project phase 2 by Shell SPDC and we submitted our bid for the job; Daewoo and Saipem did same along with other companies. Our bid was conservative and competitive. When bids were opened it was realized upon evaluation that we were less than 50 per cent of the average cost of the offer.
T
he Executive Director,(Engineering), Morpol Engineering Services Limited, Engineer Felix Ayejunikanwa has described the company as changing the nation’s local content narrative by its activities. Speaking with our correspondent at the Sub-Saharan Oil and Gas Conference in Houston, Texas, Ayejunikanwa who stated that the company is considering going into the Power sector also said categorically that all
12 Orient Energy Review Vol 7 No. 05 May 2018
“They called us to confirm if we were serious and we confirmed it. Eventually, after due diligence of checking our capability, HSE level, we were awarded the job and we started. “It was worth some tens of millions in dollars. A project scheduled for completion in 3 years was delivered by us a year ahead of time. “I am glad to tell you that we delivered the project a year ahead of schedule. Two, we made good profits. Three, Shell’s Vice President, Gabon and Nigeria gave us a performance award for the project,” he said. Speaking further, he said the company has also been involved in pipeline works citing an example of Olorunsogo Power Plant. In his words, “For the Olorunsogo Power Plant close to Lagos, we did the pipeline from Itoki to the Plant, about 31 kilometers - 24 inch pipeline. The pipeline project was reported
across the media. “It happened during the past administration. A project that should last a minimum of 14 months was accomplished within 8 months. So, they ended up saying that for the first time in Nigeria, a contractor delivered 109 welded joints of 24 inch diameter in a day. “It is by dedication and seriousness. Anything that is worth doing at all, to us is worth doing well. If it is not our area, we don’t go there. And we are very conservative. We don’t waste money. Our office is not a gigantic office. The culture was built into the company by its founders and since then, we have inculcated it.
“
Another thing that helped us is our planning ability. We don’t wait. We prepare well in advance,” he added.
He said Morpol is “looking at going into the Power sector because we have seen that power in Nigeria is an essential part of the economy that should be looked into. So, our drive to penetrate the industry is very high,” he stated. According to him, there is need for thorough engagement with government officials concerning the outcome of the conference, adding that implementation is very important to what have been discussed.
www.orientenergyreview.com
LOCAL CONTENT
NCDMB, Nigerian Army to Partner on Local Content Development Engineering among others. On strategies that would deepen the Army’s Nigerian Content credentials and
T
he Ni g e r i a n C ont e nt Development and Monitoring Board (NCDMB) will support the Nigerian Army with it plans to increase the level of Nigerian Content in the manufacture and procurement of military hardware and accessories. The Executive Secretary NCDMB, Engr. Simbi Wabote made the commitment when he delivered the keynote address at the Nigerian Army Research & Innovation Summit held in Abuja recently. He spoke on “Local Content Development in Nigeria’s Defence Sector- an imperative for National Development” and explained that Research and Development (R&D) is the key to sustainable Nigerian Content growth and development. Represented by the Director, Planning, Research and Statistics, NCDMB, Mr. Daziba Patrick Obah, the Executive Secretary stated that for R&D to succeed and yield return on investment, it requires the collaboration of various stakeholders and a long gestation period. According to him, the Board’s R&D Strategy is supported by the Research and Development Guidelines and Ministerial Regulation, adding that NCDMB had established Research Centres of Excellence at five universities across the country, including the Institute of Petroleum Studies (IPS) in the University of Port Harcourt, UNIBEN Centre for Geoscience & Petroleum Engineering, Rivers University Centre for Marine
www.orientenergyreview.com
contributions to the national economy, Obah canvassed adherence to the Presidential Executive Order 003, which mandates Support for Local Content in Public Procurement by Ministries, Departments and Agencies of the Federal Government, stressing that the implementation of Local Content should not be misconstrued as ‘Nigerianisation’, instead, the focus should be on ’incountry value addition. There is also need for the Nigerian Army to incorporate Local Content requirements as a key condition for its procurement, particularly in Local assembly of armored cars, software development, assembly of equipment for intelligence gathering, production of uniforms, local production of bullet proof vests, building and maintenance of war ships in Nigerian ship yards and local production of booths and helmets. He also counselled the Army “to equip institutions like the Nigeria Defence Academy (NDA) as a Centre of Excellence for Research, establish partnership with select Nigerian higher institutions on areas of interest in research, link with relevant industry to progress research findings to the stages of deployment or commercialization where necessary and initiate specific projects for technology development, demon st rat ion , pi lot i n g a nd deployment or commercialization.” The Chief of Army Staff, Lt.-General Tukur Buratai opened the exhibition segment of the three-day summit and promised that the Nigerian Army will enhance its commitment to Research
and Development as a strategy for improving the military’s capacity to contain the nation’s security challenges. Some senior military off icers and other resource persons spoke during the plenary and advised the Army hierarchy to adopt the Nigerian Content framework which had been successfully implemented by the NCDMB. Chairman of the Manufacturing Association of Nigeria’s Local Content Group, (MANLOCG) and Managing Director of Metec West Africa Limited, Mr. Vassily Barberopoulos tasked the Army “to ask every big foreign company that has been enjoying its budget to come to Nigeria and partner with local companies.” Another important contribution was the need for the Army to adopt a particular type of rifle so that the Defence Industries Corporation of Nigeria (DICON) can set up local manufacturing lines for the weapon. The use of different brands and ranges of rifles by the Nigerian Army, Navy, Airforce as well as the Police and other paramilitary organisations has made local manufacture of rifles difficult, it was said.
Orient Energy Review Vol 7 No. 05 May 2018 13
LOCAL CONTENT
Kachikwu performs ground-breaking of Bayelsa Oil & Gas Park … FG to extend project beyond N/Delta
T
he Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu on Friday performed the groundbreaking of the Nigerian Oil and Gas Park being developed by the Nigerian Content Development and Monitoring Board (NCDMB) at Emeyal-1, Ogbia Local Government Area of Bayelsa State. The park will generate about 2000 jobs when it begins full operation and create a regional low-cost manufacturing hub that will produce equipment components and spare parts to be utilized in the nation’s oil and gas industry. The Board is working to establish oil and gas parks in five oil producing states, with the Emeyal-1 project the second to takeoff. A similar ground-breaking event was held early March at Odukpani, Cross Rivers State. The other sites are located at Oguta in Imo State, Ikwe-Odio in Akwa Ibom State as well as in Delta State. Speaking at Emeyal-1, the Minister stated that the Federal Government plans to develop similar projects in other parts of the country so as to extend the benefits to more Nigerians. According to him, “We will work with the Board and provide everything that is needed for the projects. After the development of the five pilot parks in the Niger Delta states, we will extend this very innovative idea
14 Orient Energy Review Vol 7 No. 05 May 2018
to other parts of Nigeria where oil has either been found or is being explored.” Kachikwu affirmed that “this initiative will send a message to investors that Bayelsa is ready for oil and gas business and drive home the point that the park will bring about localization of indigenous companies, where fabrication, pipe milling, procurement hubs and oil and gas related technologies will flourish.”
Wabote appealed to the host community to support and defend the project so it will be completed on schedule, warning that it will be relocated if it faces unreasonable demands and disruptions. In his remarks, the Governor of Bayelsa State, Honourable Henry Seriake Dickson represented by the Secretary to the State Government, Mr. Kemela Okara commended NCDMB for siting one of the oil and gas parks in the state. He acknowledged that NCDMB had been a veritable partner of the State Government and had contributed to the growth and development of Bayelsans. Okara asserted that the Government was determined to industrialize the state and will support every effort designed to complement its efforts. “As a state we will support the execution of this project and ensure there is peaceful and conducive environment to aid the speedy completion as planned.” The Obanobhan III of Ogbia Kingdom, His Eminence, King Dumaro Charles-Owaba assured the Board that the community is peaceful and the project will not be disrupted. He solicited that more investments should be sited in the community to create employment opportunities for youths.
In his welcome address, the Executive Secretary, NCDMB, Engr. Simbi Wabote confirmed that the “park occupies a total land mass of about 25 hectares which will comprise various warehouses, manufacturing shop floors and factories, training centre, hostels, administrative block, mini estate, security posts, fire station, including truck parking and holding areas.” He informed that the park will be provided with uninterrupted power supply to address the electricity chal lenge which often besets most Nigerian manufacturers and businesses. The Executive Secretary described the ground-breaking as a great step towards achieving one of the Board’s key mandates, adding that “this project will positively impact Bayelsa State in general and Emeyal community and its environs in particular. Citizens of the host community and environs will also benefit from on-the-job training opportunities.”
www.orientenergyreview.com
LOCAL CONTENT
NCDMB, NNPC to Use One-Stop Approval Desk for Oil Industry Projects – Kachikwu
T
he Nigerian Content Development and Mo n i t o r i n g B o a r d ( NC DMB) a nd the Nigerian National Petroleum Corporation (NNPC) will before the end of 2018 start using a one-stop shop arrangement for reviewing and approving oil industry projects and contracts in a bid to shorten the industry contracting cycle. The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu announced this on Thursday in Yenagoa, Bayelsa State at a meeting with top management of the NCDMB at its headquarters. The collaborative approval process between NCDMB and NNPC, he explained, will ensure that the target six months contract approval cycle time is achieved, while the cost of crude oil production will also reduce. According to him, “if you look at the cost components we are trying to drive down; from $28 per barrel, it is now $23 and we are targeting $15. We can’t achieve that if our bureaucracy is slow.” The Minister commended NCDMB for adopting the use of Service Level Agreements (SLAs) with its key stakeholders, promising to ensure that other agencies within the Ministry of Petroleum Resources adopt the initiative which will help to drive efficiency within organisations.
www.orientenergyreview.com
The Board signed the first SLA with the Nigerian Liquefied Natural Gas Company (NLNG) in May 2017 and is preparing to sign similar agreement with the Oil Producers Trade Section (OPTS) – the umbrella body of major international and indigenous operating oil companies. The SLA with NLNG provides specific timelines under which the Board must conclude requested reviews and approvals. Under the SLA, NLNG can proceed with its projects if the Board fails to respond at the expiration of set timelines. Kachiku said, “It takes a lot of courage for you to put a guaranty and tell people that if I don’t respond within a period, take it as approved. I will like to see this type of concept among all our parastatals. We can borrow a leaf from this.” He reiterated that the Board had enjoyed high quality leadership from inception, which helped the agency record sterling achievements over the years. “I did say when I came here the first time that NCDMB is one of the few federal parastatals that has benefited consistently at the top management level in terms of leadership. The consistency is commendable over the last two or three persons who have led here. Each one complemented what the other person has done.”
Speaking further, Kachikwu praised the collaboration between NCDMB and the Department of Petroleum Resources (DPR), particularly on the development of modular refineries, which would help to address the perennial shortage of petroleum resources, create jobs and minimize the scourge of illegal refining. He tasked the Board to collaborate with other relevant institutions including Nigerian universities, some of whom have developed prototypes of modular refineries. On the Board’s headquarters building project which had got to the 17th floor, the Minister described it as a profound statement to the people of Bayelsa State that “the Federal Government did not just come to take oil and walk away but that we took oil and left something behind.” He added that the office complex would provide a good working environment and a wonderful incentive for international and local operating companies to set up offices within the building. He stressed that such world class buildings and other infrastructure like airports, roads, security and recreation facilities were needed so that oil companies will find it commercially sensible to move their headquarters to oil producing states.
Orient Energy Review Vol 7 No. 05 May 2018 15
E&P A4 Ad 2B.qxp_E&P A4 07/03/2018 17:20 Page 1
LOCAL CONTENT
HOSTED & ORGANISED BY FRONTIER COMMUNICATIONS
AFRICA E&P SUMMIT
High quality platform for Africa's Upstream to meet and network IET London: Savoy Place, 23-24 May 2018 Visit africaepsummit.com to register now Confirmed Speakers: Keith Hill, President, Chief Executive Officer and Director, Africa Oil Corp., Kenya Tracey Henderson, Senior VP Exploration, Kosmos Energy, Dallas Eric Hathon, Exploration Director, Cairn Energy, Edinburgh Peter Dolan, Director, Dolan & Associates Limited, London Cath Norman, Managing Director, FAR Limited, Melbourne Craig Goulder, VP Exploration, Woodside Energy, Perth Phil Birch, Exploration Director, Impact Oil & Gas, Surrey
Austin Avuru, Chief Executive Officer, Seplat Petroleum, Lagos Peter Elliott, Director, NVentures, London Larry Bottomley, CEO, Chariot Oil & Gas, London Roger Carvalho, Managing Director, SPTEC Advisory, Paris Diakaria Koulibaly, CEO, Office National du Petrole (ONAP), Guinea Marc Guillon, Director, MGGS, Utrecht David Fassom, Director, Stellar Energy Advisors, London
Event Sponsors
Media Partners
16 Orient Energy Review Vol 7 No. 05 May 2018
www.orientenergyreview.com
ENERGY FINANCE
Developed Capital Markets, Key to Africa’s Oil and Gas Success- Peter Ntephe By Ayobami Adedinni
A
developed capit a l m a rket ha s be en identified as a key factor in African oil and gas companies’ success among other contributors. An Oil and Gas expert Peter Ntephe, who is also Chief Executive Officer of ERHC Energy, stated this while speaking with newsmen in Houston, Texas, USA. According to him, inability to access finance is a major hindrance to the success of many operators in the sector, adding that the African Capital market is yet to understand the dynamics of pure exploration. In his words, “It is very difficult to generate finance in Africa for www.orientenergyreview.com
pure exploration. “People don’t understand the dynamics of pure exploration. So, the first thing is we walk into an investment banker’s office and say we need so much to do so much. “They ask how many barrels of Oil you are producing. So, it is very difficult to generate such money. Our Stock Exchanges in Africa cannot yet handle the money issues and are not conversant with exploration models.
“
So, invariably you have to raise your money in the metropolis as it is called- the western Capitals of Capital such as London, New York, Toronto and then as an American company with an African face, the truth is you
face a disadvantage,” he said. Speaking further, Ntephe said “We need to develop our capital market. We need to develop capacity not just in terms of knowledge but technological capacity to run operations, financial capability to finance the operation and that is the only way indigenous firms can compete on a level-playing field because they are already at a disadvantage, trying to raise money internationally.
“
If we had a scenario where African companies are favoured just because it is home-based, then a level playing field would have been generated,” he added.
Orient Energy Review Vol 7 No. 05 May 2018 17
ENERGY FINANCE
Exxonmobil Posts Higher Profit, Revenues
U
.S. oil and gas major ExxonMobil posted a higher profit and revenues for the first quarter of 2018 while its production was down compared to the same period last year. The company on Friday posted first quarter 2018 earnings of $4.7 billion, a 16% increase compared with $4 billion a year earlier. The oil major’s revenues climbed to $68.2 billion in the first quarter of 2018 from $58.7 billion in the prioryear quarter. Cash flow from operations and asset sales was $10 billion, including proceeds associated with asset sales of $1.4 billion. According to the company, this was its highest quarterly
18 Orient Energy Review Vol 7 No. 05 May 2018
cash flow from operations and asset sales since 2014. Capital and exploration expenditures were $4.9 billion, up 17 percent from the prior year and expenditures of $4.2 billion. Darren W. Woods, chairman and chief executive officer, said: “Increased commodity prices, coupled with a focus on operating efficiently and strengthening our portfolio, resulted in higher earnings and the highest quarterly cash flow from operations and asset sales since 2014.” ExxonMobil’s oil-equivalent production was 3.9 million barrels per day, down 6 percent from the first quarter of 2017. Excluding entitlement effects and
divestments, oil-equivalent production was down 3 percent from the first quarter of 2017. Crude and natural gas prices strengthened in the first quarter. ExxonMobil’s crude realizations were impacted by an increased discount in Western Canada, notably for heavy crudes, as Canadian supply exceeded pipeline and rail capacity. The logistics constraints in Canada supported the decision to accelerate Sy nc r ude t u r n a r ou nd activities into the first quarter. Natural gas prices were supported by strong seasonal demand with colder weather across Europe and the U.S. and higher crudelinked LNG prices.
www.orientenergyreview.com
DOWNSTREAM
Ugandan Government Selects Consortium to Build Greenfield Oil Refinery a testament to the collaborative efforts of these best-in-class enterprises leveraging each other’s strengths to produce a solutionsfocused proposal. When executed, this will help develop the industry i n f r a s t r uc t u r e a nd provide a livelihood for the Ugandan people and, by extension, other East African countries” said Ado Oseragbaje, BHGE’s Vice President, SubSaharan Africa.
F
ollowing the favourable evaluation of its private sector-led offer by the Uganda G over n ment, the Albertine Graben Refinery Consortium (AGRC) comprised of YAATRA Ventures (www. YAATRAVentures.com), Baker Hughes, a GE company (www. BHGE.com), LionWorks Group (http://LionWorksCapital.com) and Saipem (www.Saipem.com), signed a project framework agreement confirming its selection for the realization of a 60,000 barrels per day capacity refinery with a project estimated value of around $3 billion. YAATRA Africa is an infrastructure development a nd f i n a nci n g company which provides innovative infrastructure solutions on the continent. LionWorks is a private equity company focused exclusively on pan-African infrastructure opportunities. Other companies involved are Saipem, a global leader in engineering, procurement, construction and installation, as well as drilling, in the oil and gas market that will act as services provider to the project investors, and BHGE, the on ly global Fullstream company, which will
www.orientenergyreview.com
provide a comprehensive portfolio of equipment, technical and financial services. The refinery, to be located in Hoima district, will process crude oil from fields developed by Total, Tullow and China’s CNOOC and future upstream operators. The Ugandan government has included in the project scope a refinedproduct pipeline to Kampala for transporting finished products from the facility as well as the distribution of refined products. “The Ugandan Government’s commitment to fully realize its oil and gas sector and acceptance of the innovative solution provided by AGRC is driven by its strategic goals, leading to achieving middleincome status. We look forward to the execution phase and delivering a world-class facility that represents a unique opportunity for investors. The Project will deliver a broad, significant economic development impact for Uganda and the East A f r ica reg ion.” Raja kuma r i Jandhyala, President & CEO, YAATRA Ventures, said.
Ronald Mincy, CEO & Managing Partner of LionWorks, commented: “ T h i s i s a u n iq ue opportunity to work w ith Uga nda on a transformational project that will provide jobs and skills to the country through improved access to substantially cleaner refined products for Uganda and the East Africa region.” Maurizio Coratella, Saipem E&C Onshore Division Chief Operating Officer said, “The selection of AGRC will allow the development of a robust proposal leveraging both financial capabilities of YAATRA Africa and LionWorks and the technical resources and expertise of Saipem and BHGE, addressing the Government’s expectations for the growth of the energy sector. We are pleased to have been selected to help Uganda delivering this Project.” Today’s announcement follows the formal announcement of the Ministry of Energy regarding the conclusion of the PFA agreement. The Albertine Graben Refinery Consortium will have each member undertake a specific role during Pre-Final Investment Decision (PreFID) Activities and Engineering, Procurement and Construction (EPC) of the refinery.
“The Government’s selection of our Consortium as preferred bidder is
Orient Energy Review Vol 7 No. 05 May 2018 19
DOWNSTREAM
Fuel Price Review: PMS Price to Rise, PIGB’ll Eliminate Under-Recovery, Subsidy — NAEE
T
he Nigerian Association of Energy Economics, NAEE, has stated that the Petroleum Industry Governance Bill, PIGB, when it eventually becomes law, Nigerians should expect an upward review in the price of Premium Motor Spirit, PMS, also known as petrol, and the Nigerian National Petroleum Corporation, NNPC would also be compelled to discard unprofitable business practices. Addressing newsmen on its forthcoming annual conference, in Abuja, President of the NAEE, Professor Wumi Iledare, said in the PIGB, the NNPC is expected to transform into a profit-making entity, forcing it to discard unprofitable practices such as bearing the burden of fuel subsidy, which it currently calls under recovery. He said, “We are not going to continue this under recovery for a long time, because when the PIGB is assented to, the NNPC that we have today becomes a commercial entity, with shareholders that would receive dividends. They would be key performance indicators that whoever is heading NNPC would deliver to shareholders.” He, however, noted that the PIGB stipulates a transition period of 12 to 24 months, after the Bill becomes law for most things stated therein to come into effect. He further exonerated the NNPC from any wrongdoing in the under recovery issue, stating that the Act establishing the corporation empowers it to undertake certain business practices to achieve some of its goals.
“
The right word to use is under recovery, not subsidy; because the government can only spend money that is approved by the National Assembly. But the NNPC Act allows the
20 Orient Energy Review Vol 7 No. 05 May 2018
NNPC to do its businesses as part of the strategic goal of a national oil company. What NNPC is saying that it is the one bringing all the petroleum products, but it is not recovering all the money.” Iledare disclosed that efforts directed at ensuring that the country moves away from rentier mentality and rent-sharing would contribute much more to the country’s Gross Domestic Product, GDP. He further made a case for increased gas consumption in the country, stating that the multiplier effects for domestic gas consumption far outweigh that of gas export. Also speaking, the immediate past president of the NAEE, Professor Adeola Adenikinju, expressed ser ious concer n over the lingering issue of petrol subsidy, which had transformed to under recovery, stating that it was depriving the economy of a number of benefits. He said, “The issue of under recovery or whatever name it is called is something we need to address. I am worried personally, if you look at the structure of subsidy in Nigeria, one would not be comfortable with it. The poor people buy kerosene at almost market price. The companies buy diesel at almost market price; while petrol, which is widely used by the elites is one that is affected by this issue.
“
I am particularly worried because the price is not playing the signaling role to investors. It is very difficult to attract investments in the downstream sector. We need to strategically move towards when we would get to a point of some liberalization in the downstream sector in particular, that would allow foreign investors to come in.”
Petrol Stock Builds Off West Africa As NNPC Secures Supplies before 2019 Elections
A
n unusually large quantity of petrol is floating off the coast of West Africa as Nigeria boosts imports to avoid shortages before a presidential election early next year, Reuters reports. Nearly 1.5 million tonnes of the motor fuel is on ships off West African shores, according to industry monitor Genscape, the highest level since it began tracking the data in January 2017. The bulk of the petrol will likely flow to Nigeria, the region’s most populous nation and Africa’s largest economy, according to traders. Sources in Nigeria said tanks on shore were also brimming after a major import push by state oil firm NNPC in the past few months. With a presidential election due in February, trade sources said the government was keeping up the pace of imports to ensure ample availability. Indicating NNPC’s continued activity in the market, the state firm awarded a spot tender to buy 10 additional 37,000 tonne cargoes for delivery in May, on top of the shipments it typically receives via swaps for crude oil.
www.orientenergyreview.com
LAND SHIP MV ‘RIVERS PRIDE’ Our services HUET Helicopter underwater Emergency Training,TSBB (Travel Safety by boat) Bridging Element training, Foet/Tfoet, Scaffolding, Coxwaine, Frc/B- Fast Rescue, Craft/Boat, Proficiency in survival craft and boat, Fire Prevention and Fire Fighting, Elementary First Aid, Personal Safety and social Responsibility, Advance Fire Fighting, Well Control Tranining & Certificate Program, River Master, Motor Man, Medical First Aid, Medical Care, Lifeboat, Efficient Deck Hand (EDH), Quarter Master, Marine Engineering Assistant (MEA) Tanker Familiarization, International Safety Management (ISM), Global Maritime Distress & Safety System Rigging & Slinging (Banksman), HLO (Helicopter Landing Officer), Aviation Radio Telephone Training
www.orientenergyreview.com
Orient Energy Review Vol 7 No. 05 May 2018 21
COMMUNITY DEVELOPMENT
HOSCON Calls On Buhari to Cease Payment Of 13% Derivation Funds to Niger Delta Governors …Claims Niger Delta governors misused over N12trn funds in 18 years
By Prince Anthony
O
il-producing communities under the aegis of Host Communities of Nigeria Producing Oil and Gas, HOSCON has called on President Muhammadu Buhari to cease paying the 13 percent derivation funds to the state governors and should instead, set up a committee, commission or Board that would oversee the release of the fund to oil-producing communities. This is even has they accused past and present governors of the Niger Delta of mismanaging the funds due states in the region, totaling N12 trillion over 18 years. According to the President of HOSCON, Mr. Mike Emuh, “No law in the country states that 13 per cent derivation fund should be given to state governments. The President should set up a committee, commission or a Board that would manage the derivation money. It should be removed from the hands of the governors. “The money the governors are controlling today do not belong to them, it belongs to the host communities. The money should be removed from the hands of the governors and given to the host
22 Orient Energy Review Vol 7 No. 05 May 2018
communities to manage.
“
These governors have manage the 13% derivation fund for 16 to 18 years, over N12 trillion, yet we do not see the evidence of it in the Niger Delta. According to the law, the money belongs to the host communities, not to the state or local governments.” Emuh accused politicians of fuelling militancy in the Niger Delta region, stating that these unscrupulous individuals had perpetually underdeveloped the region for their own selfish interest. He said, “The militancy that was experienced in the Niger Delta was caused by politicians, not by traditional rulers, not by host communities’ leaders. The boys have come to realize that. We spoke to them to stop whatever was illegal towards oil installations in the Niger Delta. For over one year now, they have listened to us and there is relative peace in the region at the moment. “The youth would no longer listen to the politicians, because they had been disappointed. They cannot even listen to the former militants and those
that call themselves former warlords, who were getting these things for themselves.” He noted that to ensure this issue of pipeline surveillance contract comes to being, HOSCON had registered several security companies with the Corporate Affairs Commission, CAC and had also entered into partnership with the Nigerian Security and Civil Defence Corps, NSCDC. Emuh further noted that the HOSCON was also in talks with the Ministry of Petroleum Resources, the Nigerian National Petroleum Corporation, NNPC, indigenous and international oil companies to create an enabling environment for foreign investments to come in and develop the Niger Delta, as well as Nigeria in general.
“
We have applied to the Ministry of Agriculture; we intend setting up farms all over the Niger Delta region to create jobs for our youths. HOSCON is also training youths on skills acquisition at its headquarters in Warri, for free,” he added
www.orientenergyreview.com
COMMUNITY DEVELOPMENT
Blackout: Gbaramatu Youths Issue 40 Days Ultimatum to Nigerian Government to Award Electricity Project in Escravos ...Threatens shut down of oil exploration facility By Prince Okafor
T
he Gbaramatu Youth Council has given the Nigeria’s Government a 40day ultimatum to award power generation and distribution contracts to Escravos and its environs in Delta State. This came even as the group threatened to shut down all oil exploration activities in the Escravos and its environs if the federal government continues to delay. The socio-political group accused the office of the Vice President, which it claimed is responsible for the award of the contracts, as foot dragging on the project which was designed by the Goodluck Jonathan administration to provide electricity for the area. In a statement signed by the President, Christopher EtuemiWuruyai, advised the Federal Government to do the needful on the project and warned that it will not fold its arms and watch the partners feed the rest of the country, with power supply generated from its land. The statement reads; “We write yet again, to draw the attention of the www.orientenergyreview.com
Federal Government of Nigeria to the Escravos and environs 30MW Electrification project initiated in 2011, by the previous administration as part of the Federal government’s concerted efforts to open up the Niger Delta coastal communities to global economic activities, but which had been hampered by lack of public power supply. “All efforts made by the Gbaramatu Traditional Council, during the Vice President’s fact-finding mission to the Niger Delta, to draw the attention of the Federal Government to the current challenges of this project seems to have met a brick wall. “The project which is at the stage of award of contracts for power generation and distribution is in the purview of the office of the Vice President of the Federal Republic of Nigeria and coordinated by Nigerian National Petroleum Corporation (NNPC) Gas and Power Division and it seems to have been left at the mercy of the elements.” The group reeled out the challenges being met by the communities due to the comatose state of the project.
“Consequently, the perennial blackout being experienced in the area is making it impossible for the area to enjoy the basic socia l amenities in this part of the country. “The Gbaramatu Yo u t h C o u n c i l , after extensive consultation with various leaders and stakeholders of the project from the various ethnic groups i n the E scravos area have resolved a s fol lows: “We want the Federal gover n ment to intensify effort so as to commence works on the next stage of the electricity project of the Escravos and environs, as soon as possible. “We would no longer sit back and allow the Nigerian state to supply other neighboring countries as well as other parts of the country electricity, generated with gas from our land, while leaving us in total darkness. “In the strength of this, we would not hesitate to stage a massive protest which will result in mobilizing our women to a peaceful takeover and shut down of all oil exploratory activities within our home point, if the Federal Government again, refuse to take this release seriously and yet again turn deaf ears to our plight. “However, should we embark on this protest, it shall be primarily, a peaceful one, so the security forces are hereby advised as to the nature of the protest and should avoid the use of force in order to prevent the breakdown of law and order,” the statement added.
Orient Energy Review Vol 7 No. 05 May 2018 23
COMMUNITY DEVELOPMENT
FG Completes Timetable for Ogoni Clean-Up, Minister Says of contracts before commencement of the exercise. “I am sure that people who have interest, capability and capacity to do this clean-up job have submitted their documents.
N
igeria’s Federal Government says it has completed timetable for the clean-up of hydrocarbon impacted communities in four local government areas of Ogoni land in Rivers. The Minister of State for Environment, Malam Ibrahim Jibril, made this known on Friday while inspecting medical outreach in Terabor General Hospital, Gokana Local Government Area of the state. The News Agency of Nigeria (NAN) reports that the exercise was organised by the Hydrocarbon Pollution and Remediation Project (HYPREP) for indigent Ogonis. Jibril said that
submission of documents for bidding of contracts for the clean-up would end on April 30. “The Federal Government is working sequentially to ensure that there is no mistake and that whatever is started would be irreversible, even when President Buhari is out of office. “We have a complete timetable of our programme now. We have also done advertisement for people to see what we intend to do. The minister said that the ministry would go through all the procurement processes and evaluation, and approval of the award
“The tender of documents will close by Monday, April 30, and thereafter, we will start the evaluation of the expression of interest,’’ he said. Jibril said that the Federal Government had also put in place a solid foundation that would ensure the success of the remediation of hydrocarbon impacted communities. The minister said that his visit to the Ogoniland was to check status of projects on ground, and to assure the people of government commitment to the exercise. He also said that the modular refinery project would soon come on stream, and urged Ogoni youths to desist from acts capable of causing more pollution in the area. “I felt it was necessary to come to a signature project like HYPREP and see the second phase of the health intervention that was approved by President Muhammadu Buhari.
“
Dr Marvin Dekil, Coordinator of HYPREP is doing a good job in Ogoniland, and as such, it is our responsibility to back him up.’’ (NAN)
Nigerian Government Identifies 11 Sources of Soot in Rivers State
N
igeria’s Federal Government says it has identified 11 sources of hydrocarbon soot plaguing Rivers State and its environs. This comes as the Rivers State Governor, Chief Nyesom Wike, has consistently accused the Federal Government of refusing to cooperate in ending soot in the state. Speaking while inspecting a health outreach programme organised by HYPREP, in Terabor, Gokana Local Government Area of Rivers State, the Minister of State for Environment, Mr. Ibrahim Jibril, assured that the federal government was committed to ending the incidence of soot in the state. Jibril explained that he was just coming from a joint stakeholder meeting on the soot organised by NESREA and other stakeholders. Although the Minister did not disclose the 11 sources of soot identified, he, however, said that an inter-ministerial committee, with members of both Federal and State Government agencies, has been set up to tackle the soot.
24 Orient Energy Review Vol 7 No. 05 May 2018
According to him, “The Federal Government’s plan is to eliminate the soot by taking concerted actions. We have identified 11 sources that are causing the Soot and having identified them we had to tackle them. “In the meeting we just had, we have set up an interministerial committee, a standing one not ad-hoc and everybody that needed to be involved must be involved. “The state ministry of environment, the state ministry of health, state ministry of local government and chieftaincy Affairs are involved. “Others to be involved are the federal ministry of health, environment, the security agencies are all going to be involved so that together we put our heads and make sure that since we are aware of what was going on, we will now attack the issue from the bottom and make sure that the root cause is eliminated.” Mkpoikana Udoma, SweetcrudeReports
www.orientenergyreview.com
PHOTO GALLERY Schneider Electric Unveils New Range of Products, Rewards Performing Partners
www.orientenergyreview.com
Orient Energy Review Vol 7 No. 05 May 2018 25
OGTAN Hosts 1st National Education Summit
26 Orient Energy Review Vol 7 No. 05 May 2018
www.orientenergyreview.com
The Energy Platform Lecture Series
www.orientenergyreview.com
Orient Energy Review Vol 7 No. 05 May 2018 27
PIGB: Nigeria’s Oil Industry Shaping Up To Global Standards, Ready For Investments By Godspower Ike
F
or more than two decades, the Nigerian petroleum industry was in limbo, with uncertainty, lack of clear rules, divestments and corruption among many others prevailing in the industry. This article focuses on the Petroleum Industry Governance Bill (PIGB), which would soon become law, and the numerous opportunities presented by the legislation to enforce the much-needed reforms in the industry and inspire investments needed to drive the growth and development of the Nigerian oil and gas industry. The long expected reform of the Nigerian petroleum industry is gradually taking shape, with the passage of the Petroleum Industry Governance Bill (PIGB) by the National Assembly and the recent transmission to the Presidency for
28 Orient Energy Review Vol 7 No. 05 May 2018
assent. The PIGB, one of the four variants of the initial Petroleum Industry Bill (PIB) was passed by the Senate and the House of Representatives, March 2018. This was 17 years after the PIB was initially presented before the National Assembly. With the passage, stakeholders are optimistic that the cloud of uncertainty that had hung over the Nigerian petroleum industry would be eliminated and investments that had been deferred would begin to pour in.
that the petroleum industry was in desperate need of regulatory reforms. Issues bordering on imprecise rules, excessive regulatory discretion, and the fusion of regulatory, policy and operator roles were first-order problems which in turn created second order causes. While other issues like corruption, lack of transparency and accountability were consequences in a chain of ripple effects, leading ultimately to a severely underperforming economy, loss of benefits to the country, and a largely impoverished population.
Nigeria Extractive Industries Transparency Initiative’s (NEITI) Policy Brief on the ‘The Urgency of a New Petroleum Sector Law,’ had stated that in the sixteen years the process of reforms commenced, and in eight years since the PIB was first drafted, there was no question
The NEITI report had stated that there is however, a direct and hugely significant cost associated with promising a new petroleum industry law in the first place but having an indefinite delivery date. www.orientenergyreview.com
COVER STORY Specifically, few days after the passage of the Bill, the Chief Executive Officer (CEO) Royal Dutch Shell, Ben Van Beurden, alongside MD Shell Petroleum Development Company of Nigeria, Mr Osagie Okunbor and VP Nigeria and Gabon Shell Mr Peter Costello visited President Muhammadu Buhari in London. The meeting which was facilitated by Minister of State for Petroleum Resources, Mr. Ibe Kachikwu and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Maikanti Baru, presented an opportunity for the team from Shell to open talks with their Nigerian counterpart on a potential $15 billion investment in Nigeria. This may also include the $13.5 billion Zabazaba oilfield project jointly developed by Shell and Nigerian Agip Oil Company (NAOC). Both companies are on the verge of reaching Final Investment Decision (FID) on the project.
According to the report, more than the size of the return, the rational investor prizes regulatory certainty above practically all else: clear, unambiguous rules, predictable policymaking and efficient regulation, adding that these clarity and predictability have been lacking, especially in the past sixteen years since the process commenced. In the eight years that the PIB was first presented for legislation, experts estimated that over $120 billion, at over $15 billion yearly, had been lost to investment withheld or diverted by investors to other, more predictable jurisdictions. The hedging by investors stem from the expectation that the old rules would no longer apply, and not knowing when the new ones would materialize, they wait, www.orientenergyreview.com
or walk, if they are investors looking at the time value of money. Considering the limited pool of investment funds, the amounts of funds previously allocated by International Oil Companies for investment in Nigeria shrunk due to the emergence of several other viable oil and gas projects across Africa including Ghana, Senegal, Mozambique, Kenya, Uganda and Tanzania among others. Furthermore it was estimated that projected lost earnings due to factors including loss of investment that should have happened stood at $100 billion, representing only five years period between 2007 and 2012. With the passage of the Bill, investors already are gearing up to return to the Nigerian petroleum industry en masse.
The Zabazaba and the Etan fields are located in oil prospecting lease (OPL) 245 offshore Nigeria in the Niger Delta of the Gulf of Guinea, in water depths ranging from 1,200m-2,400m. The oil and gas fields form part of an integrated project, which is being jointly developed by Nigerian Agip Exploration (NAE) and Shell Nigeria Exploration and Production Company (SNEPCO). Nigerian Agip Exploration (NAE) is also serving as the operator for the project. First production from the $13.5 billion integrated development project is expected in 2020. The deepwater project is expected to support small and medium sized businesses in Nigeria, with half of the Zabazaba FPSO topside currently slated to be fabricated and integrated in the country. Few days after the Bill was passed, precisely on April 25, 2018, the Nigerian Content Development Monitoring Board (NCDMB) stated that it has concluded the bid evaluations for the Zabazaba deepwater project within an unprecedented period of 14 months. It said this was in line with the directive of Mr. Ibe Kachikwu, for the reduction of the protracted contracting cycle in the petroleum industry. This represented a positive sign for the petroleum industry, as analysts are optimistic that many more investors would begin to take position so as to benefit from the expected attractiveness of the industry. Speaking on the PIGB, Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, declared that the PIGB and the other bills that are presently at the National Assembly,
Orient Energy Review Vol 7 No. 05 May 2018 29
COVER STORY tasked with setting overall policy and direction for the industry; Regulator – charged with regulating the entire industry and Commercial Institutions – tasked with holding and managing the assets and interests of the Government, while Ancillary Institutions are tasked with the provision of specific support services assigned to them. The PIGB defines the power of the Minister of Petroleum Resources to be responsible for setting the overall policy and strategy in the petroleum sector. The Bill also grants the Minister preemptive rights to all petroleum products in the country in the event of a National emergency.
had been articulated and designed to establish clear and enduring good governance principles; provide for fiscal regimes that are flexible and that would guarantee optimal take for the government. He also stated that Bills would support domestic gas utilization through the National Gas Master Plan; enhance local content; properly align the roles and functions of institutions; strengthen and reposition the Nigerian National Petroleum Corporation (NNPC) for enhanced productivity; and ensure that NNPC runs like all world class commercial entities. He further declared that investors, considering Nigeria’s attractive gas market, would be encouraged to invest due to the development of a friendly environment, while surplus gas would be available for power generation, forcing the emergence of distribution companies looking to make profits from trading gas. He said, “The challenges of any beautiful plan lie in its implementation and you can be assured that this administration would ensure the implementation in order to ensure that the oil and gas industry yields profit for the Nigerian people.” Also speaking, President of the Nigerian Association for Energy Economics, Professor Wumi Iledare stated that the passage of the PIGB offers significant optimism to the petroleum sector. According to him, the passage of the Bill is a worthy milestone in the industry and the country in general, noting that reforms and restructuring espoused in the Bills are expected to completely revolutionise the institutional,
30 Orient Energy Review Vol 7 No. 05 May 2018
governance, fiscal and communal structures of the oil and gas business in Nigeria. The PIGB seeks to establish a framework for the creation of commercial ly-or iented and profit-driven petroleum entities, to ensure value addition and internationalisation of the Nigerian petroleum industry, through the creation of efficient and effective governing institutions with clear and separate roles for the petroleum industry. The Bill is the first in a series of long awaited petroleum industry laws designed to reform the Nigerian oil and gas industry. The PIB, an omnibus law meant to regulate the entire sphere of the industry and repeal all current existing oil and gas legislation, had struggled to see the light of day despite its introduction to the National Assembly over 16 years ago. Subsequently, the National Assembly decided to break the PIB into a number of different pieces of legislation guiding specific aspects of the industry. The PIGB is the first of several Bills, such as the Petroleum Industry Fiscal Bill, Petroleum Industry Administration Bill and the Host Community Bill, still currently before the Senate, which the National Assembly will debate and pass in due course. Highlights of the PIGB includes the fact that it seeks to establish a number of new or existing institutions, which can be broadly classified into the following categories: Policy and general strategy formulator–
However, the Minister would no longer have the power to grant, renew, amend, extend or revoke any lease or licence issued pursuant to the provisions of the Act. Under the Bill, the Minister cannot create any new entity. Also, the PIGB seeks the establishment of the National Petroleum Regulatory Commission (NPRC), which replaces the current Department of Petroleum Resources (DPR), the Petroleum Inspectorate and the Petroleum Products Pricing Regulatory Agency (PPPRA). It shall be responsible for regulating the enti re industr y, with its regulatory functions cutting across the downstream, midstream and upstream sectors. It is saddled with the responsibilities of administering and enforcing policies, laws and regulations relating to all aspects of the petroleum operations assigned to it under the provisions of this Act or any regulations made in pursuance of this Act or any other enactment. It is also expected to monitor and enforce compliance with the terms and conditions of all leases, licences, permits and authorisations issued in respect of any petroleum operation; advise the Minister on fiscal and other issues pertaining to the petroleum industry and conduct bid rounds or other processes for the award of any license or lease required for petroleum exploration or production. It is expected to establish the methodology for determining appropriate tariffs for gas processing, gas transportation, transmission and transportation of crude oil and bulk storage of oil and gas; establish the framework for calculating the fair market value of petroleum products; regulate the supply, distribution, marketing and retail of petroleum products.
www.orientenergyreview.com
COVER STORY The NPRC would be vested with all assets, funds, resources and other movable and immovable properties currently held by the Petroleum Inspectorate, Department of Petroleum Resources and the Petroleum Products and Pricing Regulatory Agency. The Commission, which shall be wholly independent from the Minister of Petroleum, shall be run by a Governing Board whose members, other than those representing the Ministries of Petroleum, Finance a nd Env i ron ment, sha l l be appointed by the President subject to the approval of the Senate. The Governing Board shall comprise eleven Directors, five of whom shall be Executive Directors.
resources in Nigeria, and thus, foster a conducive business environment within the sector. In his own contribution, Executive Secretary of NEITI, Mr. Waziri Adio, stated that the PIGB would stem the massive loss of revenue recorded in the petroleum industry, arising from corrupt practices and process lapses. Adio declared that NEITI’s previous reports in the petroleum industry had also revealed that over $10.4 billion and N378.7 billion were lost through under-remittances, inefficiencies, theft or absence of a clear governance framework for the oil and gas industry.
The bill also seeks the establishment of three commercial entities, the Nigerian Petroleum Liability Management Company, the Nigerian Petroleum Assets Management Company Limited and the National Petroleum Company. These entities are to replace the NNPC. The PIGB was drafted basically to create efficient and effective governing institutions with clear and separate roles for the industry. It also seeks to establish a framework for the creation of commercial and profit oriented petroleum entities to ensure value addition and internationalization of the Nigerian oil and gas industry.
According to him, the total cost to the nation in 2013 alone was N1.74 trillion largely as a result of the absence of a new law. He said, “NEITI is optimistic that with the new governance law for the industry, these huge revenue losses to the nation as a result of process lapses and outright stealing will be strictly checked if not eliminated.” Adio explained that NEITI’s interest in the issue, was in view of the urgency and strategic importance of a new law to replace the existing archaic legislations that have aided huge revenue losses, impeded transparency, accountability and investment opportunities in the nation’s oil and gas industry. He added that “NEITI recalls that as an anti-
The PIGB targets the promotion of transparency and accountability in the administration of petroleum
corruption agency in the sector, it boldly alerted the nation last year through a special Policy Brief ‘The
www.orientenergyreview.com
urgency of a new petroleum sector law,’ that the current stagnation of investment opportunities in the petroleum industry was as a result of the absence of a new law for the sector. This has led to huge revenue losses to the tune of over $200 billion.
“
In that publication which was widely circulated, NEITI argued that the ‘revenue losses were as a result of investments withheld or diverted by investors to other (more pred ictable) jurisdictions.’ The publication added that ‘The hedging by investors stems from the expectation that the old rules would no longer apply, but not knowing when the new ones would materialise.’” NEITI further noted that the implementation of the global Extractive Industries Transparency Initiative, which Nigeria is a key signatory, had over the years been frustrated by the absence of a dynamic law that suits modern business modules and trends in the ever evolving oil and gas industry. He averred that it remained convinced that the PIGB when assented to by the President would provide a dynamic governance framework required to re-position the petroleum industry to fully embrace competition, openness, accountability, professionalism and better profit returns on investments to both companies and government. Analysts at United Capital Research Plc, in their report titled, “Passage of the PIGB …taking a step away from ‘how not to run an oil industry’”, disclosed that the implementation of the legislation is anticipated to bring about a considerable amount of certainty to the petroleum industry bedeviled by legislative uncertainty for years. The report noted that a question that comes to mind when subjected to further critique is the timeliness of the passage of the bill when considered in the context of the time frame between when the broader PIB was drafted, the circumstances surrounding its drafting, the underlying assumption at the time vis-a-vis current realities.
Orient Energy Review Vol 7 No. 05 May 2018 31
COVER STORY host communities, as government officials, both military and civilians, are accused of capitalizing on oil assets as rewards for getting into power at the expense of investment in the sector. The profound cases of corruption scandals that made headlines such as the Halliburton scandal, allegations of missing oil remittances levied against the NNPC ($5.2bn in 2007 and $20.0bn in 2014) and the more recent Malabu oil scandal gives credence to the abovementioned and buttresses the need for something urgent to be done.
The analysts explained that one of the most important provisions of the PIGB is the creation of the NPRC which will harmonize regulatory roles in the sector and operate as a single regulator thereby phasing out the proliferation of multiple agencies rendering duplicated or overlapping functions. Ultimately, the analysts argued that the PIGB will bring about checks and balances which will moderate the excesses of executive arm of government and reduce the incidence of cases such as the Malabu oil scandal on OPL 245 nonetheless this may extend decision making. They added that ensuring viable and profit-oriented entities would bring about improved corporate governance, accountability and transparency in the operation of the entities.
private refineries and strengthen national gas policy. Continuing, the analysts said, “The Nigerian oil and gas industry has been described as an example of “how not to run” an oil sector. Although it contributes more than 70 per cent of government revenue, 90 per cent of FX earnings as well as external reserves, drives foreign capital inflows and domestic output growth, the sector has suffered from erratic regulation, mismanagement, scandals and gross inefficiency. “This partly accounts for the wide spread civil unrest, pipeline vandalism and militancy in the
“W hi le the recently passed PIGB may not be able to swiftly restructure the Nigerian oil & gas sector from where it is as highlighted above to the desired state. We think the genuine implementation of the provisions of the Bill should go a long way in effectively repositioning the sector towards global competitiveness, efficiency and optimality. Thus, we opine the passage and eventual implementation of the PIGB will be a significant step away from “how not to run” the sector.” As the nation awaits the signing of the Bill into law by President Muhammadu Buhari, there is hope that the Nigerian petroleum industry would regain its lost glory and investments, both new and deferred would begin to pour in, as confidence once again returns to the nation’s industry.
“
The possibility that the National Petroleum Company may be subsequently listed just like Saudi Aramco, also gives the entity access to capital market funding,” they noted. The analysts in the report, also declared that the clarity and harmonization of regulation that comes with the implementation of the PIGB would make doing business in the sector easy. In addition, they noted that it would strengthen the drive towards ending fuel importation, development of
32 Orient Energy Review Vol 7 No. 05 May 2018
www.orientenergyreview.com
www.orientenergyreview.com
Orient Energy Review Vol 7 No. 05 May 2018 33
LOGISTICS/ MARITIME
OGTAN Confers Achievement Award on Wabote …Capacity Building key to oil industry development - Ezekwesili By Margaret Nongo-Okojokwu local manufacturing, infrastructural development and human capacity. Other necessary parameters include Periodic gap analysis to determine gaps that are needed to be closed in the areas of skills, facilities and infrastructure, Research and Development and the provision of Funding and Incentives to attract new investments and keep existing businesses afloat where required.
T
he Oil and Gas Trainers Association (OGTAN) has conferred the Local Content Development Achievement Awardon the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote. The award was presented to him at the OGTAN’s1stNational Education Summit held in Lagos on Monday in recognition of the remarkable achievements he has led the Board to record in less than two years of his assumption of duty. President of the group, Dr. Mayowa Afe asserted that NCDMB has exceeded targets in the implementation of the Nigerian Content Act and contributed immensely in the development of youths of the country. Accepting the award, the Executive Secretary credited staff of the Board for the successes attained by the Board, noting that they collaborated and bought into the vision he brought to the Board. He challenged staff to work even harder and innovate more initiatives, adding that there was a lot work to be done to deepen the implementation of Local Content practice. “How can we benefit all sectors of the economy, how can we impact the military and help them domesticate their clothing and hardware?” He stated that a lot of progress was being made in the implementation process and challenged every stakeholder to use their sphere of influence to make positive contributions to Nigerian Content development.
34 Orient Energy Review Vol 7 No. 05 May 2018
Speaking earlier on the topic “ S u s t a i n i n g L o c a l C o nt e nt through Quality Education and Training, ”Wabote harped on the need to domicile the production of educational materials used at the primary, secondary and tertiary levels. He informed that data from National Bureau of Statistics (NBS) showed that about five million pupils are enrolled into our primary schools every year while the total population in all the primary schools is about 24million. He added that “24 million pupils mean that we should be producing at least 50million pencils every year in our country. Imagine the number of employment generated if this is the case and the retained value if such endeavor is done in-country. We need about two million computers every year just for our secondary and university students. T he se a re just some of the opportunities that could help booster our local content practice. There are much more from shoes to uniforms and the rest. That is the reason we have always advocated for sectorial linkages to other sectors of the economy such as ICT, power, and construction if we truly want to deepen our Local Content practice.” He explained further that there are five key parameters required for sustainable Local Content practice, listing some of them to include the existence of a Regulatory framework to specify the roles and expectations of stakeholders in the implementation process and Capacity Building of
Dwelling on the Board’s Human Capacity Development programme, the Executive Secretary said the Board put in place “the 60-20-20 principle in which 60 percent of the Board’s and industry’s training resources and efforts will be devoted to providing young Nigerians with specialized skills they need to secure employment. 20 percent will be geared towards improvement of the productivity of already employed personnel while another 20 percent of spend will be used for trainings on soft skills. Under the new strategy, beneficiaries will be provided with qualitative skills and international certifications that will position them for employment within and outside Nigeria.” Delivering the keynote address at the event, the for mer Minister for Education Dr. Mrs. ObiageliEzekwesili insisted that the Nigerian Oil and Gas Industry cannot make a positive contribution to the economy without focusing on human capacity development. “The take-off points of countries’ development are connected to when they enhanced the capabilities of their citizens.” She underscored the need to accelerate the pace of implementing the Nigerian Content Act and focus on outcomes that are measurable. “We must measure performance against set targets.” Ezekwesili who also served as the Minister of Solid Minerals and Vice President of the World Bank, averred that the structure of the Nigerian and world economy had changed, hence the policy of education needed to change to reflect the new realities. “The policy makers must anticipate where the world is going. Education must enable us build a society where our people can compete globally. Artificial intelligence and simulation data are the big things today. The world will not wait for our oil.”
www.orientenergyreview.com
LOGISTICS/ MARITIME
NCDMB Exec Sec Charges Charkins Maritime On Seafarers’ Training
T
he Executive Secretary of the Nigerian Content D e ve l opm e nt a n d Mon itor i n g Boa rd (NCDMB), Engr. Simbi Wabote has challenged the management of Charkins Maritime and Offshore Safety Centre to develop a strategy that will provide maritime cadets with sea time experience required to qualify them as professional sailors. Such a strategy would foster a partnership arrangement with the Board to address the deficit of trained cadets in the maritime and oil and gas industries. He gave the charge in Port Harcourt, Rivers State on Monday when he led top management of the Board and representatives of international and indigenous operating companies on a facility visit to the company. He commended the firm’s capacity building strides, adding that the Board has adopted a training model geared to provide beneficiaries with skills they need to gain meaningful employment or become self-employed. According to the Executive Secretary, the facility is a clear proof that Nigerian Content is working because the centre is operating with international standards in the heart of Port
www.orientenergyreview.com
Harcourt.
“
It is impressive that all their accreditations are international, and all the examinations are international. Trainees in this facility can work anywhere in the world.” Wabote further stated that the vision of Charkins of becoming a Centre of Excellence for Maritime Training is being realised, noting that the Board is working with the Oil and Gas Trainers Association of Nigeria (OGTAN) to categorize Training Centres and their courses. On the commissioning of the NCDMB Hall, the Executive Secretary commended the company for the gesture which is the first in the industry. He promised that the Board will use the conference hall to host its events in Port Harcourt. Earlier in his welcome address, the Chief Executive Officer of Charkins Maritime and Offshore Safety Centre, Sir Charles Kimikanwo Wami extolled the Board for its effective implementation of the Nigerian Content Act. He acknowledged that the success recorded in the last seven years had enabled Charkins Maritime Centre to
collaborate with foreign partners for the training of instructors and award of international accreditations such that its products and cer ti f icates are accorded international acceptance. He also noted that the company was recently recognised as the Best Maritime Education a n d Tr a i n i n g I n s t i t u t e by the Nigerian Maritime Administration and Safety Agency (NIMASA). Some of the facilities inspected at the centre were the Drilling Simulator Class for offshore and onshore drilling operations, Land Ship Simulator, MV Rivers Pride commissioned on February 9, 2017 by the Rivers State Governor, Chief Nyesom Wike; Dynamic Positioning Training Class and Simulator Laboratory; High Voltage Simulator Room for Engineers and Electricians; Helicopter Evacuation Simulator Pool and Offshore Crane Training Simulator. Others were the cadet hostel, auditorium, e-Library under construction and delegates quarters for senior management trainees. The highpoint of the visit was the commissioning of the Conference Hall at the centre dedicated to the NCDMB.
Orient Energy Review Vol 7 No. 05 May 2018 35
LOGISTICS/ MARITIME
Maritime Accident: University Don Develops New Tools to Predict Human Error By Oge Obi researcher and lecturer in marine engineering from the University of Tasmania’s Australian Maritime College, Dr. Rabiu Islam has developed new methodologies to address the issue maritime accident. The tools developed include a monograph to accurately estimate the probability for human error during routine maintenance.
A
It is said that most onboard maintenance is conducted under challenging working conditions and involves complicated equipment. Adding that along with these challenges, poor communication, inadequate system monitoring and failure to learn from previous maintenance errors can result in human error. According to Islam, the probability of human error can be estimated
based on the level of seafarers training, experience and fatigue, says Islam. And in order to estimate a Human Error Probability value, the level of a seafarers training is ranked from 1 to 9; fatigue level and experience with undertaking the task are also ranked. The three rankings are then used to obtain the value from a graph derived from Islam’s research. “The unique and user-friendly tools will help the chief engineer or captain to quickly estimate human error probability, rather than following step-by-step procedures,” Islam said.
Islam is a lecturer in marine engineering and was awarded his PhD in Maritime Engineering in 2017. He started his own career as a marine engineer and has used the collective experience of professional seafarers from around the world to inform his research. Islam’s research project was highly commended for the Australian Maritime College’s 2017 Rob Lewis medal for excellence in postgraduate research.
“
They could also be used as guidance for ship owners, operator s , ma ster s a nd classification societies to better prepare, prioritize and sort the maintenance activities for safe and reliable onboard maintenance operations to reduce the potential of accident occurrence.”
FEC Approves N13b for Dredging Of Warri Seaport
By Oge Obi
T
he Federal Executive Counci l (FEC) has approved the contract for the dredging of the Warri Escravos seaport at a cost of N13b. The Minister of Transportation, Rotimi Amaechi, stated this wh i le br ief i n g State House correspondents on the outcome of the cabinet meeting presided over by Vice President Yemi Osinbajo on Wednesday in Abuja. The minister revealed that the sum of N13 billion would be spent on the project. According to Amechi, the approval is against the backdrop of a memo presented by his ministry. Speaking earlier, the Managing Director of the Nigerian Ports Authority, Hadiza Bala Usman, noted that the dredging project would basically change the fortunes of Warri ports.
36 Orient Energy Review Vol 7 No. 05 May 2018
“It will expand the utilization of our eastern ports, we believe in the need to ensure that all port locations are given the seamless access by providing dredging works and that is what we are here to do today,” she added. Speaking further, the NPA boss disclosed that the procurement of the dredging works for the Calabar port had also reached an advanced state.
“
We inherited a system that did not go through the relevant processes which we terminated. We are now almost concluding Calabar and we will also come and seek Federal Executive Council’s consideration for that.”
blocked revenue leakages and enshrined seamless accounting processes by ensuring payment of debts and compliance with the Treasury Single Account. The NPA boss however said that corruption was fighting back all the time as “we have had instances where corruption is pushing back and we’ve remained resolute with the support of Mr. President in assisting us to fight corrupt practices in the Nigerian Ports Authority,” Usman said.
Stating that NPA has been able to tackle corruption in its operations, Usman said that the agency has
www.orientenergyreview.com
LOGISTICS/ MARITIME
Strive For Perfect Leadership - CG Admonishes New ANLCA President By Peace Obi
T
he C ompt r ol ler of Customs, Col. Ahmed Ali has charged the newly sworn-in National Executive of Association of Nigerian Licensed Customs Agents (ANLCA) to strive for quality leadership that will move the association as well as the nation forward. Speaking at the swearing in and send forth ceremony of the ANLCA President, Iju Tony Nwabunike and Prince Olayiwola Shittu recently in Lagos, the CG congratulated the incoming President even as he eulogised Shittu for his exemplary and exceptional leadership. The CG who was represented by ACG Musa Dahiru said that the most important contribution expected of the new executive is for it to lead an association whose operations w i l l be guided by professionalism and commitment to positive impact, adding that that it could only be attained through inclusive, r obu s t a nd out s t a nd i n g leadership. Challenging the new ANLCA President, CG said, “For a successful leadership, stand neutral, strive for perfect leadership that will accommodate all irrespective of their creed or race.
“
It is hoped that your leadership will bring about improvement in the areas that we do have problems. We are looking forward as Customs officers to seeing sincere declarations, correct evaluations, among other by importers so that together we can move this industry and the nation Nigeria forward.” Worried by the prevalence of illicit drugs in the society and
www.orientenergyreview.com
the reckless consumption by Nigerian youths, the Customs boss appealed to ANLCA new executive to mobilise its members against the importation of such harmful drugs. He said, “There is one particular issue that is bothering me and many other Nigerians. I am talking about this drug called Tramadol. Please see what you can do with your members is to stop influx of illegal and harmful drugs into the country. Many of our children are into it, save Nigerian families from the destructive effects of these drugs,” he said. The Aare Ona Kakanfo of Yoruba land and leader, Oodua People’s Congress (OPC), Alhaji Ganiyu Adams in his speech appealed to the Federal Government to reduce duties on essential goods to encourage sincere declarations and to reduce the attendant hardship on Nigerians. Earlier in his speech, the Chairman, Board of Trustees (ANLCA), Chief Henry Njoku commended the outgoing national executive led by Prince Olayiwola Shittu for a job well done. He said, “you have no doubt written your names in gold in the sand of time. Eight years ago, you mounted on the sadd le; look i ng “back, one has many reasons to congratulate you for this is first time in many years we are having a smooth and successful transition without rancour or illfeelings. I consider this as one of your greatest achievements - the legacy of peace.”
“To the incoming national executive, I congratulate you. No doubt, the task ahead will be tough. However, I trust capacity, intelligence, political and moral will to deliver on your mandate.
“To achieve this, you must work as a team driven by passion to serve. You must at all times, do the right and good to all. Remember, you were not elected to serve any tribe or religion,” Njoku said. In his speech, one time president of the association, Mr. Ernest Elochu k w u, ex tol led the achievements of the outgoing president. He congratulated the new President and admonished him to “use talent where you see them. You have been elected to project, ANLCA, please go ahead with this mandate and take the association to the next level. Also speaking, the outgoing President, Prince Olayiwola Shittu thanked members of the association for the opportunity to serve as well as the cooperation his team enjoyed while his tenure lasted. According to Shittu, ANLCA has come a long way and through its various achievements has distinguished itself as a professional organisation. He noted that “Election in ANLCA has become an envy of the nation.” The new president, Mr. Iju Tony Nwabunike in his speech commended the executive and pledged to work hard with his team to reposition the association. He promised to enhance operational efficiency of the group, focus attention on members’ welfare, training and professionalism. “We will provide a platform for better service delivery. Professionalism will form the basis of our operations. We are committed to making ANLCA a true professional body,” Nwabunike said.
Orient Energy Review Vol 7 No. 05 May 2018 37
WOMEN IN ENERGY
M
Women Work twice as Hard for Impact - Maseli
rs. Pat Maseli is the Head, Upstream Monitoring and R e g u l a t i on in Depar t m en t of Petroleum Resources (DPR) - Nigeria’s hydrocarbon regulatory agency. Notably recognized as one of the few women to have made her mark within Nigeria’s male-dominated oil and gas industry, she is also revered for record-breaking achievements within the industry. A botanist turned geologist, Mrs Maseli, is also the first Steering Committee Chairman for Women in Geosciences and Engineering (WiGE), an offshoot of NAPE. During this interview with Oge Obi, considering the position of women in the energy sector and the demands on them for successful impact, she expressed the view that, “for women to occupy their rightful place in the industry, they must work twice as
hard and be exceptionally competent to remain relevant.” Excerpts.
How did your career in Geosciences start? This is an interesting story, which I always love to tell. After obtaining my Higher School Certificate of Education (HSE), my ambition was to become a medical doctor. For a variety of reasons, this did not occur and I was admitted to read Botany at the University of Benin. Botany was not a popular course but I accepted the offer with the hope of reverting to medicine after a year. However, I excelled in the subject and as a result, my request to revert to medicine was rejected by the Dean of the faculty and so my career as a botanist began. Following the conclusion of my university degree, I enrolled in Nigeria’s mandatory National Youth Service Program and was posted to Rivers State. To my surprise, my
primary assignment was to NNPC’s Research and Development department. At the time when I joined, the newly created Environmental section was in the process of being established and they needed individuals with a background in biological sciences as part of the team. Despite my background being ideal for this post, the head of the department was also looking for additional people to join the geology laboratory. As a result, I was deployed to the palynology section of the geology laboratory. As with my degree, I demonstrated exceptionally high levels of aptitude within my position, which was highly commended by the team and thankfully, earned me a permanent position within NNPC. Upon taking up my position, I was deployed to the Petroleum Inspectorate arm of NNPC, which is today known as the Department of Petroleum Resources (DPR). Within this position, I was assigned to work as a geologist within the Conservation Department, known today as the Upstream Division, where my performance led to permanent retention within the team. I was extremely fortunate to be sent on several secondments to external organizations, including Shell Petroleum Development Company, the focus of which was to encourage hands-on training through all facets of exploration and production. This included exposure to both national and international operations, well sitting, work over operations, participation in drilling exploration within new fields, onshore and offshore site visits. During this time of gaining direct work experience and exposure within the industry, I chose to cement my development from an educational perspective by obtaining a Master’s degree in Petroleum Geology from the University of Port Harcourt.
38 Orient Energy Review Vol 7 No. 05 May 2018
www.orientenergyreview.com
WOMEN IN ENERGY What are some challenges you have encountered during the course of your career?
an “easy” profession. Passion and determination are required together with hard work to excel.
As a career woman, wife and mother, how have you managed the demands of career and family life?
The Industry was, and to a large extent, still is a predominantly maledominated sector. As a result, many of the facilities and programmes available to people hoping to forge a career in the industry were designed to be specifically tailored to men. A primary example of this was during my time of visiting drilling rigs, where accommodation had been designed to support the primary needs of a male contingent. As a result, women were relegated to office spaces and other areas, which was neither practical nor acceptable. Thankfully, as more women entered the industry and the barriers were dismantled and adjustments were made to accommodate female geoscientists and engineers.
As a geologist, you must be prepared to keep learning and honing your skills. In doing this, you are sure to enjoy the rewards of a successful and fruitful career in geology.
There is a common saying that it takes a village to raise a child. In the same vein, it takes a community to help build a career woman, wife, mother, sister and friend to strike the right balance in managing all of her obligations. My mother gave me tremendous support with my children which meant that I was able to focus on my career. My husband was also another critical success factor for me. He was willing to make sacrifices to ensure that both our careers progressed; from helping with homework, attending school events, and both of us living on two different continents. He was and remains a strong pillar of support. For this reason, I would emphasize to young women the importance of choosing a partner who is committed to guaranteeing your success in your career. Together, these factors have all contributed to the right work-life balance; setting priorities, adequate planning, support, communication and working as a team.
Challenges and barriers were not only literal and physical but also societal and psychological. As a result of the low number of women within the industry, there were fewer female mentors available to assist women in their development and progression through the ranks. This meant it was harder for women to enjoy exposure to opportunities, capacitybuilding and training programs, especially those opportunities which allowed for international exposure and development. The direct consequence of this being that women often had to work harder than their male counterparts to prove themselves. Despite this, I would say that my determination, hard work and the support of some very select individuals allowed me to thrive as an individual, receive the training I needed and ensured that I was able to reach the levels I have today. How competitive is the field of geology?
Geology offers an opportunity to be part of a diverse, demanding and consistently challenging profession. As with many different fields, in order to remain professionally successful, you need to ensure you are in high demand which will be based on your technical skills and knowledge. The field is very competitive and it is not
www.orientenergyreview.com
How did you handle the issue of integrity in your early days as a young professional? It is often said that integrity is doing the right thing even when nobody is watching. As a young person in the petroleum industry, your integrity will be put to the test. There could be pressure to release confidential information to various companies, circumvent procedures or overlook wrongdoing. The challenges are ample. Growing up with a strong Christian background, the importance of demonstrating integrity was instilled in me at a young age. This helped me develop my own code of conduct and ethics which aided me in doing the right thing at all times. Beyond my religious beliefs, I believe that a professional career is a marathon and not a sprint. By taking a long-term view of my career, I was able to always choose the right path rather than looking for short-term gains. Within the Nigerian oil industry in particular, which can sometimes be a close-knit community, a reputation as a person of integrity can help advance your career, whilst the contrary view can close many opportunities. How many years have you worked within the sector for? My experience in the petroleum industry spans 34 years. This i nclude s ti me spent at the Department of Petroleum Resources where I started my career and excludes the one year of National Youth Service. During this time, I took two years leave of absence to help my family relocate to Austria when my husband started work at the United Nations.
What do you think is the difference between Nigerian career women and their counterparts in the western world? We come from a traditionally patriarchal society, with strong ideas about what a woman should say, how she should behave and what her place is. Although society is evolving and more women have joined and are taking up leadership roles in the workforce, many of the beliefs about the role of women still persist. For this reason, the Nigerian woman has to be both firm and flexible – standing her ground while taking cognizance of societal expectations. This is probably not much like her western counterparts, however, the roles are more clearlydefined here, and thus balancing the act is especially crucial within the Nigerian context. This tension often leads to conflicts, the use of terms such as “iron lady” or the sidelining of women. As such, Nigerian women need to exercise a great deal of emotional intelligence as well.
Orient Energy Review Vol 7 No. 05 May 2018 39
WOMEN IN ENERGY As the Head of Upstream Monitoring and Regulation in DPR, how has it been meeting up with the demands of your job of evaluation of applications and granting of licenses, permits, and approvals? As you are aware, the industry is dynamic with new technology constantly evolving, which can be highly capital intensive. Therefore, you must be well positioned to be able to discharge your duties as a worldclass regulator operating in a dynamic environment. You have to be abreast of new or emerging technologies, arrange for their presentations to UMR staff for their understanding and application if necessary. If the technology is viable, then we take it through the process of adoption/ acceptance by the Department. We constantly review existing guidelines applicable to the Division with a view to updating them to close any gap. We have developed standard operating procedure (SOP) for the evaluation of all application resubmitted to the Division in order to shorten processing time and improve efficiency. Engagement of oil companies in technical meetings and workshops has also helped in improving understanding both for staff and the operators. Creating a harmonious environment in the Division to foster good relationship among staff does encourage a team spirit on the job.
What new approaches did you bring on board as you assumed office? As an individual, I like to take my time to review my environment and see how current processes and practices are functioning before onboarding a new approach or system. Often your greatest assets are the individuals in your team and the understanding they possess of their working environment and job roles.
A direct consequence of these actions was that we were able to create a collaborative and successful work environment, increasing productivity within the workforce. From a more procedural perspective, once the team was functioning in a more harmonious manner, we were able to identify that some of our guidelines were obsolete and in need of review. Furthermore, we developed more effective standard operating procedures (SOPs) for evaluating applications for various activities with a view to reducing processing time and improve our efficiency. As one of the few women in a managerial position in oil and gas, can you estimate the percentage of women players in this industry? The number is quite low. It is less than 20% even with some contributions from the private sector. The oil and gas industry is still overwhelmingly male-dominated. We hope both indigenous and international oil companies will help improve and shore up the numbers.
What can be done to break gender barriers in the
industry? Historically, women have been very unaware of the oil and gas industry. Knowledge of the sector was limited, exposure to opportunities for them was sparse and as such, having the basic knowledge of how to pursue a career in the sector was limited. In fact, there were often some job roles that were dedicated to women such as secretarial work, teaching, being a nurse or engaging in a smallscale business that would have had little interference with their ability to manage the family. In today’s professional world, gender equality is a topic on everyone’s lips and as such, more of a focal point for women and employers alike. However, one question we must ask ourselves is;
“
Are the barriers women face at work self-imposed or dictated by the work environment?”
It is important for women to be empowered with the right attitude and confidence to tackle responsibilities and even go beyond. We need to start being the voice at the table, overcome hesitation and be vocal about what we are thinking and put out the signal that we are in the race too. Women must strive and be encouraged to have the determination to achieve goals of attaining executive/management level positions in their respective organizations. Presently, I am the Steering Committee Chairman for Women in Geosciences (WiGE). Our strategy is to visit primary and s e c onda r y school s and introduce young women to the industry f rom va r ious perspectives,
That being said, there were some skills which I chose to develop within my team. For example, we took time to identify the gaps and areas of improvement in upstream operations. In doing this we were able to identify team members who would benefit from training and capacity building programs and facilitate them taking part in these sessions.
40 Orient Energy Review Vol 7 No. 05 May 2018
www.orientenergyreview.com
WOMEN IN ENERGY ranging from geology to engineering. etc. By doing this, we hope not only to encourage young women to begin considering the sector but to also encourage them to choose to study subjects that can help them enter the industry in the future. At the NAPE ICE, WiGE event, we hosted over 250 participants, mainly female students. Eventually, we are going to raise that number from what it is now. With the teeming population of female geologists, engineers, and geophysicists that I am seeing here, I am sure we will be able to increase the proportion of women occupying strategic positions in the very near future. What should be the government’s role in this? We need more women to be in charge. The government should create a clear avenue through which more women can come on board. For instance, we have not had a female GMD of NNPC or a female director of DPR. They need to open that up because there are women that are well-qualified to occupy these positions. I believe we will make a lot of difference in the industry if women are given a chance to head these big governmental organizations. What would you consider as breaking the glass ceiling for the women in this industry? A glass ceiling is a metaphor used to represent an invisible barrier that keeps a given demography, in this case, women, from rising beyond certain hierarchy. In many professions, a woman cannot break through the glass ceiling to the upper level of management. In recent times, we have begun to see the trend reverse. One could even say that we are experiencing a paradigm shift. This is especially the case in the private sector where a few women have managed to climb the ranks to become Managing Directors and Chief Executive Officers of various companies. Such progress has trickled into the public domain, albeit slowly. In the Petroleum Ministry for example, we have had a few female permanent secretaries who have left behind a track-record of excellence. We look forward to welcoming more females playing key roles. There are plenty more glass ceilings to crack. Beyond oil and gas, what other industry can these female geologists or women in geosciences fit into? Although the oil and gas industry remains lucrative, the next frontier of
www.orientenergyreview.com
opportunities lies in mining of solid minerals. Nigeria is blessed with a wealth of mineral deposits ranging from gold, iron ore to uranium. As the oil industry is saturated with geologists and unemployment continues to loom, they should begin to gravitate towards the mining industry, using their expertise to make it more lucrative. What is your message to the girls? Firstly, to get into the industry, it is important they make the right educational choices. STEM subjects (Science, Technology, Engineering and Mathematics) will give them the grounding they need to penetrate the industry. Taking the bold step to take these traditionally male-dominated subjects is the most crucial first step to changing the gender make-up of the industry. Mentors are also important for development in any career but especially the oil and gas industry. Whether you are a budding female geologist or engineer, going out of your way to find out about inspirational women in the industry and connect with them will give you guidance and support throughout your career. Finally, there is no success without hard work. So they will have to be competent in their areas of expertise but also be willing to work twice as hard as their male counterparts if they are to get to the top and break the glass ceilings.
the old refineries and build new ones. There is so much talk about modular refineries that will be short-term and a quick fix but this needs to be turned into concrete action. With 2.2 million barrels of oil being produced per day, we should be a refining nation. We have the capacity for 2.6 million barrels of oil per day but we will only achieve that if the challenges affecting the industry are resolved. Trad itiona l ly i mpor t dependent consumers like the United States are increasingly on the cusps of energy self-sufficiency, while we still need to export some of our crude to cater for our foreign exchange requirements, we still need to meet the demands of our teeming population. This will require full deregulation of the downstream sector and liberalisation of the market. Effective implementation will be imperative to achieving the roadmap.
What is the roadmap for the Nigerian oil and gas industry in a diversified economy? The roadmap for Nigeria’s energy sector is grounded on the recognition that oil and gas are critical for its economic growth. This was captured perfectly by the 7 Big Wins presented by the President in 2016, which has the objective of revamping the Petroleum industry. It is hoped that this will, in turn, create wealth and add value to the citizenry. Efforts should also be made to address security-related issues, to review the development of the oil-producing regions and to review and develop policies and regulation with a special focus on revamping the gas sector and curbing waste. Steps have already been taken in pursuance of these goals. The gas commercialization project, for example, must be lauded for its effort to convert gas taken at flares into useful energy. Apart from the economic gains it will provide, it will also reduce CO2 emissions and reduce environmental pollution. The Department of Petroleum Resources estimates that all flares will be extinguished by 2020. Drastic steps should also be taken to fix Orient Energy Review Vol 7 No. 05 May 2018 41
GLOBAL PETROLEUM SHOW NORTH AMERICA’S LEADING ENERGY EVENT
JUNE 12-14, 2018 C A LGA RY, C A N A DA
CELEBRATING THE F U T U R E O F E N E RGY GPS FAST FACTS 1,000+
150
Exhibiting Companies
Expert Speakers
460,000+
10
1,500+
50,000+
Gross sq ft
Conference Delegates
NOCs
30
IOCs
Attendees
REGISTER TODAY G LO BA L PE T RO L E U M S H OW. CO M / E X H I B I T 42 Orient Energy Review Vol 7 No. 05 May 2018
www.orientenergyreview.com
EXPLORATION & DRILLING
FAR Awards Contract To Stena Drilling For the Samo-1 Well Offshore the Gambia
By Anthony Okafor
well positioned to achieve solid operating performance in The Gambia.
F
AR Limited has awarded a drilling rig contract to Stena Drilling. Stena Drilling will provide and operate the Stena DrillMAX drillship to drill the giant Samo prospect offshore, The Gambia, scheduled for late 2018. FAR’s Managing Director Cath Norman said: ‘We are delighted to make this announcement as the Stena DrillMAX was our rig of choice given it completed a highly successful, efficient and under budget drilling campaign for our Senegal joint venture in 2017’. ‘FAR has secured the rig at a very attractive operating day rate which is in line with 2017 rates. The FAR drilling management team consists of several personnel involved with the Senegal joint venture’s previous drilling campaigns. In securing many of these core team members in conjunction with the Stena DrillMAX, we are
www.orientenergyreview.com
This is a positive milestone for FAR as we prepare to drill the Samo-1 well later this year, the first well offshore The Gambia for 40 years.’ The Samo-1 exploration well has a primary target which FAR estimates to contain a best estimate prospective resource of 825 mmbbls of oil*. The prospective resource estimates for the Samo-1 well are outlined in Table 1 (below). The Samo prospect has two target intervals, is on trend and shares many similarities with the giant SNE oil field. As such it is very highly rated with an estimated chance of success (CoS) in one or both targets, endorsed by RISC, of 55%. It is rare to have an exploration prospect with such a high CoS but this reflects the adjacent discovery at SNE and the confidence FAR Limited has developed in exploring in the play fairway which is yet to experience a dry well. Drilling of the Samo-1 well is expected to commence in late 2018. FAR Gambia Limited, a wholly owned subsidiary of FAR limited, is operator of the Gambia Block A2 Joint Venture and has awarded the drilling rig contract to Stena Drilling. Stena Drillmax
dynamically positioned DP class 3 drillship capable of drilling in water depths up to 10,000’.
General Features: *Dynamically positioned DP Class 3 drillship *Capacity up to 3,000m water depth and 10,700m drilling depth *Length: 228m, Width: 42m *Accommodation 180 persons *Dual hoisting mast and drilling tower *Two BOP systems *85,000 barrels of crude storage capability
Stena Stena AB is one of Sweden’s biggest family-owned companies. Stena Drilling, based in Aberdeen, Scotland is a leading global independent drilling rig operator, focusing on high specification drilling units for harsh frontier environments. Stena Drilling has had an active role in the building and conversion of rigs whilst also pioneering some of the most leading-edge technologies and innovations in the drilling world.
The Stena DrillMAX is a state of the art, dual mast, dynamically positioned, deep water drill ship with a rig crew that has extensive international and regional West African experience. The Stena DRILLMAX is a harsh environment
Orient Energy Review Vol 7 No. 05 May 2018 43
EXPLORATION & DRILLING Morocco: SDX Energy Announces Major Discovery of Natural Gas and Condensate
Ghana: TEN’s First Gas Sale Will Be Executed In June
E
xploratory firm, SDX Energy, has announced a new discovery of natural gas on its LNB-1 exploration well, located on the Lalla Mimouna permit in Morocco. This is the sixth discovery of SDX, as part of its nine-well drilling program. It is also the eighth well drilled in the countryside. LNB-1 was drilled to a depth of 1861 meters and allowed the tanks to come into contact with two hydrocarbon formations. The first is a 300-meter column in the Lafkerena sequence. At this level, the resulting gas load showed a porosity of more than 20% with, in multiple sections, a porosity greater than 50%, explains SDX. The gas found in this column showed hydrocarbon components heavier than those found since the beginning of the campaign, which reveals the presence of a source rock of thermogenic hydrocarbon. This led the British company to conclude that the work allowed it to reach a new oil system. According to SDX’s management, the uncompromising average preliminary gas volume is 10.2 Bscf and 55,000 barrels of condensate. In the second sequence, Upper Dlalha, SDX intercepted 2.6 meters of conventional net sand with an average porosity of 33%. Paul Welch, SDX’s boss, said his company is very happy, as the results have exceeded expectations. The schedule for testing this section has not been finalized and will be updated in the future. The drilling platform will be moved to the LMS-1 well Lalla Mimouna North, the last of the SDX campaign in Morocco.
O
n Wednesday, 25th April 2018, the independent oil company Tullow Oil said that the first sale of natural gas produced on the field TweneboaEnyenra-Ntomme (TEN), will take place next June. This is reflected in its current Annual General Meeting. The field, which came into production in August 2017, produces just over 23,000 barrels of oil per day for a capacity of 80,000 barrels per day and natural gas. Tullow’s press release did not specify who will be the first buyer or the volume concerned. For the moment, observers believe that the government is in the starting block for the supply of its plants that are dependent on Nigeria. Updates on this issue will be published soon.
the Americans Kosmos Energy and Anadarko with 17%. The Ghanaian state with 15% and finally the South African Petro SA with 3.82%. In addition, the company reported that on its Jubilee field, the damaged turret has been stabilized. A new field closure for one week is planned for the end of 2018. This will help the FPSO to reach its maximum power. Tullow’s average world oil production was 87,700 barrels of oil equivalent per day. Forecasts for the full year range from 82,000 to 90,000 b / d of oil and gas production from operating units is 3,500 to 4,500 boe / d.
Courtesy: www.agenceecofin.com
Tullow is the operator of TEN with a 47.18% stake. Next are
44 Orient Energy Review Vol 7 No. 05 May 2018
www.orientenergyreview.com
EXPLORATION & DRILLING
Gabon: Vantage Drilling Announces Contract with Total for the Topaz Driller
V
antage Dr i l l i ng International has enter e d i nto a contract with Total Gabon for its premium jackup rig, the Topaz Driller, to perform drilling services in Gabon for an estimated term of nine months with additional optional periods. Ihab Toma, the Company’s Chief Executive Officer, commented saying: ‘We are very pleased to announce this contract with Total for the Topaz Driller in Gabon. This contract will provide continuity for the Topaz in West Africa, and further
justifies our mobilization of the Topaz Driller from Asia to the region. The Topaz continues to prove that Vantage is a leader in safety and operational Source: www.energy-pedia.com performance. We look forward to continuing to work for our esteemed client, Total.’
Nexans to Provide Umbilicals for BP’s Mad Dog 2 in GoM 1,280 m to 2,160 m to con nect the f ield to the F loati n g Production Unit (FPU).
B
P has selected Nexans to supply umbilicals for the second stage of the Mad Dog field development in the Gulf of Mexico. Within an existing five-year frame agreement, BP has ordered Nexans’ static and dynamic umbilicals and accessories that will be deployed in water depths from approximately
www.orientenergyreview.com
informed.
T he s c op e of work i nclude s three different umbilical designs integrating hydraulic, data and fiber optic services, Nexans
The electrical and fiber optic elements will be manufactured at Nexans plant in Rognan, Norway and the umbilicals will be developed, manufactured and tested at Nexans plant in Halden, Norway. Winifred Patricia Johansen, business development manager for the
Subsea and Land Systems business group at Nexans said, “We are committed to developing longlasting solutions in a strongly competitive environment and over the years we have delivered many projects together with BP, including projects in the Gulf of Mexico. This contract confirms the trust BP has in Nexans, and we look forward to a new successful collaboration for the Mad Dog 2 project.” The Mad Dog 2 project is a deepwater oil and gas production development located in the Southern Green Canyon area of Gulf of Mexico, approximately 320 km south of New Orleans, Louisiana. subseaworldnews.com
Orient Energy Review Vol 7 No. 05 May 2018 45
WGC2018_Delegate_210 x 297.pdf
1
15/02/2018
15:42
C
M
Y
CM
MY
CY
CMY
K
46 Orient Energy Review Vol 7 No. 05 May 2018
www.orientenergyreview.com
GHANA REPORT
Gas Supply: Ghana Owes Nigeria $160m
G
hana owes a total of $160m for gas supplied to its l a r g e s t p ow e r producer, Volta River Authority, from Nigeria through the West Africa Gas Pipeline, Business Day has learnt. N-Gas Limited, a company owned by the Nigerian National Petroleum Corporation, Chevron and Shell, buys gas from oil companies in Nigeria and transport it to Ghana through the $1bn WAGP. The pipeline, which is operated by the West Africa Pipeline Company Limited, was built to supply natural gas from Nigeria to customers in Benin, Togo and Ghana. N-Gas has an off-take agreement with Ghana to supply 120 million standard cubic feet of gas per day to the VRA. But supply to the country had fallen short of the contractual volume in recent years.
“
There is a current arrangement between the gas suppliers and the off-taker that the volume will be 60mmBtu,” the General Manager, www.orientenergyreview.com
Corporate Affairs, West Africa Gas Pipeline Company Limited, Harriet WerekoBrobby, has disclosed. She said the off-taker (VRA) had established a payment s e c u r it y a r r a n gement for gas consumed to halt “debt accumulation going forward.”
have not paid our bills. We owe them about GH180m; what do you expect them to do?
“There is still an outstanding debt of around $160m to be paid to the supplier, N-Gas, and it is expected that about $30m will be paid shortly,” Wereko-Brobby added. GhanaWeb recently reported that the volume of gas supplied to Ghana from Nigeria for power production had reduced by about 50 per cent. It said the situation had been attributed to the inability of Ghana to settle its long-standing debts as stipulated in the gas supply contract, and vandalism of gas pipelines in Nigeria.
In 2016, Nigeria saw a resurgence of militant attacks in the Niger Delta that caused the nation’s oil production to plummet to a near 30-year low and disrupted gas supply to power plants.
The Board Chairman, VRA, Kweku Awotwi, was quoted to have said: “We are at about half of what we have been contractually promised, which is not good enough. There are many reasons for that: the vandalism of pipelines and the fact that we
“
Now, we are getting the gas because the VRA is pre-paying for that gas. We are putting in Letters of Credit to get the gas.”
Commenting on the debt owed by Ghana for the supply of gas through the pipeline in May last year on the sidelines of an event in Badagry, the Managing Director, WAPCo, Mr. Walter Perez, has said: “We are delivering gas now because we have put arrangement in place for Ghana to prepay for the deliveries that they receive, and so that is working. We have every expectation that this will continue to work.” C o u r t e s y : h t t p://w w w. reportingoilandgas.org
Orient Energy Review Vol 7 No. 05 May 2018 47
GHANA REPORT
NPC Foundation Begins Community Entry Activities for Borehole Projects communities in the Western Region to benefit from the provision of boreholes. This is expected to alleviate the water and sanitation challenges in rural Ghana.
T
he GNPC Foundation has kick-started community engagements in the Western Region as part of its preparatory activities for the provision of potable drinking water to deprived communities across the country. For 2018 only, the Foundation has earmarked some 20 deprived
The Projects Manager at GNPC Foundation, Patience Lartey, said the community entry activities have been necessitated by the need to ascertain the veracity of the conditions of the selected communities, their water needs and to also introduce the project’s contractor among other details to the community leaders.
mandate in Environment and Social Amenities, will also see to the provision of 80 other boreholes in three northern regions and other parts of the country. The Environment and Social Amenities team has so far completed en gagement s w ith some 2 0 communities spanning 15 districts in the Western Region. These communities include Abuesi and Amenano in the Shama district, Limankrom in the Enchi Aowin district, Old Ankasa in the Jomoro district, Ellobankata in the Ahanta West District and Sayereso in the Juabeso District.
The intervention, which is one of many within the Foundation’s
GHC1.5billion TOR Money ‘Missing’ – Auditor General’s Report General report has disclosed. TOR’s management has not been able to offer any explanation for the withdrawal. According to the report, the failure of TOR’s Accountant to prepare monthly bank reconciliation statements resulted in the loss.
B
etween January and September 2015, an amount of GHC1, 561,434,333.31 billion was debited to the
48 Orient Energy Review Vol 7 No. 05 May 2018
petroleum revenue account at the Bank of Ghana without the knowledge of the management of the Tema Oil Refinery (TOR), the 2016 Auditor-
The A-G has, therefore, recom mended that the Accountant prepare monthly reconciliation statements to enable prompt action to be taken on such deviations, and also advised that the w it hd r awa l shou ld b e investigated and officials involved in the act sanctioned.
www.orientenergyreview.com
CORPORATE SOCIAL RESPONSIBILITY
Joint Winners of NLNG 2017 Nigeria Prize for Science reveals New Malaria Control Initiatives between NLNG and LCCI will endure and become an inspiration to Nigeria on what could be produced when resources are pooled together for common good. She condemned the poor attention given to malaria by Africans even when the scourge is felt more in the continent and wondered why foreigners are in the fore front to curb it. Akande, who was LCCI past president and former minister of industry, said that other organisations should take a cue from NLNG and contribute their own quota to the scientific and technological resolution of the many problems that confront Nigeria. The workshop was fruitful as joint winners for 2017 NLNG Prize for Science spoke on their innovations and continuing efforts to eradicate malaria in Nigeria and the world.
J
oint winners of 2017 Nigeria Prize for Science speak about their works at an interactive workshop organised by Nigeria Liquefied Natural Gas and Lagos Chamber of Commerce and Industry to mark World Malaria Day THE statistics is shock i n g and unbelievable. More than 200,000 Nigerians die of malaria every year. This means that malaria kills more Nigerians than the dreaded acquired immune deficiency syndrome, AIDS, disease which claims the lives of 160,000 people every year in the country. Nike Akande, member advisory board for the Nigeria Prize for Science reeled out the figure while commenting on the need for collaborative effort to fight malaria. Akande spoke at the interactive workshop with 2017 winners of the Nigerian Prize for Science on innovation in malaria control aimed at bringing the disease to the limelight as the world marks Malaria Day on April 25. The workshop was organised by the Nigeria Liquefied Natural Gas, NLNG, in partnership with the medical and pharmaceutical members of Lagos Chamber of Commerce and Industry, LCCI, in Lagos on April 24. In his welcome address, Babatunde Ruwase, president of LCCI, said that the workshop was to create awareness on malaria in Nigeria and across the globe. Ruwase, who was represented by Toki Mabogunje, deputy-president, Lagos, Chamber of Commerce and Industry, said that World Health Organization, WHO, statistics of 2016 on malaria showed that Africa accounts for 407,000 death cases out of the 445,000 in the globe. Consequently, the LCCI president urged African leaders to show more commitment to the fight against malaria. He advocated for private sector participation and
www.orientenergyreview.com
funding as government and global agencies could not do it alone.
“
I challenged all to give their supports in every way possible to fasten better stakeholder engagement towards getting more funding for the fight against malaria in Nigeria,” Ruwase said, adding that the chamber would remain committed to combating the disease in Nigeria. Alfred Akpoveta Susu, emeritus professor of Chemical Engineering and the chairman advisory board of the Nigerian Prize for Science, said that the essence of the workshop was to support the attainment of a malariafree and healthy population that would deliver the innovations and productivity needed to develop the country. He praised NLNG for helping to build a better Nigeria through promotion of science and literary works. Susu, who alongside Kingsley Abhulimen, won the maiden NLNG Prize for Science in 2004, said that Nigerian scientists all over the world heeded the wakeup call to demonstrate ingenuity in functional works. He said that $100,000 prize by NLNG to scientists and researchers from any part of the world are to help find solutions to problem in Nigeria. He described NLNG as a pacesetter and expressed surprise that other industrial giants in Nigeria are yet to join NLNG in promoting researches and scientific breakthrough. He announced that 2018 competition will be focusing on “Innovations in Electric Power Solutions” as the “Nigeria LNG and the advisory board for the science prize have set out to find solutions to our power problems through scientific research works.”
Chukw uma Ag ubata, lecturer at University of Nigeria and a joint winner with his work entitled: “Novel Lipid Microparticles for Effective Delivery of Artemether Antimalarial Drug Using a Locally-sourced Irvingia Fat from Nuts of Irvingia gabonensis var excelsa (Ogbono)”, explained how fat extracted from irvingia helped in the efficacy of malaria drug. He urged government, individuals and organizations to assist him to commercialise the product for the benefit of Nigeria and Africa. Also, Olugbenga Mokuola, a lecturer at the University of Ilorin and a joint winner with his work entitled: “Multifaceted Efforts at Malaria Control in Research: Management of Malaria of Various Grades and Mapping Artemisinin Resistance” explained the efforts he is making to ensure that artemisinin is effective for malaria. The professor of paediatrics said that he has inaugurated annual malaria lecture in the university to keep the world informed with recorded success. He advised that malaria could not be diagnosed by feelings but by testing, adding that there is a national guideline on treatment of malaria and diagnosis. Answering question from a participant on the best way to minimise fake drugs, Mokuola said that cheap and genuine drugs would solve it, urging the private sector to make it realisable. Bidemi Yusuf, also a joint winner alongside her group- Ikeoluwapo Ajayi and Ayodele Jegede – spoke about their work entitled “Improving Home and Community Management of Malaria: Providing the Evidence Base. Indeed, it was an interactive workshop as participants pledged to join hands to fight malaria. Courtesy: Reelnewsmagazine.net
According to Akande, the partnership Orient Energy Review Vol 7 No. 05 May 2018 49
LOCAL CONTENT
50 Orient Energy Review Vol 7 No. 05 May 2018
www.orientenergyreview.com
Africa Oil Week 2018 is the meeting place for Africa’s upstream oil and gas markets. The event brings together senior leaders of governments, national oil companies, investors, corporate players, independents and financiers from across Africa and beyond – giving them a place to network, discuss and share knowledge.
Join us to celebrate our 25th Anniversary in November. 5-9 November 2018
Cape Town International Convention Centre Cape Town, South Africa
info.africa@ite-events.com www.africa-oilweek.com
www.orientenergyreview.com
Orient Energy Review Vol 7 No. 05 May 2018 51
With Chevron’s approach to Nigerian Content,
Everyone Benefits...
At Chevron Nigeria Limited, ours has been an unwavering commitment to Nigerian Content Development. Ever before the enactment of the NOGICD Act, we have been giving preference to Local Community Contractors, empowering local competencies through training and facilitating partnerships between Nigerian businesses and foreign experts to build capacity. We have also sustained these businesses through work scope reservation. Today, we are happy to see several benetting Nigerian businesses and thousands of technical professionals thriving in the Oil and Gas industry. Proof that with CNL, when it comes to Nigeria Content, everyone benets.
52 Orient Energy Review Vol 7 No. 05 May 2018
www.orientenergyreview.com